Fate City Council Greenlights $15 Million Developer Giveaway While Residents Foot the Bill for New $15 Million Police Station
Fate, TX – Fate Tribune
In a swift decision, the Fate City Council has approved a controversial modification to the Lafayette Crossing development agreement—now rebranded as “Project Cactus”—that authorizes up to $15 million in reimbursements to a private developer for public infrastructure. The move, framed by city officials as an urgent economic opportunity, was rushed through the council without adequate public notice, discussion, or debate.
Coincidentally, the council’s vote to give away up to $15 million of taxpayer-controlled funds came just weeks after the city issued a $20 million bond, $15 million of which will be used to construct a new police station. The Fate Tribune has submitted an Open Records Request (ORR) to discover if the city knew of this potential request by the developer before the bond proposal was issued to the voters.
Buried in the Agenda, Rushed Through Council
The Project Cactus agreement appeared on a recent council agenda under the vague language of “economic development negotiations; and to deliberate the offer of a financial or other incentive to the business prospect with no clear explanation of the project’s scope, cost, or long-term financial obligations.” The Agreement was presented to the Council in a closed, executive session, and the public was never able to review it. Only a summary, which does not indicate how many incentive credits were under consideration, was posted for the public. Therefore, the people of Fate were left without access to the details and had no meaningful opportunity to review, question, or weigh in on the proposal before the council cast its vote.
Council members were reportedly told that time was of the essence and that an immediate vote was necessary to secure the project. The pressure tactic left no room for thorough analysis or citizen engagement. The rushed timeline ensured that residents would not have a chance to digest the financial implications or voice either support or opposition.
This is not the first time Fate residents have expressed frustration with the city’s lack of transparency in major spending decisions, but the size and scope of this developer giveaway have taken concerns to a new level.
A Familiar Development, Rebranded with Bigger Costs
Project Cactus will span approximately 80 acres at the northwest corner of Interstate 30, between Woodcreek Blvd. and FM-551. Plans include 400,000 square feet of retail and restaurant space, anchored by two Fortune 100 retailers, we are told: one a grocery store, the other a department store. Both of which are undisclosed to the public.
In order to serve the development, approximately $15 million worth of public infrastructure—roads, sewer, water, and utilities—must be constructed. Under the newly amended agreement, the city will reimburse the developer for those costs using a blend of revenue streams:
- $9 million in developer-paid impact fees collected from the eastern portion of the project
- $1 million in utility capital replacement funds, earmarked for maintaining the city’s existing infrastructure
- $1.7 million from the Fate Economic Development Corporation’s sales tax revenues
- $3.3 million from the City’s general fund, supported by residential property taxes and citywide sales taxes
Although the agreement is framed as “performance-based,” reimbursement begins in 2028 and continues through 2037, with payments tied to 50% of the city’s potential sales tax generated from retailers in the development. The money comes as “tax credits”, a type of transferrable commodity that can be sold or traded in private markets. What we are referring to as the “developer”, is actually a slew of companies: D-F FUND 18, LTD., D-F FUND VI, LTD., D-F SOUTHWEST FUND 19, LTD., and LA-DF INVESTMENT FUND 8. These Tax Credits can be used by anyone on the development team, or sold off to some future entity. They can also just be cashed in, giving the developers a nice bonus.
$15 Million for Retail, $15 Million for Police—But Only One Got Voter Input
What makes this maneuver troubling to residents is the striking contrast between how the city handled its $15 million police station project versus how it handed over $15 million to a developer.
The police station project was part of a broader $20 million public safety bond package presented to voters and approved in November 2024. It went through a process of public discussions, public meetings, and was ultimately subject to democratic approval by a vote of the people, where it was passed by 60% of the voters.
In contrast, the Project Cactus reimbursement—also worth $15 million—received no such scrutiny. There were no town halls, no financial impact analysis made public, and no citizen advisory input. It was quietly placed on the agenda and passed under the rationale of urgency. Other than what was presented seconds before the vote, the public had no idea what, “Project Cactus” was.
