Houston's Clear Thinkers

October 30, 2009

John O'Quinn, R.I.P.

The Houston legal community remains in shock over the death yesterday in a car accident of famed trial lawyer, John O'Quinn. He was 68 years old at the time of his death.

O'Quinn was a remarkably talented plaintiff's lawyer and became one of the wealthiest attorneys in the country as a result. And a controversial one at times, too (also see here).

But those who only knew John through news reports never knew the man. John had a heart as big as Texas, as reflected by his generous donations over the years to the University of Houston, Texas Medical Center institutions and numerous other charitable organizations.

Moreover, John's big heart extended into legal cases, too. Most recently, John took on the case of former mid-level Dynegy executive Jamie Olis, whose criminal case epitomizes the brutal nature of the government's criminalization of business in the aftermath of Enron's demise.

After taking on the case, John told me that his review of many of my blog posts on the Olis case was one of the reasons that he decided to take on the case. He never received a dime for the work he did on the case, but he didn't care a lick. He simply was appalled by what the government had done to a decent young man and his family, and he was intent on doing something about it.

My most recent contact with John was at University of Houston Law Foundation board meetings, which he attended faithfully for many years (he was the law school's largest benefactor). John was a delight to work with at such meetings, intensely interested in what was going on at the law school, but always wonderfully good-natured about the inherent limitations of such boards to do much more than raise money and encourage the Dean to hire good people.

My lasting memory of John will be leaving our last such meeting together, talking about the Olis case as we walked to our cars. We observed to each other on just how difficult it had become to be a wealthy businessperson in America. He cracked that it was almost enough to turn him into a criminal defense attorney.

Make no doubt about it, John O'Quinn was one of the most talented trial lawyers of his time. His preparation regimen for trial was legendary, and his ability to connect with jurors was the best that I have ever seen in the courtroom.

I will miss John very much.

Funeral arrangements for John O'Quinn:

Viewing Tuesday, November 3, 4:00pm to 8:00pm
George H. Lewis Funeral Home
1010 Bering Drive
Houston, Texas 77057
(713) 789-3005

Funeral Wednesday, November 4, 11:00am
Second Baptist Church
6400 Woodway
Houston, Texas 77057
(713) 465-3408

Update: Links on Q'Quinn's life and death:

John Council and Brenda Sapino Jeffreys

Rick Casey

Observations of colleagues

O'Quinn and the medical community (see also here)

Q'Quinn's environmental legacy

Q'Quinn's real estate investments

O'Quinn's car collection with Tim Spell's anecdotes

O'Quinn's obituary

Posted by Tom at 12:01 AM | Comments (5) | TrackBack (0)

September 30, 2009

Fearless Critic 2010 is here

The best local restaurant evaluation guide -- Fearless Critic Houston Restaurant Guide 2010 -- is now available. The brutally honest restaurant guide is put together by a group of undercover local critics who "dine incognito, don't accept freebies, and don't pull punches" in rating a cross-section of 450 restaurants in the Houston metropolitan area.

Da Marco, Tony's and Catalan take the top three spots this time around (the guide is published every other year), but one of the aspects about Fearless Critic that I most enjoy is that it rates restaurants based upon the quality of the food relative to cost, so many not-so-high-priced restaurants rate far better than many expensive restaurants. For example, Huynh, a relatively inexpensive Vietnamese restaurant in downtown, comes in at 7th in the rankings.

You won't always agree with their evaluations, but the Fearless Critics make their case well. It's definitely worth the eleven buck cost currently on Amazon. Check it out.

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September 10, 2009

The Landry's debacle

There are bad stock plays and there are horrible stock plays. And then there is Houston-based Landry's Restaurants, Inc.

This story began back in July of 2007 when the company announced that it was delinquent in its regulatory filings with the SEC and that it was in need of refinancing over $400 million in debt in a rapidly deteriorating debt market. Shortly thereafter, the company sued some of its bondholders for declaring the company in technical default under their bonds, but the company quickly settled that litigation on not particularly good terms.

A few months later, Landry's announced in January 2008 that its CEO and major shareholder (39%), Tilman Fertitta, had made an offer to take the company private by buying the other 61% of the company's stock for $23.50 share, which worked to be a $1.3 billion deal, including debt.

Given the circumstances, that offer sounded pretty good, particularly given that the proposed purchase price was a 40% premium over the $16.67 share price at the time of the offer.

Unfortunately, a spate of shareholder lawsuits followed Fertitta's bid. By early March, 2008, it was apparent that Fertitta's bid was so speculative that he hadn't even lined up financing for it.

So, in April of 2008, Fertitta lowered his offer to $21 per share because of "tighter credit markets", and Landry's announced that it had accepted that price in June.

But by the fall of 2008, the financial crisis on Wall Street had roiled credit markets even further and Hurricane Ike caused considerable damage to several Landry's properties.

So, in October of 2008, Fertitta lowered his offer to $13.50 per share.

Then, in mid January of 2009, Landry's announced that it was terminating the proposed deal with Fertitta. The reason was a bit convoluted, but here is the gist of it.

Landry's contended that the SEC was requiring the company to issue a proxy statement disclosing information about a confidential commitment letter from the lead lenders on the buyout deal. However, Landry's was negotiating with those same lenders to refinance the bond indebtedness that the company promised to refinance in connection with October, 2007 litigation settlement with its bondholders noted above. Inasmuch as the lenders' commitment for financing Fertitta's buyout required that the terms of the commitment remain confidential, the company elected to terminate the buyout rather than risk that the lenders would declare a default for breach of confidentiality and back out of the financing commitment as well as the negotiations on refinancing the bond indebtedness.

Amidst all this, Landry's stock was tanking, closing at under $5 per share.

Meanwhile, while the take-private bids languished and the company's stock plummeted to historic lows, Fertitta continued to buy more Landry's stock so that he now controls somewhere in the neighborhood of 55% of the company's shares.

Yes, that's right. Despite a series of unsuccessful take-private offers over a year and a half, Landry's board failed to obtain a standstill agreement from Fertitta that would have prevented him from taking a majority equity position while Landry's stock price was tanking.

So, given all of that, how could Fertitta and the Landry's directors screw things up any worse?

How about proposing yet another deal in which Fertitta would buyout Landry's other shareholders in return for giving them an equity stake in a publicly-owned spin-off in a brutally competitive niche of the restaurant market?

Prediction: This is not going to turn out well.

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August 28, 2009

A real head scratcher

The Stanford Financial Group scandal has been anything but typical, but yesterday's developments may have been the most bizarre yet.

The big news, other than the hospitalization of R. Allen Stanford, was the guilty plea that Stanford's right-hand man and long-time friend, James Davis, entered in connection with a plea bargain that he worked out with federal prosecutors.

The background section of the plea deal makes for some entertaining reading (bribes to, and a blood oath with, an Antiguan bank regulator?). But the more interesting aspect is that Davis' plea is the latest chapter in a most curious defense strategy.

From almost the outset of the Stanford Financial scandal, Davis' attorney -- Dallas-based attorney David Finn -- has been telling any media outlet that was willing to quote him that his client was guilty of a huge fraud on Stanford investors and that Davis was going to plead guilty to charges as soon as he could work out details of a plea deal with federal prosecutors. Even the most rabid prosecutors would never risk making such public statements, so effectively Finn has been doing much of the prosecutors' public relations work for them.

And now we finally know the terms of the plea deal between the prosecutors and Davis.

On one hand, David pled guilty “in exchange for” a Level 43 under the Sentencing Guidelines (reduced from a Level 46 -- do the Sentencing Guidelines even go up that high?!) “with acceptance” deal. Based on my understanding, that means that Davis has agreed to a prison sentence of 30 years to life. Davis is 60, so assuming that he gets the full benefit of the the traditional 1/3rd off under the guidelines for being a good snitch (no cinch bet in Judge Hittner's court), Davis will do 20 years and be 80 by the time he shuffles out of prison.

On the other hand, the prosecution "gets” Davis as their primary witness, who -- according to the prosecution's own theory of the case -- was one of the key participants in a six billion dollar scam from the beginning. If, as prosecutors alleged during the hearing, Stanford Financial was a “giant house of cards," then why cut a “deal” with the guy who was one of the lead architects of the scam?

Well, we now have the answer to that question. The plea deal is not a "deal" at all. It's total surrender.

Davis is reportedly working as a day laborer at $10 per hour to pay his legal fees. From the looks of it, he is getting the quality of representation that he is currently capable of paying for.

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August 25, 2009

Amazingly bad decision-making

One fringe benefit of economic downturns is that local public officials generally defer their financial decisions, which tend to be uniformly bad even during good economic times.

Except apparently in Houston.

Over the past few days, Houstonians have been bombarded with a flurry of bad decisions by their public officials, who seem undeterred by the growing consensus that the nation is going through the worst economic recession since the Great Depression of the 1930's.

First, as Kevin Whited notes, the City of Houston publicly announced this past Friday that it had removed the final local regulatory roadblocks to the construction of the long-delayed Ashby high-rise condominium project in a tony residential subdivision near the Texas Medical Center. In so doing, the City forgot to tell the news to the most interested people, namely the owners of the property where the project is to be built.

At any rate, the City's announcement ended an egregious example of local governmental interference with productive development of private property. Of course, in the present climate for financing high-rise condos, the chances of the owners being able to revive the project any time soon are about as good as the Stros' chances of leaping into World Series contention.

Thus, rather than having dozens of wealthy condo owners paying substantial amounts of property taxes and for other City services, the City continues to enjoy the "benefit" of a run-down apartment complex on the property where the Ashby high-rise was to be built.

So, not only did the City fail to take advantage of the opportunity to increase its tax base through re-development of the Ashby high-rise site, it benefited the owners of the site by deterring them from taking the financial risk that would have generated that financial boon to the City.

Now, that type of government mismanagement really takes some effort.

Meanwhile, as if trying to one-up the City's bungling of the Ashby high-rise deal, local governmental officials were reported on Monday to be on the "home stretch" of putting together a financing package for construction of a new downtown soccer stadium, a new jail facility and the redevelopment of the Astrodome.

I mean, really. Where to start?

As noted many times, the City has already paid millions at a top-of-the-market price for the site of the proposed soccer stadium while at least maintaining that it's up to the owners of the Dynamo soccer club to put together the private financing for the construction of the stadium itself.

Now, the City is going to finance the construction of the soccer stadium itself through selling TIRZ bonds? When did the prior approach change? Did I miss something?

Similarly, there's not much left to say about the City and the County governments' reprehensible handing of the Harris County and City jails, both of which have both been condemned by the Department of Justice because of their horrific condition and mismanagement (the latest on the City jail conditions is here).

It's clear that the true problem of the existing jails is a combination of underfunding and needless overcrowding from sloppy processing of prisoners who do not need to be incarcerated pending their trial. So, what do local governmental officials do? Wait until the conditions become so barbaric that all they can do is throw tens of millions of dollars (perhaps illegally?) at constructing yet another jail facility in an attempt to placate federal officials.

But both the proposed soccer stadium and jail facility pale in comparison to the potential boondoggle that is the Astrodome redevelopment project.

After years of assuring local citizens that they would not be called upon to pick up the financing of redeveloping the Dome, local governmental officials are now proposing that the citizens do just that.

And as if to make that change of policy even more galling, the governmental officials who leaked the information on the financing plans to the Chronicle did not even bother to spell out what the Dome is to be turned into as a result of the redevelopment.

So much for transparency, eh?

In the meantime, as City and County officials dither over the details of these proposed boondoggles, City officials continue to ignore this ticking financial time bomb (see also here) while wasting billions on yet another boondoggle, the spending on which swamps even the quarter of a billion proposed for the current round of boondoggles.

Frankly, it's difficult to imagine how even the traditionally resilient Houston economy is going to withstand the dead weight of such pervasive financial mismanagement.

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July 3, 2009

Albert Collins

I saw Albert Collins perform at a Houston jazz club back in the late 1970's when he opened for a well-known local jazz musician. Suffice it to say that Albert stole the show. The headliner decided to have Collins and his band come out and play with him during his part of the show. It was a very smart move.

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June 23, 2009

Houston's connection to the new U.S. Open champion

Houston is synonymous with golf, so it's appropriate that new U.S. Open champion Lucas Glover's former teacher and mentor was the late Dick Harmon (see also here), who was one of Houston's most respected golf instructors for decades before his sudden death in 2006. Glover was one of Dick's pallbearers, delivered one of the eulogies at the funeral and had to fight back tears when he was asked about his relationship with Dick during his post-U.S. Open interview session. What a fitting tribute for a student to give to a wonderful teacher whose spirit still permeates Houston's golf community.

The 29 year-old Glover has long been considered a likely star by other professional golfers and appeared to be ready to fulfill that promise in the 2005-2006 seasons when he won his first tournament (the 2005 Walt Disney Classic), recorded 16 top-10 finishes and just missed earning a spot on the 2006 Ryder Cup team.

However, Glover struggled after Harmon's death in late 2006 and fell all the way to 178th in the World Golf Rankings after last season. Things got so bad that Glover put his clubs away for two months after last season to refresh himself from the grind of PGA Tour golf. Before the U.S. Open, he had already shown signs of regaining his form this season with a tie for 3rd at the Buick Invitational, a tie for 2nd at Quail Hollow and a jump to 71st in the World Golf Rankings. But Glover now appears ready to vault into the top echelons of golf with his U.S. Open championship at Bethpage. He has a superb all-around game.

Finally, as satisfying as Glover's victory was, it may not have been as gratifying as David Duval contending for the title and finishing in a tie for second. As noted here almost five years ago, it's been a long, strange trip back to the top tier of professional golf for Duval. Here's hoping that he stays this time.

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June 14, 2009

Lucy and Ethel in Iowa City

While reminiscing about my late mother with family members and friends at her recent funeral, it occurred to me that her remarkable life would be a great subject for a Larry McMurtry novel.

Along those lines, Sarah Swisher, an old family friend and a columnist for the Iowa City Press-Citizen, penned this column regarding an hilarious caper from the early 1960's involving my mother and Sarah's mother, who were dear friends. What started out as an attempt to create a plot for an Alfred Hitchcock movie quickly transformed into an episode of I Love Lucy with a touch of The  Honeymooners.

You really can't make this stuff up.

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June 10, 2009

A continuing civic shame

My first blog post on the chronically shameful condition of the Harris County Jail was four years ago. There have been quite a few others since then.

Still, nothing has changed.

Despite my libertarian leanings, it's way past time for the federal government to intervene and correct the inhumane conditions of the Harris County Jail.

The Harris County Commissioners have proven themselves to be incapable of administering the jail properly, reflected by County Judge Ed Emmett's most recent suspension of belief over the scathing report: "Actually, if you read the report, it is fairly positive. It has some episodic events but it does not show a pattern of problems.” Moreover, many years of over-sentencing by local criminal district judges hasn't helped the situation, either. On a day in which most of the civilized world is decrying North Korea's imprisonment of two American reporters in one of that country's horrific labor camps, it's worth reminding ourselves that we do not have to travel any further than our local jail to witness barbaric prison conditions.

Houston possesses many things of which to be proud. Sadly, the Harris County Jail is not one of them.

Update: Scott Henson agrees with me.

Update II: Chris Bradford recounts his experience on the in capability of Harris County administrators to operate the jail humanely.

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June 8, 2009

A productive idea for the Dome

Over the weekend, the Chronicle ran this story about Harris County officials considering an idea to convert the Astrodome into a planetarium and a medical and science education facility. It's actually a good idea and one that was suggested here months ago. Given the Dome's proximity to the Texas Medical Center, a county/med center partnership to turn the Dome into the premiere medical/science educational facility in the world makes a lot of sense.

On the other hand, the financing of such a project is not going to be easy, particularly in this economic climate. Nevertheless, given the potential benefit to Houston of becoming a leader in medical/science education, hopefully county officials will give this proposal a fair shake. It certainly makes far more sense than the alternative proposal.

Common sense aside, everyone needs to realize that this new proposal could effectively be scuttled by the financial commitments that have already been made in connection with Houston's previous poor public financing choices. That risk reminds us that such poor utilization of resources ultimately has consequences. It could a harsh irony if Houston's most well-known landmark is a victim of those bad choices.

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May 29, 2009

Remembering a special mother

My mother, Margaret Allen Kirkendall, died yesterday evening at Finley Hospital in Dubuque, Iowa after a lengthy illness. She was 86 years old.

The following is an obituary for Margaret that my brother Matt wrote with contributions from many of my siblings. It conveys well the special nature of this remarkable woman and her considerable contribution to making Houston a better place to live.

Margaret Allen Kirkendall died on Thursday, May 28, 2009 at 9:22 P.M at Finley Hospital in Dubuque, Iowa after a lengthy illness. She was 86 years old. Funeral arrangements are pending with Egelhof, Siegert, & Casper Funeral Homes in Dubuque, Iowa making the arrangements.  The Funeral Mass and burial will be in Texas.

Margaret Jane Allen was born on March 24, 1923 in Cedar Rapids, Iowa, the first child of Grace (Payne) and William Allen. She grew up in Cedar Rapids and graduated from Franklin High School in 1940. At an early age, Margaret decided to become a nurse and eventually put herself through the nursing program at the University of Iowa in nearby Iowa City, graduating with an RN degree in 1946. 

Margaret planned to pursue a career in academic nursing, but met a new medical resident, Dr. Walter M. Kirkendall, who had come to the University of Iowa following his military service in Italy during World War II. In their own version of “Pride and Prejudice,” initial mutual irritation turned into fascination, and subsequently, love. They were married at St. Thomas More Catholic Church in Iowa City on March 30, 1948 with Father McElhaney officiating.

Throughout their life together, Walter and Margaret had a close relationship and truly seemed to complete one another. As Walter pursued his academic career in medicine at the University of Iowa Medical School, Margaret supported his efforts and always worked to provide a stable home life for him, providing the venerable “safe port in stormy weather”.

Margaret and Walter were the proud parents of 10 children. During the 1960's, their home at 430 Brown Street in Iowa City was known as a busy and often boisterous place. There was always an open door for the frequent visitors and Margaret was well known for her energy, hospitality, and plentiful food (industrial cooking she termed it). To the amazement and consternation of her children, she developed a system of friends and community contacts through which she seemed to know the names and activities of every child in the Iowa City/Coralville area. The result of this was that her children found that they could never get anything by her (not that they didn’t try on occasion).

In 1971, Walter accepted an opportunity to help establish a new medical school at the Texas Medical Center and moved the family to Houston. Margaret admitted to some trepidation at leaving Iowa and her many friends, but she lived by her often-quoted adage that “you bloom where you are planted.”  With this attitude, it was not long before she brought many new friends and Texas traditions into her life that was centered around the vibrant home she established for her family at the corner of Sage Road and Del Monte Drive in Houston. Margaret transferred her open door policy from Iowa to her family's new home in Houston and, over the ensuing 20 years, literally hundreds of medical students, colleagues, and other friends were attracted to the dynamic household that Margaret lovingly maintained.     

Throughout this time, Walter and Margaret continued to work as a team to help establish the Department of Internal Medicine at the University of Texas Medical School at Houston. Their efforts helped set the foundation for the medical school and its subsequent development into a premier teaching institution.

At Walter’s death in 1991, Margaret admitted that a large part of her died with him. Despite her loss, she remained busy with her family and friends and participated in a wide variety of community service, often as what she termed as "the old nurse." In retirement, she lived in New Braunfels and then Austin, Texas until she finally returned to Iowa, to live in Dubuque.

While her later years were hampered by illness and disability, she has been supported throughout this time by her many friends, especially Nora Lee Balmer, Jean Eckstein, and Virginia Grady of Iowa City, Dr. Jack Tausend of Houston, Texas, and her oldest and dearest friend, “Auntie Ruth” Pichette, of Highland, Michigan.

She is survived by her sister, Francis Allen Rassenfoss of Park Ridge, Illinois and her 10 children: W.C. (Alice) of Seguin, Texas; James (Kathleen) of Minneapolis, Minnesota; Matthew (Isabelle) of Dubuque, Iowa; Thomas (Susan) of the Woodlands, Texas; David (Ann) of Tomball, Texas; Nancy (Robert) Cook of Austin, Texas; Mary of San Antonio, Texas; Kathryn (Gene) Acuna of Austin, Texas; Joseph of Los Angeles, California; Michael of Austin, Texas; her 32 grandchildren and five great grandchildren, (with another on the way).

Memorial gifts may be sent to the endowment for the Walter M. Kirkendall, M.D. Lecture Series in Internal Medicine at the University of Texas Medical School, 6431 Fannin, MSB. 1.122, Houston, TX, 77030, in care of Philip C. Johnson, M.D, F.A.C.P.

The family would like to acknowledge and thank the following: Father Dwayne Thoman, Deacon Dave McGhee, and Sister Damian O'Brien for their strong spiritual support; Dr. Ronald Iverson, Dr. Darryl Mozena, Dr. Roger Shafer, the administration, nurses, and staff of Stonehill Nursing Home, and the nurses and staff of the 5th floor at the Finley Hospital for their expert and compassionate care of Margaret.  Finally, the family extends our most heartfelt thanks to Joan Reimer, who provided Margaret with selfless, dedicated, and loving attention as her caregiver over the final years of her life.

Funeral arrangements are being handled by Tres Hewell Mortuary,165 Tor Dr. Seguin, TX (830) 549-5912 (www.treshewell.com). The family will greet friends at the funeral home on Tuesday, June 2nd from 5-7 p.m., and a Rosary will follow at 7 p.m.

The funeral will be on Wednesday, June 3rd at 10 a.m. at St. Peter and Paul Catholic Church, 386 N. Castell St, New Braunfels, TX. The family will have a reception for friends at the church immediately following the funeral.

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May 21, 2009

Advantage Cartwright

Texas Monthly's Gary Cartwright caught my eye recently with this op-ed in which he bemoans the decline of sports writing in Texas.

I mean really. Can anyone who regularly reads the sports pages of Texas newspapers make a good faith argument against the notion that the current slate of Texas newspaper sportswriters cannot hold a candle to Dan Jenkins and his contemporaries?

Enter the Chronicle's lead sports columnist, Richard Justice.

Justice -- whose shoddy reporting, vapid analysis and bizarre blog comment attacks have been a frequent topic here for years -- essentially proves Cartwright's point about the demise of Texas sportswriting with this snarling and petty reply to Cartwright's op-ed.

An old saying in India is that "sarcasm is the last weapon of the defeated wit."

Justice is living proof of the truth of that adage.

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May 12, 2009

How did it come to this?

That's the question I kept asking myself as I watched former U.S. District Judge Sam Kent be sentenced to 33 months in federal prison yesterday (previous posts here).

I had an early-morning hearing in federal court yesterday and another one in the mid-afternoon. So, instead of returning to my office between hearings, I decided to attend the sentencing hearing for Judge Kent. It's not every day that a federal judge is sentenced to prison.

The first hour or so of the hearing was stupefying as prosecutors and Kent defense attorney Dick DeGuerin argued over objections to the government's pre-sentencing report. The main reason for the boredom was that, for the most part, no one except the lawyers in involved in the case and U.S. District Judge Roger Vinson knew what they were talking about. That vacuum of information was a direct result of Judge Vinson's dubious decision to keep a substantial amount of the information about the charges against Kent under seal and away from public scrutiny.

