City fails to request proposals for beer and liquor sales at Brownsville Sports Park

Two Upper Rio Grande Valley groups captured the exclusive right to sell beer and liquor at the city-owned Brownsville Sports Park on July 4 without the need to submit proposals on a concession agreement, The Brownsville Herald has learned.

"We are improving the procedures that we use so I would expect that we will see requests for proposals being issued where companies have the ability to submit proposals," City Attorney Mark E. Sossi said earlier this month.

"We are improving the way we do business," Sossi added.

In a written statement, Assistant City Manager Jeff Johnston said that the park’s popularity is increasing: "This is the largest facility of its kind in Brownsville and as city staff learns to accommodate larger groups and events, they will continue to polish policies and procedures pertaining to all park functions ... "

State public records reflect that Jackie’s Restaurant & Lounge in Pharr and The World Organization to Relieve Destitution, identified as a charity based in McAllen, obtained permits from the Texas Alcoholic Beverage Commission to respectively sell beer and liquor at the city’s July 4 concert.

Initially, neither Sossi nor City Manager Charlie Cabler could say who selected the groups, how they were selected, or what financial arrangements were made with them.

"I know nothing about it," Cabler said July 31.

City Parks Director Chris Patterson, who organized the July 4 event, was not allowed to speak to The Brownsville Herald about any aspect of the concert and he referred questions to Cabler.

In a written statement, Johnston said that Patterson coordinated with Jackie’s to sell alcohol and that Jackie’s coordinated the second permit with the non-profit organization.

The non-profit organization was The World Organization to Relieve Destitution, confirmed Lt. Mario Villarreal, of the Texas Alcoholic Beverage Commission in McAllen.

The permits to Jackie’s and the non-profit organization were only for the July 4 event, Villarreal also said.

"The city could have been able to obtain the permit (and sold alcohol without using third parties)," he added.

Red Tape Inc., which owns Stilettos Gentlemen’s Club in Brownsville, also owns Jackie’s Restaurant & Lounge, public records show. Red Tape directors Fred Feurtado and Ramiro Armendariz were not available for comment.

John David Garcia, of McAllen, the registered agent of The World Organization to Relieve Destitution according to state public records, also did not return a request for comment.

The non-profit was established in 2006 to give to charitable purposes, states its certificate of formation that’s on file with the Texas Secretary of State’s Office.

State public records also show that the state lifted the corporate charter of The World Organization to Relieve Destitution in March 2008 for not meeting franchise tax requirements, the Texas Secretary of State and Texas Comptroller’s Office verified July 31.

"The entity does not have its corporate rights," said Justina Alexis, tax specialist with the Texas Comptroller’s Office.

TABC does not check the corporate status of organizations.

State records show that Garcia and Ricardo Ramos of McAllen created the non-profit organization in April 2006 for charitable purposes.

Ramos also is a manager of a Feldman’s Valley Wide outlet in McAllen. Public records show Feldman’s is owned by Statewide Beverage LLC.

The charitable organization filed an application with the Texas Secretary of State to reinstate its corporate status on July 8, and didn’t obtain a tax clearance letter — to allow reinstatement — from the Texas Comptroller’s Office until Aug. 3, public records show.

The name of the organization also was changed Aug. 4 to The WORD Foundation and Ramos is now listed as the registered agent.

Johnston said that the city’s agreement with Jackie’s regarding its and the non-profit organization’s participation had been "verbal." Johnston also said that the verbal agreement called for the city to receive a percentage of the profits from the sale of beer and liquor. Johnston did not respond to further inquiries about possible profits and the agreed-upon percentage of profits that the city would receive.