A Taxpayer Gamble on Retail Hopes
Supporters of the deal argue the project will eventually generate over $140 million in taxable property value and $2.8 million in annual sales tax revenue for the city. But those gains are 10 years from now and are far from guaranteed. The commercial retail sector has been highly volatile in recent years, and the success of any development on the outskirts of Dallas-Fort Worth depends heavily on consumer patterns, traffic flow, and macroeconomic factors outside the city’s control.
With infrastructure costs scheduled to be completed by mid-2027 and anchor stores set to open by that year’s end, the sales tax reimbursement clock begins in 2028 and runs through 2037. The agreement replaces the original Lafayette Crossing deal, which capped developer credits at $9 million and limited city exposure. However, as we stated previously, the Tax Credits can be used or transferred at the whim of the Developers.
Citizens Left Wondering: Who Does City Hall Work For?
For many residents, the larger concern isn’t the project itself—it’s the process.
A massive, multimillion-dollar commitment was pushed through with minimal transparency, no time for public input, and under pressure to act quickly. In doing so, the city council placed the interests of a private developer ahead of the taxpayers who fund the very infrastructure being gifted away.
While the council insists that Project Cactus will broaden the tax base and relieve residential property owners in the long term, it’s the short-term sleight-of-hand that’s raising alarm bells. When the public is kept in the dark until it’s too late to act, it’s not economic development—it’s taxation without representation.
The people of Fate approved a bond to build a police station. They were never given a chance to weigh in on giving away the same amount to a retail developer. Perhaps it’s time to revise the Town Charter so that future councils can’t give away more than $100,000 to a developer at a time, without voter approval. It’s clear that the Fate Municipal Development District doesn’t view city obligations in the same way that citizens do. Furthermore, City Manager Michael Kovacs was derelict in his duty to the citizens of Fate, choosing to prioritize a developer’s timeline over the public’s right to transparency, oversight, and meaningful participation in the decision-making process.
Now the money is committed, the votes are cast, and the deal is done. What remains to be seen is whether the gamble pays off—or whether Fate’s taxpayers will be left holding the bag.
Former Fate Mayor is making a run for John Stacy’s seat on the County Commission.
Opinion: Former Fate Mayor Lorne Megyesi is asking the voters of Rockwall County Precinct 4 to entrust him with a multi-million-dollar county budget. His campaign says he offers “transparency, fiscal discipline, and thoughtful planning.” But his record as mayor and his personal financial history tell a very different story.
A Mayor Who Left a Mess Behind
From 2014 to 2019, Megyesi presided over a period of rapid, developer-driven growth in Fate that left deep marks on the city’s character and infrastructure.
High-density subdivisions were approved at a staggering pace, with little consideration for the long-term impacts on roads, schools, or utilities. City planning under Megyesi seemed focused more on accommodating developers than on safeguarding the small-town feel that residents valued.
Public meetings often left citizens frustrated, as major zoning changes were pushed forward with minimal explanation or engagement. Today, the current Fate City Council is actively working to undo many of the planning and zoning policies from his administration—policies that are now widely seen as short-sighted and detrimental to the city’s long-term stability.
This is the reality behind Megyesi’s claim that he “helped guide the city through a period of rapid growth while maintaining its hometown spirit.” The truth is, Fate is still trying to recover from his brand of “planning.”
The Bankruptcy Question
Voters evaluating a candidate for a role that involves budget oversight and fiscal decision-making have a right to consider his personal financial record. In Megyesi’s case, that record includes a personal bankruptcy filed in Portland, Oregon—Case #0031885ELP, discharged in 2000.
The Fate Tribune reached out to Megyesi for comment and he provided this personal statement about his bankruptcy:
“In late 1999, I suffered a severe back injury that greatly impacted my ability to work and provide for my family. Like many Americans, I faced a season of financial hardship that was not the result of irresponsibility, but of unexpected life circumstances beyond my control. In such cases, the Bible acknowledges both the reality of debt and the provision for its release. In Deuteronomy 15, God Himself established a system of debt forgiveness not to reward poor choices, but to give people a fresh start and restore them to productivity. Our own bankruptcy laws reflect this same principle, ensuring that when someone is knocked down, they have a lawful, honorable path to get back on their feet.
