Hooks ISD issues press release in regards to lawsuit with TexAmericas

PRESS RELEASE

HOOKS INDEPENDENT SCHOOL DISTRICT

In 2019, Hooks Independent School District (“Hooks ISD” or the “District”) had a chance to partner with

TexAmericas Center (“TexAmericas” or “TAC”) on an arrangement that seemed to make sense for everyone involved. TAC wanted to make its property more attractive to businesses considering locating in Bowie County. The District wanted to support economic development without giving away tax revenue that belonged to the schools. There was a way to accomplish both.

TexAmericas asked Hooks ISD to support legislation that would exempt businesses leasing TAC property from certain ad valorem taxes. Those businesses would instead make payments to TAC through a Payment-in-Lieu-of-Taxes, or PILOT, program. Hooks ISD was told TAC would return the entirety of the money it collected through the PILOT program to the taxing entities, protecting Hooks ISD and other taxing entities from most of the lost tax revenue. During a public board meeting on February 25, 2019, Jeff Whitten, then the TAC VP of Operations and Hooks ISD Board Vice President, made a presentation to the Hooks ISD Board on behalf of TAC. Mr. Whitten specifically represented to the Hooks ISD Board that TAC would remit all collected PILOT payments back to the District. Specifically, Mr. Whitten stated as follows:

MR. WHITTEN: So, what the TexAmericas, formerly Red River Development Authority, now TexAmericas, is doing, is we’re seeking legislative change to make property owned by TexAmericas tax-exempt.

MR WHITTEN: [T]enants, prospects, anybody that comes in and leases property from us, we’re going to put together – TexAmericas are going to put together a PILOT program which basically stands for Payment In Lieu of Taxes……And right now, as indicated on the next to last line, we’re looking for that payment to be 90 percent of what the real property records or taxes are.

MR. WHITTEN: So TexAmericas Center has legislation that’s been endorsed by Senator Hughes, the State Senator for our district, and one of the things that he has requested is a resolution passed by the different taxing entities in Bowie County that would be in support of this so this can move forward.

MR. WHITTEN: [W]hat would happen is those entities would pay to TexAmericas, and TexAmericas would then cut a check to the school district in that amount.

MR WHITTEN: This is Eric Voyles. Eric Voyles is the Chief Economic Development Officer for TexAmericas Center and he’s here to make sure that I am telling y’all the truth.

Scott Norton, TAC CEO, later reaffirmed that promise in writing to Hooks ISD Superintendent of Schools, Keith Minter. Specifically, Mr. Norton stated as follows:

At the time this was in place [referring to the Special Legislation], TAC agreed to put a PILOT Policy in place, charge each existing business 90% of their ad valorum [sic] taxes they were paying to each of the taxing entities on our property, or a 10% discount as an incentive to locate on our property, and then TAC would give the entire amount back to the taxing entities.

Hooks ISD trusted TAC, took them at their word and supported the legislation. TAC got the legislation, but the District did not get the deal it was promised. Instead of returning the PILOT money as represented to the Hooks ISD Board, TAC created a program that allowed it to keep most of the money for itself.

When Hooks ISD eventually went to court in 2024 to hold TAC accountable, TexAmericas did not defend its actions before a judge or jury. It argued that, as a governmental entity, it was immune from the lawsuit. That argument ultimately worked. The Texas Supreme Court has declined to review the appellate court decision dismissing Hooks ISD's case, which means TAC will not have to go to trial and answer for what happened.

The Texas Supreme Court’s decision not to review the Court of Appeals’ decision does not change the fact that TAC failed to honor its promises to the District. This was not a handshake deal or a private conversation that no one can prove happened. TAC’s promises are part of the Hooks ISD public record.

Hooks ISD relied on TAC’s assurances in supporting the legislation. TAC secured the tax exemption it needed because of Hooks ISD’s support and gained a new incentive it could use to recruit businesses to its property. Then the arrangement changed.

Had TAC told the District’s Board in 2019 that it planned to keep most of the PILOT revenue for itself, Hooks ISD would not have supported the legislation. It would not have made financial sense for the District or its taxpayers.

The Part That Is Hard to Accept

TexAmericas Center is not a private company. It was created by the State of Texas and is, under state law, a governmental agency and political subdivision. Its purpose is to redevelop former military property, attract businesses and jobs, and promote public welfare. That makes what happened even harder to accept.

A governmental entity asked another governmental entity for its help. It made specific promises about how public money would be handled to get that help. Hooks ISD acted in good faith. Then, once TAC had secured the legislation, it did not follow through on those promises.

And when the district tried to hold TAC accountable, TAC used the protections that come with being a governmental entity to keep the case from ever reaching a trial.

No court has ruled that TAC kept its promise. No court found that Hooks ISD misunderstood the arrangement. No judge or jury heard the evidence and concluded TAC acted appropriately. Those questions were never decided because TAC successfully argued it was immune from having to answer them.

That distinction matters, especially if TexAmericas attempts to portray the dismissal as proof that Hooks ISD was wrong. Hooks ISD believed it had the facts right. And then another governmental entity took taxpayer money, broke its promises, and walked away without ever having to answer for it in court. That may have been enough to end the lawsuit, but it does not change what happened. Hooks ISD stands by what it said from the beginning: TAC made promises, Hooks ISD relied on those promises, and TAC did not keep them. Taxpayers have every right to know how this happened and why they were left footing the bill.

Our Taxpayers Deserved Better

TexAmericas was created to serve the public. With that should come an expectation of honesty, transparency and accountability, particularly when dealing with another public entity and money that would otherwise support local schools.

Hooks ISD understands why TAC wanted the legislation. The District supported the goal of bringing businesses and jobs to Bowie County, and the arrangement presented gave everyone something. Businesses got an incentive and TAC got another economic development tool. Hooks ISD could support that effort knowing most of the tax revenue would still come back to their schools.

That was a reasonable partnership and it could have worked to everyone’s benefit. What Hooks ISD could not have reasonably expected was that TAC would secure the District’s support based on one arrangement, implement another, and then use governmental immunity to avoid defending those actions in court.

TexAmericas may have won the legal argument over whether it can be sued. It did not prove it kept its word, and the Hooks ISD community deserves better.

Review the Source Documents

Hooks ISD encourages members of the community to review the underlying public records rather than relying solely on anyone's characterization of what occurred. These records provide the history of the agreement and TAC's representations so taxpayers can review the facts for themselves.

● The February 25, 2019, Hooks ISD Board meeting transcript

● The February 25, 2019, Hooks ISD resolution supporting the proposed legislation