Judge Vinson's decision in that regard might have been somewhat defensible had the two victims of Kent's sexual assaults requested secrecy to preserve what little privacy they could salvage from this ordeal. But neither of the victims requested such treatment, and my sense is that Kent didn't want it, either.

So, Judge Vinson decided to conduct this case largely outside the public eye for his own reasons. In my 30 years of practicing law, I have never seen the volume of information in a case placed under seal as was done in this case.

In sentencing Kent, Judge Vinson claimed that he was upholding the justice system by showing that even a powerful judge is not above the law. Unfortunately, he undermined that same system by preventing the public from learning the details of the accusations against Kent and Kent's responses to those allegations.

Although the first part of the hearing could have induced a snooze, the pace picked up dramatically when the two victims of Kent's assaults made their way to the podium to make their victim statements to the court (one of the victim's statements is here, courtesy of the Houston Chronicle). Both victims were extremely impressive in their presentations, describing the emotional and family carnage that Kent's assaults and abuse of power caused. We also learned tidbits of information that likely would have been already been revealed had Judge Vinson not maintained such tight control over information:

The case manager reported Kent's assaults to her supervisor, who did not take appropriate steps to report it to higher authorities out of fear for her job;

A "culture of fear" existed among employees at the Galveston federal courthouse as a result of Kent's manipulative behavior and frequent drunkenness; and

Kent is estranged from much of his family.

There was a good bit of discussion from the victims and the lawyers regarding Kent's alcoholism and his "serious" psychological issues, for which Judge Vinson ordered him to continue treatment. Also, Kent has been rendered virtually insolvent from his funding of the cost of defense of the case.

For his part, Kent did a good job in his statement to the court, apologizing to his accusers, his staff, his family, other judges and "the system." He promised Judge Vinson that he would continue to rehabilitate himself regardless of the sentence. My sense was that Kent was sincere.

I do not know Kent personally. I handled several hearings in his court over the years and never had a problem with him.

However, I know plenty of lawyers who found Kent insufferable and rude (see also here), and I heard the rumors about his alleged favoritism of certain Galveston lawyers, particularly in admiralty cases. In 2001, the Chief Judge of the Southern District of Texas took the unprecedented step of reassigning 85 cases away from Kent that were being handled by one of Kent's best friends.

And now it appears that Kent was drinking heavily for much of the past decade and that he was frequently intoxicated while at the courthouse. You have to wonder whether concerns about Kent's behavior impacted out-of-town parties' decisions in cases such as this one?

So, I circle back to the question I asked at the beginning of this post -- how did the judicial career of Sam Kent come to this sordid and sad ending?

Where were Kent's "friends" who knew about his excessive drinking and other personal problems, and were in a position to intervene and help him before it was too late?

What are we to make of the federal government's human resources apparatus that an entire federal courthouse could have been placed under a culture of fear by the abusive behavior of one man?

And doesn't the Fifth Circuit Judicial Council have some explaining to do on why it issued its agreed order of public reprimand of Kent without interviewing either of the victims during the council's investigation?

Finally what are we to conclude about our justice system that the Houston Chronicle -- which, along with its coverage of Hurricane Ike, should have been won a Pulitzer Prize for its reporting on the Kent case -- provides much more information to the public about the crimes of an abusive judge than the prosecution of that judge?

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May 11, 2009

Is the case against Sir Allen getting more complicated?

On first blush, the criminal case against Sir Allen Stanford, the mercurial chairman of Stanford Financial Group, would appear to be pretty straightforward.

On the other hand, why was the Securities and Exchange Commission apparently falling over itself for years to avoid closing down Stanford Capital, even in the face of credible, inside information provided to the agency regarding Stanford's scam nature?

Could Sir Allen have been keeping the regulators at bay by playing several agencies of the federal government off against one another?:

A Panorama (BBC) investigation has suggested that Sir Allen was shielded from an earlier inquiry into his activities because he co-operated with a US Drug Enforcement Administration (DEA) attempt to track money laundering by Latin American drug cartels. [. . .]

Panorama claimed some US officials were aware of Sir Allen's cartel links as long ago as 1990. It reported that Sir Allen, paid a $3.1 million (£2.05 million) cheque to the DEA in 1999 after that sum was invested in his bank by another Mexican drug gang, the Juarez cartel of Amada Carillo Fuentes.

According to Panorama, whose investigation will air on Monday, Sir Allen was initially investigated by the SEC over suspicions he was running a Ponzi scheme in the summer of 2006, but the inquiry was over by the winter of that year.

The BBC claims the decision to close the investigation followed a request by another government agency.

Panorama says it is aware of "strong evidence" that Sir Allen was a "confidential agent" for the DEA as far back as 1999 and turned over details of money laundering by clients from Colombia, Mexico and Ecuador.

Rodney Gallagher, a British financial investigator, who knew Sir Allen in the 1980s said it was clear to him that the Texan had "a very close relationship with the DEA" and occasionally hired former agency staff to work for him.

The DEA declined to comment to the BBC on its allegations.  .   .  .

If Sir Allen bought time for a scam by playing nice with the DEA, the federal government's dubious prohibition policy toward certain drugs will have added an entirely new layer of costs.

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May 9, 2009

Cruising the Houston Ship Channel

The oil and gas industry is synonymous with Houston, but many folks do not know that health care and the Port of Houston are huge economic drivers in the local economy, too. Check out this time lapse video by Lou Vest on a ship leaving the Port of Houston along the Houston Ship Channel. Here is a similar video that Vest did last year during the daytime. Enjoy.

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April 26, 2009

Hayes Carll "Beaumont"

From The Woodlands, Texas, Hayes Carll.

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April 25, 2009

Sisters Morales "You Wanna Love Me"

Another talented group that came of age in the Houston club scene, the Sisters Morales.

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April 16, 2009

A Houston Original

One of Houston's many treasures is Jack Burke (earlier posts here), the 86 year-old co-founder and owner of Champions Golf Club. The energetic Burke was recently slowed by a "mild" stroke (my late father used to say that the only mild strokes were those that happened to someone else), but that didn't stop Jack from taking his family to Augusta National Golf Club last week for the Masters, where Burke is a former champion (1956). John Garrity provides this fine article on Burke's Augusta National visit (H/T Geoff Shackelford), which includes the following hilarious and typically Burkean anecdote that about former Masters champion Bob Goalby tells fellow PGA Tour member, Miller Barber:

"You know Miller?" Goalby arches an eyebrow. "He's got about 14 curlicues in his backswing, and then he sticks the club straight up in the air with no wrist cock. Anyway, he asked Jackie for a lesson."

"They went out on the range, dumped the balls out. Miller said, 'I'm mixed up on my backswing. Watch me hit some.' So he hit about a dozen balls before Jackie turned and started walking away."

"Miller's got this squeaky voice. He shouted, 'Jackie! Jackie! Where are you going?' And Jackie said, 'Back to the clubhouse. I'm not going to live long enough to figure out that backswing.'"

 

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April 14, 2009

The Chronicle's Enron myopia

Even when it is on the right side of an issue, the Chronicle reminds us of its failings.

As noted earlier here, it has become fashionable among the Old Media to support the recent decision of the Justice Department to request dismissal of the criminal case against former Alaska senator Ted Stevens because of the DOJ's misconduct in handling the prosecution. The Chronicle chimed in last week with this self-righteous editorial.

Of course, for anyone paying attention, prosecutorial misconduct by the DOJ is not unusual. U.S. District Judge Lewis Kaplan sanctioned the DOJ by dismissing indictments against 13 former KPMG partners. Federal prosecutors in Miami are in hot water with a federal judge there over abusive tactics in a criminal drug case against a local doctor. There even appears to be a connection between the prosecutorial misconduct in the Steven case and the dubious case against former Vice-Presidential aide, Scooter Libby.

As the always-insightful Larry Ribstein points out, could it be that there are agency costs in managing corporate criminal prosecutions just as there are in managing corporations? Along the same lines, Doug Berman suggests that an insidious culture within the DOJ has produced the abuse of power.

But the most galling aspect of the Chronicle's emergent awareness of abusive state power is that it has virtually ignored the egregious examples of prosecutorial misconduct in its own hometown, particularly in the case against Jeff Skilling that resulted in a barbaric and indefensible 24-year prison sentence.

As conflicted publications such as the Wall Street Journal promoted Enron myths and the demonization of Enron executives, the Chronicle could have provided a valuable public service by providing balanced reporting and analysis of what really caused Enron's demise and how such a company can be better-structured to survive in even the most adverse market conditions. When clear evidence of prosecutorial misconduct emerged early in the Enron-related criminal cases, the Chronicle could have provided an even greater public service by taking a strong stand against such dangerous abuse of state power. It's certainly not hard to find historical reminders of the injustice that results from such abuse.

So, what did the Chronicle do instead? It embraced the Enron Myth and led the mob in demonizing Enron executives. From the beginning of the Enron-related criminal cases, the Chronicle editorial staff simply elected to ignore mounting evidence of prosecutorial misconduct in favor of the easier approach of leading the angry mob. The Chronicle's coverage of the Skilling prosecution was so inflammatory and biased that the Fifth Circuit Court of Appeals made the highly unusual finding that the Chronicle created a presumption of community prejudice against Skilling (see pp. 41-45 of the Fifth Circuit decision).

Even now, despite the legacy of prosecutorial misconduct in the Enron-related criminal cases and the fact that what happened to Enron has now happened to many big Wall Street firms, the Chronicle stubbornly clings to the Enron Myth and refuses even to acknowledge that the evidence of prosecutorial abuse in the Enron-related cases is worse than what caused the dismissal of the Stevens case.

As with most Old Media newspapers these days, the Chronicle is struggling to survive. Winning that first Pulitzer Prize sure would sure provide a boost to the Chronicle's flagging spirits.

Wouldn't it be the ultimate irony if the decision to lead the angry mob against Enron distracted the Chronicle from a truly enthralling story of prosecutorial misconduct that could have won the newspaper that elusive Pulitzer?

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April 7, 2009

Is this really the best that the Chronicle can do for its lead sports columnist?

Remember awhile back when Chronicle lead sports columnist Richard Justice defamed Stephanie Stradley, a very good local blogger on the Texans and the NFL who now blogs at the Chronicle?

Well, ol' Richard is at it again.

This time the subject of Justice's venom is Alan Burge, who pens a very good blog on the Texans for the Houston Examiner.

Burge recently made a comment on one of Justice's blog posts regarding Texans GM Rick Smith, who Justice has been belittling for months because Smith fired Justice's friend, former Texans strength coach, Dan Riley.

At any rate, after Burge commented (he goes by "AJ" in the comments) on Justice's blog post, Justice responded by belittling Burge's comment. Burge responded by again challenging Justice's statements regarding NFL contract provisions. Justice responded by continuing to belittle Burge and concluded by accusing Burge of stealing "from others and calling it research."

Inasmuch as Justice has previously removed some of his defamatory statements from his blog site after publishing them, I copied four of Burge's comments and Justice's replies to them before Justice could remove or edit them (he has, in fact, done so now). Burge's comments and Justice's replies are set forth in the document below. Also included in the document is a comment from another commenter who was appalled by Justice's comments toward Burge and Justice's reply to that comment.

With "top" talent such as this, is there any hope for the Chronicle?

 

Richard Justice Comments

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March 23, 2009

Houston golf is a bargain

As I've noted several times over the years, the value of Houston-area golf courses is often under-appreciated by golfers in other parts of the country. In this Golf.com Press Tent blog post , Gary VanSickle indirectly highlights one of the major reasons that Houston golf is under-appreciated:

You tell me what's wrong with this picture. I flew into Miami International Airport .  .  .  and thought I'd stop in at the Melreese Golf Course, a municipal track operated by the city of Miami. It's basically just down the street from the rental car lots in an area that is not well-off -- most of the neighborhood's homes have bars over the windows.

It's noon. It's a Monday. It's beautiful -- 82 degrees, light wind. The course looks to be in outstanding condition, especially for a muni. When I ask if I can play a few holes, I'm told, sure, the course is wide open. In fact, it is all but deserted.

The girl working the register asks if I'm a Florida resident. Nope. She rings up my greens fee. That'll be $158. What, I say? State residents play for $78, non-residents are $158. Do you have a nine-hole rate, I ask? No. I totally understand trying to keep a public course available for use by local golfers. They should get a big discount. It's their course. But this isn't a local discount, it's statewide? What good does that do? You think anybody is going to fly down from Jacksonville to golf Melreese when there are 1,200 other courses in the state? City residents should get the golf discount.

So I settle on hitting a bag of 60 range balls (that's what the sign in the shop says) for $6. When I dump the bag out on the practice range, it doesn't look like 60 balls. I count them. There are 47. I'm 13 short. That's more than 20 percent I've been shortchanged. And while many of the balls looked white and shiny, too many of them just didn't get up in the air and go, no matter how well I hit them. Mushy range balls are a fact of life in golf. Getting 20 percent less product than I was promised, that's something else.

After I hit balls, I chipped and putted on the practice green (which was in very nice shape) for more than an hour. A couple of German guys who'd been hitting on the range did the same. They eventually left. So did I. I spent less than $10 at the course -- I bought range balls, plus a drink and crackers. I gladly would have paid $80 to play, but not $158. So due to excessive pricing, the course got zero.

Melreese used to be an example of how to run a muni. Improved conditions usually brings more play, more golfers. I was there for 90 minutes and saw no one tee off. I saw a couple of twosomes, a threesome and a single already on the course. The old parking lot was closed due to construction of a new clubhouse and, I presume, a new cart barn.

Somebody has to pay for that. But it's not going to be my $158.

What's wrong with golf? Gee, I can't imagine.

VanSickle could have hit the same number of range balls and played 18 holes at Houston's venerable muni, Memorial Golf Course (which is a better course than Miami's Melreese) for $42 if he took a cart, $31 if he walked. $15 more if he called ahead to reserve a tee time.

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March 8, 2009

Lyle Lovett Time Again

Another song from one of Houston's treasures.

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March 4, 2009

The Chron's last gasp?

With traditional newspapers folding left and right, it's no surprise that the newspaper business is no bowl of cherries these days. According to this WSJ Digits blog post, that uncertainty is prompting Houston's main daily newspaper -- the Houston Chronicle -- to consider some big changes:

Hearst said its newspapers plan to hold back at least some content from their free Web sites, launching the publisher onto the vanguard of print media companies to begin charging for their digital news and information.

A top executive at Hearst, which publishes 16 newspapers including the Houston Chronicle and Seattle Post-Intelligencer, said the company is mulling how much of its online offerings to keep free, while reserving some content exclusively for people who pay.

“Exactly how much paid content to hold back from our free sites will be a judgment call made daily by our management, whose mission should be to run the best free Web sites in our markets without compromising our ability to get a fair price from consumers for the expensive, unique reporting and writing that we produce each day,” Steven Swartz, the president of Hearst newspapers, said in a staff memo.

The text of the staff memo is included at the end of the blog post.

Meanwhile, financial blogger Felix Salmon, who has been following the newspaper website subscription issue for the past couple of years, thinks that the Wall Street Journal's website subscription model -- which is the business model that the Chron hopes to mirror -- is doomed to failure:

My feeling is that [WSJ editor Robert] Thomson was entirely right when he said that [news] commentary had become commoditized, and that therefore you couldn't charge for it; he also said the same thing about most news. But what he calls "specialized content" is to a large degree just taking commoditized news, and adding the kind of value that comes from informed commentators.

Yes, there are things which Dow Jones the WSJ can do and no one else can do in quite the same way -- Thomson was interesting when he started talking about selling content on the subject of India to Japan, for instance. And in a world where Dow Jones is looking to individual subscriptions to make up the losses from corporate subscriptions, it's going to be very difficult for them to start slashing those individual subscription rates to zero.

But I suspect that eventually the WSJ will do the math and work out that the best way to monetize and grow its large number of unique visitors is to maximize the time they spend on the site. And the best way to do that is to go free.

Give the Chronicle credit for taking risks in a battle for survival rather than simply fading away as many other newspapers are doing. However, I am not convinced that the Chron's pay-for-some-content approach has much of a chance of succeeding.

Frankly, the Chronicle simply does not appear capable of producing the type of specialized content that is necessary even to have a chance of generating the level of individual subscriptions that will be necessary for success.

For example, the Chron was inexplicably behind other major newspapers and blogs in its coverage of the recent Stanford Financial Group scandal. Its follow-up coverage really has not provided any meaningful content that cannot be found elsewhere from free news sources and blogs.

Moreover, even where the Chron indisputably takes the lead in regard to a local story of national interest -- such as the newspaper's excellent coverage of the various legal cases involving former U.S. District Judge Sam Kent or its amazing coverage of Hurricane Ike -- the information generated is still not sufficiently distinguishable from other free news sources so that readers will be likely to pay for the content.

Don't get me wrong. The Chronicle is not without talent. Tech columnist Dwight Silverman is one of the most-respected writers in his field. Science reporter Eric Berger does a fine job, and Todd Ackerman has done a first-rate job of covering the Medical Center for years. Ditto for Nancy Sarnoff in regard to local real estate. The Chron sports bloggers Stephanie Stradley, Lance Zierlein and Zac Levine provide better content and analysis than the Chron's sportswriters. I'm leaving others out who also do a fine job.

But is the specialized product that such talent generates sufficient to induce enough online readers to pay for content so that the Chronicle can transform itself into a profitable web-based news provider?

When even longtime Chronicle subscribers are seriously thinking about giving up their subscriptions, I have my doubts.

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March 2, 2009

Fiddling while Rome burns

My wife and I attended the annual Houston Livestock Show and Rodeo Barbeque Cook-off at Reliant Park over the weekend, so we again were reminded of the wasteful land use represented by the Astrodome.

With the rodeo and related activities cramped for space and Reliant Park desperately in need of more convenient parking, why do our local leaders persist in chasing rainbows over an obsolescent stadium that is expensive to mothball and has no alternative use absent a massive and risky governmental subsidy?

Meanwhile, with our local governments already locked into tens of millions of dollars of subsidies in regard to a proposed stadium for Houston's minor league soccer club, perhaps a few of our local leaders should review this AZCentral.com article about the bath that Glendale, Arizona is taking in regard to bailing out the Phoenix Coyotes National Hockey League team, which is the primary tenant of the Glendale's local arena. The Coyotes have lost over $200 million since moving to Glendale five years ago.

Thus, on one hand, Houston governmental leaders waste millions annually while they dither over what should be an easy decision regarding valuable government-owned property. On the other hand, local leaders have committed tens of millions of dollars in subsidies to a venture that is far more speculative than even a National Hockey League team.

In short, our leaders are fiddling while Rome burns. And, as Leo Strauss once observed, what makes matters worse is that those leaders not only fail to realize that they are fiddling, they don't even appear to understand that Rome is burning.

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February 24, 2009

Judge Kent cops a plea

As most local lawyers expected, U.S. District Judge Sam Kent entered into a plea bargain on the courthouse steps today. The deal derailed what would have been an extremely ugly trial on sexual abuse and obstruction of justice charges, and ended Judge Kent's 18-year career as a federal judge. Here is the factual basis for the plea deal and also the plea agreement. Earlier posts on the case against Judge Kent are here.

As noted, Judge Kent's plea deal was not a surprise, although the courthouse steps nature of it was. It looks as if defense attorney Dick DeGuerin -- one of Houston's best criminal defense attorneys for this type of case -- pushed the case to the brink in an attempt to gain the best possible deal, which it appears he did.

In the factual basis for the plea, Judge Kent admitted only to lying to the Fifth Circuit Judicial Council about unwanted sexual advances that he made toward a subordinate. That leaves out any admissions regarding the serious sexual abuse charges that the prosecution dismissed as a part of the plea deal. Those non-admissions have to be considered a victory for the defense in a case such as this.

Moreover, Judge Kent's retirement will likely avoid impeachment. If so, then Judge Kent he will be able to collect his federal pension.

However, those victories probably won't prevent Judge Kent from being sentenced to do some serious prison time. The prosecution agreed only not to recommend any more than a three-year sentence in regard to the maximum 20-year sentence that Judge Kent could receive on the obstruction charge, and visiting U.S. District Judge Roger Vinson has a reputation of handing down relatively harsh sentences. I'm no expert on sentencing, but my initial sense is that Judge Kent is looking at between a 3-5 year sentence.

That's probably lighter than the sentence that Judge Kent would have assessed to a defendant convicted of the same charge in a similar case in his court.

But it's not going to be a picnic, either.

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February 19, 2009

Hope in the battle against the fire ants!

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February 9, 2009

A couple of questions regarding the proposed soccer stadium

The always-entertaining Houston real estate blog, Swamplot, provided this post last week with typically pretty pictures from a KHOU-TV video of the long-proposed soccer stadium for the Houston Dynamo MLS soccer team.

Have we really been talking about this for almost two years now?

At any rate, now that the City of Houston and Harris County have committed a total of $25-30 million to the deal, and the City is on the hook for millions more in infrastructure improvements, Dynamo management is publicly representing that it is prepared to contribute another $80 million to build the stadium.

Now, I'm never seen the Dynamo's financial statement, but my guess is that it generates between $10-15 million in revenues. Maybe that increases by 30-40% if the club gets its own stadium. A nice small business, but .  .  .

In these lean economic times, what bank is going to take the lead in loaning $80 million to a business that would have to dedicate a substantial amount of its revenue base just to pay debt service on the loan?

Is this a bankable deal? Or just pie-in-the-sky absent the local governments coughing up substantially more dough?

Inquiring minds want to know.

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January 25, 2009

Can Mayor White pull off another "win-win" deal?

Although the developers of the proposed Ashby high-rise condominium project didn't know it at the time, Houston Mayor Bill White did the developers a huge favor by putting up roadblocks to that project.

Can you imagine trying to peddle those condos in the current real estate market? Mayor White's blocking of the condos ended being a classic "win-win" deal.

Accordingly, I wonder if Mayor White might be inclined to do the same thing in regard to Houston's proposed soccer stadium?

Things aren't looking too rosy for MLS soccer these days:

Major League Soccer is not quite ready to carry its own night on TV.

After two years of anemic ratings that started low and finished lower, ESPN executives decided to cancel the league’s regular Thursday night telecast on ESPN2 this season.  .  .  .

“We didn’t see the kind of ratings climb we’d like to, so we’re trying something different,” said Scott Guglielmino, ESPN vice president of programming.

The decision to cancel the regular Thursday night game marks a stunning turnaround for a league that two years ago believed it was creating destination programming that would increase interest in MLS. But even the 2007 arrival of David Beckham couldn’t boost MLS ratings.

MLS games averaged a 0.2 rating and 289,000 viewers on ESPN2 in 2007. Those numbers dropped to 0.2/253,000 viewers the following year. Its highest rating during that period was Beckham’s second regular-season game in August 2007 that earned a 0.6/658,000 households.

Canceling “MLS Primetime Thursday” is a tacit admission that MLS is not strong enough to anchor a regular prime-time slot on its own. ESPN is entering the third year of an eight-year rights deal that pays MLS $8 million annually.

So, MLS franchises are being downgraded by the most important sports programming network in the nation, which can't be good for the value of those teams. The attendance at MLS games is poor, at least outside Houston and a couple of other cities. And the perception in sophisticated soccer circles is that the MLS is decidedly minor-league.

