The removal hearing of Corpus Christi Mayor Paulette Guajardo — now expected to double in length — opened July 22 with an attorney presenting videotaped depositions taken as part of a related private civil lawsuit.
The depositions shown to City Council members were taken as part of a lawsuit filed by hotelier Ajit David, which seeks to invalidate a tax incentives agreement that plays a central role in the hearing.
It was the first of two days that petitioners will be making arguments that Guajardo should be removed as Corpus Christi mayor, their case presented to City Council members Gil Hernandez, Carolyn Vaughn, Eric Cantu, Sylvia Campos, Kaylynn Paxson and Mark Scott.
The removal hearing is based on petitioners’ accusations that Guajardo had improperly pursued approval of an ordinance that awarded $2 million in tax incentives for a downtown hotel, while also being aware of allegations that the developers had used misleading materials when requesting the funds.
Doug Allison, the attorney representing petitioners — one of whom is David — asserted to the council members who will act as judge and jury in the case that the “mayor was the city’s leadership through a corrupt process” that ultimately led to the tax incentives agreement for a new Homewood Suites in 2024.
“We’re here because documents were forged and altered and tampered [with] and because even after the mayor found out, she insisted that the matter be approved,” he said.
She had “willfully neglected her duties in order for her friends to get the grant,” Allison said.
Guajardo has denied all allegations, including accusations of misconduct.
Addressing the panel, Guajardo acknowledged disagreements among council members but stated there was “a profound difference between political disagreement and the exercise of extraordinary governmental power.”
“Years from now, people may not remember every ordinance we passed, every budget we adopted or every disagreement that occurred on this dais,” she said. “But they will remember whether this council strengthened the public’s confidence in our institution or whether it diminished it. This hearing and the outcome will be indelibly imprinted in the history of the city.”
Attorney’s arguments
Allison in his opening statement referenced a now-well-known screenshot used as part of a presentation given by developers that had been altered. He contended that dates, and a release number, of a U.S. Federal Emergency Management Agency news release had been intentionally covered with text boxes.
The screenshot, along with statements made in the presentation by developers, “is a corruption by definition,” Allison said.
Developers have also said the dates that don’t appear in the screenshot were the result of a formatting error and that there had not been intent to mislead.
John Flood, Guajardo’s attorney, asserted in his opening statements that the mayor had relied upon the experts’ advice and that at the time of the vote, there had been allegations made against the developers but no conclusions reached.
Putting the item on the agenda for public debate doesn’t amount to misconduct, he said, characterizing her support as for the project, not for the developers.
Articles of impeachment filed by petitioners allege that Guajardo had committed perjury in her deposition in David’s lawsuit.
Flood disputed that, asserting the mayor had not committed perjury and had been consistent in her testimony.
Neither a law enforcement nor an outside legal investigation found criminal wrongdoing in the matter.
Allison argued the hearing is not about a crime but is instead about misconduct, malfeasance, incompetence or willful neglect.
FEMA
Developers had been told that the only way they could receive tax incentives was for the project to be related to infrastructure, Allison contended.
The ask had initially been billed as driven by new changes to flood maps that required FEMA regulation compliance that hadn’t been anticipated, he said.
The screenshot in the developers’ presentation showing a news release announcing new flood maps had concealed the dates to support a timeline in which developers could say they had not been aware of the new maps, Allison asserted.
City Manager Peter Zanoni, in his video deposition, testified that he had informed the mayor of the allegations prior to the second vote.
Others, including David, have stated the same.
The original ordinance to award the incentives — which referenced the FEMA issues — was approved by the council on the first of two readings in February 2024, before city staff launched an investigation into allegations that the screenshot had been altered, witnesses said.
When the ordinance returned to the council for a second vote, language referencing FEMA had been removed and new language stated that “the $2 million is for ‘costs associated with the street level retail, public space and outdoor dining area,’” Allison told now-former Assistant City Manager Heather Hurlbert in the videotaped deposition shown to the council.
It was to provide clarification of the Type B Board’s recommendation, Hurlbert said.
The Type B Board oversees sales taxes for economic development. It approves contracts, which are then sent to the City Council for an affirmative vote.
Type B Board members had said they approved an incentives agreement not because of FEMA regulations but because the project was considered a catalyst for downtown, Flood said.
That’s why, when the ordinance returned to the council in April 2024, its focus was on revitalization, he said.
The depositions
There was no live testimony July 22; instead all testimony delivered was through video depositions in David’s case, all taken pre-2026.
They included those of Mike Culbertson, former Corpus Christi Regional Economic Development Corp. CEO; Alan Wilson, former member of a board that oversees tax incentives; Hurlbert; and Zanoni.
Flood had argued against the depositions taken in David’s lawsuit being admitted into the removal hearing, in part based on alleged hearsay.
Attorneys representing witnesses Flood had sought to depose said depositions are not part of the proceeding, he said.
The panel had approved amended rules expressly allowing the depositions to be included as part of the hearing, Allison said.
What’s next
Allison will continue to present the petitioners’ case July 23.
Depositions of Assistant City Manager Sony Peronel and Elevate QOF LLC developer Philip Ramirez — which had been listed as exhibits, according to attorneys — were not shown July 22. It’s possible those could be played July 23.
There’s also a lengthy list of witnesses shown in filings of people Allison may call for testimony.
They include Nueces County District Attorney Jimmy Granberry; several Corpus Christi Police Department staff members, including Chief Mike Markle; City Councilmen Everett Roy and Roland Barrera; City Attorney Miles Risley; and Guajardo, according to records.
It had initially been planned that the removal hearing in its entirety, including presentations from both sides, would be a two-day process.
At the conclusion of the first day of the hearing, it was decided that Guajardo’s arguments would be reserved for Aug. 6 and Aug. 7.
Flood on July 22 had renewed arguments against council members who had also been on the 2024 council slate serving on the panel — Hernandez and Campos — because they are witnesses, he has said.
Flood made similar arguments in June, and council members turned down his motion.
Allison pointed out that Flood had also made similar arguments to federal judges and been unsuccessful.
Barrera and Roy, who had been on the council in 2024, had previously recused themselves.
Kirsten Crow covers city government and water news. Have a story idea? Contact her at kirsten.crow@caller.com.
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This article originally appeared on Corpus Christi Caller Times: Here’s what happened on Day 1 of Corpus Christi mayor’s removal hearing
Reporting by Kirsten Crow, Corpus Christi Caller Times / Corpus Christi Caller Times
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By Kirsten Crow, Corpus Christi Caller Times | USA TODAY Network
