CORPUS CHRISTI, Texas — Tensions have escalated in Corpus Christi as city leaders and venue management face scrutiny over the ongoing negotiations for the American Bank Center's naming rights.
Last week, District 3 Councilman Eric Cantu directly challenged OVG360, the venue's managing company, about their claims regarding potential naming rights partner Thomas J. Henry.
"I understand, at one point, you [OVG360] reached out to Thomas J. Henry. You say you didn't. I'm looking at an email from your staff and a proposal. I was lied to back there and I don't appreciate that," Cantu told Danny Melise of OVG360 during last week's council meeting.
Melise initially claimed they did not reach out to Henry, stating, "The question you asked was 'Did we initially reach out?' The answer is still no."
However, Thomas J. Henry contradicted this statement, telling KRIS 6 News, "OVG reached out to my director of Public Relations, Ruben Herrera, and asked us to be a naming sponsor. That's had to have been about 6 to 8 months ago."
Cantu further stated he believes the American Bank Center is not bringing in revenue city leaders initially intended. Essentially walking away from millions of dollars by not moving forward with the alleged initial proposal sent to Henry.
WATCH THE FULL INTERVIEW WITH THOMAS J HENRY HERE
A major point of contention is the legality of the recent executive session where naming rights were discussed. Some council members, including Cantu, raised serious concerns about the meeting's conduct.
While the city noticed the session would occur under a provision of law allowing the council to hear advice from its attorney, council members told 6 Investigates the City Attorney did not provide counsel during the session, except to assure the council that it was a legal executive session.
"It was more of a presentation more than anything. I felt I didn't get advice from the attorney itself. Whatever we heard in the back should have been out and open in the public," Cantu said.
Bill Aleshire, an open meetings attorney, provided an assessment of the situation. He noted that if company representatives met with a quorum of the City Council in a closed meeting, without receiving advice from the City Attorney it would be a violation of the Texas Open Meetings Act.
"But there is no exception to the open meeting requirement that would allow the Council to just have a discussion with the agent in a closed meeting while the City Attorney sits there like a potted plant,” Aleshire wrote in a statement.
6 Investigates asked the city to respond to claims that this executive session was legal, they sent this written statement, "OVG-360 acts as an agent for the City of Corpus Christi for the naming rights to the American Bank Center. A third party acting as an agent on behalf of the City does not destroy the basis for the attorney client confidentiality to the limited extent of the agency relationship."
KRIS 6 News followed up and asked them to explain claims that this session was a presentation and discussion between OVG360 and members of the council, rather than to receive legal advice. This city has not responded.
Henry's proposal is significantly more lucrative than the previous American Bank agreement. He offered $1.25 million annually for naming rights, compared to the previous contract of less than $200,000 per year for the first ten years of the contract.
The proposed deal would include exclusivity benefits, branding control, and VIP perks, similar to benefits currently received by American Bank.
"Go look at what they pay per year. I don't know how they got that deal, that was a sweetheart deal," Henry said. "As they run that particular venue, I think they're at a slight deficit. Our contributions single-handedly meets what they're doing every single year."
Last year, Henry announced his bid for the naming rights of the American Bank Center, after he said he was approached about putting his law firm's name on the building.
"The naming rights of the American Bank Center, whether that's me or any other company, you think about the value system. That's most important," Henry said. "Our value system is helping people, education, and mostly, philanthropy. If my name on the American Bank Center is not something that is good enough, in terms of the core values that I just listed, then I want the elected officials that can fall in the category. I want what's best for Corpus Christi."
MORE: Read the proposal prepared by Oak View Group for potential naming rights partnership with Thomas J. Henry Law
MORE: Read the contract between American Bank authorizing naming rights
Councilman Cantu defended Henry, saying, "Thomas J. Henry got the end of the stick because of politics. Maybe people don't like him, but Thomas J. Henry has done a lot for this community."
Henry himself questioned the arena's current economic impact, asking, "What has the arena done for Corpus Christi? How has it been able to balance its budget or bring in revenue to offset the taxpayer base?"
Last week, Henry sent an email to OVG360 reaffirming his interest in the naming rights. He said thus far it has been "deafening silence" in return.
“Oak View Group is the expert in venue naming rights, having sold 30+ naming rights partnerships in the past six years. We are currently in discussions with multiple corporate and community prospects, both local and national, with a focus on who provides the best long-term partnership for both the venue and community,” OVG wrote in a statement to KRIS 6 News.
