By ALBERT VILLEGAS
Special to the NEWS
San Benito Economic Development Corporation’s (EDC) legal counsel issued a social media response to address ongoing disputes with San Benito Mayor Pete Galvan, who appeared on a local podcast, amid a proposed censure resolution that the San Benito Commission tabled for later this month.
Two commissioners, Daniel Cortez, Sr., and Ricardo Perez, Jr., issued a censure against the first-term mayor. Galvan was invited to address the matter as a guest on the “Micky G. Channel,” a Facebook podcast with nearly 3,000 followers.
The highlight of the one-hour live podcast on October 9 was EDC attorney Michael Pruneda’s 650-word response to the podcaster regarding what happened last month involving him, Galvan, and EDC Assistant Executive Director Mario Palomo.
“Galvan has blamed the former EDC board and now the current EDC board. Keep in mind that the city commission reconfigured the EDC board and did not appoint any city commissioners as voting members. Galvan is currently a non-voting ex officio by the bylaws,” the podcaster said, citing a portion of Pruneda’s response.
“Galvan, again, has chosen to sow division by accusing the newly reconfigured board members of being unaccountable, hiding information, and lacking transparency. This is a new board. It is disingenuous for Galvan to keep accusing board members, current and former, when he served on both boards throughout. Although Galvan now holds the title of mayor, he has chosen to continue the same rhetoric he used as commissioner leading up to the city election,” Pruneda is quoted as saying.
The podcaster said the EDC attorney responded to him within 24 hours. Galvan said it can take up to 10 days to receive a response from Pruneda, the maximum allowed under the Texas Public Information Act.
The mayor had repeatedly said he didn’t receive timely responses from the EDC to basic inquiries, so he had no choice but to visit the EDC administration building at 701 North Bowie Street.
Pruneda shared his account of the encounter, per his response to the podcaster.
“The recent comments by Galvan were directed at Mario Palomo (Asst. EDC Executive Director) and me regarding threats to withhold sales tax from the San Benito EDC. To put this in context, Galvan asked why the newly contracted CPA firm had not been placed on the City Commission’s agenda for approval,” Pruneda said. “Galvan disagreed, and we reviewed certain sections of the bylaws. I pointed out that neither state law nor the bylaws required it. Galvan responded that he interpreted it differently. Galvan then stated that sales tax monies would be withheld from the San Benito EDC if the CPA firm was not placed on the City Commission’s agenda.”
Pruneda also said the City Commission and the EDC had difficulty last year, when Mayor Galvan served as a City Commissioner and an EDC board member. Pruneda said the EDC board would vote on several matters, including the Summer Concert Series, and then take them to the City Commission for approval.
“It was approved by both bodies. Galvan then began making comments that EDC board members were overspending and not transparent,” Pruneda said.
MONEY MATTERS
First, Mayor Galvan explained that the EDC has funds to spend because it receives a small portion of the 8.25 percent sales tax on every purchase made in the city.
The mayor explained that the Texas Comptroller’s Office remits two percent and returns it to the city for economic growth.
“The city keeps three-fourths percent of that two percent, and the EDC keeps one-fourth percent of it,” Galvan said. “The EDC gets to decide, with (some) limitations, how they can spend that.”
Then the mayor explained how the EDC spends its money.
He said EDC expenses totaled $800,000 last year, with half ($400,000) allocated to attorneys’ fees.
“Is that economic growth?” Galvan asked. “Makes you stop and think about what we are doing for small businesses.”
Galvan said the attorney fees have totaled more than $1 million. Galvan also noted that the EDC has $2.5 million for special projects.
“I don’t know what those special projects are. I’ve asked the EDC, but they don’t want to share that information right now,” the mayor said. “What does that mean? I’m the mayor. What are you afraid of?”
Pruneda said the mayor has his fingerprints on past EDC spending.
“He has chosen to go to the media about transparency and alleged overspending, even though there were public votes on the expenditures. There were also city commission-approved resolutions that found these expenditures to be proper,” Pruneda said in the prepared statement. “Galvan has blamed the former EDC board and now the current EDC board. Keep in mind, the city commission reconfigured the EDC board and did not appoint any city commissioners to serve as voting members. Galvan is currently a non-voting ex officio member by reason of the bylaws.”
