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Council passes $2 million incentive for developer amid controversial meeting

Council voted 5-3 to give the downtown Homewood Suites developers the money for economic development reasons.

CORPUS CHRISTI, Texas — By a slim 5 to 3 margin, with one member choosing not to vote, City Council passed what's become a controversial ordinance handing the developers of the Homewood Suites downtown project $2 million.

3NEWS reported that many hoteliers were upset about the deal because they felt the city had been given bad information by the developer.

”The council decided to move forward with the incentive you know it’s going to act as a catalyst for the downtown area,” Councilman Roland Barrera said.

That incentive also served as a lightning rod for controversy as council members tossed around accusations and placed blame on others. 

Councilman Everett Roy blasted EDC CEO Mike Culbertson over a presentation months ago where FEMA flood map changes affecting the project were presented to council despite the fact that the issue was dropped and the Type B board moved on to giving the developers $2 million instead for project enhancements. 

”I cannot sit there and allow a decision to be made based on incorrect information." Roy said during Tuesday's meeting. 

Culbertson responded, "I understand, sir, and it is our fault.” 

It was all over the $2 million incentive to the downtown Homewood suites project. Council had passed that on first reading back on February 20 with that FEMA presentation included. Competing hoteliers questioned aspects of the deal and the city manager launched an investigation. 

Pusley told City Manage Peter Zanoni in open session, ”You’ve had four weeks to come to us with answers on this and I put part of the blame on your department for dragging its feet.”

The Homewood Suites project is still under construction and will feature outdoor dining and street level retail shops.  This multi-million dollar project will be completed next summer. 

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