Meanwhile, Mayor White has already had Houstonians invest $20 million or so in buying downtown property at a premium price for the proposed soccer stadium, despite the fact that the city already owned nearby property that would have been perfectly fine for such a stadium. Moreover, the city will be on the hook for tens of millions of dollars more in infrastructure improvements if the Dynamo owners somehow cobble together their private financing for the stadium.

Now, it's looking as if the Dynamo may not even have a viable league to play in by the time the proposed soccer stadium is completed in a couple of years.

Pull the plug on the soccer stadium, Mayor. It will be another "win-win" deal.

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January 19, 2009

An entertaining upcoming week in Houston

No one in Houston this week can complain about lack of opportunity for intellectual stimulation.

First, well-known legal blogger and Clear Thinkers favorite Larry Ribstein will be lecturing on Thursday afternoon from noon to 2 p.m. at the University of Houston Law Center as the first speaker of the semester in UH Law Professor Lonny Hoffman's “Colloquium” course that brings noted legal scholars from around the country to UH each year to give presentations on the scholar's work in progress.

Great teachers are a popular topic on this blog (see here and here), so I'm particularly pleased that Professor Ribstein is taking the time out of his busy schedule to visit Houston. As regular HCT readers know, Professor Ribstein is one of the premier business law scholars in the country.

The holder of the Mildred Van Voorhis Jones Chair at the University of Illinois College of Law, Professor Ribstein's widely-read Ideoblog has been at the forefront of the blawgosphere's enormous impact on legal analysis and education, literally pushing legal scholarship from what had been mostly closed conversations between fellow academics into a hugely valuable resource that is now readily available to anyone over the Web. Already the leading expert in the U.S. in the area of unincorporated business associations, Professor Ribstein is also one of the blawgosphere's most insightful thinkers on corporate governance issues and the effects of regulation on markets and business. His blog has contributed as much to the understanding and appreciation of business law issues over the past five years as any resource of which I am aware.

Professor Ribstein's talk on Thursday will be on this paper that he co-authored with George Mason University law professor Bruce Kobiyashi that examines the empirical factors that influence limited liability companies' choice of where to organize. Seating for the talk is limited, so contact Professor Hoffman at Lhoffman@central.uh.edu or 713.743.5206 as soon as possible to reserve a seat. The lecture will be held in the Heritage Room of the UH Law Center.

Meanwhile, on Wednesday from 11:30-1:30 p.m., popular author and journalist Malcolm Gladwell will be giving a talk on his new book, Outliers, at the Hilton-Americas Houston hotel (Chron article here). Tickets are $75 and include a copy of the book and the luncheon, which is co-sponsored by Inprint, the Greater Houston Partnership and Brazos Bookstore. Contact Jill Reese at 713.844.3682 or jreese@houston.org to make reservations, the deadline for which is noon on Tuesday.

Finally, author and former Houstonian Larry McMurtry -- the pre-eminent Texas writer of the past 30 years -- will be giving the lecture on Wednesday evening from 7-8:00 p.m. in Rice University's Distinguished Lecture series. The lecture will be held in the Grand Hall of Rice's Ley Student Center and is open to the public.

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January 17, 2009

Hayes Carll on the Battle of Crystal Beach

Clear Thinkers favorite Hayes Carll sings "I Got a Gig" and tells the humorous story about about his first gigs in Crystal Beach, Texas.

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January 16, 2009

Marathon madness

The annual running of the Houston Marathon is this weekend, so the Houston Chronicle is running its typical series of supposedly inspiring stories about various participants.

A couple of days ago, the story was about a couple of folks who had lost huge amounts of weight while training for marathons. Richard Justice wrote this column about some fellow who is so obsessive about running that he has run in "82 marathons across 26 years, four continents and 29 states."

Yesterday's Chronicle article, however, takes the cake. Check out the headline:

Sunday’s race will be extra special for Stacie Rubin, who will be competing five months after suffering a heart attack

The story goes on to describe a Kingwood mother of four children who has run long distances daily for years. She had a heart attack while training one day and didn't even go to the doctor's office for several days because she was so convinced that someone as "healthy" as her could not have anything seriously wrong with her. Even after the heart attack, she was so obsessed about her long-distance training that she was back running again within a couple of weeks of the heart attack and is now planning on running in the marathon this weekend.

The Chronicle article presents all of this as heroic and the epitome of physical fitness.

Frankly, I think these stories are grossly misleading and the people telling them are badly misguided.

In my younger days, I used to run long-distances, too. I even ran a 37 minute flat 10K -- 6.2 miles -- once. As with most folks in my generation, I bought into the myth that long-distance running was excellent aerobic exercise that allowed me to maintain good health while eating most anything I wanted.

However, about 15 years ago, after falling out of shape during a busy time in my practice, I decided to do some extensive research into exercise protocols and nutrition to put myself back on track. After about six months of research, I concluded that most of my pre-conceived notions about exercise and nutrition were flat-out wrong.

For example, I discovered that long-distance running is neither a particularly healthy form of exercise nor an effective method of weight control.

Note, for example, this abstract from the a study published in the Annals of the New York Academy of Sciences:

Ann N Y Acad Sci. 1977;301:593-619. Related Articles, Links

Coronary heart disease in marathon runners.

Noakes T, Opie L, Beck W, McKechnie J, Benchimol A, Desser K.

Six highly trained marathon runners developed myocardial infarction. One of the two cases of clinically diagnosed myocardial infarction was fatal, and there were four cases of angiographically-proven infarction. Two athletes had significant arterial disease of two major coronary arteries, a third had stenosis of the anterior descending and the fourth of the right coronary artery. All these athletes had warning symptoms. Three of them completed marathon races despite symptoms, one athlete running more than 20 miles after the onset of exertional discomfort to complete the 56 mile Comrades Marathon. In spite of developing chest pain, another athlete who died had continued training for three weeks, including a 40 mile run. Two other athletes also continued to train with chest pain. We conclude that the marathon runners studied were not immune to coronary heart disease, nor to coronary atherosclerosis and that high levels of physical fitness did not guarantee the absence of significant cardiovascular disease. In addition, the relationship of exercise and myocardial infarction was complex because two athletes developed myocardial infarction during marathon running in the absence of complete coronary artery occlusion. We stress that marathon runners, like other sportsmen, should be warned of the serious significance of the development of exertional symptoms. Our conclusions do not reflect on the possible value of exercise in the prevention of coronary heart disease. Rather we refute exaggerated claims that marathon running provides complete immunity from coronary heart disease.

This recent University of Maryland Medical Center study examines another health risk of long-distance running.

Art DeVany -- who has been studying physiology and exercise protocols for years -- has written a series of blog posts over the years regarding the unhealthy nature and outright dangers of long-distance running. DeVany points out that many endurance runners in fact are not particularly healthy people, often suffering from lack of muscle mass, overuse injuries, dangerous inflammation and dubious nutrition.

Similarly, in this timely article, Mark Sisson lucidly explains why endurance training is hazardous to one's health. Here is a snippet:

The problem with many, if not most, age group endurance athletes is that the low-level training gets out of hand. They overtrain in their exuberance to excel at racing, and they over consume carbohydrates in an effort to stay fueled. The result is that over the years, their muscle mass, immune function, and testosterone decrease, while their cortisol, insulin and oxidative output increase (unless you work so hard that you actually exhaust the adrenals, introducing an even more disconcerting scenario). Any anti-aging doc will tell you that if you do this long enough, you will hasten, rather than retard, the aging process. Studies have shown an increase in mortality when weekly caloric expenditure exceeds 4,000. [. . .]

Now, what does all this mean for the generation of us who bought into Ken Cooper’s "more aerobics is better" philosophy? Is it too late to get on the anti-aging train? Hey, we're still probably a lot better off than our college classmates who gained 60 pounds and can't walk up a flight of stairs. Sure, we may look a little older and move a little slower than we'd like, but there's still time to readjust the training to fit our DNA blueprint. Maybe just move a little slower, lift some weights, do some yoga and eat right and there's a good chance you'll maximize the quality of your remaining years… and look good doing whatever you do.

In this recent post, Sisson describes a weekly method of aerobic exercise that provides most of the health benefit derived from long-distance running at a fraction of the time expenditure and at far less risk of injury. Add in a couple of short (about 20-25 minutes sessions) weight-training sessions per week to maintain your lead body mass, lead an active recreational lifestyle and observe balanced nutrition, and you are likely to be far healthier than the folks who are spending untold hours beating themselves up running long-distances.

If you are interested in developing such a plan, check out both DeVany and Sisson's blogs. They provide a wealth of information on how to tailor an efficient exercise and nutrition plan.

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January 15, 2009

Fertitta calls off bid to take Landry's private, but takes it private, anyway

Suffice it to say that it's been an interesting past year and a half for Houston-based Landry's Restaurants Inc., which owns restaurants such as Landry's, Rainforest Cafe, Charley's Crab, The Chart House, and Saltgrass Steak House, as well as the Golden Nugget Hotel & Casino in Las Vegas and Laughlin, Nev.

The saga started in late July of 2007 when the company announced that it was delinquent in its regulatory filings with the SEC and that it was in need of refinancing over $400 million in debt in a rapidly deteriorating debt market.

Shortly thereafter, the company sued some of its bondholders for declaring the company in technical default under their bonds, but the company quickly settled that litigation on not particularly good terms.

A few months later, Landry's announced in January 2008 that its CEO and major shareholder (39%), Tilman Fertitta, had made an offer to take the company private by buying the other 61% of the company's stock for $23.50 share, which worked to be a $1.3 billion deal, including debt.

That offer seemed all well and good, particularly given that the proposed purchase price was a 40% premium over the $16.67 share price at the time of the offer.

Unfortunately, a spate of shareholder lawsuits followed Fertitta's bid. By early March, 2008, it was apparent that Fertitta's bid was so speculative that he hadn't even lined up financing for it.

So, the following month, Fertitta lowered his offer to $21 per share because of "tighter credit markets", and Landry's announced that it had accepted that price in June.

But by the fall, the financial crisis on Wall Street had roiled credit markets even further and Hurricane Ike caused considerable damage to several Landry's properties. So, in October, Fertitta lowered his offer to $13.50 per share.

Then, on Monday of this week, the company announced that it was terminating the proposed deal with Fertitta. The company contended that the SEC was requiring the company to issue a proxy statement disclosing information about a confidential commitment letter from the lead lenders on the buyout deal. The company is negotiating with those same lenders to refinance the bond indebtedness that the company promised to refinance in connection with October, 2007 litigation settlement noted above. Inasmuch as the lenders' commitment for financing Fertitta's buyout required that the terms of the commitment remain confidential, the company elected to terminate the buyout deal rather than risk that the lenders would declare a default for breach of confidentiality and back out of the financing commitment for the buyout, as well as the negotiations on the refinancing of the bond indebtedness.

Oh yeah, amidst all this, Landry's stock closed at $6.54 per share today.

Meanwhile, what has Fertitta been doing while his take-private bids have languished and the company's stock has plummeted to historic lows?

He has been buying more Landry's stock. So much so that he now controls 56.7% of the company's shares.

That's right. Landry's board failed to obtain a standstill agreement from Fertitta while his buyout offers were pending over the past year.

As Steve Davidoff notes, this is "truly worthy of Deal From Hell status." Loren Steffy has the same take.

While Landry's directors are checking on the amount of the company's D&O policy, I wonder whether Landry's lenders will follow through on the refinancing negotiations for the bond indebtedness in light of the market's hammering of Landry's share price?

If that refinancing doesn't happen, then those bondholders who Landry's sued back in August of 2007 will likely not be easy for the company to deal with.

In that case, maybe Fertitta's additional purchases of Landry's stock won't look so smart after all.

Stay tuned.

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January 9, 2009

Can Judge Kent receive a fair trial in Houston?

By now, most folks have heard that the government has filed a superceding indictment against U.S. District Judge Sam Kent alleging sexual abuse against a second federal employee and also obstruction of justice in connection with the Fifth Circuit's previous investigation into the allegations. The previous posts on Judge Kent's case are here.

As this Mary Flood/Chronicle article notes, Judge Kent faces an enormously difficult fight for his life in the upcoming trial. Given the latest allegations, my sense is that his chances are remote of finding a Houston jury that is not tainted by the lurid local news reports on the case.

As of this date, Judge Kent's formidable defense attorney -- Dick DeGuerin -- has still not requested a change of venue. Should he now?

Although Racehorse Haynes is still trying cases well into his 70's, DeGuerin is now widely regarded as having accepted the baton from Haynes as being the dean of Houston's outstanding criminal defense bar. Given the difficulty of the case against Judge Kent, could this case be DeGuerin's equivalent of Hayes' career-defining T. Cullen Davis case?

Stay tuned.

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January 6, 2009

As the Rockets' World Turns

With the football season winding down in these parts, folks are finally noticing that the Houston Rockets are approaching the halfway point of the NBA season and again look like an also-ran in the playoff race. It's now been a dozen years since the one-time back-to-back NBA champions have won a mere playoff series.

What happened this time? Dave Berri thinks that Ron Artest has not been the answer.

Meanwhile, Rockets owner Les Alexander has been getting hammered in areas other than basketball, too:

Houston Rockets owner Leslie Alexander has seen his 20% stake in First Marblehead Corp., once valued at nearly $1 billion, plunge to about $15 million. The company, which packages student loans and sells them to investors, saw its business evaporate in 2008. Its shares fell more than 90% last year to about $1.

Thankfully for Alexander, his original investment in the company was only $4 million and -- before the 2008 meltdown -- he sold a portion of his company stock for $250 million, a substantial portion of which was probably used to pay a $150 million divorce settlement.

What I can't figure out is whether all of that makes it harder ("We're paying him what?!") or easier ("It's only money!") for Alexander to pay Tracy McGrady a total of $40 million over this and next season?

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December 26, 2008

Hayes Carll is back

The Woodlands native Hayes Carll (earlier post here) is back in town for the holiday season, playing tonight in downtown Houston at Warehouse Live and on Tuesday the 30th at Dosey Doe in The Woodlands. If you have not had the pleasure of enjoying a live performance of this latest in a long-line of talented Texas singer-songwriters, then check out one of his shows this week. You will not be disappointed.

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November 4, 2008

Tom Alexander, R.I.P.

I lost an old friend and Houston lost one of its most colorful characters on this past Sunday morning -- legendary trial attorney Tom Alexander died of a heart attack at the age of 78 (the Chronicle story on Alexander's death is here and Richard Connelly of the Houston Press chimes in here). The memorial service will be held at 11 a.m. tomorrow morning at St. Paul's United Methodist Church, 5501 Fannin in the Museum District of Houston.

Alexander was one of Houston's most accomplished trial lawyers, the kind of rare quick-read who could prepare for a trial by reading the case file on his way to the courthouse. Inasmuch as he had such an engaging personality, articulate delivery and quick wit, judges and jurors naturally gravitated toward him.

But Alexander was one of those larger-than-life characters who was much more than just a fine trial lawyer. He was a loving husband, father and grandfather. He was a true sportsman who loved and supported intercollegiate and professional sports of all kinds. He loved to golf and was an original member of Champions Golf Club, where he owned a weekend cottage that allowed him to keep up with his good friend, Champions owner Jack Burke. Born and raised in Kentucky, Alexander was also an avid horseman who could handicap thoroughbreds with the best of them.

Moreover, it wasn't all trial tactics and sports with Alexander. Whether the subject was opera, politics, philosophy, poker, theology (he gave a lay sermon at church once entitled "Can You Fistfight and Still Be a Christian?") or simply the latest gossip in Houston's professional community, Tom Alexander would engage and stimulate you. Perhaps not always the way you wanted, but always in a way that would make you think about the basis of your beliefs.

Alexander's vivacious wit and personality is perhaps best summed up by one of the funniest Houston courthouse stories that I've ever heard.

Years ago, Alexander was hired by the rich husband in an ugly divorce. The vengeful wife hired another veteran of the Houston legal community, the late Robert Scardino, Sr., the father of noted Houston criminal defense attorney, Robert Scardino, Jr.

Inasmuch as there were no children of the marriage and the value of the community estate was well-established, there was really nothing for Alexander and Scardino to fight about in the divorce. However, the husband and wife hated each other, so they directed Alexander and Scardino to be nasty with each other for as long as possible. And these two old warhorses were happy to oblige.

After about a year or so of bickering, the Family Court finally set the case for trial. Realizing that there was really no reason to use precious court time to split a well-defined community estate, the Family Court Judge called Alexander and Scardino into his chambers before the trial was scheduled to begin and hammered out a property settlement in an acrimonious two-hour session.

Exhausted from dealing with the squabbling between Alexander and Scardino, the Family Court Judge addressed the final issue in the case at the conclusion of the session:

"Mr. Alexander and Mr. Scardino, thank you for working with me in settling this case and saving the court time for other cases."

"Now, the final issue is the amount of Mr. Scardino's fee for representing the wife in this case. Mr. Scardino, what do you think is fair?"

"Well, Judge," replied Scardino. "This has been a hard-fought case and I don't want the amount of my fee to be the final problem in the case. So, I tell you what I'm willing to do."

"I don't know what the amount of Mr. Alexander's fee has been for representing the husband in this case," Scardino observed. "But I trust Mr. Alexander."

"So, to put this all behind us," concluded Scardino. "Whatever Mr. Alexander's fee has been for representing the husband in this case, I'm willing to take the same amount for representing the wife. Whatever amount Mr. Alexander has accepted as a fee is acceptable to me."

"Why, Mr. Scardino," gushed the judge. "Thank you for that creative and statesmanlike approach to resolving this final issue. I really appreciate that."

Turning toward Alexander, the judge asked: "Mr. Alexander, what do you think about Mr. Scardino's eminently reasonable proposal?"

Alexander sat in deep thought for a moment. Then, he leaned toward Scardino, got right up in his face and -- undoubtedly with a twinkle in his eye -- declared:

"You greedy sonuvabitch!"

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November 2, 2008

Phillip G. Hoffman, R.I.P.

Phil Hoffman, inarguably one of the most important university presidents in the history of the University of Houston, died Wednesday at the age of 93. The Chron's Lynwood Abram penned a nice article on Dr. Hoffman here.

When Dr. Hoffman took over the presidency of the University of Houston in 1961, UH was a sleepy, segregated city college of about 12,000 students. By the time Dr. Hoffman retired 16 years later, UH had become a fully-integrated university system of four campuses with an enrollment of over 30,000 students. Two years after taking over at UH, Dr. Hoffman led the legislative effort to have the university accepted into the Texas state university system.

Although the Chron's article on Dr. Hoffman's death notes the foregoing, the fact that UH is a far younger institution than the other two main Texas university systems -- the University of Texas and Texas A&M University -- is largely ignored by the Chronicle and the rest of the mainstream media. Given the far inferior resources that UH receives from the state relative to UT and A&M, UH is currently providing the best bang-for-the-higher-education-buck of the three systems. That is an impressive part of Dr. Hoffman's formidable legacy.

A memorial service is scheduled for Dr. Hoffman at 10:30 a.m. Monday at the First Presbyterian Church in the Museum District, 5300 Main.

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October 30, 2008

A good idea, but . . .

The Chron's top-notch Medical Center reporter Todd Ackerman reported yesterday that two venerable Houston academic -- Baylor College of Medicine and Rice University -- are in preliminary discussions regarding a possible merger (the Chron's excellent Science reporter Eric Berger also comments here).

This makes sense on many levels. Baylor and Rice are located near each other in the Medical Center area, so sharing faculty members between the two institutions would be a snap from a logistics standpoint. Indeed, the attraction of being able to teach and research at both institutions would be a valuable perk for both schools to attract talented teachers and students. Both schools have excellent academic reputations, so it's a good match from that standpoint, too.

But Ackerman zeroes in on the main problem with the merger. As usual, it involves money:

Rice is the more affluent of the two institutions. As of June 30, its endowment was $4.6 billion. As of Sept. 30, Baylor's was $954 million. [.  .  .]

One Rice professor said the key issue from the university's perspective will be making sure there's a firewall between Rice's endowment and Baylor's.

A "firewall" between the two institutions endowments? Come on, one of the main reasons why the merger makes sense is that Baylor would have access to Rice's superior capital. The benefit from Rice's standpoint is the association with a fine medical school that, with access to a better-capitalized endowment, may well propel itself into the best medical school in the country. That is precisely the type of academic excellence that Rice should be pursuing.

Which reminds me of a conversation that I had years ago with a member of the University of Houston Board of Regents. Given the need of Houston and Texas for more Tier 1 research institutions, I observed to this UH regent that I thought it was a good idea for the UH system to merge with the Texas A&M University System.

One one hand, the merger makes sense from UH's standpoint because it would provide the chronically-undercapitalized UH (endowment about $750 million or so) with access to capital (A&M's endowment is between $6-7 billion) that is the biggest obstacle in UH's path to Tier 1 status.

On the other hand, the merger makes sense from A&M's standpoint because UH would provide A&M with the urban presence that it has always lacked and UH's central campus in Houston that A&M could use as a carrot for attracting better teachers and students. Moreover, A&M for years has desired a law school and UH would deliver a very good one.

So, I asked the UH regent, such a merger makes sense, doesn't it?

The UH regent proceeded to give me a half-dozen reasons why the proposed merger would never work, most of which were tied to the fact that he would no longer be a member of an independent university system board if such a merger were consummated.

That is precisely the attitude that has placed Texas behind states such as California and New York in the development of Tier 1 research institutions and all the benefits that such universities provide to the state and its communities. Here's hoping that similar attitudes don't scuttle what appears to be a very good idea for Rice, Baylor and Houston.

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October 10, 2008

Almost a month after Hurricane Ike

A friend of mine who is a homebuilder in The Woodlands passes along the following regarding his experience in overseeing a crew rebuilding the neighborhood of his weekend home in Hurricane Ike-ravaged Galveston:

Just back from Galveston after 3 weeks.  We suffered ancillary damage, but nothing structurally damaging. I went down with 80 rds of .40 cal and came back with a clip and a half. 

Snakes have taken over the dunes for now. Devastation is everywhere and we are helping some 61 homes get their lives back together. I have simply never seen such damage.

When you drive over the Galveston Causeway Bridge, you are confronted with hundreds of boats of all sizes lining the road, the median and the bay. Most homes inside the seawall suffered 10 feet of flooding, especially in the historic Strand District.  Downtown Beirut in the 1980’s looked better.

Moving to the seawall, the historic Balinese Room is gone. The Flagship Hotel lost its entry way and appears to be a total loss. Power and water are spotty -- I went 2 weeks without either. Traveling to our West End home is like driving through the Northeast after a winter storm -- sand is piled 10 feet high along both lanes and you sense you are in a fantasy winter wonderland.

Many properties immediately off the seawall are totally destroyed, sitting in the Gulf. You can literally walk under their foundations.  Stench and foul orders are everywhere -- even the stoutest are easily overcome. It will be years, if ever, before Galveston will be restored or hopefully rebuilt to a higher standard. The homes built in the last 5 years according to the 160 mph wind standard suffered little damage, but most others were severely damaged or lost completely. Our crews have worked 16 hrs./day for 3 weeks to restore our neighborhood and are moving to help others at this time. The bright spot is that I have come to know my fellow homeowners in our neighborhood quite well.

The old site of the SeaArama Marineworld is now a landfill with three mounds that could easily fill the Astrodome. I have no idea what they will do with this matter as cranes are working 60’ above street level at this time. We have brought in heavy equipment and crews from The Woodlands to Junction, Texas.  The cowboys from Junction say they have never seen rattlers so big.

