City Manager Peter Zanoni has been ordered by the 105th District Court to immediately stop blocking a $1.5 million payment to Elevate QOF as part of a settlement with the City of Corpus Christi. 

On August 11, Corpus Christi officials paused payments connected to a settlement agreement approved by the city’s Type B Corporation involving Elevate QOF and the Homewood Suites hotel.

City Manager Peter Zanoni said last Tuesday that the city’s finance department had been instructed not to process any payments while the city attorney reviews the agreement and determines whether it requires approval from the Corpus Christi City Council.

According to Elevate, Zanoni acted outside of his legal authority when he issued that order. In documents provided to 3NEWS, Elevate argues with the court that their deal is with Corpus Christi’s Type B Corporation, which they say is a separate legal entity. 

According to the documents, a judge found that Elevate had shown a “probable right to relief” and that it faced “immediate and irreparable harm if the court didn’t intervene”.

He then ordered the $1.5 million transfer to proceed. 

According to the documents, the court found that the Type B Board has independent statutory authority over these contracts and expenditures and that the city manager has no authority to override, freeze or cancel the contractual obligation.

City Manager Peter Zanoni sent the following statement to 3NEWS in regards to the order:

“The City organization does not have the necessary authority to wire transfer $1.5 million to recipient Elevate QOF, LLC.

City Council would need to approve a payment in this amount to this recipient. 

There is no City Council approval for this wire transfer in the amount of $1.5 million.

It is sound fiduciary management and within our established financial policies to not make this payment at this time and that is supported by the legal advice of our City Attorney and outside Legal Counsel.”

For now, it seems that the legal battle will continue. A hearing is set for September 1st in Kenedy County. 

This is a developing story. We will provide updates as more information becomes available. 

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