I made the decision to use the legal framework available, a framework our Founders wisely incorporated into our system so that I could recover, rebuild, and once again contribute to my family, my church, and my community. That experience taught me the value of stewardship, perseverance, and compassion for those who face unforeseen hardship. I paid the price, I learned the lessons, and I came back stronger. Today, I stand not as someone defined by that moment of difficulty, but as someone equipped to fight for policies that strengthen families, reward hard work, and extend grace where grace is due just as Scripture commands.”
His explanation is sincere, and no one should dismiss the real impact of medical hardship. But bankruptcy—whether caused by poor judgment or bad fortune—is still a critical factor when voters are deciding who should manage public money. This is not a personal attack; it is a matter of qualification and trust.
County commissioners oversee large budgets, make fiscal policy decisions, and control spending priorities. A candidate’s ability to handle personal finances responsibly is not irrelevant—it’s central to the job.
The Core Issue: Record vs. Rhetoric
Megyesi’s campaign promises sound good—transparency, fiscal discipline, thoughtful planning—but they ring hollow in light of his record. His years as mayor saw opaque governance, developer-friendly zoning, and long-term infrastructure strains. His financial past, while explained as the product of hardship, still raises serious concerns about whether he’s the right person to be a steward of taxpayer funds.
Rockwall County voters must decide: Do they want someone with a proven track record of fiscal prudence and responsive leadership, or someone whose past in both public office and personal finance raises legitimate questions?
The people of Precinct 4 deserve leadership that inspires confidence—not déjà vu from the mistakes of Fate’s past.
Here is a comprehensive summary of the benefits Michael W. Kovacs receives under his 2022 employment agreement as City Manager of the City of Fate, Texas. Actual document provided at end.
💼 Compensation & Salary
- Base Salary: $202,436.34 annually, paid biweekly.
- Salary Adjustments: Automatically increased in accordance with any general cost-of-living adjustments (COLAs) applied to executive-level employees.
- Performance-Based Raises: Salary and/or benefits may increase based on annual performance evaluations.
- Salary Floor: Cannot be reduced below the base salary without mutual written agreement.
🏥 Health, Disability & Life Insurance
- Full Coverage: City pays 100% of premiums for health, hospitalization, surgical, dental, vision, and comprehensive medical insurance for Kovacs and his dependents.
- Life Insurance: City pays for a policy worth three times his annual salary. Policy is owned by Kovacs; premiums treated as taxable income.
🕒 Paid Time Off (PTO) & Leave
- Accrues PTO under the same policies as other employees.
- May accrue and carry forward unused PTO.
- Upon termination (excluding resignation or retirement), will be compensated for all unused PTO.
- Entitled to military leave under the same provisions as all employees.
🚗 Automobile Allowance
- Receives $7,000 annually (paid monthly) for vehicle purchase, lease, operation, and maintenance.
- May request IRS standard mileage reimbursement for official business beyond 100 miles from Fate.
🏦 Retirement Benefits
- Enrolled in the Texas Municipal Retirement System (TMRS).
📚 Professional Development & Memberships
- City pays for:
- Membership dues (e.g., ICMA and other professional associations).
- Travel and expenses for attending national, regional, state, and local meetings and conferences.
- Short courses, institutes, seminars for professional growth.
- Membership fees for local civic clubs or organizations.
- Reasonable expenses for job-related meals and social engagements.
- Provided laptop, mobile phone, and/or tablet for business and personal use (must return upon termination).
🛡️ Severance Package
- If terminated without cause:
- Receives 12 months’ salary as severance.
- Includes accrued PTO and continued health benefits (subject to caps).
- Severance is forfeited if:
- Terminated for a felony, moral turpitude misdemeanor, or conflict-of-interest violations.