“Galvan, again, has chosen to cause division by accusing the newly reconfigured board members of being unaccountable, hiding information, and lacking transparency. This is a new board. It is disingenuous for Galvan to keep accusing board members, current and former, when he served on both boards throughout,” Pruneda went on to state.
MEETINGS AND EMPTY SEATS
The mayor said five of the seven EDC board seats are filled. He said he appointed two, who stepped down earlier this year because it was difficult to be a productive entity “that is always in a (legal) suit.”
When he made appointments earlier this summer, he understood that the EDC’s Place 6 and Place 7 seats could be appointed by the person who holds the mayor’s seat, with the appointments then subject to a commission majority vote.
San Benito underwent a major reorganization following its May elections. After Galvan defeated incumbent Rick Guerra, the commission seat was vacant, and Place 3 Commissioner Victor M. Gonzalez won it uncontested. That term ends in May 2027, as does the Place 4 seat of Mayor Pro Tem Jose E. Navarro.
The new commissioners can appoint a candidate to the EDC board.
Galvan told the podcaster that San Benito votes count in more ways than one, and the results five months ago were no different
“I’ll admit, the other commissioners who lost asked if we could be appointed to the EDC board, and I told them no because it would be a disservice to the citizens,” Galvan said during the podcast. “I get that you want to serve. I like that. I believe in what you believe in, but right now the citizens have made their choice.”
Let’s put some fresh faces on these boards. Maybe this has been the problem. Maybe it’s us not wanting to let go of the board.”
HEARD DESPITE NO VOTE
Micky D asked the mayor point-blank, “Well, Pete, don’t you want to let go?”
His response was: “I’m an ex officio (EDC) board member. I can’t even vote.”
He once again reminded podcast followers that he can’t get a hold of the applications in his capacity as mayor while the EDC looks to hire a new executive director, a position previously held by former city manager Fred Sandoval.
It was during his tenure that the Summer Concert Series was created, but it was never revisited again due to its reported cost of $1 million.
When asked, Galvan said he doesn’t believe Sandoval is meddling behind the scenes now, although it was suggested that Sandoval and Pruneda served as administrator and legal counsel for the City of Pharr years ago. They both still live in Pharr, despite having worked in San Benito.
“All I make are suggestions, so why take away the little responsibility I have? Because I’ll tell you why, Galvan said. “It’s because, as ex officio, I’m able to go to the back EDC office. Those are executive, closed-door meetings. They probably want to discuss things they don’t want me to hear.””
In his prepared statement, Pruneda said that although Galvan now holds the title of mayor, he has chosen to continue the same rhetoric he used as commissioner leading up to the city election.
He said the current “EDC board and city commission believe Galvan lacks the maturity and temperament to lead San Benito.”
His message ended as follows: “That is one of the reasons former mayor Ricardo Guerra was reappointed to serve as an EDC board member. Former mayor Guerra has the respect of the current city commission, the EDC board, and personnel. Ricardo Guerra knows that, as mayor, he had the same vote and no more authority than the members of the city commission.”
“The city commission and the EDC board are working together for San Benito. Galvan has done nothing to earn their trust, especially as favorable projects loom and his self-serving threats sour the community. Galvan claims he has all the answers and that his way is the right way.”
He also said Galvan has never sat at the table with nationally recognized retailers who know what they are looking for when they choose a city to plant their flag.
“The current EDC board is also carefully evaluating who should be the next executive director of the EDC,” Pruneda said. “The last thing the board wants is someone without the background to lead San Benito’s development projects. Someone who cannot hold their own will ultimately be controlled by local politics or intimidated by politicians. Galvan has demanded to know about these applicants. Why? Does Galvan want someone that he can control?”
“Galvan went to the media and claimed the EDC board was hiding personnel information from him, when all that happened was a request to the Attorney General for a determination on whether private information should be released. I do not know how the relations can be rehabilitated, but repeated accusations will not move San Benito forward,” Pruneda concluded.