We completely lost our dunes, which were over 15’ high. It now looks like we are seaside in Malibu.

Reporting from an R and R encampment, I remain .  .  . 

And as bad as the damage is in Galveston, the devastation in Bolivar Peninsula to the northeast is even worse.

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September 27, 2008

The Rothko Chapel

It was the 105th anniversary of Mark Rothko's birth earlier this week, so it's a good time to learn a bit more about the artist whose paintings hang in one of Houston's most remarkable places, the Rothko Chapel on the campus of the University of St. Thomas (earlier post here).

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September 25, 2008

Tough day at the office

Clear Thinkers reader Charles Satterfield passes along these pictures of a trading office on the sixth floor of JP Morgan Chase Center, looking out toward the blown-out windows on the east side of JP Morgan Chase Tower (the tallest building in downtown Houston), taken shortly after Hurricane Ike blew out dozens of windows on the building's east side during the early morning of Saturday, Sept 13th. Going on two weeks after the storm, over half a million Houston area residents remain without power and about 250,000 have no running water.

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September 18, 2008

Progress in the aftermath of Ike

Wednesday was a good day. Large areas of Houston -- including the area that includes my family's home -- had power restored. Our land phone lines were also restored on Wednesday after they had survived Hurricane Ike only to be knocked out during the severe thunderstorms that swept through Houston the night after the hurricane hammered the area. So, we're celebrating a bit tonight.

There are still large parts of Houston that have not had power restored, but my sense is that most areas other than the devastated coastal communities will have power restored by the end of the weekend. That will go a long ways toward getting life back to a semblance of normalcy in this neck of the woods.

Which leads to a point about the difference between hurricanes in Houston, on one hand, and areas such as New Orleans and Galveston, on the other. Most of Houston is at least 50 miles inland from the coast, so except for the southeast side of Houston that is close to Galveston Bay, the main risk of damage from hurricanes for most of Houston is from the wind.

In contrast, communities such as New Orleans and Galveston have to deal not only with damage from hurricane winds, but the even more devastating effects of flooding from the hurricane's storm surge.

Believe me, it's not pleasant living without power for the better part of a week. But my family and I had a livable home, natural gas for cooking, cell phones for communication, plenty of food and water, and autos for mobility and powering laptops and other equipment. I was able to work with little disruption between my home office and my "car office" whenever I needed Web access (because of spotty cell network coverage, I couldn't get Web access on my laptop air card from my home office -- I had to travel to a nearby part of town where the cell network signal was strong).

In the big scheme of things, that's not much inconvenience. And it's nothing compared to what many residents of the Louisiana-Mississippi Gulf Coast are still facing after Hurricane Katrina or what residents of Galveston and the other Houston coastal communities are facing for the foreseeable future.

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September 17, 2008

A day in a life after Ike

Just jotting down a few observations throughout the day of living in an area that just experienced a major natural disaster.

FEMA, take note

Although The Woodlands did not suffer as much damage as many other parts of the Houston metropolitan area, it's interesting in my travels around town over the past several days that I have seen no evidence whatsoever of any federal relief.

For example, it seems to me that there are a couple of basic things that the federal government could do to facilitate recovery efforts. First, move as many portable generators to selected service stations throughout the region so that citizens can become somewhat mobile again. The primary problem at this point is not lack of gasoline. Rather, it's lack of power to operate the pumps to get the available gas into cars.

Even though large swaths of Houston remain without power, many areas are getting power back by the hour. Folks in areas without power can be much more productive if they can travel to areas that have it and work. Unfortunately, as it stands, there is no gas to get to those areas and then return home.

Another irritation is that no one in an official capacity attempts to do anything to facilitate communications for the citizens directly affected by a natural disaster such as Ike. Ever since the storm, cell phone usage has been spotty in most residential areas, and serviceable in only a few commercial areas. Perhaps damage to the cell network equipment is the cause of the poor service, but I haven't heard anyone contend that such is the case.

Galveston

Just as the deadly hurricane of 1900 changed the nature of Galveston, my sense is that Hurricane Ike has done the same thing in 2008.

Prior to the 1900 hurricane, Galveston was Texas' largest city, port and commercial center. The devastation from that storm put into the motion the changes in Texas' development that resulted in Houston becoming the major port and cities such as Houston and Dallas-Ft. Worth becoming the major commercial centers. As Houston grew into this region's major center of commerce, Galveston evolved into a tourist center and a weekend beach getaway for folks in Houston.

Despite that tourism development, the City of Galveston has been slowly dying for years. Jobs and commercial activity largely revolve around the tourism industry (even the port is now owned by the Port of Houston Authority). Most young people now move away from the city after high school, so older folks constitute an unusually high percentage of the "town folk."

My sense is that Galveston will come back as a weekender community and a modest tourist vista, but that commerce not related to the tourism industry will continue to decline at an accelerated rate. My sense is that what we might see in 20 years is a community comprised of a few high-rise condos and resorts along the seawall, the ubiquitous weekender homes on the West Beach and not much else.

It will certainly be easier to evacuate such a community.

Radio anchor people

As a general rule, I do not listen to much radio. Maybe an occasional traffic report or Charlie Pallilo's sports talk show in the rare event that I am driving somewhere during it.

But I've been shocked at how bad the radio anchor reporters have been on KTRH, the main station providing disaster information to the public. Although a number of the KTRH field reporters are OK, the anchors often sound as if they are blithering idiots. It seems as if they aren't asking inane and non-challenging questions to "experts" or public officials, they laughing and making bad jokes at inappropriate times or in regard to serious issues.

Walter Cronkite, where are you when we need you?

Houston sports teams

I noted in this earlier post in the run-up to Hurricane Ike that the high number of variables that become involved in reacting to hurricanes often generates some abysmal decisions in reaction to the storm. That observation was certainly validated by a couple of decisions that were made with regard to Houston sports teams.

From University of Houston Athletic Director Dave Maggard's absurd decision to have the University's football team play in Dallas while the storm was still hammering Houston (!) to Major League Commissioner Bud Selig's equally preposterous decision to haul the Houston Astros players and coaches away from their families (to Milwaukee of all places) the day after a terrible natural disaster left the players and coaches' families without power in a devastated city, it's hard to imagine the fractured thought process that went into either of those boneheaded decisions.

Sports competition at the major-college and professional level requires a high level of concentration. Given the circumstances under which these games were played, it is not surprising in the least that the Houston teams lost each one of them. How could the players and coaches be concentrating on a damn game?

It's only God's grace to both Maggard and Selig that no family member of either a UH or Stros player or coach was hurt or killed in the aftermath of the storm. Why do either of these fellows still have their respective jobs?

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September 15, 2008

The aftermath of Ike

An estimated 5 million customers along the upper Texas Gulf Coast lost power as a resuit of Hurricane Ike. Only about 5% of those have been restored as I write this post. Current estimates are that it will be 2-3 weeks before even most of those customers will have their power restored.

To give you an idea of the enormity of this damage, the last hurricane to make a direct hit on the Houston metro area -- Hurricane Alicia in 1983 -- left 750,000 customers without power.  Two-thirds of those customers had their power restored within five days, and it took between 2-4 weeks to restore the rest.

Although The Woodlands (where my family lives, 30 miles north of downtown Houston) did not suffer catastrophic damage from Ike, the part of the grid from which it receives power did. Entergy, the power company here, estimates that it will be between 2-3 weeks before The Woodlands power is restored. No one in The Woodlands currently has any power (I am writing this from my battery-powered laptop with an air card).

With that backdrop, i was curious to discover this notice from the local public school system:

Conroe Independent School District announced schools will be closed Monday and Tuesday and the Tuesday board meeting is cancelled. Residents are asked to check the Web site or call after 4 p.m. Monday for updates on the rest of the week.

Uh, one question there, school district: how are residents with no power supposed to check a Web site for updates?

Better re-think that approach, folks.

 

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September 14, 2008

Surviving Ike

Yes, although you haven't heard from me for awhile, I'm still here.

My family and I survived Hurricane Ike just fine. Although not an intense hurricane (it came ashore as a category 2), the enormity of the storm was something to behold. In The Woodlands, which is about 30 miles north of downtown Houston, we were buffeted by hurricane and tropical storm winds and torrential rain for over 12 hours. Such a lengthy period of high winds and heavy rain is extremely unusual for even a strong hurricane.

The damage in The Woodlands is not as bad as most of the rest of the Houston area -- mostly just downed trees, some of which damaged houses. However, as many of you outside of the Houston area have seen on television (virtually no one in the Houston area has power, so no television here), the devastation around the Houston area -- particularly those areas close to the coast -- is devastating. My sense is that at least a quarter million people in the metro area do not have a livable home to return to.

Almost every area of Houston has no power. Cell phone networks are overloaded, so cell phone access via either telephone or computer is spotty, at best. No one has a clue of when power will be restored, but the initial estimates are not particularly encouraging.

Inasmuch as I have quite a few arrangements to make over the next several days for my family members and clients, blogging will probably be light or non-existent until some sense of normalcy returns. I very much appreciate everyone who has emailed and phoned to check in on me today. Please understand if it takes awhile for me to get back to you.

Houstonians reacted remarkably in the face of the devastation of Hurricane Katrina back in 2005. Now, it is time for a re-run of that effort. For all of you around country and the world who check in from time to time on this little corner of the blogosphere, any help and prayer that you can provide will be much appreciated.

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September 13, 2008

The Galveston Seawall

You probably have heard much over the past couple of days about the Galveston Seawall. It was constructed in the early 20th century after Galveston was destroyed by the storm surge of the Hurricane of 1900. The purpose of the seawall is to protect the east side of Galveston Island from similar storm surges. Here is a picture of the seawall:

As you can see, the ocean usually laps up on the beach 75 yards or so away from the seawall. On most days, the ocean rarely gets close to the seawall, even during high tide.

The picture below shows the seawall on Friday morning as Hurricane Ike was still over 100 miles from Galveston in the Gulf of Mexico:

(picture by David J. Phillip/Associated Press)

 

 

 

 

As you can see, the storm surge from Ike was beginning to breach the seawall over 12 hours before the eye of Ike was scheduled to make landfall.

Weather analysts estimate the the highest point of the surge will occur around midnight on Friday as the Ike's eye makes landfall just west of the seawall during high tide. By that time, the seawall will be little more than a concrete sandbar under the waters of the Gulf of Mexico that are inundating Galveston.

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September 12, 2008

A developing disaster

The extreme storm surge of Hurricane Ike is causing a disaster in Galveston, Texas, which is about 50 miles southeast of Houston. The Coast Guard announced earlier today that the authorities believe that Galveston Island will be completely submerged for at least 12 hours.

The Galveston City Manager and Mayor were just interviewed on local television at 3 p.m. They estimated that between 25-40% of Galveston's residents (10-20,000 people) did not heed the mandatory evacuation order and have remained on the now-almost completely flooded island. It is now too late to evacuate the island.

Ball High School and the San Luis high-rise resort facility on Seawall Blvd have been opened as relief centers for Galveston residents who stayed. However, widespread flooding on the island makes getting to the centers risky, to say the least.

It is currently estimated that over 1 million residents of the Houston metropolitan area near the coast evacuated over the past several days. Many of those residents will likely have neither a livable home nor power when they return.

This is looking very, very bad.

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September 9, 2008

Not a good start

The Chronicle's Mary Flood reports that visiting U.S. District Judge Roger Vinson of Pensacola, Florida is not off to an auspicious start in handling the criminal prosecution of U.S. District Judge Sam Kent:

The Florida judge who will oversee the criminal trial of U.S. District Judge Samuel Kent issued a gag order in the case to prevent public discussion by parties or court personnel that could interfere with the trial.

Senior U.S. District Judge Roger Vinson of Pensacola late Friday issued the order that also allows him to hold arguments and hearings in chambers and outside of the presence of the public and forbids courthouse personnel from relating information from those hearings to the public.

Vinson said he found it necessary to gag the attorneys and courthouse personnel on his own, without a request from prosecutors or Kent, "to preserve a fair trial by an impartial jury by shielding jurors and potential jurors from prejudicial statements." He said he found a "substantial likelihood" that comments made outside court would "taint the jury pool and will undermine a fair trial to which both the accused and the public are entitled." [.  .  .]

The order specifically forbids "divulgence of information concerning arguments and hearings held in chambers or otherwise outside the presence of the public."

A copy of the order is here.

The Fifth Circuit Judicial Council's confidential investigation and resulting sanction of Judge Kent has already been the subject of substantial criticism. Now, in his first action in the case, Judge Vinson enters a dubious gag order and raises the specter that he will conduct frequent non-public hearings. This is not the way to instill confidence that Judge Kent's case will be handled in a manner similar to other criminal cases of prominent defendants. Like these.

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September 3, 2008

Assessing priorities at TSU

This Jeannie Kever/Chronicle article follows up on new Texas Southern University President John Rudley's efforts to find a place for the institution within Houston's changing marketplace for university education (prior posts on TSU are here).

Beyond academic programs that remain on probation and terrible financial problems, TSU's core problem is that its former role as Houston's open admissions university has been superseded by the University of Houston-Downtown, which is a far superior to TSU at this point in time. Rudley has brought over a team of administrators from the University of Houston to straighten out TSU's thorny administrative and financial issues. But the even greater problem is that Houston may simply not need two open admissions universities, particularly in light of the growth of Houston Community College and various suburban community college systems over the past decade or so.

Although Rudley appears to be the type of administrator that TSU needs if it is going to survive, the following portion of this Ronnie Turner Chronicle blog interview with new TSU Athletic Director Charles McClelland reflects the entrenched mindset that Rudley will have to overcome if he is going to redefine TSU's place in the local education marketplace:

RT: At what stage are you in negotiations with the Dynamo on a partnership for a football stadium?

CM: Well, we're still in the same stage with the Dynamo. We have all of our talking points. We've brought in a consultant to help us close the deal with the Dynamo to ensure that we have all of our t's crossed and i's dotted. Once that's done, we'll have to get it to our board for approval. My understanding is that the Dynamo have moved forward on their end to help get the funding that's needed, and we're still extremely optimistic that the stadium will generate the type of notoriety, revenue and resources (needed) for us to take our football program to the next level. We're extremely excited about the opportunity with the Dynamo.

As noted earlier here, unless the terms of TSU's proposed deal for use of the soccer stadium are changed radically in TSU's favor, no responsible TSU administrator or trustee would ever approve the deal. However, rather than pursuing such a dubious deal, shouldn't TSU administrators and trustees really be asking themselves why a financially-strapped institution such as TSU is continuing to support notoriously unprofitable intercollegiate athletic programs at all?

Good luck, President Rudley. You're going to need it.

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September 2, 2008

Richard Justice crosses the line

As regular readers of this blog know, I have often wondered why Chronicle sports columnist Richard Justice is writing about sports. He is highly subjective in his views, does not back them up with objective facts and doesn't reason well. Beyond that, he does just fine.

As a result of the foregoing, Justice is a controversial fellow among Houston sports fans. His blog is a rollicking place where mostly anonymous readers who comment on Justice's blog posts regularly engage in competing insults with Justice. Not my cup of tea, but different strokes for different folks.

At any rate, after the Texans' meaningless pre-season loss against Dallas a couple of weeks ago, Justice published this post in which he harshly criticized Texans offensive line coach Alex Gibbs -- who is widely-regarded as one of the best offensive line coaches in the NFL -- for yelling at his players. The post was odd, but nothing out of the ordinary for Justice, who had applauded the hiring of Gibbs this past January. Inasmuch as Justice noted that Gibbs has a policy of not talking to the media, many readers commenting on the post speculated that Justice's criticism of Gibbs was simply sour grapes for Gibbs' refusal to talk with Justice.

However, one particular reader who commented on Justice's post was not interested in engaging in the usual name-calling that is common on Justice's blog. Stephanie Stradley, who previously blogged on the Texans for the Chronicle and who now blogs on the Texans over at AOL Sports Fanhouse, posted a comment to Justice's post in which she challenged the factual basis of Justice's assertion that Gibbs' players were tuning him out because of his yelling. Stradley is a first-class blogger who analyzes the Texans much more objectively and effectively than Justice does.

In response to Stradley's comment, Justice responded with shrill comment (since deleted) in which he reiterated his point about yelling and then insulted Stradley. Despite Justice's insult, Stradley inquired in a subsequent comment about the basis of Justice's contention that Gibbs' players did not respond to him, to which Justice responded with another condescending comment. Tasteless, but again nothing out of the ordinary for the often childish nature of Justice's blog.

But what Justice did next may very well have crossed the line. Inasmuch as Justice's criticism of Gibbs was so poorly-reasoned, readers continued to mock Justice in the comments to his blog post, prompting Justice to post a follow-up post to defend his position. But in so doing, Justice made the following comment (scroll down to comment at 9:49 AM) in response to a reader who suggested that he owed Stradley an apology for his earlier tasteless comment:

I don't know what Stephanie's real name is, but she creeps me out. She writes a little too often, wants to discuss and debate. She has her own blog, so why is she so interested in mine? Ask yourself that question. Maybe I've watched Fatal Attraction too many times. If something happens to one of my rabbits, she's going to be in big trouble.--Richard

Incredibly, if that weren't bad enough, Justice followed up that libelous comment with this one in responding to another reader's comment (scroll down to comment at 10:13 PM):

Oh so you only use English when you feel like it? Be sure and put that on your resume. Listen, Cronkite, don't get into an insult contest with me. You'll end up in a fetal position whimpering and begging me to ease up. Find something you're good at and dedicate yourself to that. I don't know what that would be, but this ain't it. Go hang out with that Glenn Close woman. She'd probably find you fascinating. Speaking of Stephanie Stradley, I woke up this morning and saw our rabbit cage was empty. ''Stephanie!'' I screamed. Turns out, the little feller was sleeping beneath a chair.--Richard

In a patient and classy manner, Stradley recounts the entire bizarre episode here.

But beyond their utter tastelessness, both of Justice's comments associating Stradley with a homicidal maniac appear to meet the requirements of defamation per se. As a result, Stradley has viable damage claims against both Justice personally and the Chronicle.

Ironically, Justice's Monday blog post asserts that many Stros fans owe GM Ed Wade an apology. Absent the Chronicle and Justice heeding his advice and issuing an immediate public apology to Stradley, I hope she tees off on both of them.

The Chronicle has some very good reporters. But in these challenging times for newspapers, can the Chronicle survive the likes of Richard Justice?

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August 29, 2008

The shoe drops on Judge Kent

Here is the Chronicle article on the unusual federal aggravated sexual harassment abuse and contact indictment against U.S. District Judge Sam Kent. The previous posts on this matter are here. Here are the public statements of Judge Kent and his main accuser, and a related article (see also here) on Judge Kent.

Judge Kent will apparently defend himself by what amounts to confession and avoidance -- that is, conceding that sexual advances were made, but that they were consensual in nature. In my view, that will be an extremely difficult defense for a defendant-judge to sustain in front of a jury.

This one has the potential to be very ugly indeed.

Update: Serious questions (see also here) are already being raised about the Fifth Circuit Judicial Council's handling of the investigation and sanctioning of Judge Kent.

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August 18, 2008

Richard Justice's Kumbaya Weekend

Allow me to ask the following question again: Why is Richard Justice allowed to write about sports for a major metropolitan newspaper?

This weekend's Justice missives were particularly banal, which is saying something when it comes to his writings.

First, he led with this fawning blog post about Vince Young and the University of Texas. I guess one has to have attended UT to understand.

That one was followed by this one about Olympic swimmer Michael Phelps being some sort of cultural unifier. Yes, he's a really good swimmer, but .  .  .

Finally, Justice finished the weekend by heaping more hero worship on former Stros star, Craig Biggio, who is deserving of praise, but come on.

Frankly, it does not reflect well on the Chronicle that it dedicates more resources to accommodating Justice's blather than it provides in informing the public about one of Houston's true heroes of the past 30 years.  

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August 16, 2008

Dr. Ralph Feigen, R.I.P.

In this recent post on the death of Michael DeBakey, I noted that a substantial part of Dr. DeBakey's legacy was his involvement in the massive importation of talented medical professionals to Houston over the past 60 years. That talent transformed the Texas Medical Center from a sleepy regional medical center into one of the largest and most dynamic medical centers in the world.

Dr. Ralph Feigen, who died at the age of 70 on Thursday,epitomizes the doctors who have been at the center of that transformation.

Drawn to Texas Children's Hospital and Baylor College of Medicine at the age of 40 in 1977, Dr. Feigen spent the rest of his life in Houston cultivating a culture of excellence in research and patient care that turned Texas Children's into one of the largest and best pediatric hospitals in the world. Dr. Feigen was an excellent teacher, superb clinician and a highly-regarded researcher, but his personal warmth for his patients is what thousands of parents and their children will remember most about this fine man. A large part of Dr. Feigen's legacy is that Texas Children's -- despite its enormous growth over the past 30 years -- still reflects the comfortable warmth of its long-time leader.

Todd Ackerman, the Chronicle's fine medical reporter, summarizes Dr. Feigen's enormous impact well (the NY Times obituary is here):

Feigin, considered by many the most important pediatrician of the past 25 years, died Thursday. [.  .  .]

Feigin transformed Baylor pediatrics from a small, poorly funded department into the nation's biggest, made Texas Children's Hospital one of the nation's elite children's hospitals and trained an amazing roster of doctors, including almost half of Harris County's current population of pediatricians and many academic leaders nationally.

He also was known for research that contributed to the better understanding and treatment of pediatric disease, as the author of textbooks that changed the care of children worldwide and as a tireless advocate who never missed a chance to take up the cause of children's health.

Colleagues described him as unfailingly cheerful and energetic, even after the lung cancer struck. Diagnosed with the disease in late 2007, he continued as Baylor's chairman of pediatrics and Texas Children's physician-in-chief while in treatment. In May, he announced he would step down but attributed the decision to a plan he had made at 65 to stop his administrative duties at 70. [.  .  .]

In all, Feigin trained more than 2,000 pediatricians and pediatric specialists. Of those, two went on to become medical school deans, 22 became associate medical school deans, 10 became pediatric department chairmen and 180 became section heads of pediatrics.

Feigin came to Houston in 1977, a time when neither Baylor pediatrics nor Texas Children's were players of any significance. In 30 years, Baylor's pediatric faculty grew from less than 40 to more than 500, and pediatric's federal research funding became the most in the country, nearly $100 million. Texas Children's created and developed several of the nation's most respected clinical centers, and its patient load skyrocketed.

In addition to his pediatric administrative and clinical duties, Feigin served as president of Baylor from 1996 to 2003 and as interim CEO of Texas Children's from 1987 to 1989.

Despite the administrative roles, Feigin remained focused on children's health. He pushed for the state to extend the Children's Health Insurance Program to the maximum number of children and Medicaid to the maximum number of indigent mothers. He and his colleagues were at the forefront whenever there was an infectious disease outbreak, giving shots to kids and urging people to exercise caution.

He was considered such a great diagnostician that twice a week residents would gather to seek his help on their most baffling cases at "stump Feigin" sessions.

Without books or computers, Feigin would reel off myriad possible causes, then describe what he'd do to arrive at a diagnosis as quickly as possible. The performance left the residents awed.

We often get sidetracked as to what bells and whistles will supposedly make Houston better, but it's people such as Ralph Feigen who truly make Houston such a special place to live.

