About a month ago, Douglas Polk, the owner of the largest poker room in the state, was trying to open a poker establishment in Farmers Branch. Polk was hoping the city would amend its comprehensive zoning ordinance to allow card rooms. He ultimately failed, but a resident accused Lynne of working with Polk behind the scenes to get the deal done.
Farmers Branch resident Vicki Harrison filed two ethics complaints against the mayor over the proposed poker room, alleging conflicts of interest and improper dealings with Polk and city staff.
The law firm Ross, Gannaway, Clifton PLLC investigated the allegations, interviewing the mayor and staff. The investigation was concluded earlier this month. The firm also tried to interview Harrison, but she declined.
The firm wrote in its investigative report that because Polk was looking for a zoning map amendment for his poker room, city staff spent significant time researching the law and similar ordinances in other cities. Staff said that the mayor did ask questions about Polk’s application that he didn’t ask about every applicant, but they didn’t find his involvement to be unusual and didn’t believe the mayor gave the staff any direction on the matter.
City staff members recalled a meeting with the mayor, the city manager and Polk about the poker room. They acknowledged that it was out of the ordinary for the mayor to be present with an applicant, but the meeting itself didn’t seem unusual because it appeared city officials only wanted to learn more about the process and whether a poker room was allowed in the city."In [Mayor Terry] Lynne's view, the role of a council member is to sell the city and the benefits of the city." – investigative report
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The mayor also asked city staff about the poker room in passing, likely to respond to requests for updates from Polk. The investigative report said, “Staff stated that when the mayor asked for status and was told it was a public hearing process, he just said, ‘Okay.’” City staff reiterated that the mayor had no influence over the process or their work. They also said they had no knowledge of a special relationship between Polk and Mayor Lynne."
Lynne also set up a lunch meeting between Polk and Allison Cook, the city’s director of economic development and planning, but city staff said this, too, is normal because economic development employees are “in the friend-making business,” normally available to meet people as it gives them an opportunity to sell the city.
Cook told investigators that she didn’t believe the mayor directed her to attend the lunch. Instead, she said the mayor was merely offering an opportunity and that she had been to many similar lunches before. But, there was nothing Cook’s department could do regarding Polk’s application. “Cook stated that Lynne is always advocating for businesses and always excited about the prospect of a new business in the city,” the investigative report said.
Poker rooms have been proposed in the city before, but city staffers generally tell applicants the council would not support them and the plans go no further.
The investigators interviewed Lynne on May 31. During the interview, Lynne said he first became aware of Polk after he received a campaign contribution from him around September. The contribution stood out to the mayor because the election happened in May 2023.
But, he said it wasn’t abnormal to receive donations late or from out of town. Some 10–14 days after receiving the contribution, Polk called the mayor to introduce himself, his business and what he was trying to do in Farmers Branch. During the interview, Lynne stated that this is when he “put two and two together” regarding the campaign contribution. Lynne thanked Polk for the money but said he would be returning it so there was no issue of impropriety.
Lynne described the card room as just another business that might locate in the city. He told Polk that he didn’t think the use was allowed but was not specifically disallowed. Polk said the poker room could bring a minimum of 200 jobs, which got Lynne’s attention.
“In Lynne’s view, the role of a council member is to sell the city and the benefits of the city,” the investigative report said. “He stated that he has no financial interest in Polk’s business but conceded that some might see the card room coming to Farmers Branch as a ‘win.’”
Lynne said Polk asked him what he needed to tell city staff. He told Polk to tell city staff about all the positives related to the business. The mayor also gave Polk the names of some real estate people he could work with. On top of that, he told Polk to put together a presentation about the poker room for staff that he would review.
“Lynne asserted that he didn’t think he provided Polk with any access to staff that he wouldn’t have otherwise had, and that he told Polk repeatedly that he would need to follow the process,” the investigative report said. “Finally, Lynne stated that he considers helping businesses locate in the city to be part of his job, so he helps them sell themselves through a municipal approval process.”
None of the allegations against the mayor were sustained, but investigators said the situation raises questions for the City Council about how to move forward.
“Some of the residents of the city seem to believe that when contacted by a developer or prospective business, the only appropriate path for a council member is to refer the individual or business back to staff,” the investigative report said. “The current ethics ordinance does not require that.”
But, the facts of the case illustrate the potential for the perception of a conflict of interest when elected officials venture into the relationship between applicants and city staff.
“A heightened level of interest or active participation by a council member may signal to staff that an applicant, cause, or citizen should be accorded a greater measure of access or effort, or that staff should find a way to help an individual or business meet their goals despite the ordinary policies and practices of the organization,” the investigative report said. “Furthermore, involvement of a council member as a shepherd of sorts for an application creates the possibility of two application paths.”
It’s likely that any developer made aware of Lynne and Polk’s dealings would think that Polk got special treatment, although Lynne’s involvement wasn’t unusual.
The investigative report concluded, “While Lynne’s participation in this issue did not result in Polk getting the use he sought, on other, less process-oriented matters with less experienced staff, the involvement of a council member could change outcomes, allowing one council member acting alone to overstep the city manager’s role.”
Lynne told the Observer by email that he didn’t give Polk any special treatment. “As I told two attorneys that investigated the issue, as the chief marketing ambassador for the city, the mayor is supposed to meet with prospective businesses and answer questions,” Lynne said. “I have a proven track record of bringing business to our city and as a city council representative, I recruited four businesses to move to Farmers Branch.”
He added, “Businesses that want to locate in Farmers Branch must usually go through an application process which involves planning and zoning. Mr. Polk did that and I, as mayor, had nothing to do with that process.”
He looks at the whole situation as a politically motivated attack against him, but he’ll keep doing what he’s doing. “I will continue to be the number one advocate for Farmers Branch and work to recruit more businesses to our city,” he said. “It’s part of what we were elected to do.”
Polk told the Observer he didn't think he received any special treatment in the process of trying to open up a poker club in the city. "I went through the appropriate channels and ultimately was denied," he said.
The Farmers Branch City Council discussed the report during an executive session on June 15 and moved to accept the findings of the investigation.
