BEE CAVE, Texas - The City of Bee Cave recently announced that it will no longer pursue civil legal action against its former city manager over a controversial distribution center.
What they're saying:
In a news release, it was announced that former City Manager Clint Garza had signed a cooperation agreement with the City of Bee Cave.
The City of Bee Cave says that "under the terms of the agreement, and as part of Garza's restitution to the city, Garza will turn over all records, communications, and other material related to the City’s claims against the original land developer, Wheelock, and any other entities and individuals involved in the City’s investigations."
"Garza is also required to provide testimony and fully cooperate with any future investigations related to development deals that occurred during his time as city manager. Garza also agrees he will not seek or accept any position in government for 5 years. If Garza fails to comply with the agreement, he will be required to pay the City $25,000 per violation in agreed-upon damages. For its part, the city will no longer pursue civil legal action against Garza," the City of Bee Cave says.
"The construction of industrial warehouses in August 2024 occurred without the knowledge of the City Council and took the community by surprise. In response, and to help prevent similar situations in the future, the City Council has taken decisive steps to protect the public. In early 2025, the City strengthened its ethics ordinance to establish clearer standards for ethical conduct by City staff and officials. The City also created a whistleblower ordinance to ensure employees feel safe and supported in reporting suspected misconduct," the City of Bee Cave adds.
The backstory:
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Bee Cave settles with developers on controversial warehouse
The City of Bee Cave has reached a settlement in their fight to keep a large warehouse out of their city,
In 2015, the City of Bee Cave entered into an agreement with a development company to turn some land at Highway 71 and Serene Hills Drive, into a blend of residential homes, commercial spaces, and recreational amenities.
In 2018, Garza was hired as the city manager.
"Garza was not involved at all in what that plan would be and in terms of interpreting that, it wouldn't his responsibility to interpret what the development allowed or didn't allow. It's Mr. Garza's perspective that this whole project does fit within the terms of the development agreement," Garza's attorney Randy Howry told FOX 7 Austin in May 2025.
The attorney for the City of Bee Cave said it does not fit within the development agreement. What sits on the land now is an industrial warehouse, something the city claims was never approved.
The City of Bee Cave sued Garza, claiming he helped conceal these new plans from the city council and was benefiting from it.
"According to our lawsuit, former city manager Clint Garza received cash payments, lavish gifts over a period of many years, and that many of those gifts came from companies that were doing business with the City of Bee Cave," City of Bee Cave Communications Director Crystal Cotti told FOX 7 in February 2025.
In 2024, Garza resigned from his position with the city to work for another land developer.
The Source: Information from City of Bee Cave and previous reporting by FOX 7 Austin.