Several Corpus Christi City Council members shared their frustrations regarding Oak View Group, the company that runs the American Bank Center, during a council meeting July 15.
Timothy J. Leiweke, co-founder and CEO of OVG, was indicted on allegations of “orchestrating a conspiracy to rig the bidding process” related to an Austin university project, according to the U.S. Department of Justice.
The company and Legends Hospitality, a merchandising company, agreed to pay fines of $15 million and $1.5 million, respectively, “in connection with the conduct alleged in the indictment against Leiweke,” the DOJ’s email stated.
During the meeting, where City Attorney Miles Risley gave a short presentation about Leiweke’s indictment, council members Eric Cantu, Carolyn Vaughn and Kaylynn Paxson all expressed their anger on the issue.
A representative of OVG was not present at the meeting.
Cantu said he was disappointed by the lack of representation on the company’s part, and if he had the votes, he would “get rid of them.” Risley said a representative was likely not present because of the legal challenges OVG is currently facing.
Cantu had previously called for OVG to select high-profile attorney Thomas J. Henry as the naming rights partner for the American Bank Center because Henry was the highest bidder. OVG instead selected Corpus Christi-based Hilliard Law as the finalist for the rights last month.
“I’m just disappointed with them,” Cantu said of OVG. “First, with the naming rights. I think they screwed over the taxpayers. (They) left a lot of money on the table, and then this happens.”
The councilman asked Risley how much it would cost the city to terminate the contract it has with OVG, to which Risley said he was unsure. Risley said the contract will expire in 2027.
Cantu asked Risley when would be the best time to start searching for a replacement to manage the American Bank Center and to inform OVG about the city not wanting to renew its contract. Risley said it would be best to start planning a year in advance.
Vaughn said she is upset the city is doing business with OVG while it has a sullied reputation and that Corpus Christi is “stuck” because of the contract.
“I recognize it was an individual hired within the company, but nonetheless, that was a top member of that company,” Paxson said. “It is disheartening to work with them.”
Assistant City Manager Heather Hurlbert said OVG is scheduled to present an update on its happenings to the City Council in August. She said she will make sure to get answers to the council’s concerns ahead of the meeting.
Corpus Christi Mayor Paulette Guajardo said the council will be watching OVG closely due its CEO’s indictment.
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John Oliva covers entertainment and community news in South Texas. Have a story idea? Contact him at john.oliva@caller.com.
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This article originally appeared on Corpus Christi Caller Times: ‘Disappointed’: Corpus Christi council members share anger with OVG after CEO’s indictment
Reporting by John Oliva, Corpus Christi Caller Times / Corpus Christi Caller Times
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