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August 10, 2008

Elegant Elk

Clear Thinkers favorite and longtime Houstonian Steve Elkington (PGA Tour page here) is now 45 years old and past his prime on the PGA Tour, where he has won a major (the 1995 PGA at Riviera), is a ten time winner (the most recent was in 1999 at Doral). Nevertheless, Elk continues to have one of most elegant golf swings on the Tour and remains quite competitive, reflected by his tie for eighth place through two rounds of this week's PGA Championship at Oakland Hills outside Detroit.

Mirroring his swing, Elk has also established himself as one of the most fashionable dressers on the Tour. During this first round of the PGA Championship, Elk was resplendent in a white shirt with pink dots and a hard collar, high-rise brown trousers with a windowpane check and long pleats, and green, white and red patent-leather Foot Joy shoes. Elk is continuing the tradition of fellow Houstonians Doug Sanders and the late Jimmy Demaret, both of whom were the fashion plates on the Tour during their respective eras.

As he winds down his PGA Tour career and prepares for the Champions Tour, Elk has established his own website -- elksworld.com -- where he is displaying and selling the shirts and caps he wears and designs. Elk also provides this slick deck that summarizes the marketing opportunities that businesses can derive by associating with Elk. Rather than selling advertising space on himself or his golf bag, Elk is using his artistic talent and entrepreneurial spirit to start an interesting business. Here's hoping that he is as successful in that endeavor as he has been during his PGA Tour career.

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August 7, 2008

A bad idea that just won't die

Isn't it amazing how long bad ideas will remain festering so long as local governmental officials have something to do with it?

After four years of dithering, this Bill Murphy/Chronicle article breathlessly reports that there may be hope for the Astrodome hotel project after all:

Despite their previous staunch opposition to the project, the Houston Livestock Show and Rodeo and the Texans signaled that they may be able to coexist with a convention hotel that would be built in the Astrodome.

Their more conciliatory attitude toward the 1,300-room project was evident in recently submitted reviews of the proposed convention hotel lease.  .  . 

And since the promoters of the project already have a financing commitment lined up, this deal is about ready to take off, right? Uh, well, maybe not:

Even if the Texans and the rodeo drop opposition to the project, Astrodome Redevelopment Co. still needs to obtain financing for the ambitious, $450 million effort to transform the building once known as the Eighth Wonder of the World into a convention hotel.

Astrodome Redevelopment president Scott Hanson said the company's efforts to obtain financing have been hampered by an inability to strike a lease with the sports corporation, which oversees Reliant Park operations, including the Astrodome.

"The (commercial lending) market is much tougher now. Quite frankly, we have been waiting on getting an approved lease before we go back out into the marketplace," he said.

So, what happened to that financing commitment for the project about which the Chronicle previously reported? What the heck, even in a tough lending market, half-a-billion or so in financing shouldn't be all that difficult to line up for a project that almost certainly will be a financial success, now could it? Well maybe, except that the parent company that owns the model for the Astrodome hotel project -- The Gaylord Texan -- is not exactly doing all that well:

The Star-Telegram has a story today about the Gaylord Texan’s parent company, Gaylord Entertainment, reporting a second quarter revenue increase of 36 percent over last year—but a net income drop of 91 percent. The company reported a net income of $106.8 million in Q2 ‘07; for Q2 ‘08, they’re looking at a net income of $8.78 million. That’s right, eight. They blame it on decreased attendance at conventions. Does this bode well for the convention center hotel business?

So, let's get this straight. After not being able to arrange financing for this boondoggle during the robust equity and credit markets that existed up to 2007, the promoters think they are going to be able to line up financing in the current tight financing market for a business that is not even doing particularly well?

Give it up folks.

Update: Kevin Whited suggests that the promoters' PF staff should retain the Chron's Murphy.

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July 26, 2008

Remembering Sam Kinison

The late Sam Kinison is a comedy legend who was part of a group of comedians nicknamed the Comedy Outlaws (Ron Shock and Bill Hicks were two other prominent members) that got their start in Houston during the early 1980's, most often at the LaughStop on West Gray. Here is a hilarious video of Kinison on the Tonight Show, which includes Kinison's under-appreciated singing voice and a lively discussion between Kinison and Johnny Carson on the subject of divorce. Enjoy!

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July 25, 2008

Houston-based God, Inc.

Karl Taro Greenfeld of Portfolio.com examines the money-making machine that is Houston's Joel Osteen and Lakewood Church (prior posts here):

Last year, Lakewood generated $76 million in revenue, which amounts to just over $1,600 for every member of its congregation. Its take includes $44 million donated directly by congregants, who are asked to give 10 percent of their gross income; $10 million in product sales and sermon tapes; and $13 million brought in through direct-mail solicitations, up from about $6 million two years ago. The church’s greatest expense is the TV airtime it buys: $22 million last year to broadcast the show in more than 100 markets, a 10 percent annual increase in spending that is easy to justify. “Cutting back on airtime would be like saying we won’t be sending any trucks to deliver our product,” [Osteen brother-in-law Kevin] Comes says [Comes is Lakewood's chief operating officer]. An additional $13 million goes to administrative costs and salaries, and $9 million a year is spent on facilities and maintenance. [.  .  .]

Being backstage at a Joel Osteen worship event is remarkably similar to being at an N.B.A. game or a rock concert. Beefy security guards tell you where you can and can’t go. Crew members chow down on a buffet laid out by a local caterer and bark into walkie-talkies between bites. At some point, black Town Cars head down the long, curving driveway into the belly of the arena and drop off the pastors and performers, who retreat into private suites.

The night is a celebration of music, state-of-the-art visual effects, and, of course, Christ. Lakewood spends a great deal of money attracting top gospel and Christian talent, and music minister Cindy Cruse-Ratcliff leads a team of Grammy Award winners, including gospel singer Israel Houghton. It’s a thumping occasion, with people dancing in the aisles and even the security guards singing along to “Come Just as You Are” and “We Have Overcome.” Osteen’s entire family is in the act. His mother, wife, and children often play parts in the service.

But it’s Osteen himself we have come to see. He wins the crowd over with wholesome jokes and inspires with his sweet-voiced message. The sermon today is based on the notion of “hitting the DELETE button when you have those negative thoughts.” He urges us to banish that voice telling us, “I’ll never get that great job. I’ll never meet that special someone. I’ll never get married.” Hit the delete button, he urges, and reprogram your mind. “Just one inferior thought can keep you off balance and away from your God-given destiny.”

Read the entire article here. But hit the DELETE button to rid yourself of any negative thoughts first.

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July 21, 2008

Update on the Judge Kent investigation

It looks as if the heat is being turned up again on embattled U.S. District Judge Sam Kent. Here is the latest by Chron reporter Lise Olsen:

Justice Department broadening investigation of Kent
Sale of home and gift reporting being examined

A Justice Department investigation into the sexual conduct of U.S. District Judge Samuel Kent has expanded to include allegations that he accepted but failed to report gifts and also sold his home in a deal arranged by a lawyer with dozens of cases in his court, Kent's own attorney and other lawyers have confirmed.

The ongoing investigation was launched last year after Kent's former case manager complained that the judge sexually molested her. Since then, several prominent attorneys have been subpoenaed by federal prosecutors to appear before a Houston grand jury involving other allegations of judicial misconduct, according to documents and interviews obtained by the Chronicle.

Months ago, investigators began asking about parties, a 2001 trip to London and meals attorneys had bought for Kent at Galveston restaurants — often on days they did business in his court, lawyers and former co-workers said.

According to Kent's attorney, Dick DeGuerin, they also requested records about a real estate deal in which one of those attorneys, Kurt Arnold, helped persuade his mother to buy Kent's home in the city of Galveston.

[.  .  .]

The 2006 sale price was $339,500 for the 64-year-old house in the Denver Court neighborhood a few blocks inland from the seawall. The property is valued at $224,090 by the Galveston County Appraisal District. However, appraisals obtained by the buyer and seller were closer to the sale price,  .   .  .

Arnold is a former law clerk of Judge Kent who had cases pending in Judge Kent's court, so the implication of the article is that Arnold arranged for his mother to make a favorable purchase of Judge Kent's house. Nevertheless, it appears that the sale was for fair market value, although Judge Kent was able to negotiate a reduced commission on the deal because Arnold's mother didn't use a realtor. The article suggests that the reduced commission was an effective gift to Judge Kent from Arnold, which is a stretch.

The grand jury is also investigating possible gifts that Judge Kent received from attorneys practicing in his court, including a 2001 trip to London and lunches at various Galveston restaurants. The Chron reports that "at least" 10 attorneys have been subpoenaed to testify before the grand jury, although several have given sworn statements in lieu of testifying. Judge Kent has already given a statement to the FBI and has offered to cooperate with prosecutors, but has not yet been requested to do so, according to his defense counsel, Dick DeGuerin.

It's still too early to say what all this means for Judge Kent, but the extent of the grand jury investigation is not good news for him. Stay tuned.

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July 17, 2008

Beijing = "People's Republic of Houston"?

"Beijing is flat and sprawling and smoggy and jammed with traffic and nearly all new, which is why an American friend who’s been working there for the last couple of years calls it 'the People’s Republic of Houston.'"

That's the opening of From Mao to Wow! by Kurt Anderson of Vanity Fair. He goes on to say that a more accurate comparison is Beijing now with New York City of a century ago.

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July 13, 2008

Dr. Michael DeBakey, R.I.P.

Dr. Michael DeBakey (previous posts here) died late Friday at the age of 99. One of the most influential men in Houston's history, Dr. DeBakey was the world-famous cardiovascular surgeon who researched, developed and initially implemented not only a variety of devices that help heart patients, but also such now-common surgical procedures as heart-bypass surgery. Two of the Chronicle's finest reporters -- Science reporter Eric Berger and Texas Medical Center reporter Todd Ackerman -- provide this outstanding article on Dr. DeBakey's remarkable life, and Eric provides an audio file of his 2005 interview of Dr. DeBakey here. The New York Times' article on Dr. DeBakey's death is here.

As with my late father, Dr. DeBakey was one of the leaders of a talented generation of post-World War II doctors who embraced the optimistic view of therapeutic intervention in the practice of medicine, which was a fundamental change from the sense of therapeutic powerlessness that was widely taught to doctors by their pre-WWII professors. As noted earlier here and here, that seismic shift in medicine has changed the course of human history.

But the tremendous impact that Dr. DeBakey had on medicine is exceeded by the massive effect that he had on Houston. When Dr. DeBakey accepted the president's position at Baylor College of Medicine a few years after the end of World War II, the Texas Medical Center was a sleepy regional medical center. Over the next two decades, Dr. DeBakey was one of the key leaders who transformed the Medical Center into one of the largest and best medical centers in the world. Dr. DeBakey was the catalyst who established the culture within the Texas Medical Center of cutting-edge research, productive competition but also widespread collaboration, quality care for patients and good, old-fashioned hard work that attracted the best and brightest physicians, teachers and students from around the world to the Medical Center.

This massive importation of intellectual capital over the last 60 years of Dr. DeBakey's life generated enormous wealth and benefits for Houston. Today, the medical facilities of the Texas Medical Center are the largest aggregate provider of jobs in the Houston area, even greater than the local jobs provided by the energy industry.

That's quite a legacy in my book.

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July 10, 2008

Which Starbucks stores are closing?

When Starbucks announced last week that it is closing 600 stores and laying off 12,000 employees, the company did not disclose which stores would be shuttered (got to get those lease buyouts finalized). However, that hasn't stopped word from filtering out into the Web on the location of the shuttered stores. The Seattle Times has already generated this Google map containing a large number of the anticipated store closings.

View Larger Map

However, the question that is on most Houstonians' minds has not been answered. Will Lewis Black's "End of the Universe" cease to exist after Starbucks is finished closing stores?

This clip includes video of the two stores as Black comments on the end of the universe on The Daily Show (H/T Life is a Thrill):

Update: Here is the full list of the stores that will be closing.

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July 5, 2008

CNET visits the JSC

CNET's Road Trip 2008 blog visits the Johnson Space Center in the Clear Lake area of Houston (photos here). The article and accompanying photos are a good primer for the always interesting visit to the JSC.

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June 30, 2008

Continuing to suspend reality on financing the soccer stadium

 This earlier post addressed the economic absurdity of having financially-strapped Texas Southern University make an investment in the long-proposed Houston Dynamo downtown soccer stadium.

However, why is it that common sense seems to evaporate into thin air whenever either TSU or the soccer stadium is mentioned? Buried in this Chronicle article about TSU's failure to prepare its students adequately to pass state licensing examinations is the following gem of analysis on TSU's proposed investment in the Dynamo stadium:

TSU President John Rudley and athletic director Charles McClelland also gave an early report on negotiations to share a new stadium with the Dynamo, Houston's professional soccer team.

McClelland said the proposed $105 million stadium would seat 21,000. In exchange for a $2.5 million investment, TSU would get a 20-year lease, a locker room, 50 percent of concession sales and 100 percent of the profit on TSU merchandise sold there, he said.

The deal is preliminary, and regents won't vote for a while. The stadium won't be completed until 2010 or 2011, he said.

McClelland, on the job just a few months, said the deal would be a good investment for the university, whose football team plays mostly at the University of Houston's Robertson Stadium, at a cost of $40,000 a game.

The Tigers occasionally rent Reliant Stadium, which costs $115,000 a game, he said.

Investing in a new stadium would be cheaper in the long term, he said.

TSU has a stadium, but it seats only 4,500 — too small for the competitive football program McClelland has promised to build — and lacks the amenities people expect.

Let's see now. In return for pre-paid rent of $2.5 million (which TSU really doesn't have to throw around right now), TSU gets a 20-year lease, 50% of concession sales (on only its games or on all events of any type?), a locker room, 100% of TSU merchandise sales and a pink slip at the end of the 20-year lease term. I hope that locker room is really nice.

Meanwhile, without paying a dime up front, TSU can continue to lease Robertson Stadium on the University of Houston campus for about $200,000 per year (5 home games x $40,000) or $4 million over a 20-year term. While playing at Robertson, TSU could invest the $2.5 million that it wouldn't have to pay the Dynamo and easily generate at least another $2.5 million off that investment over the 20-year lease term. At the end of 20 years of playing at Robertson, TSU would have a net surplus of at least $1 million to play with.

So, in view of the foregoing, my question is this: How could any reasonably responsible TSU leader even consider using the scant existing financial resources of that institution to invest in the Dynamo soccer stadium?

Perhaps the answer is revealed in the last paragraph of the Chron article:

Regents cautioned Rudley and McClelland to make sure TSU has good representation in the negotiations. "They're sharks," Javier Loya said of the Dynamo's leadership.

Update: Some folks actually think this is a good deal for TSU!

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June 25, 2008

The Future of Law Firm Advertising?

Clear Lake-area plaintiff's lawyers Ron and Scott Krist use the YouTube video below to explain why helicopter crash victims should hire their firm. Not exactly To Kill A Mockingbird, but pretty darn effective nonetheless. By the way, I wonder who the defense attorney was that Scott got fired?

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June 16, 2008

Bill King's story

As Republican presidential nominee John McCain is doing his best to stoke public prejudice against job-creators and wealth builders, longtime Houston lawyer and businessman Bill King is promoting his new book, Saving Face (Somerset 2008), which is King's personal history of the savings & loan crisis of the late 1980's and early 1990's. Ironically, McCain knows quite a bit about the back story to King's book. McCain was one of the Keating Five, the Congressional supporters of former Lincoln Savings & Loan chairman and CEO Charles Keating, who was convicted of various corporate fraud crimes and served four years in prison as a result of highly-stoked but substantively-thin prosecutions that were ultimately overturned on appeal. Keating eventually pled guilty to a single count of bankruptcy fraud to limit further prison time and insulate a family member from prosecution. For a thorough review of the mendacity of the Keating prosecutions, pick up a copy of Dan Fischel's book, Payback: The Conspiracy to Destroy Michael Milken and his Financial Revolution (HarperCollins 1995).

King's story is the Houston version of Keating's and a precursor of the prosecutorial abuse that the post-Enron criminal prosecutions in Houston generated a decade later. Not only does King do an excellent job of explaining the financial, economic, regulatory and political underpinnings of the S&L crisis, he explores how the government wielded its prosecutorial power indiscriminately to serve up scapegoats to a salivating mainstream media and an ill-informed public. King is thinking about running for Houston mayor in 2009 and, based on the depth and perspective that he exhibits in Saving Face, King would probably be a fine mayor. The following is King's overview of Saving Face, which I recommend highly:

These days I find myself cringing when I hear media accounts that fraudulent and greedy mortgage brokers are responsible for all of the woes of the current housing bubble and the sub-prime defaults. I do so because the recriminations are an all too familiar echo of an earlier debacle. One to which I had a ring-side seat.

Many of you who have known me for some years know that shortly after law school I made the somewhat less-than-fortuitous career decision of joining a law firm that specialized in representing savings and loans. At the time it did not seem like a bad decision. The Houston real estate market was enjoying an unprecedented boom and the savings and loan industry had just been deregulated. Investors were clamoring to get into the business.

Within a few years of joining the law firm, I began investing in savings and loans and related businesses. By 1986, notwithstanding that I had started with barely two nickels to rub together after working my way through law school, I had built a small, but respectable, business empire consisting of savings and loan holdings, title companies, and real estate investments. However, within a couple of years, everything I had built evaporated into thin air.

The Houston market collapsed when the price of oil fell from over $34 per barrel in 1984 to $9 the next year. It did not recover to above $20 until 2002. Manufacturing jobs in the region fell by nearly 50% and for the first time in history Texans' personal income declined.

Bankruptcies in Houston tripled between 1983 and 1987. All but one of Texas' major banking holding companies failed. Harris County's population actually declined from 1985 to 1989. It was the first and only time in Houston's history that it has lost population. If you did not live through these times, the magnitude of melt down is hard to imagine.

It is certainly difficult to lose everything that you have worked for, but the environment that existed in the late 1980s and early 1990s had an even more ominous aspect. As the public became increasingly aware that the savings and loan crisis was going to take a major taxpayer bailout, there were ever more strident cries to hold someone responsible.

The complexity of confluence of interest rates, regulatory policy, oil prices, the Tax Reform Act of 1986, and the collapse of large portions of the real estate market that actually explained the collapse was too great to be reduced to sound bites. Politicians and bureaucrats began pointing the finger at those in the industry, and soon, the "S&L crook" was born. And there were enough egregious cases for the politicians and bureaucrats to hold up as "proof" of their argument that the "S&L crooks" caused the crisis.

The proposition that fraud and insider abuse had sunk the savings and loan industry was eventually discredited. In 1993, a National Commission concluded that fraud had caused less than 15% of the total problem. But in the heat of the moment, there was little interest in cool, scholarly reflection on the problems of the industry.

As the 1980s came to a close I watched as many friends, associates and former clients in the S&L industry were swept up in a maelstrom of civil and criminal litigation. Naively, it never occurred to me that I might be caught up in such a dispute as well. But I was.

Eventually, I prevailed in my battle with the regulators, but as you might imagine, it was an experience that left an indelible mark and from which it took me many years to recover. For some time I have been jotting down notes for a book about these experiences. For a couple of reasons, I recently decided to finalize such a book.

First, as many of you know, I am considering a candidacy for mayor of Houston in 2009. We all know too well that "negative campaigning" has become the standard today. Certainly going bankrupt in the savings and loan business will provide potential opponents ready ammunition. So first and foremost, I want to put the issue squarely on the table. If I decide to become a candidate, there will undoubtedly be some voters who will be troubled by these experiences. Some will believe difficult times such as the ones I went through are a crucible that better prepares a person for leadership. Most, I expect, will simply want to be advised of the facts so that they can be weighed with other issues bearing on their decision.

But beyond the potential political implications, the troubling similarities between what I saw in the S&L collapse of the 1980s and the sub-prime crisis playing out before us now demands some consideration. It is a well worn adage, but nonetheless true, that if we do not learn from our history, we are doomed to repeat our mistakes. Perhaps relating what I saw during the saving and loan industry collapse will provide some perspective on the current financial crises.

So for these reasons I have written Saving Face: An Alternative and Personal Account of the Savings and Loan Debacle. I have attempted in the book to tell the story of what I experienced during these times, but at the same time, to place my experiences in a larger, national context. I believe my story has some relevance to anyone experiencing trying times generally, and certainly to those in the Houston real estate industry, many of whom lived through these times as I did.

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June 14, 2008

The best city for a job

BusinessWeek knows.

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June 2, 2008

Ron Paul, we hardly knew ye

This post from last June noted Houston-area Congressman Ron Paul's deft media touch on Comedy Central's Daily Show. Now, a year later, Jim Henley sums up the utter failure that Paul's presidential campaign became:

This fellow can’t spell "candidate," but by being willing to come out and say that Ron Paul Lost, he’s closer to wisdom than the entire staff of Takimag. The full measure of Paul’s failure isn’t even that he’s not going to be the Republican nominee. It’s that, even since everyone else dropped out of the race but Paul and McCain, he’s still been losing to Mike Huckabee in every state where the Huckster was on the ballot except Pennsyvlania (Paul was born in Pennsylvania.) Idaho is the only other primary state where he broke 10%. (He hit low double-digits in a few caucus states.) He has 35 delegates by CNN’s reckoning. Huckabee has 275 and Romney 255. With his $30 million in donations, he’s barely breaking the million-bucks-a-delegate mark. That’s ten times the much-ridiculed rate of Mitt Romney.

Paul failed to win any states, to move the GOP debate in his direction, to accrue significant delegates or to leverage his fund-raising into a third-party run. And word is he’s staying quiet about endorsing an independent because he doesn’t want the Congressional GOP leadership to strip him of committee assignments come the fall. Paul accomplished the one thing he’s always been good at: using political appeals to get people to send money. I don’t feel freer.

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May 27, 2008

Checking out Houston on the tour bus

Randal O'Toole went on a bus tours of different parts of Houston while he was in town for the Preserving the American Dream Conference a couple of weeks ago and he chronicles his impressions with observations here (neighborhoods between downtown and the Galleria area) and here (one of the Houston area's several master-planned communities, Sienna Plantation). Upon finishing the tour of Sienna, O'Toole commented on the trip back to his downtown hotel:

After finishing up our tour of Sienna, we took the Fort Bend Parkway, one of the region’s many toll roads, back to Houston. This 6.2-mile, four-lane highway required just over a year to build and opened in 2004 at a cost of $60 million. That’s less than $2.5 million per lane mile, including on- and off-ramps, over- and underpasses, and toll facilities. By comparison, $60 million would barely get you one mile of light rail and less than a mile of heavy rail. The toll for the 6.2 miles was $2, even for our full-sized buses.

And compare that to this!

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May 26, 2008

Dragged into the mud

The collateral damage of Roger Clemens' questionable approach to disputing his use of steroids or other performance-enhancing drugs is already extensive. It now appears that the best player in Stros history may get pulled into the public fray. As this post from a couple of years ago noted, the rumors about Bags and other Stros using PED's have been around for years.

Regardless of the foregoing, I can sure think of more productive things to do in regard to understanding the perverse Major League Baseball PED culture than dragging decent men such as Jeff Bagwell through the mud.

