Editor's note: An earlier version of this story reported that Peter Zanoni testified that he didn't tell the entire City Council about an altered screenshot. That answer was in response to the following question: "Outside of Executive Session, did you let some of the council members know?" Our reporting in this story shows the entire council was informed inside of executive session.
CORPUS CHRISTI, Texas - A recently surfaced email from Corpus Christi’s city attorney answers questions about who knew what about a $2 million incentive granted to a downtown hotel project .
At the center of the controversy is an altered screenshot of a FEMA application, submitted as part of a developer’s request for Type B funding, which is designated for economic development projects. The funding was for the Homewood Suites hotel, currently under construction at 301 N. Chaparral Street.
The screenshot allegedly misrepresented the timing of FEMA floodplain changes — making it appear the changes had only recently taken effect, which may have strengthened the case for public funding.
The discrepancy was first flagged by rival developer Ajit David, who later filed a civil lawsuit against the city, alleging the document was used misleadingly in the application process.
Now, KRIS 6 News has obtained an email from City Attorney Miles Risley to council members stating that he and the city manager informed the entire Council about the altered screenshot during an executive session in April 2024.
According to At-Large Councilman Roland Barrera, the meeting did include some discussion of the document. Barrera says he asked Risley directly whether “any of this was illegal,” and was told it was not. He also noted that two different screenshots were presented at the meeting — and they were not identical — further adding to the confusion.
In the deposition, City Manager Peter Zanoni said he couldn't talk about what happened behind closed doors in executive session, and said he didn't tell all council members outside of executive session.
“I didn’t sit down with all council members, either individually or collectively, to let them know,” Zanoni said. Because executive sessions are confidential under Texas law, city officials are limited in what they can publicly confirm or deny about what was discussed behind closed doors.
Mayor Paulette Guajardo addressed the matter publicly during a Sept. 9 City Council meeting.
“I was never told the document was not legal. No one has said that any document was fraud… no one,” Guajardo said at the time.
Despite the growing scrutiny, Barrera maintains that the $2 million award was justified because the Type B Board recommended the funding, citing the hotel as an economic catalyst. He says the council’s vote was not about an altered screenshot — and that no one on the dais had the law enforcement expertise to determine whether fraud had occurred.
Barrera also questioned the motives of whistleblower Ajit David.
“I didn’t think Mr. David was credible,” Barrera said. “He has a vested financial interest in the success and/or failure of the competing hotel.” Barrera further noted that David’s business partner is now in line to receive a $2 million incentive of his own — for a separate development project on Padre Island. David is not directly involved in that project, but the proposed incentive is scheduled for a City Council vote on Tuesday.
“It’s the same circumstances,” Barrera said. “This is going to be a catalyst for the area — and we want to go ahead and support it.”
As emails, depositions, and public statements continue to surface, the dispute has turned into a broader debate over transparency and accountability at City Hall. City leaders remain divided — not just on the facts of the incentive, but on who knew what, and when.
