Monday, August 14, 2006

Mayor's software company has a $2.6 million contract with the North Texas Tollway Authority.

Mayor leaves toll road panel

August 14, 2006

By WENDY HUNDLEY
The Dallas Morning News
Copyright 2006

After being criticized for possible conflicts of interest, Richardson Mayor Gary Slagel says he will resign from the Dallas Regional Mobility Commission and will move his company out of a city-owned building.

Mr. Slagel says he will make those announcements tonight at the Richardson City Council meeting.

The longtime mayor has come under criticism for possible conflicts of interest in two separate matters involving his software company, CapitalSoft, Inc., which has a $2.6 million contract with the North Texas Tollway Authority.

Mr. Slagel heads a Dallas Regional Mobility Commission task force that has been looking at potential agencies to build and run new North Texas toll roads. He has been accused of using his position to push for his client, NTTA, to oversee future toll roads and not disclosing his business ties to the tollway authority.

At a recent coalition meeting, Mr. Slagel apologized to members who were unaware of his private dealings with the authority. But he said he didn’t use his position to lobby for his client.
“I pushed for a system solution,” he said Monday from his company offices at STARTech Early Ventures. His firm’s location in a business incubator housed in a 27,500-square-foot building owned by the city of Richardson has been the other issue dogging him.

Although Mr. Slagel said he receives no special consideration and pays the same rent as other tenants, his company has received capital venture funding through STARTech Seed Fund and has been housed in STARTech offices since 1999.

But some believe his links to STARTech creates the appearances of a conflict of interest.

Mr. Slagel said Richardson City Attorney Pete Smith advised him that his involvement with the NTTA and STARTech are proper and pose no conflict of interest.

He said he’s taking these steps “so we can move forward and focus on the council’s goals for the city.”

E-mail whundley@dallasnews.com

© 2006 The Dallas Morning News Co www.dallasnews.com

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