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May 22, 2008

Houston's solid housing market

One of the under-appreciated benefits of living in the Houston metropolitan area is its varied and reasonably priced housing market, which is the subject of this Federal Reserve Bank of Dallas report. The report notes that Houston's housing market has resisted the boom-and-bust syndrome that has been experienced in many other U.S. housing markets recently:

Given that Houstonians had access to the same new types of mortgages as the rest of the country and that Houston has had greater population growth than other large metros, we might expect price appreciation to be stronger in Houston than elsewhere. However, the opposite has been true.

Houston’s large supply of land means that demand growth primarily results in more construction, not higher prices. Construction levels are limited by the availability of two kinds of developable land: the previously undeveloped, generally found on a metro’s outskirts, and the redeveloping, usually in a city’s interior. In both cases, Houston’s policies are relatively permissive, making the metro friendly toward development.

The most fundamental difference between Houston and other cities lies in how they provide (or in Houston’s case, do not provide) water, sewer and drainage to developments on the urban fringe. In Houston, developers can create a municipal utility district, or MUD, to provide these services on their properties and can finance these with tax-free bonds. Houston requires developers to build MUDs in such a way that they eventually could be connected to the city’s corresponding infrastructure, but they begin as self-sufficient enterprises.

In other cities, developments must be connected to the city’s water and sewer lines, confining new projects to nearby or adjacent land since the cost of building lengthy lines is prohibitive. In metro Houston, by contrast, virtually any large parcel of land can become a new suburb, especially given the metro’s expansive highway system. Experience bears out this conceptual framework, with significant Houston suburbs like Katy and Spring developing and prospering before many closer-in areas.

But Houston does not just have a larger supply of available land on its outskirts. Unlike all other large U.S. cities, Houston lacks zoning laws restricting industrial, commercial and residential construction to specific neighborhoods. Many inner-city Houston neighborhoods protect property values through deed restrictions diligently enforced by private neighborhood associations, and the large, planned suburban communities operate similarly. But much of the land in metro Houston is not assigned a specific use.

So much land is available in Houston that the cost of each incremental unit rises slowly and keeps the average cost below that of more restrictive metros. Even in the face of significant population growth, this large supply keeps land prices in Houston stable, which over time contributes to lower home prices.  .  .  .

Indeed, Houston and other metros such as Dallas and Atlanta that have relatively more permissive development policies have lower housing prices than more restrictive places do.

At $155,800, Houston’s median house price is the third lowest among the 12 largest U.S. metropolitan areas and is less than half the average for these cities. Houston’s median price is lower than even the national average, which includes inexpensive rural areas.

By comparison, the median house price in metropolitan San Francisco, where zoning laws and building codes are very strict, is $825,400.

This result—more zoning bringing higher prices—is a robust one. Economists Edward Glaeser and Joseph Gyourko find that house prices across the country are positively related to the degree of zoning and regulation. Even in Houston, there is evidence that houses in deed-restricted neighborhoods or in zoned cities within the metro area are more expensive than comparable ones outside these areas. But with plenty of unzoned neighborhoods remaining, Houston house prices, on the whole, are restrained near construction costs.

In summary, Houston’s low-and-slow home prices have made real estate a relatively accessible and safe investment for the area’s residents even as other cities’ markets have become expensive and volatile. The early phases of the current housing downturn—the boom and bust in prices—were barely felt in Houston.

The article goes on to point out that the crisis in the sub-prime mortgage markets has reduced the pool of available homeowners in the Houston market, which is contributing to a downturn in the local housing market. However, the report also notes that that Houston's housing policies and local economy place it in a strong position to weather the downturn.

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May 16, 2008

Friday Musings

So, did you know that Taxi Driver is the greatest wealth-creating movie of all-time?

Speaking of movies, actor Mickey Rourke has been down on his luck for the past several years, but he sure had a good run of movies in the 1980's.

Finally, singer-songwriter Hayes Carll, fresh off the release of his new CD, returns home to The Woodlands for a Friday night show at Dosey-Doe. I'll be there, so come by and say hello!

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May 15, 2008

Houston's best 19th hole

Although Jack Burke's venerable Champions Cypress Creek Golf Course may arguably be a bit overrated, this Ron Kapriske/Golf Digest article rates the Champions Men's Locker Room Bar as one of the 50 best 19th holes in the country:

Sit back and listen to Jackie Burke tell stories, especially the one about Jimmy Demaret at the bar in his birthday suit; the bar inside the locker room is three-sided to allow for "cross-counter shouting matches"; wood paneling is a "throwback to the country-club days of the 1960s."

I can attest that having the opportunity to listen to a couple of Burke stories is certainly worth a trip to the Champions Men's Locker Room. A close second to the Champions Men's Locker Room Bar among the best of Houston's 19th holes -- Lochinvar Golf Club's Clubhouse.

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May 14, 2008

The Chron's continuing soccer stadium drumbeat

In this post from last week on the proposed downtown soccer stadium, I observed that the Chronicle should simply declare that it supports the public financing of the stadium and quit attempting to rationalize that such financing makes economic sense.

Well, based on this Glenn Davis/Chronicle column, it looks as if the Chronicle took me up on my suggestion.

Actually, Davis' column is about as good a rationalization for the public financing of the soccer stadium as you will come across. He eschews the economic-benefit ruse and instead contends that it's worth spending public money on the Dynamo because the club represents the city well internationally, particularly in Mexico and Central America. On the other hand, Davis stretches by suggesting that "the team deserves its own stadium [because it] would elevate the sport and city even more in the eyes of the world."

Just to be clear -- there is nothing inherently wrong with public financing of sports stadiums. Davis might even have a valid point that it's worth using public funds to invest in the Dynamo to bolster Houston's image internationally, although it would seem that at least some consideration should be given to alternative investments before coming to the conclusion that financing a soccer stadium is the best way to achieve that goal. But let's at least have truth in advertising during the remaining public discussion on this issue -- the marginal economic benefit of a soccer stadium to the community is simply not a good reason to finance it publicly.

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May 9, 2008

Suspending reality on financing the soccer stadium

Look, I realize that the reasoning in support of public financing for the proposed Houston Dynamo soccer stadium has not been particularly rational. But this Chronicle article takes the cake in terms of suspending reality. Chron reporters Bernando Fallas and Bill Murphy breathlessly suggest that financially-troubled Texas Southern University -- which is currently seeking $40 million in emergency legislative funding simply to keep the lights on -- is a serious player to make up at least a portion of the gap between the private and public financing on the deal:

Forget soccer-specific. The Dynamo would be thrilled to call their proposed stadium football-specific or even fútbol-specific.

Either way would be accurate — soccer is known as football almost everywhere else in the world — if the Dynamo can get Texas Southern University to join negotiations with the city of Houston toward the construction of a $105 million facility just east of downtown that would be home to the two-time defending MLS champions and TSU athletics, primarily the Tigers' football team.

By the looks of things, TSU is prepared to do just that.

Two weeks after he first expressed interest in the project and a couple of meetings and phone conversations later, newly appointed TSU athletic director Charles McClelland said the school is willing to invest in the construction of the 22,000-capacity stadium in exchange for the rights to use it. [.  .  .]

Of course, the article is utterly devoid of details, such as how TSU is going to find any money to throw at this deal, much less make a multi-million dollar investment in it. Heck, the TSU athletic director and the Dynamo's president haven't even met yet, so it doesn't even appear that Dynamo management takes TSU's involvement seriously. Why don't the Chronicle editors just come out and say that they really want the city to finance the downtown soccer stadium and spare us such vapid articles as this one? Gosh, it's gotten so bad that even normally common sense bloggers are giving in to this silliness.

Meanwhile, J.R. Taylor over at PoliSci@UST runs circles around the Chronicle's reporting on the soccer stadium financing with this well-reasoned post that actually addresses facts regarding public financing of stadiums. Yet another example of how the blogosphere is trumping the mainstream media in terms of providing coherent analysis of important issues.

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May 5, 2008

Chron: Sacrifice the local economy for the polar bears

Given the editorial slant of the Houston Chronicle over the past several years, it's not particularly surprising that the editors ran this editorial calling for polar bears to be declared an endangered species under the federal Endangered Species Act.

Unfortunately, it's also not surprising that the Chron editorial failed to mention that the oil and gas business -- a key source of jobs and wealth for Houston and the nation -- is likely to suffer considerable financial damage as a result of the polar bear listing push, which Hugh Hewitt notes "is not only an abuse of the ESA's original intent but also unsupported by the facts concerning the ice and the polar bears."

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April 30, 2008

Examining stadium subsidies

As if on cue for the soccer stadium financing issues currently being discussed on the local scene, Dennis Coates provides this excellent op-ed in The American on the dubious nature of municipal stadium subsidies:

Clearly, stadiums built with public funds have evolved over time. No longer are they built to honor the sacrifices of American soldiers. No longer are they built to be flexible venues capable of hosting a great variety of events. And no longer does the public sector determine the appropriate price to charge private enterprise for use of this publicly supplied resource. Today, sports stadiums are largely the private domain of for-profit businesses that the public sector subsidizes, often with special taxes. [.  .  .]

Over time, both the purpose and the real cost of public support for stadiums and arenas have changed. It may be that the subsidies state and local governments provide for stadium and arena construction and operation are justified by the community benefits those facilities provide. But the evidence says otherwise. [.  .  .]

My own research, conducted with economist Brad Humphreys .  .  . finds that the professional sports environment—which includes the presence of franchises in multiple sports, the arrival or departure of teams, and stadium construction—may actually reduce local incomes. For example, we found that the overall sports environment reduced per capita personal income, a finding that was new in the economic literature at the time we published it (1999). We also found that, in many local economies, wages and employment in the retail and services sectors have dropped because of professional sports. [.  .  .]

Of course, even if the benefits of stadiums and arenas cover the subsidies, the subsidies still may not be sound policy. First, there may be enormous variation in the distribution of the consumption and public-good benefits. It is clear that not all citizens in a community benefit equally from the presence of professional sports franchises in their city. Indeed, because the tax revenues used for the subsidies are often generated from lotteries and sales taxes whose burden falls disproportionately on the poor, while the consumption benefits go mostly to relatively wealthy sports fans, the net benefits are distributed regressively. Second, we should consider the net benefits to the community of alternative uses of the funds spent subsidizing sports facilities. Good policy means using the money where the net benefit is greatest, not simply where the net benefit is positive. That’s something state and local governments should keep in mind before pledging millions of dollars to fund the next new stadium project. And it’s something Congress should remember when evaluating the future of U.S. tax policy.

Are you listening, Mayor White?

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April 26, 2008

Conited Airlines, finally?

The NY Times is reporting that the on-again, off-again merger negotiations between Houston-based Continental Airlines and Chicago-based United Airlines are coming to a conclusion and that a definitive merger deal is likely to be announced by the end of next week.

Continental, the nation's fourth-largest carrier based on traffic, has long been the natural merger partner for United, which is the No. 2 airline. If they strike a deal, the merger would produce the world's largest airline, bigger even than the combined Delta-Northwest and significantly outdistancing American, which is currently No. 1.

Speaking of the Delta-Northwest deal, those partners this week reported an astounding, combined first quarter loss of $10.5 billion, reflecting that the two airlines are now worth far less than when they emerged from bankruptcy a year ago.

Two drunks holding each other up is rarely a good idea. ;^)

Update: The Chron is reporting that Continental's board has decided to reject any merger proposals "at least for now." The NY Times reports that Continental backed off because of United's worse-than-expected first quarter losses.

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April 24, 2008

UH Law Center gets it right

Ray Nimmer is truly one of Houston's treasures. The Leonard Childs Professor of Law at the University of Houston Law Center, Ray is one of the nation's leading authorities on business and bankruptcy law, computer information licensing, e-commerce, and related intellectual property issues, all of which he has addressed in the 20 or so books and numerous articles that he has written over his superlative 30+ year teaching career.

However, even more importantly, Ray is a gifted teacher who has taught a remarkably broad variety of courses at the UH Law Center over the past 30 years, including Contracts, Contract Drafting, Evidence, Bankruptcy, Corporate Reorganization Law, Internet Law, Electronic Commerce, Secured Financing Law, Negotiable Instruments, Copyright Law, Information Law, Sales, and Licensing Law. Somehow, Ray has even found the time to maintain a blog. 

For the past couple of years, Ray has been serving as the Interim Dean at the law school, where he has done an excellent job of patching things up after the divisive resignation of the previous dean, Nancy Rapaport. As noted in this post from when Ray was appointed Interim Dean, I couldn't think of a better choice for the new permanent dean than Ray. Thus, I was happy to see this UH press release Wednesday confirming Ray's appointment to that position (Mary Flood's Chron article on the announcement is here). Ray released the following statement to friends, alumni and students:

As many of you know, in 2006 I agreed to serve as interim dean of the Law Center while a nationwide search for a permanent dean was conducted. That search has now been completed – and today I have accepted the position of Law Center Dean offered to me by Dr. Donald Foss, the provost of the University of Houston, subject to the approval of the UH Board of Regents.

In many ways, it remains business as usual at our school. Two years ago, this is what I told my team when I stepped in as interim dean:

Here’s what you can expect from me. I am pragmatic, oriented to understanding and explicating the role of law and lawyers in society, and I am committed to leading a team that will distinguish our Law Center as being among the best in academia and a major factor in the practical practice of law. I believe in action and achievement. I applaud people who target goals—and invest the necessary work to achieve them. And I am determined to give our highly skilled faculty, administrators and students the support they need to maneuver and achieve.

That’s been my approach over the past two years as we energized the Law Center and continued the “pursuit of excellence” in everything we do. Our momentum is reflected in our 15-point improvement in national rankings, two “Top 10” specialty programs, and record-high LSAT scores for our newest class.

I took the job of interim dean for a simple reason: because I believed the Law Center was on the cusp of great achievement, and I wanted to help my school reach that goal. Today, I am accepting the position of permanent dean for the same reason, and I am 100% committed to pushing us higher into the top echelon of Tier 1 law schools.

It is an honor following the seven men and women who previously served as permanent dean and contributed to the greatness of our school. With help from the entire Law Center community, there is no limit to what we can accomplish.

Congratulations to Ray for the much-deserved appointment and to the UH administration for making the right decision.

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April 22, 2008

Mayor White's management

Help me out here. I'm really trying to understand the basis of the perception among a large number of Houstonians that Mayor Bill White is an effective manager.

For example, this earlier post summarized Mayor White's dubious decision-making in regard to having the city buy expensive and not particularly well-located downtown land for the new Houston Dynamo soccer stadium. Not only did the city already own nearby property that is a better location for the stadium, Mayor White pushed through the land acquisition despite not having a binding commitment from the soccer club owners on the amount of their contribution to the cost of the stadium's construction.

Given the foregoing, who except Mayor White was surprised last week when Major League Soccer (which is really just a minor soccer league) sent a letter to the Dynamo owners that was (again, surprise!) passed along to Mayor White that threatens to relocate the Dynamo if a satisfactory stadium deal isn't reached? For good measure, MLS and Dynamo officials informed the city that the estimated price of the stadium has increased from $90 million to $105 million and that some MLS cities have contributed as much as 90% of the cost of similar stadiums.

So, what was Mayor White's reaction? Tell these minor leaguers to take a hike to Corpus Christi or Beaumont? Apologize to the citizens for having the city lay out $15-20 million for property that it doesn't need? Promise that he won't get taken to the cleaners again in negotiations with minor league sports club owners? No, Mayor White did his best tough guy imitation:

"I've gotten a little bit of a reputation, probably deserved, that I don't respond well to threats," he said. "I smiled."

If Mayor White is smiling, then imagine what the MLS and Dynamo officials are doing after the way in which those minor leaguers have had their way with Mayor Bill in these negotiations?

The only good news about all this is that the $50-75 million that the city will probably end up dropping over this soccer stadium boondoggle represents only about a couple of months of losses of this much larger boondoggle, which -- you guessed it -- Mayor White strongly supports. And those aren't the only questionable management decisions that the Mayor has made during his tenure (for example, see here, here, here and here).

How much longer can Houston afford Bill White?

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April 16, 2008

Ripples of the Delta-Northwest deal

The merger agreement between Delta Air Lines and Northwest Airlines (they were meant for each other) announced yesterday not only would create the world’s largest carrier if approved, but it has renewed talk (see this W$J article, too) in Houston over the fate of one of the city's largest employers, Continental Airlines.

Continental's future has been the subject of conjecture over the years. This post from a couple of months ago summed up the current situation in anticipation of the Delta-Northwest merger. Unfortunately, Continental's most likely merger candidates -- United Airlines and American Airlines -- are not particularly attractive partners at this point. As airline consultant Adam Pilarski noted in this Scott McCartney/W$J column, "There's no history of anything good that happens in [airline] mergers. Two drunks holding each other up is not a good idea." The W$J's Holman Jenkins speculates as to why this is the case in the chronically-profitless airline industry, which Richard Anderson and Doug Steenland, CEOs of Delta and Northwest, argue the contrary position.

The proposed Delta-Northwest merger would create a behemoth company with more than $35 billion in annual revenues, a mainline fleet of almost 800 planes and a combined workforce of 75,000 people. Interestingly, the most successful US airline is the polar opposite of that structure.

 

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April 9, 2008

Good Travis Street Eats

Look at what street is number two in Good Magazine's seven Tastiest American Streets for good restaurants.

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April 4, 2008

The NY Times discovers that Houston

is a pretty darn diverse place.

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March 30, 2008

Icahn on settling Pennzoil-Texaco with Jamail

This blog is mostly about business and law, so Carl Icahn's activities have been a frequent topic. Likewise, this blog also centers on Houston, where the Pennzoil v. Texaco case from the mid-1980's is a part of the city's storied legal lore. Consequently, the video below of Icahn doing his equivalent of a standup comedy routine describing how he settled the Pennzoil-Texaco case with famed Houston plaintiff's lawyer Joe Jamail is an absolute classic for this blog. A very big hat tip to John Carney at Dealbreaker for the link to the Icahn video.

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March 29, 2008

Thoughts about basketball at Reliant

My friend John Stevenson graciously hosted a couple of friends and me at last night's NCAA South Regional semi-final basketball games at Reliant Stadium.  Although the company and conversation was a solid A+, my grade for Reliant Stadium's performance in hosting its first big-time basketball tournament is a rather pedestrian C- (the Chronicle's David Barron has a more favorable review here). Here are my observations:

1.  First, the good. The configuration of the stadium into a 43,000 seat basketball arena is not bad, at least for a football stadium hosting basketball games. We sat in the first row of the club section and the sight lines were fine, although we all used our opera binoculars from time to time. I do think that it would be possible to arrange more seats closer to the floor, particularly on the ends, without giving up much from the nose-bleed seats.

2.  But now for the bad. As has been the tradition at Reliant Park since the opening of the Astrodome over 50 years ago, parking was Byzantine. Although Reliant Park is blessed with plenty of on-site parking, the facility's parking areas were originally designed with narrow entry points that funnel autos to relatively few parking ticket agents that take a parking fee from the driver of each auto entering the facility. This has always been a horrible idea and it's incomprehensible that Reliant Park officials have not changed it after decades of fan frustration. With tens of thousands of autos descending upon the facility within an hour or so of a big game, traffic around the facility slows to a crawl as autos line up for miles at the most popular entry points waiting for drivers to stop, pay the parking charge and then move on to park. To make matters worse, the narrow entry points are converted to too-narrow exit points after the game, so traffic also stacks up in the parking lots after the game.

What should be done is simple. All of the entry points should be widened to facilitate traffic flow and, at least for big events, there should be no parking charge taken at the facility (the parking charge should be included in the price of the ticket -- with tickets already priced at $156 for the South Regional, charging an additional $20 to park at Reliant is outrageous). With widened entry points and no stoppage for payment of a parking fee, parking lot attendants could then concentrate on moving drivers quickly into the parking areas. Traffic backups would be greatly reduced.

Being old-timers in attending events at Reliant Park, our group avoided the traffic bottleneck by entering Reliant Park off of  little-used Stadium Drive on the north end. However, when we entered an hour before game time, automobiles were already backed up for miles on Kirby and the other west-side entry points. That bottleneck caused many fans to miss a good part of the first half of the opening game between Texas and Stanford.

3.  How on earth could Reliant Stadium not have sufficient concession workers and supplies available for an event as prestigious as an NCAA Regional? In the club section, there were so few concession areas available that the lines required a half hour wait throughout and after the Texas-Stanford game. There were no individual concession vendors. By the time that the lines had dwindled midway through the second game between Memphis and Michigan State, many of the concession areas had run out of bottled water. Finally, although it's not a big deal with me, isn't it a bit odd that a fan can't buy a beer while attending a basketball event that lasts over five hours?

4.  The Reliant Park overhead video screens were nice, but provided sophomoric information about the players and showed too few replays of exciting and controversial plays. The folks at Reliant Park need to check out how the Toyota Center operates its overhead video screens, which provide much better information and more replays.

5.  Pricing of the tickets is definitely an issue. It's my understanding that Reliant Park and the NCAA priced the tickets for the three South Regional games at a total of $156 on the thought that the basketball configuration would be limited to about 25,000 seats. When hometown favorite Texas was given the second seed in the South Regional and then won a spot in the South Regional semi-finals, Reliant Park and the NCAA modified the configuration to its present 43,000 seat configuration to accommodate the increased demand for tickets from Texas fans (they also sold tickets at $78 for only the two Friday night semi-final games). Although almost 33,000 attended last night's games, my sense is that even more would have done so if the nose-bleed tickets had been priced at more reasonable levels.

By the way, I've got Memphis in my bracket winning the South Regional final tomorrow against Texas. Although the Horns are solid, nothing that I saw in the two Friday night games has changed my opinion that Memphis will prevail.

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March 25, 2008

Reliant Stadium, South Regional-style

Check out the Chronicle's nifty rendering of the new basketball configuration that will be used this weekend at Houston's Reliant Stadium for the NCAA Basketball Tournament South Regional. The Reliant Park ticket seating chart for the basketball configuration is here.

This particular configuration provides about 40,000 seats for the South Regional. A different configuration that will seat 72,000 will be used when Reliant Stadium hosts the NCAA Final Four in 2011.

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March 20, 2008

The ignorance of costs

I don't particularly like the distraction of talking on a cell phone while driving, so I avoid it as much as possible. It's also not enjoyable avoiding other drivers who are not paying full attention while chatting on the cell phone.

However, I also recognize that cell phone usage while driving has facilitated beneficial communication exponentially. Thus, whenever I see creeping paternalism such as this, it gets my attention:

West U. eyes ban on calls while driving
Cell phones in school zone lead to 'near misses'

Houston-area officials are watching West University Place as elected officials there consider banning cell phones in the school zone near the community's lone elementary campus.

The move would put the affluent suburb on the map as the first Houston-area municipality to take a stand against drivers talking on their phones as children travel to and from school. The community is following in the footsteps of Dallas and several North Texas suburbs that have recently approved bans. [.  .  .]

West University proposed the ban earlier this month after conducting a study to determine how often drivers were spotted chatting on their cell phones in active school zones. Over three weeks in February, police counted 297 drivers on their phones.

Six of the drivers violated traffic laws by creeping into intersections while children and crossing guards were present, West University police Lt. Thad Olive said.

Although neither Olive nor HISD police officials could recount an incident when a child was seriously injured in a school zone because of a driver on a cell phone, they said this type of ordinance could prevent tragedy.

"There's been a lot of near misses," Olive said. "It definitely has distracting effects. If I can take one element of risk away from the children in that school zone, then it's a good thing." [.  .  .]

