On Tuesday, City Manager Peter Zanoni was ordered to stop the freeze on a $1.5M payment to Elevate as part of a settlement with the City of Corpus Christi. That order came from the 105th District Court.
Today, Judge Sandra Watts has temporarily blocked Corpus Christi and its employees from transferring a disputed $1.5 million payment to Elevate QOF after hotelier Ajit David filed to block the payment.
“IT IS, THEREFORE, ORDERED that City, and all those acting in concert with City (including all City employees) are enjoined from transferring, paying, allocating, or otherwise directing any funds paid to the benefit of Elevate QOF LLC (or their attorneys to hold in trust, via ALBM Trust Account No. xxxxx9656) – all such injunctive relief pending further Order from this Court, agreement of the parties, or further adjudication as is permitted by law.”
Judge Watts, according to the order, found evidence that David and the City face imminent and irreparable harm if the $1.5 million is paid to Elevate before the case is adjudicated.
David’s lawsuit involving the Elevate QOF incentive agreement dates back to 2024, while Elevate’s lawsuit against City Manager Peter Zanoni was filed Aug. 18, 2026.
So which order takes precedence?
Former district attorney and retired judge Carlos Valdez told 3NEWS that the most likely next step is for the City to consolidate all of these lawsuits to present them before a singular judge. Right now, the conflicting orders may just cancel each other out. In the meantime, that $1.5M seems to be staying put.
On Wednesday night, the City of Corpus Christi issued a statement to 3NEWS:
“Today, August 19, 2026, the Nueces County Court at Law No. 3 issued a Temporary Restraining Order (TRO) prohibiting the City of Corpus Christi from transferring, paying, allocating, or otherwise directing City funds to Elevate QOF, LLC.
The City’s position remains that City Manager Peter Zanoni, nor does any other City staff member, have legal authority to direct payment of any funds as there is no required authorization by the City Council to do so.
The City will comply with the Court’s order and not make payments until the required authorization, including appoval for such payment by the City Council, is obtained.
The TRO is set to expire on September 2, 2026, unless extended by the Court. A hearing on a Temporary Injunction is scheduled for September 1, 2026, at 9 a.m.”
The statement echoes Zanoni’s Tuesday night 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.”
This is a developing story. We will provide updates as more information becomes available.