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Foam (te. 10595) ‘FEDERAL BUREAU OF INVESTIGATION Das of veaminion 12/07/2004 Individual, who has agreed to testify, provided the following information to SAs Allen Wilsgn and Donald Sherman: DARREN REAGAN is the Chairman of the Black state Employees Association of Texas (BSEAT) Community Development Corporation (CDC). BSEAT CDC receives incremental payments as real estate development projects in South Dallas move through planning, zoning and city council votes. Payments are based on contracts with developers. BSEAT may earn $20,000 through any particular contract with e developer. Developers use BSEAT, and other CDCe, for a variety of reasons. The CDC may help identify tenants, market trends and minority contractors, Most importantly, the COCs will garner community support for the pending projects. The support of the comunity is essential to the political process facing any development. If a developer does not use a CDC they will face serious community opposition to the project. ; (pce operate in most of the big cities in Texas. : However, the CDC is not prevalent in every community. In the Dallas area, developers usually see CDC involvement only in the minority community. The use of CDCs is most common in South Dallas. Political officials have informally mandated COCs as a part of the development process in thie area. DONALD HILL, Dallas City Councilman - District 5, informed Individual that using the BSEAT CDC was required for a'pending project. : Individual attends a church in South Dallas. Last Sunday, approached Individual about a recent development project that was voted down by the Dallae City Council. HILL had been initially supportive of the project, then voted against it in favor of another development group: SOUTHWEST HOUSING DEVELOPMENT (SWHD). Individual suspects HILL was paid off by SHED. Johnson told Individual that HILL did what he had to do to keep from going to jail. REAGAN informed Individual that received §25,000 that was "passed through" a zeading program to h. (averianion on _12/06/2004 _a Dallas, Texas it | Date dient N/A, onatd 8. Sherman y SA Allen Wilgon/aw ‘This document coals neler recommendations or content of the FEN, UA the propey ofthe FBI aa is oad w you agency, end Wo consawe em be diuibted ovale you vase. 302-F-0034