Kenneth Jones, who oversees HISD's crossing guard department, said he'd love to see the ban enacted citywide.

"If you've got that phone in your hand, I don't think you have your mind 100 percent on driving," he said.

Kelli Durham, an assistant superintendent in the Cypress-Fairbanks school district, was one of several educators to suggest widening the ban to include all drivers, regardless of whether they're in school zones.

"If cell phones shouldn't be used for safety reasons in school zones, should they be used anytime on our streets and highways?" Durham asked.  .  .  .

So, if "one element of risk" can be taken away from children in a school zone, then that's sufficient justification for regulation of a hugely beneficial communication device? Does this mean that the next initiative will be to ban conversation between a driver of a car and a passenger while in a school zone? That's also distracting, perhaps even more distracting than talking on a cell phone. Should we also ban distracting billboards, signs, automobiles and lights while we're at it?

What is most disturbing about all this is the utter ignorance of the bureaucrats proposing these regulations of the cost of the regulation relative to the benefit. Wouldn't it be prudent at least to perform a meaningful cost-benefit analysis of the probable impact of outlawing a valuable improvement in communications before foisting yet another regulation on the public?

Posted by Tom at 7:44 PM | Comments (2) | TrackBack (0)

March 19, 2008

T-Mac for MVP?

The incongruity of Chronicle sportswriter Richard Justice writing about sports has been a frequent topic on this blog, so I don't much bother anymore keeping up with his often baseless observations about the local sporting scene. However, on the heels of the Houston Rockets' recent 22-game winning streak, I did a double-take when Justice jumped on the bandwagon and started promoting the Rockets' Tracy McGrady for the NBA's Most Valuable Player Award this season.

As noted in this earlier post, as of December 30, McGrady was barely better than a league-average NBA player. There were dozens of players in the Western Conference alone who were having demonstrably better seasons than McGrady. So, at least as of that date, there was simply no objective basis for McGrady being considered the MVP of the NBA this season.

But perhaps McGrady elevated his performance tremendously during the Rockets' subsequent 22-game winning streak? Maybe that improved performance justifies Justice's advocacy of an MVP award for McGrady?

Sorry. As this Dave Berri post points out, McGrady’s production in the second half of the season is essentially the same as it was in the first half. Thus, McGrady is not the reason the Rockets went on their 22-game winning streak. Rather, the primary reason for the Rockets' transformation was the improved play of Carl Landry, Rafer Alston, Shane Battier, Luther Head, Luis Scola and Dikembe Mutumbo, not McGrady.

Berri backs up his position with objective statistical analysis. Justice backs his up with subjective blather. Is that what the Chronicle prefers?

Posted by Tom at 8:55 PM | Comments (1) | TrackBack (0)

March 17, 2008

"America’s booming opportunity city"

Each time local politicians in Houston engage in bad policy initiatives such as the ones noted here, my wish is that they would be required to read this fine Joel Kotkin/The American op-ed entitled Lone Star Rising -- How a combination of ambition, entrepreneurship, trade, and tolerance made Houston America’s booming opportunity city. Kotkin has been studying Houston over the past several years and he provides a perceptive outsider's view on why Houston grew into such a vibrant place:

First appearances—then and even now—often didn’t help. Early visitors were struck by the settlement’s largely shack-like housing. And in those days, long before air conditioning, there was the Houston weather, which often combined scalding temperatures with soupy humidity.  .  .  . Yet the Allen brothers had not really chosen so badly. Houston possessed powerful assets. It sat on an enormous fresh-water aquifer, which today guarantees a water supply in a way that other growing cities, such as Phoenix and Las Vegas, can only dream about. The area also abounded in natural resources such as timber and rich soil that was ideal for growing cotton. And when oil drillers hit a gusher in Spindletop, about 90 miles from Houston in East Texas, in 1901, Houston suddenly found itself positioned as the nearest city to some of North America’s richest oil and gas reserves.

None of this, however, adequately explains Houston’s ascendancy. Other cities enjoy better locations for shipping, richer agricultural resources, or similar proximity to oil fields. The answer, I have come to understand as I have worked in Houston as a reporter and consultant, echoes something that the late Soichiro Honda once told me: “More important than gold and diamonds are people.” This critical resource, more than anything, accounts for Houston’s headlong drive toward becoming not only the leading city of Texas and the South, but also a player on the global scene: it is emerging as one of the world’s great cities.

Read the entire op-ed and learn a lot about what makes Houston such a special place to live.

Posted by Tom at 6:46 PM | Comments (0) | TrackBack (0)

March 2, 2008

Landry's is worth more because of what?

Did I read right what Steve Scheinthal, general counsel of Houston-based Landry's Restaurants, Inc., said in this Chronicle article?:

Landry's is .   .  . facing a handful of shareholder suits seeking class-action status in the wake of CEO Tilman Fertitta's bid to take the company private.

Fertitta made an offer on Jan. 27 to buy out the company at $23.50 for each unowned share. The $1.3 billion deal, including debt, is being reviewed by a special committee of the Landry's board. [.  .  .]

Scheinthal dismissed the shareholder suits as standard in a going-private transaction.

"Absent Mr. Fertitta's offer, the likelihood is that the company's stock would be trading well below the current market price," he said.

Landry's stock closed Friday at $17.73 a share, down 38 cents.

Fertitta's offer for Landry's was made without a financing commitment in a tough credit market. Yet, the company's general counsel is claiming publicly that such a speculative offer is all that is propping up the company's stock price?

I wonder what the boys over at Long or Short Capital will think about that?

Posted by Tom at 12:00 AM | Comments (0) | TrackBack (0)

February 27, 2008

The Hollywood Dome?

It is a reflection of how low my expectations have sunk for rational decisions from Harris County officials. I actually felt a sense of relief that officials do not appear to be taking this seriously:

Lights, camera, action: Dome needs a makeover

The Astrodome was a stage for baseball and football prima donnas to strut their stuff, but it could become a forum for Hollywood stars.

At least that's what would happen if the Houston Association of Entertainment Professionals gets its way.

The association, a new, non-profit group representing film industry workers, has heard that not all county officials support the Astrodome convention hotel plan and has come up with an alternate proposal -- turning the Dome into a film production studio.

"It would bring an entire new economy to Houston," said association president Elise Hendrix. "We should make a home for the film-making industry."

Astroturf and stadium seating would give way to studio space where sets could be built, a film-processing operation that could produce dailies, a 100,000-square-foot, underground sound stage and offices.

Hendrix pitched her idea to the Houston Film Commission, an arm of the Greater Houston Convention and Visitors Bureau, last week.

But she and other association members may appear light on the gravitas needed to have their plan taken seriously. Hendrix, 25, is a professional makeup artist who left the University of Louisiana at Lafayette before graduating. She was a fashion design and merchandising major.

The association doesn't have a web site, only a page on MySpace.

But Hendrix said the association is courting investors who would put up the estimated $50 million to $200 million needed to gut the Dome and turn it into Astrodome Production Facilities. She declined to name investment groups that she is courting.

Willie Loston, director of the Harris County Sports and Convention Corp., which oversees Reliant Park, said the association hasn't contacted him about the proposal.

"Great," he said after learning of it. "They got some money?" [.  .  .]

Given the speculative nature of the Astrodome Hotel boondoggle project, and assuming that the County powers have decided that razing the Dome is political suicide, why aren't County and Texas Medical Center officials figuring out a way to renovate the Dome into the premiere medical training and education facility in the world? Just a thought.

Posted by Tom at 12:05 AM | Comments (1) | TrackBack (0)

The diversity of Texas

Yes, Texas is a diverse place. It's a part of its charm. But following on this post from yesterday, that diversity does not make it an easy place to get one's arms around.

Posted by Tom at 12:00 AM | Comments (0) | TrackBack (0)

February 26, 2008

"Re"-examination?

Kevin Whited over at BlogHouston.net notices a little news you can use from Houston's leading news source:

The Chronicle ran a correction that was notable for its length today:

An article in Feb. 18 editions repeated charges made by Republican candidate for Congress Dean Hrbacek that a law firm, Williams & Jensen, had ties to Jack Abramoff. The article also cited reports that the firm's managing partner, L. Steven Hart, traveled with a group of government officials and lobbyists to Scotland to play golf.

After being contacted by Williams & Jensen concerning the accuracy of the article, the Houston Chronicle's re-examination has revealed that Hart's correct name is J. Steven Hart, that there is no credible evidence that Hart traveled to Scotland with government officials on one of Abramoff's trips or otherwise, and, also, that there is no credible evidence that Williams and Jensen has any "ties" to Abramoff or his lobbying activities.

Gosh, given the results of the Chron's re-examination, where was the research for the original examination performed? Over a beer at the local icehouse?

Posted by Tom at 12:01 AM | Comments (0) | TrackBack (0)

February 25, 2008

Re-defining TSU

Leave it to new Texas Southern University President, John Rudley. He's not wasting any time before trying to shake things up at the chronically-troubled public university (previous posts here):

Texas Southern University's new president wants to end the school's long-standing practice of accepting all applicants, no matter their academic background, saying the policy contributes to its alarmingly low graduation rate.

President John Rudley said the change is necessary to remake the state's largest historically black university, which has been on the ropes recently because of management missteps, sliding enrollment and bad press.

As noted in this recent post, Rudley has his worked cut out for him in re-defining TSU's mission. The University of Houston-Downtown Campus has far surpassed TSU as the favored open-enrollment institution in the Houston area. Consequently, TSU must redefine itself or face becoming irrelevant. It's not clear to me Rudley's plan is the best one for TSU, but I admire him for his vision. It's badly needed at TSU.

Posted by Tom at 12:00 AM | Comments (1) | TrackBack (0)

February 21, 2008

Hope for a hog solution?

Texas' feral hog problem has stymied many a smart scientist over the years, but it appears that the Aggies may have discovered a possible solution(H/T: Craig Malisow)

If you're a land owner and animals such as coyotes or wild pigs are driving you hog wild, help may soon be on the way to control their numbers in a humane way - in the form of a birth control pill for animals being developed at Texas A and M University's College of Veterinary Medicine and Biomedical Sciences. The concept would be to get it to wild animals through baited food, researchers say. [. . .]

n Texas, feral hogs have become a severe nuisance to farmers and ranchers, and the state has an estimated 3-4 million feral hogs, by far the most in the country.

Gig'em Ags!

Posted by Tom at 12:00 AM | Comments (0) | TrackBack (0)

February 15, 2008

A solid endorsement

I've been enjoying the new local blog Life at the Harris County Criminal Justice Center, which, along with Mark Bennett's blog, provides an interesting daily glimpse of life around the Harris County criminal courthouse. Given the twists and turns of the recent Le Affaire Rosenthal, both blogs have had interesting observations about the players.

In this recent post, the HCCJC blog makes the following common sense endorsement that I hope all Harris County voters will embrace:

In the 176th [Criminal District Court] Judical Race, there is no issue in picking who I recommend.

The race is between Michele Saterelli Oncken and incumbent Brian Rains.

Judge Rains has been on the bench ever since I've been a lawyer. And ever since I've been a lawyer he has had the reputation of being one of the rudest and most unkind judges on the bench since . . . well, Pat Lykos.

He claims that Michele Oncken is running against him "because I made her husband mad."

If only it was that simple, Judge Rains. The fact is that you've upset everybody.

The rudeness from this bench has gone well beyond the boundaries of being a "tough judge", and into the range of just absurd vindictiveness. The fact that a person is a jerk to both sides of the bar doesn't make that person any less of a jerk.

Throughout the years, Rains has steadfastly refused to put people on probation. When probations were agreed to, he would passive-aggressively agree to the probation, but throw in 180 days in the Harris County Jail as a condition (thus nullifying the point of giving probation). He has sworn he considers the full range of punishment on any PSI hearing, but all attorneys know that it just isn't true.

Rains' refusal to consider the full range of punishment has led to more recusal hearings than any other judge that I'm personally aware of. One hearing even had the unlikely alliance of the District Attorney's Office and Dick DeGuerin.

His questionable bond decisions have led to at least two tragic murders committed by people out on bond in his court. His impatience with the pace of a trial has led to at least one capital murder conviction being reversed.

Michele Oncken was the Chief in his court for a year or two. Normally, the Chief/Judge relationship is one of some sort of fondness (or at least mutual respect). The fact that she is running against a Judge where she was previously a chief says a lot, in and of itself. She's been a Chief prosecutor for at least five years now, including stints in Capital Writs, District Court, and now in Juvenile. She certainly has the background for the job.

Sorry, Judge Rains, but its definitely time for you to go. Nobody deserves to be treated the way that you treat people.

Review this earlier post for more information on Judge Rains' dubious sentencing policies.

Posted by Tom at 12:10 AM | Comments (0) | TrackBack (0)

Cooling heads over the Ashby high-rise

So, Mayor White has figured out that his ostentatious initial position and statements regarding the proposed Ashby high-rise project weren't such a good idea, after all:

The city risks exposing itself to a "takings lawsuit" if it passes a new restrictive ordinance after the Ashby developers submit permit applications or site plans, Festa explained. The developer could argue that the city changed the rules after the fact, taking away value from their property.

White acknowledged that problem Wednesday.

"There are some legal doctrines that you can't change the rules in the middle of the game, once somebody has filed certain things," he said.

Well, better late than never that Mayor White has realized that it's not a good idea to change the rules in the middle of the game on businesspeople who are risking millions of dollars in developing real estate.

As noted earlier here, the key issue with regard to the Ashby high-rise is not increased traffic generated by the project, which is nominal. Rather, the key issue is the scale of the project in relation to the rest of the surrounding neighborhood. That's what should be the focus of the debate over the new ordinance. Clear Thinkers' favorite Houston urban policy wonk -- Tory Gattis -- agrees.

Posted by Tom at 12:05 AM | Comments (0) | TrackBack (0)

February 13, 2008

On the DeGeurin-DeGuerin brothers and Houston's G-man

A couple of interesting stories have popped up over the past several days regarding Houston lawyers.

First, there was Mary Flood's profile of the DeGuerin (or was that DeGeurin?) brothers, Mike and Dick, two of the best in Houston's formidable criminal defense bar. The criminal defense bar in Houston has essentially branched out from two extraordinary criminal defense lawyers, the late Percy Foreman and Richard "Racehorse" Haynes. Mike and Dick are from the Foreman tree, while such excellent Houston criminal defense lawyers as Dan Cogdell and Jack Zimmermann stem from the Haynes tree. A good follow-up story for Flood would be to track the number of first-rate criminal defense lawyers in Houston who have been influenced by Foreman, Haynes and their many acolytes.

Meanwhile, not to be outdone, this ABA Journal article profiles Houston's $1,100-per-hour lawyer, Stephen Susman. As noted earlier here, Susman has long contended that that he charges in excess of a grand per hour "to discourage anyone hiring me" on an hourly basis. As they say in legal circles, Susman prefers cases with a bit more meat on the bone.

Posted by Tom at 12:05 AM | Comments (1) | TrackBack (0)

February 10, 2008

Pictures from Houston's neighborhoods

Robert Boyd is a Houston-based blogger who regularly tours Houston neighborhoods and posts interesting pictures and comments on his adventures. His latest tour is the neighborhood just north of downtown, and his dozen or so other tours are here. Check them out and learn a bit more about some of the hidden treasures of this fascinating city.

Posted by Tom at 12:59 AM | Comments (0) | TrackBack (0)

February 7, 2008

Are they finally getting serious?

The Wall Street Journal ($) reported yesterday afternoon that Houston-based Continental Airlines seemingly perpetual merger negotiations (see also here) with Chicago-based United Airlines are accelerating for a variety of reasons. A Continental-United deal is contingent on Northwest Airlines' ongoing merger negotiations with Delta Airlines because Northwest currently owns the right to block a Continental merger. However, that right evaporates if Northwest merges with Delta.

Whether all of this is the product of rational thought or irrational exuberance remains is another issue. As noted recently here and many other times on this blog, the airline industry is a mess overall and combining two large airlines does not necessarily provide any meaningful competitive benefit. Continental performed in the middle of the airline industry last year, doing reasonably well financially and operationally, but ranking ninth-worst in terms of frequency of bumping customers from flights. Only Delta was worse at bumping customers among the major carriers.

United, on the other hand, has been a basket case for years. In its first full year of operations after emerging from its long bankruptcy case, United's earnings were among the worst in the industry last year (only JetBlue's were worse). Moreover, United struggled with operations, ranking seventh in on-time percentage after a disastrous December that included numerous cancellations and delays. Meanwhile, United's rate of customer complaints was second-worst, ahead of only US Airways, as Professor Bainbridge would attest.

So, what to make of all this? At this point, it's hard to say, other than management of both airlines are probably betting that the biggest airlines have the best chance of survival when the inevitable shakeout of the industry finally is allowed to happen (chronic reorganizations of distressed airlines have delayed that process up to now).

Color me as skeptical.

Posted by Tom at 12:05 AM | Comments (0) | TrackBack (0)

February 6, 2008

The First and Last 100 Days?

Over at the University of Houston, the university is celebrating the arrival of its impressive new Chancellor and President, Renu Khator. As a part of that celebration, the university has posted this interesting website entitled Building Our Future: The First 100 Days that solicits ideas from the university and Houston communities on the direction of the city's primary public university. Check it out and participate in an exciting time for UH.

Meanwhile, on the other side of the optimism scale, the desperate state of Texas Southern University continues. Ubu Roi over at blogHouston.net provides this good overview of the daunting challenges facing new TSU President, John Rudley (previous posts on TSU are here). As Roi points out, one of TSU's better schools -- its law school -- is at risk of losing its accreditation, and that news comes on the heels of a regional accrediting body recently placing the entire university on probation. Meanwhile, President Rudley is wrestling with the legislative requirements for obtaining $40 million in emergency funding that the institution desperately needs just to keep the lights on.

As noted earlier here, here, and here, TSU is a once-essential institution that is at serious risk of becoming irrelevant. During the era of segregated education in Texas, TSU was arguably Texas' best university for minority students. The institution educated many of Texas' finest minority leaders, including Barbara Jordan and Mickey Leland. However, over the past 20 years, TSU has been bypassed by both the University of Houston-Downtown Campus and Houston Community College as the preferred open admissions alternatives for the Houston area's college students.

At this point, a merger of TSU with one of the other university systems probably makes the most sense, but even that alternative is not easy. Merging UH-Downtown and TSU would serve the purpose of largely consolidating Houston's open admissions institutions, but the UH system does not have sufficient endowed capital to absorb TSU, a shameful legacy of Texas' underfunding of UH's endowment in comparison to the other two major public university systems in Texas, the University of Texas and Texas A&M University systems. Texas A&M already has an open admissions university in its system at Prairie View A&M and UT probably has little interest in increasing its investment in the Houston area given the UT Health Science Center's huge presence in the Texas Medical Center. So, TSU is not a particularly good fit for those far wealthier systems, either.

Thus, at least for the time being, TSU will continue to muddle along. But don't be fooled. TSU is on life support and the emergency measures for keeping it alive are are inadequate to provide the long-term vision that the university needs. It's well past time for state and community leaders to put their parochial interests aside and come up with a long-term plan for TSU that provides the institution with a specific purpose within the framework of college alternatives for Houston area residents. Sadly, dangling $40 million in front of TSU to keep the lights on is not going to accomplish much of anything in defining TSU's purpose.

Posted by Tom at 12:05 AM | Comments (0) | TrackBack (0)

February 5, 2008

Pro Dome? Or just anti-Emmett?

I understand that Ed Emmett is not the Chronicle's favored candidate for Harris County Judge. But isn't it a bit odd for the Chron to be fanning criticism of Emmett for showing rare leadership over the pie-in-the-sky Astrodome hotel redevelopment deal (previous posts here)?

Look, this is really very simple. No equity investor or financial institution in their right mind is going to invest upwards of half a billion dollars to redevelop the Dome into a convention hotel. If there were such investors, they would have stepped up in the over three years that this proposal has been floating about town and the financial markets. The fact that the Astrodome hotel would not even have the primary right to use the Reliant Park space that it sits upon for over a month out of the year (roughly 22 days for the Houston Live Stock Show & Rodeo and another dozen or so days for the Texans) only makes the hotel proposal more speculative in nature. That several County Commissioners continue to think that it's a good idea to pursue the Astrodome hotel project does not make it one. Rather, it simply shows why they are County Commissioners and not businesspeople responsible for creating jobs and turning a profit.

And reliance on a poll of Houstonians to keep the Astrodome hotel dream alive is just plain silly. Sure, most Houstonians would like to preserve the Dome. It's a landmark and an architectural treasure. But I doubt that poll revealed to its participants that mothballing the Dome over the past three years has already cost the County $12-15 million that could have been spent on improving roads, flood control or park improvements. Similarly, that poll almost certainly did not disclose to its participants the financial risk that the County would be taking if an Astrodome convention hotel craters, as many such hotels tend to do. If a poll is taken with such information supplied to its participants, then my bet is that the number of Houstonians wanting to preserve this financial black hole would diminish rapidly.

Emmett is showing leadership in moving the decision-making process on the Dome along. The Chronicle is playing politics in criticizing him for it. Set a reasonable deadline for proposals, consider them and then either move forward with one that makes financial sense or raze the Dome and build a parking ramp for Reliant Park that would generate revenue to pay off the bonded indebtedness that remains on the Dome. That may not be the sexist thing alternative, but it's the responsible thing to do.

Posted by Tom at 12:10 AM | Comments (1) | TrackBack (0)

February 4, 2008

Can Schiller and Del Grande save Cafe Express?

At one time earlier this decade, the Cafe Express restaurants were among the best "upscale" fast food restaurants in Houston, perhaps anywhere. Then, in 2004, Wendy's International purchased a majority stake in Cafe Express from the original owners, Lonnie Schiller and Robert Del Grande, who also own the popular upscale Houston restaurant, Cafe Annie.

Wendy's promptly operated the Cafe Express restaurants like, well, like Wendy's. No one would confuse their local Wendy's with an upscale fast food restaurant. It became clear quickly that Wendy's did not have a clue of how to manage an upscale fast food restaurant chain. Cafe Express suffered.

Reflecting that hope springs eternal, this David Kaplan/Chronicle article reports that Schiller and Del Grande have purchased Cafe Express from Wendy's (hopefully at a BIG discount). It's a different and more competitive market in the "upscale" fast food industry now than when Schiller and Del Grand sold to Wendy's, so there is no certainly that Schiller and Del Grande will be able to infuse Cafe Express with its lost luster. But I'm pulling for them.

Posted by Tom at 12:00 AM | Comments (0) | TrackBack (0)

February 2, 2008

Piling on Rosenthal

It's become fashionable around Houston to be critical of outgoing Harris County District Attorney Chuck Rosenthal. Frankly, much of the criticism is deserved. But given what Rosenthal has been going through in federal court over the past couple of days, one has to wonder whether the media firestorm regarding Rosenthal has reached the point that otherwise rational observers have taken leave of their senses.

Take this latest Chronicle article on the hearing over Rosenthal's destruction of emails that he had been ordered to turn over in connection with a civil lawsuit in federal court. The Chron article, which is representative of the newspaper's vitriolic coverage of Rosenthal's political demise, calls the hearing a "contempt hearing" in which the judge could "hold Rosenthal in contempt, . . .[and] put the DA behind bars for six months."

H'mm. I don't think so.

