State of Texas

County of Cameron
Sworn Affidavit

My name is Jose Rubio Jr. and I am over the age of eighteen. I reside at 2309
Hacienda Road, Harlingen, TX 78552. I can be reached at 956-536-6515. I retired from
the Harlingen Police Department with the rank of lieutenant. I am the owner and manager
of a private investigations company named RGV Private Investigations Network.

Pursuant to the rules of the Harlingen City Ordinance No 06-39, I am submitting

this affidavit and all attached evidence exhibits marked 1-40 to the Harlingen City
Attorney Roxann Controneo. The exhibits are derived from research, public documents,
Valley Morning Star newspaper articles, photographs, and a DVD video is submitted also
as Exhibit 40. Over the last few years, I have made it a practice to videotape Harlingen
City Commission meetings. The DVD contains meetings along with other footage that
correlates with this affidavit.

I am asking from the city attorney for a full and impartial investigation of possible
violations of the city ordinance and other legal statutes on the information contained in
this investigative packet prepared by this affiant, Jose Rubio Jr. The scope of this
investigation is focused primarily on Mayor Chris Boswell but is not limited to any other
individuals in which due diligence on the investigation would reveal culpable parties of
potential misconduct. Mr. Boswell is a licensed attorney in the State of Texas and this
investigative packet may be submitted to the State Bar of Texas which governs attorneys’
adherence to their rules and regulations. There will be times that it becomes apparent that
the Harlingen City Attorney Roxann Cotroneo is protecting the interests of her employer,
the City of Harlingen. So I would ask that after her review of this investigative packet is
completed, she consider recusing herself from this investigation proceeding and submit it
to a special prosecutor.

This affidavit will reflect a pattern of behavior, circumstances, and a series of

events that have transpired over the last couple of years on the Reese Development
Project. The Reese Development Project was initiated in February 4, 2009 and it
involves the purchase of a building known as the Heritage Manor Building previously
owned by the Harlingen Housing Authority. The building was sold to Jo Rae Wagner
after she asked the Harlingen EDC and the Harlingen City Commission for financial
assistance. This particular building is an abandoned eyesore in the middle of downtown
Harlingen. The sale of the building was completed around August 2009. Note: On the
sale of this building, part of the investigation is to determine whether or not the city
attorney Brendan Hall was in conflict with this transaction if he was acting also as the
attorney for the Harlingen Housing Authority.

Ms. Wagner and her son Todd Aune are involved in the transformation and
remodeling of this building into an Italian Restaurant, several condominiums, offices, and
on the top floor an event center. The building as purchased is a stand-alone building and
has no parking lots to accommodate any patrons of the event center or the Italian
Restaurant. Further the condominiums will be sold to private owners which will require
parking spaces. One of my submissions as evidence will be a Valley Morning Star
newspaper advertisement from Bahnman Realty that establishes the attempt at selling the
condominiums with reserved parking. The condominiums will have an approximate sale
price of $300,000 each. The building permit for this project is estimated at $4 million
dollars but Ms. Wagner has indicated that the final cost may be as high as $7 million for
the entire project.

The City of Harlingen has had several meetings in closed executive session to
discuss the Reese Development Project. From the multiple meetings, it has become
apparent that Ms. Wagner is asking for control of the parking lots to facilitate her private
business venture. The Harlingen City Commission has agreed to purchase downtown
parking lots. The commissioners have approved at least one-half million dollars
($500,000) to pay for the parking lots. These allocations of funds are to be taken from the
general reserve fund. All the parking lots are located in located in the proximity of the
Reese Building which facilitate Ms. Wagner’s private business venture. The City
Attorney Roxann Cotroneo has made it clear that the money being spent for the
acquisition and construction of parking lots are solely for public use. No performance
measures, written agreements, job creation standards, or studies have been made for the
purchase of the numerous downtown lots. The Harlingen Waterworks Department is
being asked by the Harlingen City Commission to discuss the trading of downtown
parking lots to facilitate the downtown parking lot problem.

In the DVD exhibit, the location of the Reese Plaza Development project is
shown. Missing at this time from this investigative packet, is the approval for an
engineering study that made one block of Van Buren Street from 3 lanes to 2 lanes for
traffic. In an interview with Mr. Poinciano Longoria, the Harlingen City Engineer, he
was asked for the purpose of the engineering study. All though he did not want to make
an outright disclosure of the intent of the study, he made it clear that the engineering
study was to facilitate the Reese Development Project. The cost of the study was
approximately $14,000 and the invoice was paid by the City of Harlingen. Minutes,
agenda item, and an invoice will be submitted as evidence as soon as possible.

