ATHENS–Aug. 26, Henderson County Commissioners’ Court, following a 1.5-hour executive session, unanimously voted to terminate the appointment and employment of the then-fire marshal, Laura Good, and to appoint Mitch Pate as the interim county fire marshal.
Precinct 2 Commissioner Scott Tuley motioned to take that action, seconded by Precinct 1 Commissioner Wendy Spivey. There was no further discussion about the termination, which was followed by the interim appointment immediately before adjournment of the marathon meeting.
Good was sworn in Jan. 1 to replace Shane Renberg, following her appointment to the position by the court. Pate is the Malakoff fire chief, according to that city’s website.
In addition, the county approved drawing on the Lake Towns at Lake Palestine letter of credit. Assistant County Attorney Kenneth Strawn said the original plat for this subdivision was rejected last summer because of the lack of bonds to ensure the construction of drainage, utility and infrastructure (streets) items.
The developer came back Sept. 17, 2024, Strawn continued, with a performance bond and separately, a letter of credit for the roads and streets. The commissioners’ court then approved the plat, conditionally based on the bond and $1.7 million letter of credit. Part of the agreement called for a one-year construction period, Strawn said.
The letter of credit expires Sept. 9, and construction expires Sept. 17, therefore the letter of credit expires before an “actual breach” covered under state law happens, but an “anticipatory breach” can be acted on, too, he stated. A witness says no construction at all has commenced, Strawn reported.
The county can use the money to ensure the roads are built by bidding out the job, Precinct 4 Commissioner Mark Richardson said. Lawsuits involving the developer and builder have been filed, and lots already have been sold, Richardson added. Cleared pathways and silt fences have been added, Richardson said. Another bond for the drainage has another year to go, he stated.
Precinct 3 Commissioner Chuck McHam intoned that with rebidding and having to do engineering plans, he doesn’t think the $1.7 million “will even touch this road.” He asked, “So what happens when we run out of the 1.7 million?” Strawn said while all of this is within the county’s power, there’s no guidance on how to implement it, and he believes that taxpayer money would fund anything more than the $1.7 million.
County Attorney Clint Davis said the concern is that if the county secures the bond and then does nothing, then the problem could be that the county “would be on the hook for it anyway. So, I think there’s risk to the county, either way you go, we’re choosing and recommending the option that puts $1.7 million in our (the county’s) hand, with the exact same risk.” Davis added that without enforcing the bond or letter of credit, the fear is that the lot buyers will “come after” the county.
Davis also said the hope is that the lender’s lawsuit leads to another selected developer, with the money then reassigned by the county to finish the job, staying relatively uninvolved. The issue will take time to play out, the county attorney indicated.
According to Davis, taking into account the state legislature capping (in 2019) a county’s ability to regulate subdivisions, “This is exactly why, traditionally, we have not liked presales, we have not allowed presales, because you have a developer that has an idea, they come in, they presale the lots, they take the money (which was later divulged to be multiple millions), and when it all falls apart, we’re left to put it back together. This is exactly the position we’re in now, that’s essentially what happened here.”
County Judge Wade McKinney said because the county’s contracted engineers did the subdivision plans, he thinks that part can still be valid. “You can lay this at the feet of the Texas Legislature,” the county judge said. He added, “So now, the taxpayers get to clean up the mess. Local control is very important, and the legislature doesn’t want to hear about local control, until it’s convenient. This was completely preventable.”
Once the letter of credit expires, Davis explained, the county can no longer collect. Davis called the subdivision “high-end lots,” which McKinney numbered at 149, on 258 acres. In the end, the court approved drawing on the irrevocable letter of credit.
In other business, the court:
• Approved a resolution authorizing a county grant to Meals on Wheels East Texas for program year 2026, which McKinney said happens annually, which includes funding from the Texas Department of Agriculture.
• Heard about a notification of an election order pursuant to state law, for informational purposes only, from Emergency Services District (ESD) No. 1 which proposes adopting and imposing a 2% sales and use tax within the district, which meets in Trinidad.
• Set a proposed 2025 cumulative tax rate of $0.3314930, applicable to the 2026 county budget, and set a Sept. 9 public hearing about that proposed tax rate.
• Set a Sept. 9 public hearing for the proposed 2026 county budget.
• Approved a contract with ES&S for 38 electronic pollbooks, along with software and support services, for the Henderson County Elections and Voter Registration Department.
• Appointed Cody Rayburn (who is the manager of Bethel-Ash Water Supply Corp.) to the Neches & Trinity Valleys Groundwater Conservation District Board of Directors.
• Approved the Henderson County ESD No. 7’s 2024 annual financial statement in accordance with state law, for filing purposes only, for the ESD that meets north of Athens.
• Approved paying fiscal year 2025 bills of $459,639.50.
• Approved a site plan for Grove Estates tiny home park (with amendments on lot size width and two variances for topography and for having one point of ingress/egress), which is located in Precinct 4.