Although the plaintiffs in the civil lawsuit are having a field day excoriating Rosenthal in court and in the media, I can't see how the judge could hold Rosenthal in contempt of court, at least at this stage. The plaintiffs' motion (see here) essentially requests that the judge hold Rosenthal in criminal contempt of court because of Rosenthal's destruction of email evidence and failure to comply with the court-ordered procedure for reviewing the emails. The motion doesn't call for Rosenthal to be held in civil contempt. There is no need for the court to take coercive action and Rosenthal would not be able to take any action to purge the contempt, anyway. The destroyed emails are gone for good and Rosenthal can't do anything about that.

Thus, Rosenthal -- who isn't even a party to the civil lawsuit -- is accused of criminal contempt, but he has been provided none of the protections that due process of law requires for a criminal defendant. Inasmuch as Rosenthal's allegedly contemptuous conduct did not take place in the courtroom, the trial judge does not have the power to hold him in criminal contempt without a full-blown trial on the criminal contempt charges. Indeed, the trial judge cannot even be the judge in Rosenthal's criminal contempt trial because the judge is a potential witness in that trial.

Likewise, the plaintiffs' lawyer in the civil lawsuit cannot prosecute a criminal contempt case against Rosenthal. Rather, the contempt charge must be referred to the U.S. Attorneys' Office, which then decides whether to prosecute Rosenthal based on an evaluation of the evidence and and the charges. If the U.S. Attorney decides to do so, then Rosenthal is entitled to the due process protections that any criminal defendant is entitled to receive, including notification of the specific charges, trial by jury, and confrontation of the adverse witnesses. The circus going on right now over in federal court doesn't come close to fulfilling those Constitutional safeguards.

So, I don't think Judge Hoyt is going to hold Rosenthal in criminal contempt and throw him in jail. Even if Judge Hoyt were to do so, the Fifth Circuit would likely stay the commitment order and eventually overturn it. The Chronicle and Rosenthal's many other detractors can continue to revel in the lame duck DA being filleted in a public court hearing, but at least provide Rosenthal due process of law. We in Houston have already seen what happens to the unpopular public figures of the moment when those protections are ignored.

Posted by Tom at 12:00 AM | Comments (3) | TrackBack (0)

February 1, 2008

The never-ending City of Houston corruption probe

It's been a couple of years since I last blogged on it, and it's been over two and a half years since the new defendants were first mentioned as potential targets in the probe, but the feds finally got around last week to indicting Andrew Schatte and Michael Surface, the principals in the Keystone Group who have made a living over the past decade or so managing big construction projects financed by the City of Houston and other municipalities. The press release on the indictment is here and a copy of the indictment is here. For unknown reasons, the U.S. District Clerk's office did not post the indictment publicly until yesterday, which is about as long as it took for the Chronicle's editorial staff to comment on the indictment.

The indictment alleges that Schatte and Surface bribed former City of Houston building services director Monique McGilbra to gain favor on a couple of big City of Housotn building projects for which they were competing. The feds allege that the bribes were both direct (not so big) and indirect (much larger), the latter of which were allegedly funneled through Garland Hardeman, McGilbra's former boyfriend who Schatte and Surface hired to work with them in obtaining the contracts. McGilbra, who copped a plea back in 2005, will be singing like a canary for the prosecution in this case.

Not enough is known about Schatte and Surface's defense strategy at this point to know what will be the most important issues in the case. However, one has to wonder why the U.S. Attorneys' office -- which has been investigating corruption in the City of Houston administration of former Mayor Lee P. Brown now for six years -- waited for over two and a half years after McGilbra had fingered Schatte and Surface to bring the charges against the two? Similarly, when did the feds notify Schatte and Surface that they were targets of a criminal probe? If it was some time ago (as it would appear), then why was Surface serving on the Harris County Sports & Convention Corp board for the past two years while being the target of a federal criminal probe?

The feds need to wrap this matter up.

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January 31, 2008

The stadium ruse

Something to think about in regard to the City of Houston's latest stadium boondoggle.

Skip Sauer over at The Sports Economist notes this Rick Eckstein op-ed on the myth of economic benefits from the public financing of sports stadiums:

. . . [M]y colleagues and I studied media coverage of 23 publicly financed stadium initiatives in 16 different cities, including Philadelphia. We found that the mainstream media in most of these cities is noticeably biased toward supporting publicly financed stadiums, which has a significant impact on the initiatives' success.

This bias usually takes the form of uncritically parroting stadium proponents' economic and social promises, quoting stadium supporters far more frequently than stadium opponents, overlooking the numerous objective academic studies on the topic, and failing to independently examine the multitude of failed stadium-centered promises throughout the country, especially those in oft-cited "success cities" such as Denver and Cleveland.

Meanwhile, Houston is bidding on another Super Bowl (XLVI in 2012). Get those yachts lined up, folks.

Posted by Tom at 12:10 AM | Comments (1) | TrackBack (0)

January 29, 2008

What's Fertitta's real plan for Landry's?

Given this experience, Landry's Restaurants CEO Tilman Fertitta's offer to take Landry's private in a deal valued at $1.3 billion is not particularly surprising.

But the question is this: Would Fertitta, who owns just under 40% of Landry's, actually prefer what Jim Crane didn't want?

Posted by Tom at 12:06 AM | Comments (0) | TrackBack (0)

January 28, 2008

The bus to Houston

Check out this interesting story of how a young woman's bus ride to Houston in the 1960's led to a better life. A redeeming quality of Houston is that it attracts folks who are looking to improve their lot in life. I hope that quality never changes.

Posted by Tom at 12:05 AM | Comments (2) | TrackBack (0)

January 24, 2008

The latest boondoggle?

Anne Linehan, Kevin Whited and Cory Crow note this week's "are you kidding me?" moment from City Hall -- two Nancy Sarnoff/Chronicle articles reporting on the trial balloon that Mayor White floated about building a second large convention hotel in downtown Houston next to the George R. Brown Convention Center and the existing 1,200 room, city-owned Hilton Americas Hotel.

Another large downtown convention center hotel is surprising to anyone who has been following the Harris County government's fits and starts in regard to the proposed Astrodome hotel redevelopment project. However, Mayor White recently engineered the hiring of a new leader (Greg Ortale) for the local convention bureau and it looks as if the prospect of elevating Houston to the small tier of U.S. cities with adequate facilities to handle the largest conventions was part of the pitch in that hire.

Does building another big downtown hotel make sense? In and of itself, the answer is clearly no. Private equity interests have no interest in risking their money on such a project, just as they have no interest in doing the same in regard to the Astrodome hotel redevelopment. Thus, the deal only begins to make sense because of the prospect of public financing, which is how the City financed the first downtown convention center hotel.

Despite the lack of any meaningful analysis in the Sarnoff/Chronicle articles, the first hotel has been anything but an unqualified success. The Mayor suggests that the City spent $300 million on it (that seems way low to me) and that its presently worth "at least $350 million" (yeah, but who's buying?). There are a bunch of less risky investments that the City could have made with that $300 million that would have generated more than the speculative $50 million equity that Mayor White thinks the City has in the Hilton Americas.

But the larger question is whether the City ought to be in the business of building convention center hotels in the first place? As Cory points out, the rationale for the investment is that, with the larger number of convention center hotel rooms, Houston could compete with the small number of cities (Las Vegas, Orlando and San Antonio) for the really big conventions that need the concentrated mass of hotel rooms that only those cities offer. Although transit is an issue in getting from the downtown convention area to Houston's cultural areas and attractions, I can see how Houston would be a viable alternative to those other cities. For example, Houston's restaurants, theater district and museum district are better and more diverse than any of the other three alternatives. And Vegas is not every large convention's cup of tea.

But given the alternatives, is another large investment in a second convention center hotel really a prudent allocation of the City of Houston's financial resources? Here is where I have my doubts. As I've noted many times in regard to Houston's light rail boondoggle, allocating $300-$500 million on another downtown convention center hotel has real consequences, such as leaving inadequate resources to make improvements to Houston's infrastructure (flood control and fixing of traffic hotspots, to name just two) that would dramatically decrease the risk of death and property damage. Stated simply, does it make sense for the City to be investing that kind of money in a downtown convention hotel when convention attendees won't be able to get to it from Hobby Airport? The main drag to the Gulf Freeway and downtown from Hobby Airport -- Broadway Street -- is already virtually impassable during even moderate rainstorms.

Maybe taking a flyer on a second downtown convention center hotel would make more sense but for the billions blown on the light rail system. But the size of that boondoggle leaves a very small margin for error in regard to allocation of the City's remaining resources. At this point, a large investment in a second convention center hotel appears to fall well outside that small margin.

By the way, speaking of the Astrodome hotel project, it appears now that even Harris County officials believe that the deal is dead. However, the proposed alternative is to turn it into a horse barn?:

Meanwhile, there could be three or four groups prepared to present plans to transform the Dome.

The Houston Livestock Show and Rodeo may be one contender, said Leroy Shafer, the rodeo's chief operating officer. The rodeo and partners are looking into whether the Dome could serve as a replacement facility for aging Reliant Arena.

Astroturf and tiered stadium seats would give way to more than 1,000 horse stalls and an arena with a capacity of at least 6,000. The vast open area where former Astros stars Jimmy Wynn and Jeff Bagwell hit towering drives would be turned into a three-story exhibition and stalling space, Shafer said.

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January 18, 2008

On ham sandwiches and Texas Supreme Court Justices

The old saw is that a grand jury would indict a ham sandwich if asked to do so by the district attorney.

However, in Houston, a grand jury will indict a Texas Supreme Court Justice even if the DA doesn't ask it to do so.

As noted in this earlier post, Texas Supreme Court Justice David Medina, his wife and several family members have been in the cross-hairs of an arson investigation since their house and a couple of others in the neighborhood were damaged in a June 28, 2007 fire. A Harris County grand jury today indicted Justice Medina on a tampering charge and his wife on arson charges in connection with the fire.

However, in an unusual development (to say the least), the grand jury brought the indictment against the recommendation of the DA's office. Embattled Harris County District Attorney Chuck Rosenthal will request that the indictment be dismissed immediately because the DA's office has concluded that there is insufficient evidence to make a case that would withstand a defense motion for a directed verdict.

That's all well and good, but my question is this: If the DA's office knew going into the grand jury that they did not have sufficient evidence to make a case against Justice Medina, then why on earth did they bring the case before the grand jury at this time? Inquiring minds want to know.

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January 15, 2008

Re-evaluating boondoggles

Let me get this straight. Mayor White started out with a proposal several months ago to allow the local MLS soccer team to build a stadium at their own expense on downtown land that the City of Houston owned but was not using except for extra parking (previous posts here).

So, how did we get to the point where the City is now willing to pony up at least $20 million and exercise its eminent domain power to acquire land for the private owners of the team to build their stadium? Heck, we haven't even started to talk about who's going to pick up the tab for the cost of the necessary infrastructure improvements or how much "Central Planning Chief" Peter Brown's "mixed used development" ideas are going to cost (for the folly of such ventures, see here). By the way, Mr. Brown, what are the names of the other cities that are lining up to provide financing for a soccer stadium that makes you so sure that the Dynamo will leave if Houston doesn't provide it?

And to top it off, the proposed location of the proposed new stadium figures to increase the cost of an even larger boondoggle.

Granted, we're talking about throwing away "only" $20-30 million on this deal at this point. That's peanuts in comparison to what the City wastes annually on the light rail system. But the way this deal has developed leads one to question whether there is any adult supervision whatsoever down at City Hall? If it's acceptable to throw $20-30 million at a minor league soccer team, then what's next? $20-30 million for the Aeros?

Posted by Tom at 12:10 AM | Comments (3) | TrackBack (0)

A real train wreck

This LA Times op-ed by transit experts Jim Moore and Tom Rubin examining the LA area's MTA transit system over the past 20 years. They provide a daunting warning for those who rationalize the massive deficits of Houston's light rail system by contending that the system will become cost-efficient in the long run:

. . . the MTA has spent more than $11 billion since 1986 to build its rail network, and the effect has been to reduce total transit ridership on the system by more than 3 billion boardings. That's a bizarre result.

Shouldn't investments in transit infrastructure encourage, not discourage, transit use? So, why is Houston continuing to barrel down a path that LA has already shown is a poor way to invest in mass transit?

Posted by Tom at 12:07 AM | Comments (1) | TrackBack (0)

January 11, 2008

I wonder what she thinks about the guys over at the Masonic Temple?

Putting Chuck Rosenthal's troubles aside for a moment, does anyone else think it's time to clean house at the Harris County District Attorneys' Office?:

Republican district attorney candidate Kelly Siegler told a judge last year that members of Houston's Lakewood Church are "screwballs and nuts" and that she works to keep them off of juries.

Siegler made the comment while defending herself from a defense attorney's suggestion that she struck a man from the jury pool in a capital murder case because he is black. It wasn't the man's race that prompted Siegler to eliminate the man from the jury pool, she said. It was the fact that he attends Joel Osteen's megachurch.

"To start with, he's a member of Lakewood Church. And we have had a running agreement, my partner Luci Davidson and I have, since we started, that people who go to Lakewood are screwballs and nuts," Siegler said, according to the court transcript. "I'm very familiar with that church. We try our hardest not to put anybody who goes to Lakewood regularly on any jury, he's a pretty devout member of Lakewood Church. That's one reason that scared me about the man."

Siegler went on to give other reasons why she didn't want him to be on the jury including his membership in the NAACP, a group that opposes the death penalty.

Siegler confirmed today that she complained about Lakewood attendees on the record, but said the comment was taken out of context.

"I was talking to a juror who, in my opinion, was very weak on the death penalty," Siegler said. She said she was obligated to give her reasons for striking the juror, "weak or strong, good or bad," which indicated that he would be weak on the death penalty.

Siegler also said she had never been to Lakewood, and was talking about things she heard about the church. [. . .]

Siegler attends Chapelwood Methodist church. [. . .]

The jury eventually sentenced [the defendant that Siegler was prosecuting] to death.

And that comes from one of this DA's office's "best" prosecutors. Summing up the absurdity of what has been going on in Houston over the past couple of weeks, Slampo provides a multiple choice test to determine how well you have been keeping up on developments.

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January 10, 2008

A cheap sucker punch

During the entire 35 years that I've lived in Houston, the head basketball coaching position at Rice University has been a thankless job. Attempting to recruit good basketball players to Rice is hard enough, given the academic requirements and the greater university support for both the football and baseball programs. But attempting to recruit good basketball players to play at Rice's home of Autry Court -- which is a dump and not nearly as good a facility as most suburban high school gyms in the Houston area -- is nearly an impossible task.

Nevertheless, for the past 16 years, Willis Wilson has toiled gamely as Rice's head basketball coach. Although rarely have his teams been blessed with much talent, they have always competed hard and played to the best of their ability. Against overwhelming odds, Wilson has produced five Rice teams that have won at least 18 wins in a season and three of his Rice teams earned postseason NIT appearances. And through it all, Wilson has represented his institution as an articulate and professional gentleman.

Accordingly, most folks in the Houston community who have followed local college athletics for awhile like me were particularly pleased for Wilson last year when Rice undertook a long-overdue $23 million renovation of Autry Court that supposedly will bring the facility up to reasonably modern standards. During the renovation, which is not scheduled to be completed until until January of next year, the Owls are being forced to play their home games in several locations around town, including one high school facility that is 35 miles from the Rice campus. But as usual, the classy Wilson hasn't complained a lick and is probably simply thrilled with being able to show off the plans of the renovated Autry to his players and recruits.

So, imagine my surprise when I picked the paper yesterday and saw this article from the Chronicle's Rice athletics beat writer:

Perhaps it is cruelly ironic that after spending more than a dozen years spearheading the effort to renovate Autry Court, Rice men's basketball coach Willis Wilson is facing a groundswell of criticism that might influence whether he coaches in the new facility.

In the midst of his 16th season at the helm of the Rice program, Wilson is enduring vitriol that is difficult to dismiss. [. . .]

The current state of affairs combined with past failures, real and perceived, have legitimized the question of whether Wilson, the most accomplished coach in the program's history, will occupy the bench next season when refurbished Autry Court will be unveiled. [. . .]

And what's even more galling is that the comments in the article from Rice Athletic Director Chris Del Conte make it clear that he certainly didn't want to dispel the rumors that Wilson's tenure at Rice may be over after this season:

"Those are always looming concerns," Rice athletic director Chris Del Conte said of the Owls' recent lack of success. "They're looming concerns because of the importance we're placing on men's basketball at Rice.

"We should be in a situation where we have a viably sustainable athletic program. A lot of private institutions understand the value that is placed on men's basketball in terms of a key financial component of an overall athletic program. And I'll take all those things into consideration as we move forward."

If Rice allows Del Conte to can Willis Wilson after 16 faithful years and before he has had an opportunity to recruit players to -- and have his teams compete in -- a reasonably modern facility, then Rice will make the hypocrisy of Todd Graham look benign in comparison.

And with that kind of hyprocrisy wafting from South Main, just wait until the Marching Owl Band has an opportunity to comment.

Posted by Tom at 12:10 AM | Comments (0) | TrackBack (0)

The irony of what brought Rosenthal down

Isn't it ironic that tough-guy district attorney Chuck Rosenthal was ultimately brought down as a result of his refusal to stand up to the Harris County Sheriff's Department?

As this Peggy O'Hare/Chronicle article reports, Rosenthal made the appalling decision to prosecute two brothers who were wrongfully arrested and roughed up by sheriff deputies for committing the heinous "crime" of unobtrusively videotaping from a neighboring property some questionable conduct of the deputies during a drug raid. What on earth was Rosenthal thinking in allowing such an absurd prosecution to go forward? No wonder he is in the middle of a wrongful arrest civil lawsuit.

By the way, the four deputies who wrongfully arrested the two brothers remain employed by the sheriff's department. And the Attorney General is now looking into Rosenthal's emails.

Posted by Tom at 12:05 AM | Comments (0) | TrackBack (0)

January 2, 2008

So Chuck, what did you plan on doing after public service?

About the only question remaining regarding Harris County District Attorney Chuck Rosenthal is whether his holiday season was as bad as the Aggies'?

First, there were the revelations in a civil lawsuit that Rosenthal placed his former mistress in a cushy administrative assistant position and used DA office email to send sweet nothings to her, all of which was picked up quickly by such national media outlets as the NY Times and the Wall Street Journal.

But if that were not enough, Rosenthal -- in declining local GOP leaders' requests that he step aside for the 2008 election -- publicly stated that "the local Republican Party had never done much" for him in his 2000 and 2004 election campaigns and "that party leaders have become 'Chicken Littles,' unjustifiably fearful the scandal will damage the entire Republican roster of candidates in the county."

Well, those remarks are certainly an interesting way of engendering loyalty among the party faithful. ;^)

Finally, Rosenthal still has some explaining to do in the civil suit regarding the apparent deletion of 2,000 emails. Was the D.A. involved in destruction of evidence? Sheesh!

I'm no political pundit, but when an elected official seeks to retain a position as hard as Rosenthal is attempting to keep his in light of the above, it's a pretty good indication that it's past time to replace that official.

As usual, Kevin Whited, Slampo and Cory Crow have insightful thoughts on the affair.

Update: Late on Wednesday afternoon, Rosenthal withdrew as a candidate for District Attorney in the Republican primary.

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December 27, 2007

Stan Binion, R.I.P.

Houston lost one of the true gentlemen of the Houston legal community on Christmas Day.

Longtime Houston trial attorney, Stan Binion, died on Tuesday at the age of 71. Stan was a charming man who was a fixture of the local trial bar over his 40+ year legal career, primarily on the defense side in business cases. I met Stan as a young attorney back in 1982 shortly after I started my original law firm with a couple of other young friends, and he could not have been more gracious and supportive. Over the years, I worked on the same side and against him in several cases, and it's a tribute to Stan's fine character that he was just as cordial and professional to me when he was opposing counsel as he was when we were co-counsel.

Born in Brownwood in West Texas, golf actually brought Stan to Houston. An outstanding high school golfer, Stan was recruited to the University of Houston by the legendary UH golf coach, Dave Williams. Stan sunk a key birdie putt late in the final round of an NCAA Golf Championship in helping the Cougars to one of their record 16 NCAA National Championships that they won under Coach Williams.

After graduating from UH, Stan became one of the finest amateur golfers in the area and one of the best players at Champions Golf Club, which is saying something. Over the years, Stan and stout local amateur John Paul Cain won several Champions Cups, the annual amateur golf tournament at Champions that consistently generates one of the best fields in amateur golf. Stan also qualified to play in the US Senior Open and several US Senior Amateurs.

Stan graduated from UH with a business degree in 1960, obtained his law degree from UH Law Center in 1962 and went on to become a tireless supporter of his alma mater. He was a former president of the UH Alumni Association and a lifetime member of the H Association of former UH letterman -- in fact, I bumped into Stan at most UH football and basketball games that I have attended over the years. Stan also donated his time in helping fellow UH golf alums Jim Nance (the CBS sports announcer) and PGA Tour pros Fred Couples and Blaine McCallister in developing and putting on their successful Three Amigos Charity Golf Tournament, which raised funds for the UH Athletic Scholarship Fund and other charities.

Finally, one anecdote sticks out in my mind in remembering Stan. In the mid-1980's, Stan donated his time in representing the UH in connection with an NCAA Infractions Committee investigation and subsequent hearing. In the 1990's, when Stan found out that I was involved in representing a UH coach in a UH-related NCAA Infractions Committee investigation, he called me and offered to provide any help, insight and background information that I needed. We were able to resolve that investigation favorably for the University, so I didn't need to call on Stan's assistance. But I deeply appreciated his offer -- it says much about the kind of man Stan Binion was.

A Memorial Service for Stan will be conducted this Saturday at 2 p.m. at George Lewis & Sons at 1010 Bering and the family will receive friends at a reception afterward. In lieu of flowers, the family requests that donations be made payable to "University of Houston" with "Stan Binion Memorial Fund" on the memo line addressed to the UH Athletic Department, 3100 Cullen Blvd., Houston, Texas 77204-6002.

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December 26, 2007

Damning with faint praise

As this earlier post noted, Houstonians are currently enduring a glut of sports talk radio stations. With the rare exception of a show such as Charlie Pallilo's, the shows on these stations range from merely unlistenable to truly offensive. To make matters worse, Houston's mainstream professional sports teams are currently horrid, from the Texans' historic mediocrity, to the Rockets' decade of playoff incompetence, to the Stros' downward trend. What on earth is there to talk about?

At any rate, while cruising around doing pre-Christmas errands the other day, one of my sons had a local sports talk radio show on his car radio. One of the talk show hosts made the following observation about the Rockets -- who have lost 14 of their last 21 games -- and the Texans, who had just been thoroughly waxed by the Colts:

"Compared to the Rockets, I am quite optimistic about the Texans."

My son and I cracked up laughing. The host, on the other hand, was dead serious. That pretty well sums up the quality of discourse on Houston sports talk radio these days.

Posted by Tom at 12:00 AM | Comments (2) | TrackBack (0)

November 29, 2007

The real issue behind the Ashby high-rise

Don't miss this Christof Spieler post in which he identifies the real issue that needs to be addressed in regard to the controversial Ashby high-rise condominium project -- the issue of the project's scale in relation to the rest of the neighborhood. Thus, enacting a "hurry-up" city ordinance addressing a not-as-important issue (i.e., alleged traffic congestion) is a prescrip