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Port Isabel files Yacht Club lawsuit – Port Isabel-South Padre Press

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By DINA ARÉVALO
Port Isabel-South Padre Press
editor@portisabelsouthpadre.com

The City of Port Isabel has filed a million dollar lawsuit in relation to the failed restoration of the Port Isabel Yacht Club.

The City has named six defendants in the suit, including former City Manager Edward Meza, as well as the former consultant and architect on the project, Petra Reyna and Teresa Fonseca, respectively.

Also named in the suit are Fonseca’s architectural firm — South Texas Architectural Resources STAR Consulting, Reyna’s consulting firm — The Reyna Network, LLC, and the Babali Corporation d/b/a Appraisal Associates, who were provided the City with an appraisal value when it was considering the purchase of the Yacht Club in 2014.

The City filed the suit in the 357th State District Court on Friday, Aug. 24. The 33-page petition outlines a host of allegations against the defendants, including civil conspiracy, fraud, negligence and breach of contract. The City is seeking approximately $750,000 in damaged, plus “loss of opportunity costs,” and other damages, attorney’s fees and court costs, the petition reads.

“It’s pretty self explanatory. We set out exactly what happened and it’s consistent with the audit that Mr. Billy Bradford performed,” said Port Isabel City attorney Gilberto Hinojosa during a phone interview Tuesday.

Hinojosa spoke of the forensic audit performed by certified public accountant Billy Bradford, Jr. of the Brownsville-based accounting firm Hales-Bradford LLP. The City hired Bradford and his firm to conduct forensic audits on three City projects — the Yacht Club, the Revolving Loan Program, and the Port Isabel Event and Cultural Center.

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