The Harlingen EDC (economic development council) has agreed to fund the
Reese Development Project an amount of $270,000 for downtown parking lots
construction. The combined value of $770,000 of taxpayer’s funds have been approved
for additional downtown parking and it has been declared by the Harlingen City
Attorney, Roxann Cotroneo, as a justifiable expense as long as it remains public parking
lots. To my knowledge, the Harlingen EDC has made no feasibility study either for the
creation of jobs and has not developed any performance criteria to allocate the funds for a
downtown parking lot. In most cases brought before the Harlingen EDC, written
agreements are submitted and reviewed by the governing body for final approval of any
EDC project. Therefore, I assert the fact that the City of Harlingen governing body has
approved taxpayer funds to assist a private business venture that deviates from the
original agreement as discussed in the February 4, 2009 city meeting. The minutes of
that meeting follow:
Regular Meeting/February 4, 2009
REGULAR MEETING CITY COMMISSION HARLINGEN, TEXAS
FEBRUARY 4, 2009

A Regular Meeting of the Harlingen Elective Commission was held on Wednesday,

February 4, 2009 at 5:30 p.m. in Town Hall, City Hall, 118 E. Tyler Street, Harlingen,
Texas. Those attending were:
Mayor and City Commission:
Mayor Chris Boswell
Larry Galbreath, Commissioner Place 1
Bobby Farris, Commissioner Place 2
Jay Meade, Commissioner Place 3
Robert Leftwich, Commissioner Place 4
Tom Hushen, Commissioner Place 5

Staff Present:
Craig Lonon, City Manager
Brendan Hall, City Attorney

Sylvia R. Trevino, City Secretary

Mayor Boswell called the meeting to order and stated that notice of the meeting had
been duly posted according to law.

PARTICIPATION APPROVED IN THE HERITAGE MANOR

REDEVELOPMENT PROJECT AND FUNDING COMMITTED TO PURCHASE
PROPERTY AND INCREASE PARKING FOR THE PROJECT

Craig Lonon stated that Jo Wagner had submitted a proposal to the Harlingen
Housing Authority to purchase and redevelop Heritage Manor. The redevelopment
proposal requires that a third party provide adequate parking to meet the needs of their
redevelopment plan. The development proposal calls for a fine dining restaurant, a
coffee shop, up to 10 offices and 22-23 luxury condominiums. The investment is
anticipated to be nearly $4.0 million. Mr. Lonon stated that to make it happen and for
us to do the parking we need to secure 50 open parking spaces to support the offices,
restaurant and coffee shop and 50 covered parking spaces for residents. “Downtown
parking at night is not a problem other than lighting might be required. We have got
to secure two areas of parking, one controlled and one none controlled. One way to
solve this would be to build a parking garage estimated at $1.5 million and a second
option would be to acquire additional parking in the areas---50 spaces at one and 50 at
another.”
Why should the City participate? Mr. Lonon explained that for the past three years the
City, the Housing Authority, Harlingen Downtown and many others have exhausted
their ideas for the redevelopment of Heritage Manor. No one else is interested in a
redevelopment project that complements downtown. The proposed project supports
Harlingen First and Harlingen 100. It increases the critical mass downtown, increases
the nighttime population, and adds fine dining and professional office space. Mr.
Lonon stated that the project does exactly what we want it to do for downtown. Mr.
Lonon further stated that currently the property is not taxed. When it is developed it is
anticipated that over $150,000 annually will go to taxing jurisdictions. Mr. Lonon
stated that for the first ten years after completion, the project should generate between
$1.5-$1.7 million in local property taxes. The project should generate between
$750,000- $850,000 in sales tax for the City over the same period. Total financial
return to the community during the first ten years is between $2.25-$2.55 million. Mr.
Lonon recommended that the City Commission approve participation in the Heritage
Manor redevelopment project and commit up to $500,000 towards this project from the
General Fund reserve. At the same time, that the City Commission instructs the staff
to seek partner funding from the Economic Development Corporation and the
Harlingen Community Improvement Board to reduce the use of the General Fund
reserves for this project. Further, that staff be instructed to prepare the paperwork to
secure the funding for this project. This action will commit the City to this project and
encourage the developer to proceed immediately with this redevelopment project.

