TAFT, Tx — 6 Investigates has uncovered details of a potential economic development deal between the City of Taft and DRL Refineries LLC that has raised significant concerns about transparency.
During a February 4 City Council meeting, DRL Refineries representatives met with city officials in an executive session, presenting a proposal that goes far beyond a typical business development agreement, according to one public official.
According to an email sent by a DRL representative to members of the council and city officials on February 5, the company offered the city $3 million in "discretionary spending each calendar year, towards specific social projects." The initial project appears to be a well water and treatment system at the refinery, potentially sized to supply Taft City as well, though the economic feasibility is still to be confirmed. This offer immediately raised questions about the nature and strings attached to the proposed funding.
The proposed deal includes several unusual conditions beyond the discretionary spending. These stipulations require maintaining strict confidentiality about the meeting's discussions, demanding a performance assessment of City Manager Ryan Smith, and mandating public endorsement of Smith by the Mayor and City Council.
The proposal also requires that Police Chief John Landreth publicly support Smith in an open session and grant Smith full control over city operations and personnel matters. Landreth expressed his bewilderment, questioning the connection between these personnel demands and the refinery's business interests. "I'm concerned about what the chief of police endorsing the city manager has to do with the refinery setting up business," he told 6 Investigates. "It makes no sense to me."
Council Member Isaiah Garza had previously called the plan "a win-win," but other officials are less convinced.
Ward 1 Council Member Elida Castillo, who attended the remote executive session, shared deep concerns. "It went from an economic development opportunity to something that was a little bit more demanding," Castillo said.
Castillo met with company representatives outside of that executive session, during which the project was once again discussed. She said when she raised health risks during this conversation, a DRL representative was dismissive and said, "With Texas and with President Trump being in office, that's not really something that we're concerned about."
Castillo worried about outside interests potentially dictating city council actions, emphasizing that these decisions should be made by public servants accountable to their citizens.
Local resident Ben Rios viewed the stipulations as an attempt to humiliate the police chief. "We want to humiliate you. We want you to bow down and kiss the ring. But what is the purpose of that?" Rios questioned.
The controversy is set against a backdrop of ongoing tensions within the Taft city government, including a third attempt last week to terminate Police Chief Landreth after he began investigating allegations of overtime misuse and misappropriated funds. Two former employees have already been arrested and charged with multiple felonies.
When KRIS 6 News reached out to City Manager Ryan Smith for an interview to explain the funds offered by DRL Refineries and what is expected from the city for these monies, he declined, providing a written statement: "The City of Taft does not make public statements regarding economic development opportunities or discussions. As a matter of policy, the City maintains confidentiality in all economic development matters to protect the integrity of potential negotiations, respect the privacy of involved parties, and ensure the best interests of the community."
DRL Refineries offered a brief statement: "DRL Refineries, LLC has a significant refinery development planned for San Patricio County near the City of Taft. We believe this development will be beneficial to the local community and we are working closely with the City of Taft Council and City Manager. In the 2nd Quarter, we will be providing an updated briefing to the city, county, and the local community on our development activities and the anticipated opportunities for employment and City infrastructure."
KRIS 6 News has requested further clarification from DRL Refineries about the $3 million discretionary spending and how it can be considered truly "discretionary" if it is earmarked for specific social projects. As of publication, the company has not responded to these additional inquiries, leaving many questions unanswered about the proposed deal and its potential implications for the City of Taft.
6 Investigates also asked DRL to respond to residents concerns that the latest attempt to terminate Landreth is connected with the stipulations outlined in the email sent to council and city staff.
However, the company has not yet responded to that inquiry.
