In Liberty County, Texas, Colony Ridge Inc. has come under scrutiny following the approval of $22.5 million in contracts for Liberty Paving, a subsidiary with close ties to the company’s executives. This development has sparked concerns about potential conflicts of interest and the appropriate use of taxpayer funds.
Background
Established in late 2017, the Liberty County Municipal Management District No. 1 was created to enhance public services—including law enforcement, firefighting, and infrastructure development—within the rapidly expanding Colony Ridge subdivision. The district is governed by a board composed largely of individuals affiliated with Colony Ridge Inc., including President John Harris and Vice President Heath Marek. Both have disclosed financial interests in Liberty Paving.
Financial Overview
Since its inception, the district has amassed nearly $13 million in taxpayer funds. However, records indicate that only $350,000 has been allocated to law enforcement services, with the majority remaining unspent in investment accounts yielding 4-5% annual interest.
Contract Approvals
Between 2022 and 2024, the district approved three substantial contracts for Liberty Paving:
August 2022: $10 million for paving and drainage in the Santa Fe subdivision. August 2023: $6 million for similar work in the same area. November 2024: $6.5 million for additional paving and drainage projects.
These contracts were awarded despite the board’s close connections to Colony Ridge Inc., raising ethical questions about the decision-making process.
Expert Opinions
David Hawes, managing partner of Hawes Hill & Associates, commented on the situation, stating that while legality is one aspect, the ethical implications are significant. He noted, “Just because it’s legal, doesn’t make it right.”
Legal Actions
The Colony Ridge development has faced legal challenges, including a lawsuit from Texas Attorney General Ken Paxton. The lawsuit alleges deceptive practices in land contracts, highlighting concerns about increased tax liabilities and inadequate infrastructure.
Conclusion
The intertwining of Colony Ridge Inc.‘s leadership with the Liberty County Municipal Management District’s board, coupled with substantial contract awards to its subsidiary, has ignited ethical debates regarding governance and fiscal responsibility. As investigations continue, stakeholders await further developments to address these concerns.