Commissioner Farris made a motion to accept staff’s recommendation. Commissioner

Galbreath seconded the motion.

Under discussion Commissioner Leftwich stated that he totally supports the project to
get momentum downtown in terms of revitalization but he wants to make sure that the
taxpayers are covered on the acquisition of the corner lot and the Waterworks lot.
Commissioner Leftwich asked that the investment by the City coincide with the
investment by the developer so that the taxpayers are not stuck with a covered parking
lot and a 40-year lease when the development does not get off the ground.
Commissioner Leftwich suggested an initial 10-year lease on the parking and then
entering into a long-term lease as the project matures. Commissioner Farris stated that
a ten-year lease would unfairly tie the hands of the developer because someone might
not buy one of the condos knowing that in ten years he/she could lose their parking
space. He commented that if the developer is putting in $4 million and all the City is
doing is agree to lease the land for long term 40-years to the developer, the lease could
include safe language that the property would revert back to the City in the event the
project was not developed. Commissioner Leftwich stated we’ve set precedence in
other parts of the city where we only offered 10-year leases but for the protection of the
taxpayers we would need to have an initial short term lease for 10 years with promise
of a longer term. Mayor Boswell commented that it would be best to allow the lawyers
to, in their best way, prepare the lease to protect the City even though Commissioner
Leftwich’s point is very well taken. Mayor Boswell stated that the lawyers could
prepare the lease that will protect the City if the development does not occur, as it
should. Commissioner Leftwich reiterated his point to make sure the City’s
investment coincides with the investment of the developer so that the infrastructure
then becomes value for the contractor and does not put in any more of his money into
the project. Craig Lonon commented that in his discussions with Jo Wagner the City
would secure the parking, they would design the parking and then it would be built
with their facility. Ms. Wagner is talking about moving rather quickly and wants to
open in November. Commissioner Hushen stated that the City needs to step forward as
this is a real opportunity.

George Merrill commented that it is a great plan but his only concern, in serving in
other task forces, that funding is necessary for development and redevelopment but
long term there should also be future funding to increase the City’s police force and
not forget the issue of public safety.

The voting was unanimous on the motion.

At this time Mayor Boswell gave special recognition to Blas Cantu, the Executive
Director of the Harlingen Housing Authority, for his leadership in this project.

End of minutes on this agenda item.

Note: Highlighted areas are clear indicators of a lease agreement and not the
creation of public parking lots.

In addition, I submitted an ethics complaint package to the city attorney, Roxann

Cotroneo on December 20, 2010 that requests a formal investigation on conflicts of
interests by Mayor Chris Boswell and Harlingen City Commissioner Joey Trevino. Mr.
Boswell has done legal work for Ms. Wagner and Mr. Trevino’s employer, Halff &
Associates is also involved in the Reese Development Project. Subsequently, both Mr.
Trevino and Mr. Boswell have recused themselves from any public hearings or meetings
concerning the project. Exhibit 1 is a copy of the email reflecting such notice sent to the
city attorney. I have twice spoken to the city attorney after my submission of the ethics
complaint and she has advised me that the matter is still pending and will have to be
investigated in the future. Note: All though Mayor Boswell has recused himself from
several meetings, it has been done with a lot of reluctance where at times he claims
that he has no obligation to recuse himself.

Let me assert the fact that this entire Reese Development Project is still an on-
going item of approval by the governing body and has been listed for discussion on
several city meetings. Let me also point out that it appears that Harlingen Commissioner
Kori Marra may also have a conflict of interest when the city attorney Roxann Controneo
was given a handwritten complaint by Mr. Chuck Lee on Monday, March 28, 2010. Mr.
Lee in his complaint alleges that Ms. Marra has a conflict of interest on the Reese
Development Project because she has a business in the downtown area where the Reese
building is being remodeled. In essence, three government officials may have conflicts
of interest in the project. Thus pursuant to the Harlingen City Charter which requires a
Mayor Pro-tem to be appointed and three city commissioners for a quorum to conduct
city business, it has been rather difficult to have a quorum. When a commissioner fails to
show at a scheduled meeting, the quorum legitimacy ends. In the DVD video, Mayor
Chris Boswell makes every attempt to maintain a quorum in the March 28, 2011 meeting.
Five out of the six posted agenda items are related to the Reese Development Project.
Mr. Boswell at one time, attempts to make a determination that he does not have to
recuse himself on one of the posted agenda concerning the quorum question that is posed.
It is at this time, that City Attorney Roxann Cotroneo has a published opinion on the right
to maintain a quorum. The argument continues and even Commissioner Robert Leftwich
disagrees with her decision. Presented as evidence Exhibit #29 is the Harlingen City
Charter which clearly outlines a quorum. The charter refers to a mayor or mayor pro-tem
plus three city commissioners to do legitimate business for the city of Harlingen.

