On Feb. 25, 2014 the City of Kerrville entered a squirrelly deal with the Floyd A. and Kathleen C. Cailloux Foundation to borrow $1,279,881 to buy a aerial platform ladder truck for the fire department. The documents look like they were drafted by someone not in full control of their faculties. The first page of the Security Agreement names Cailloux Foundation Properties, LLC as the secured party.
But the signature page names The Floyd A. and Kathleen C. Cailloux Foundation as the lender:
The Promissory Note names Cailloux Foundation Properties, LLC as the lender, to be paid back the $1.28MM.
So, why is a nonprofit tax-exempt foundation loaning over a million and a quarter dollars to the City, who will pay it back to the profit making arm of the Cailloux organization?
How does Cailloux explain this to the IRS? Money comes from a non-profit, goes to the city, who then gives it to a for-profit company. I'm not a tax lawyer so maybe it's perfectly legitimate.
Something else that is interesting - only Jack Pratt, Jr. signed for the city. There's no attestation, no witnesses, no nothing, except his signature. Did council approve this? Was it voted on?
But the signature page names The Floyd A. and Kathleen C. Cailloux Foundation as the lender:
The Promissory Note names Cailloux Foundation Properties, LLC as the lender, to be paid back the $1.28MM.
So, why is a nonprofit tax-exempt foundation loaning over a million and a quarter dollars to the City, who will pay it back to the profit making arm of the Cailloux organization?
How does Cailloux explain this to the IRS? Money comes from a non-profit, goes to the city, who then gives it to a for-profit company. I'm not a tax lawyer so maybe it's perfectly legitimate.
Something else that is interesting - only Jack Pratt, Jr. signed for the city. There's no attestation, no witnesses, no nothing, except his signature. Did council approve this? Was it voted on?
Take a hard look at the individuals behind the various Cailloux entities.
ReplyDeleteCould the real reason for the KPUB loan to city involve the reduced scrutiny the city faces when passing out public funds to chronies for projects?
ReplyDelete