City attorneys ask district judge to dismiss counter suit filed by Westin Hotel developer

Attorneys claim developer failed to prove former Council members Cox, Helsley committed extortion

By Brandi Hart
McKinneyUpdate.com
Published at 2:45 p.m. on July 26, 2009

City of McKinney attorneys have filed a motion with the U.S. Eastern District Court of Texas asking the judge to dismiss the counter suit filed by O & S Holdings, Inc., the developer of the proposed McKinney Westin Hotel on the grounds the developers failed to prove former City Council members Bill Cox and Thad Helsley committed extortion.

Attorneys representing the city and the McKinney Economic Development Corporation, which initially filed a suit in April against McKinney Shores Hotel Property, a subsidiary of the O & S Holdings, Inc. development company that dealt with the Westin Hotel development, filed a motion on July 20 to dismiss the counter suit. THe motion also asks that U.S. District Judge Richard Schell to close MSHP's counter suit, according to court records.

As first reported on McKinneyUpdate.com on May 26 , MSHP's counter suit claims that Cox and Thad Helsley told Chris Shane, the Executive Vice President of Acquisitions for O & S Holdings required O & S Holdings give the city $50,000 to the city's Veterans Memorial Park fund in order for the city to sign the Bridge Street development and the Westin Hotel agreement. To read the original article about MSHP's counter claim, click here . To read some of MSHP's counterclaim to the MEDC law suit against MSHP in April of this year, click here .

Shane announced at the Feb. 28, 2008 groundbreaking ceremony for the Westin Hotel that O & S Holdings would donate $50,000 to the McKinney Veterans Memorial Park Fund. City Attorney Mark Houser recently confirmed that the $50,000 check from O & S Holdings has been cashed, and the money was deposited into the Veterans Memorial account.

The MSHP's counter claim also alleges that the city lied about a general contractor acquiring the property and taking control of the project, which damaged MSHP/O & S Holdings' relations with Craig International of McKinney, and ruined their chances of obtaining financing to continue the project, according to MSHP's counter claim.

MSHP's attorneys said city officials and entities violated portions of the Racketeer Influenced and Corrupt Organizations (RICO) act by demanding MSP provide a donation to the memorial park in order to obtain the development contract.

City attorneys said the claims of such violations have not been adequately proven by MSP's counsel, according to the motion.

"MSHP's outrageous RICO claims should be dismissed because MSP's pleadings do not allege the existence of an enterprise as required by the RICO statute, MSP's pleadings do no sufficiently allege the requisite predicate criminal offenses, the described conduct does not constitute 'racketeering activity' and MSP's pleading demonstrates that it does not have standing," the motion read.

The city has hired attorneys from an additional Dallas based law firm to further represent the city in the case, and those attorneys are also representing Cox and Helsley as the men were on the council when any allegations occurred.

The hotel still sits unfinished at the northeast corner of US 75 and Spur 399 as the fate of the hotel is tied up in a legal battle. The city is also working on obtaining the retail aspect of the Bridge Street site, which is a total of about 90 acres, as O & S Holdings, Inc. was also slated to develop a combination of 66 restaurants and retail stores north of the hotel and south of the Kohl's shopping center.

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