City attorney: no present conflict found for Council member Elise Chacon; residents press harbor concerns

City Attorney Esauce addressed public allegations that Council member Elise Chacon had a conflict of interest with a harbor developer and told the council on March 16 that, based on the documents he reviewed under Chapter 171 of the Local Government Code, he found no present conflict.

"From the information that I have, the investor is not a party to this lease and the council member receives no direct payment," Esauce said, explaining that existing leases he reviewed involved an employee or lessee rather than the investor himself. He cautioned, however, that a future showing that an investor controls an employee's LLC or that an LLC acted as an alter ego of the investor could create a conflict under the statute.

Council members said the attorney’s clarification should help dispel rumors, but several residents asked for additional scrutiny and suggested matters that could be reviewed in executive session. One resident said he had spoken with an investor who could alter the attorney’s conclusions; the attorney cautioned against naming private investors in open session and suggested the matter could be discussed in executive session if necessary.

Public comment during the meeting also featured heated criticism about internal investigations and police conduct; one speaker accused officers of providing inaccurate witness descriptions and raised allegations of improper behavior by council members. Council moderated the remarks and said the forum was not the place to litigate those claims.

Separately, multiple residents raised concerns about harbor development, short-term rentals on the waterfront and possible environmental effects of desalination discharges. Council members agreed to schedule additional town-hall meetings focused on harbor planning and to continue public outreach before making further policy decisions.