I wish to state that Chuck Lee who has assisted me in this investigation
discovered conflict of interest forms filled out by Mayor Boswell. The discovery of these
documents reveals that Mr. Boswell has a business affiliation with Compass Bank.
Exhibit #1 reflects an affidavit on an abstention from voting signed on January 5, 2011.
This form reflects that mayor Boswell has received funds from the business entity that
exceed 10% of his gross income for the previous year. It was not until after the
December 20, 2010 morning notification that Mayor Boswell started filing any sort of
conflicts of interest. The sale and negotiations of the Compass Bank land in the Reese
Development Project has been ongoing prior to the date of his signed first conflict of
interest form. Furthermore, the fact that Mayor Boswell failed to recuse himself in the
course of numerous financial dealings between the Compass Bank and the City of
Harlingen is a major deviation from the protocol of filling out conflict of interest forms.
The submissions of such transactions are included in this investigative packet for review.

On August 8, 2011, Planning and Zoning Director Joel Olivo made a presentation
on the need for a grease trap for the Reese Development Project. The grease trap is
located in the middle of the alley on the left side of the newly remodeled building.
Mayor Boswell presides over this meeting and never recuses himself. The item on the
agenda passes. This presentation is contained in the DVD evidence. Note: I had a
conversation with Mr. Olivo a few months prior to this meeting and I asked him about the
grease trap. Mr. Olivo stated that there is a value on the alley and he would allow the city
commission to decide on the matter.

On March 21, 2011, I received information that a meeting would be held in the
morning at Harlingen City Hall to discuss the Jo Rae Wagner Reese Development
Project. Mayor Boswell set up this meeting and the anticipated attendees were to be:
City Manager Carlos Yerena, the new city planner Ken Clark, and Jo Rae Wagner. On
March 22, 2011, I set up surveillance and around 9:28 am, Jo Rae Wagner, and her son
which I believed to be named Todd Aune, walked into Harlingen City Hall. City Planner
Ken Clark carrying architect plans underneath his arms followed a few minutes later. All
three parties were filmed walking into the front entrance of city hall. This meeting was
Mayor Boswell’s attempt at closing the final deal for the parking lot issue for the Reese
Development Project. I do not believe that a public servant who already has received
notice of a conflict of interest can hold such a meeting with other public servants. Mayor
Boswell has a reputation for being strong willed and it appears that city employees may
have been influenced by the coercive acts in their specific exercise of their official power
or a specific performance of their official duties. I submit Exhibit # 39 for the
consideration of investigative authorities which outlines the potential criminal
misconduct of Mayor Chris Boswell during this meeting.

The exhibit list included in this investigative packet provides for a short summary
of the events that transpire. This affidavit with all the contents are submitted in good
faith with respect to the available information found during the research stages. In my
opinion there has been a lack of transparency from all parties involved in the Reese
Development Project. The original intent of the first discussion clearly establishes a lease
agreement to be developed. Instead we have Harlingen city officials willing to spend at
least $770,000 for a parking lot problem that is directly related to the Reese Plaza
Development Project.

There are seven pages total in the affidavit. This affidavit has been amended
from the original affidavit submitted to the city attorney’s office on April 4, 2011. The
amended portions of this affidavit are grammatical mistakes along with any other
writing submissions for clarification purposes.

I, Jose Rubio Jr., swear that I have knowledge of the facts alleged in this affidavit and
that the information contained in this affidavit are true and correct to the best of my
ability.

____________________________ Notary Seal

Signature of affiant/Date

Sworn to and subscribed before me, by the said affiant Jose Rubio Jr., this the 6th day of
April, 2011, to certify which, witnesses my hand and seal of office.

__________________________________________________
Notary Public for the State of Texas Signature/Print Name