- Resigns voluntarily or retires.
🏠 Residency Requirement
- Must maintain residence within Fate city limits.
🕰️ Work Schedule & Expectations
- Flexible hours expected, including significant time outside normal office hours.
- May establish own work schedule as long as job duties are fulfilled.
⚖️ Indemnification & Legal Support
- City will indemnify and defend Kovacs (including attorney’s fees, costs, settlements, etc.) for any legal actions related to his job unless his actions involve gross negligence, bad faith, or willful misconduct.
- Continues to receive legal support and reasonable consulting fees/travel expenses even after separation, if related to job duties or litigation where he is a witness/advisor.
- Independent legal representation available upon request, at City’s expense (within reason).
📉 Suspension & Termination
- May be suspended with full pay and benefits by majority City Council vote.
- Kovacs must receive written notice of charges within 10 days and can request a hearing (open or closed session).
📜 Ethical Standards & Restrictions
- Prohibited from:
- Endorsing candidates.
- Donating to campaigns.
- Participating in political fundraising or petitions.
- Protected from being ordered to violate these principles by any City official.
- Must uphold ICMA Code of Ethics.
📈 Outside Activities
- May engage in teaching or consulting only with prior approval of the City Council.
- Such work must not interfere with City duties or present conflicts of interest.
📑 Other Provisions
- Bonding: City pays for any fidelity or similar bonds required by law.
- Dispute Resolution: Parties must attempt non-binding mediation before filing any lawsuit.
- Precedence Clause: Terms of this agreement supersede conflicting City policies or laws (unless prohibited by law).
Fate, TX – Fate citizens have selected Andrew Greenberg as their next mayor, affirming a vision of principled, conservative leadership. In a race that highlighted the city’s dedication to its values, Greenberg’s triumph reflects a clear mandate for transparent governance, sustainable growth, and steadfast public safety. His opponent, Lorna Grove, mounted a respectable campaign but ultimately stepped back, recognizing Greenberg’s conservative credentials and readiness to lead. Fate’s voters have entrusted their city to a man whose priorities align with its small-town charm and forward-looking aspirations.
The unofficial results are Greenberg (903 votes) – 78.66% to Grove (245 voted) – 21.34%.
Greenberg, a government and economics professor and Rockwall GOP Precinct Chair, has called Fate home since 2018, raising three daughters alongside his wife in a community he cherishes. His campaign, grounded in constitutional conservatism, emphasized preserving Fate’s unique character while managing growth responsibly. As a professor, he brings a disciplined mind to the complexities of municipal governance, promising to balance development with the city’s identity by carefully addressing infrastructure and business expansion.
Transparency defined Greenberg’s platform, resonating with residents weary of opaque government processes. His commitment to open town halls, regular updates, and accessible city operations struck a chord, offering a refreshing antidote to distrust in institutions. Voters saw in him a leader determined to make local government approachable and accountable, ensuring residents are informed about every decision affecting their lives.
Public safety, a point of pride for Fate as Texas’s sixth-safest city in 2024, remains a cornerstone of Greenberg’s agenda. His pledge to equip police, fire, and emergency services with robust resources reassured a community that views security as non-negotiable. This focus underscored his understanding of Fate as a haven for families and citizens across generations.
Lorna Grove, Greenberg’s opponent, brought her own conservative bona fides, earning admiration from many. Initially skeptical of a professor in the mayor’s race, she discovered Greenberg’s rare conservative perspective in academia, dubbing him a “unicorn.” Her near-endorsement of him signaled a shared commitment to Fate’s future, and while she may run again, her current focus on family and her dignified campaign won her widespread respect.
As Andrew Greenberg prepares to lead, Fate faces the challenge of growth without sacrificing its soul. With a mayor rooted in conservative principles—limited government, personal freedom, and community pride—residents can trust that their city will remain a beacon of tradition and opportunity. Greenberg’s election is a reaffirmation of Fate’s values and a bold step toward a future that honors its past.
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