SANCHEZ DISPUTES JULIET'S CLAIMS, UTB-TSC "COOPERATION"

(Ed's note: The recent campaign by the Juliet Garcia adminsitration to lay the blame for muddled attempts to provide student housing at UTB-TSC on the doorstep of the majority of the Texas Southmost College Board of Trustees is shown for the bald-face lie it is in this letter from local attorney Dennis Sanchez to the UTB-TSC administration and trustees. In his letter, Sanchez outlines the chronology of errors and deliberate deception that has led to a compliant Brownsville Herald story making it seem like the four trustees – Trey Mendez, Rene Torres, Adela Garza and Kiko Rendon – are to be blamed for the snafus perpetrated by President Garcia and the previous board majority. This letter was made available to the Brownsville Herald before it published the article on the student housing woes and the daily's reporters and editorial staff refused to acknowledge the facts contained herein. You, reader, decide.)

June 3, 2011
Texas Southmost College Trustees
80 Ft. Brown
Brownsville, TX 78520
Re: River Centre Lots

Dear Trustees,

I was present at your last meeting where the issue of property acquisition was discussed. The history of property acquisition by Texas Southmost College has been one of missed opportunities and uncoordinated purchases.

In 2001, JPI Student Housing, the largest developer of student housing projects in the United States ( an affiliate of GE Capital and Hunt Development), approached the University for the building of a studetn housing facility on eight acres within the River Centre Subdivision, which is exactly the location of La Estancia Apartments. The offer made by JPI to UTB-TSC was to build, at its sole cost, the student housing facility, to manage the facility for a 30-year term, to pay a "royalty" to UTB-TSC during the 30-year term, and, at the end of such term, to deliver free and clear title to the UTB-TSC. The proposal did not require UTB-TSC to invest one cent or to guarantee any indebtedness, or to make any financial commitment whatsoever. A sub-committee was appointed by the trustees. The sub-committee consisted of Messrs. (Chester) Gonzalez, (Eduardo) Campirano, and (David) Oliveira.

In response, UTB-TSC said no. Approximately two months later, UTB-TSC disclosed that it was instead beginning to negotiate for the acquisition of the Fort Brown Hotel properties, which were, in fact, purchased by the college at a significant price. Board members Oliveira and Robles should know the purchase price since they approved the purchase. The Fort Brown properties, as you know, were turned into student dormitories and now to refurbish them, it will take $14,000,000 or face demolition costs. If they are demolished and new housing built, in all probability that cost will be borne by TSC – not UTB.

I was surprised by the comments made by David Oliveira at the meeting, wherein he stated that UTB and TSC were working in a "spirit of cooperation." If, in fact, UTB is operating in that spirit of cooperation, then why did it not advise the trustees of its acquisition of La Estancia Apartmetns? If the spirit of cooperation is continuing, then why has UTB not offered TSC the opportunity to become a partner in La Estancia Apartments? The "spirit of cooperation" is supposed to be a mutual responsibility.

One last comment, the long term acquisition of the lots along Jackson Street is truly a misguided endeavor. The college, in its past few acquisitions, has paid an average of $14.00 per square foot. The lots can only be used for the limited purpose of parking because they are not contiguous. It will take at least another ten to fifteen years to acquire enough lots to build adequate parking or have enough space for a building. At present, the college simply owns a checkerboard of lots.

The trend by the former boards of purchasing old buildings to refurbish and/or demolish has cost and will cost taxpayers substantial amounts of money.

The offer made for the River Centre lots provides land at a cheaper cost, which land can be utilized immediately for either parking, student housing or university offices. Where will the TSC be ten years from now if it doesn't have room to grow? Is UTB simply trying to buy all of its land now so that it can grow?

Very Truly Yours,
Dennis Sanchez