Commissioner Takes Cash, cont...

The zoning request centered on a 280-unit multi-family development now under construction in Oak Cliff beside Laurel Land cemetery, in the 300 block of Camp Wisdom road. The development is called Rosemont at Laureland and is owned by a major low-income housing developer believed to be at the center of the FBI's investigation, Southwest Housing Development owner Brian Potashnik.

Last March, Potashnik's company submitted an application to the Dallas Plan Commission for a special use permit to build a community center on the property to provide social service activities to its residents. During the same time frame, Commissioner Lee worked as a housing consultant for the Dallas Urban League, a non-profit group providing social services. Dr. Beverly Mitchell-Brooks, President and CEO of Urban League of Greater Dallas tells CBS-11 News that it paid Lee $5,000 for helping the group become the development's social services provider.

But in mid-April, according to records, Commissioner Lee made the motion for the Dallas Plan Commission to approve the permit for the community center, and he cast a vote for it.

City ethics rule strictly forbid planning commissioners from voting on projects with which they have a financial relationship or stake. The rules also clearly spell out an obligation that commissioners publicly declare financial relationships with developers and recuse themselves. CBS-11 has learned that Commissioner Lee did not recuse himself.

Commissioner Lee did not return a phone call. His attorney, Larry Jarrett declined to comment, citing the ongoing FBI investigation.

"It would not be prudent to make any comment at all," he said. "I wouldn't do that. We're not going to make ourselves available for comment until we find out the scope of the investigation."

Last Monday, the FBI carried out a series of search warrants targeting Potashnik, Commissioner Lee and the City Council member who appointed him, Don Hill. The FBI also has targeted City Councilmember James Fantroy and carried out search warrant raids on the offices of other businesspeople and non-profit organizations, including the Black Employees Association of Texas, which is involved in developing low income housing.

The Urban League has provided the FBI with records detailing the nonprofit's dealings with Commissioner Lee. Dr. Mitchell-Brooks said Commissioner Lee initially approached the organization late last year hoping to arrange a partnership with Potashnik's Southwest Housing to develop Rosemont. Developers of low income housing desire such partnerships with non-profits as a prerequisite to gain valuable government tax credits that increase profit margins.

But the original deal that Commissioner Lee wanted to broker between the Dallas Urban League and Southwest Housing fell through. Instead, he brokered a $25,000 annual contract for the Dallas Urban League to provide social services to the complex when it was through. For his services, Commissioner Lee demanded and was paid $5,000.

Dr. Mitchell-Smith told CBS-11 that Commissioner Lee then proposed that he be hired as a permanent consultant for $5,000 per month. His job would have been to help the League find other housing developments but he was turned down because Commissioner Lee's price was considered too steep.

Records show that Commissioner Lee in April put forth the motion to approve a special use permit for the center and a swimming pool within a month or two of accepting the $5,000 fee that Dr. Mitchell-Smith said her organization paid him. She also said the Commissioner Lee was actively involved in attempting to broker other high profit tax credit developments in the city's southern sector.

In other news, CBS-11 has learned linked the mysterious luxury car being driven by Councilmember Don Hill to Sheila Farrington, a political consultant who records show has done political campaign work for Hill and is a contributor. Last week, after FBI agents searched the BMW Hill was driving, he acknowledged to reporters that he didn't own it.

Hill was less than forthcoming about who does when CBS-11's Sarah Dodd asked. He did not declare the use of the car on his campaign finance reports, those records show.

"It belongs to a friend," Hill said. "It's a car that I've earned the right to use."

Public records indicate that the BMW is registered to Garland resident Dan Thorne, who says he sold it in January to Carmax for $26,000. The BMW's new owner, Sheila Farrington, has never registered it in her name nor anyone else's since buying it from Carmax, CBS-11 has learned. Failure to register a recently purchased vehicle is a misdomeanor that can bring a fine.

Questions remain: Why didn't Farrington re-register it and how did Don HIll come to be driving the BMW?

Neither could be reached for comment. No one came to the door at Farrington's apartment, which CBS-11 has learned, also was raided by FBI agents last week.

CBS-11 has learned that Hill and Farrington are financially intertwined. For instance, her firm Farrington & Associates contributed $1,000 to Hill's campaign in March 2005. That same month, Hill's campaign records show he paid her company nearly $2,000 as reimbursement for Superbowl and fundraisers.

Also in March, Hill paid Farrington another $1,500 for campaign consulting services.

Farrington's company also shows up in public records as receiving payment for several Don Hill political expenditures dating back to 2003.