By Steve Hansen
QCS Managing Editor
Government listings show that two of the three TeamBuilders Counseling Service offices in Tucumcari are owned by a Texas-based holding company sharing two addresses in the same Kerrville, Texas, building. The same building also houses TeamBuilders’ financial offices and an accounting firm that employs a brother of TeamBuilders’ chief executive officer.
A third Tucumcari office is owned by TeamBuilders at the Kerrville address.
While TeamBuilders’ CEO Shannon Freedle and TeamBuilders’ attorney Gregory Richards do not deny that TeamBuilders leases these properties to companies owned by TeamBuilders executives, they say there is nothing improper in the arrangement.
Freedle said he and other TeamBuilders executives are the owners of Full Circle Holdings LLC, the Kerrville-based holding company that rents two TeamBuilders locations in Tucumcari to the counseling service.
“It’s all above-board,” he said. “We only get market value.”
Richards went further in his e-mail response to questions about the arrangement between TeamBuilders and its executives.
“There has not been improper self-dealing,” Gregory Richards, counsel for TeamBuilders said. “There is no prohibition on a company like TeamBuilders leasing property from a related party. The only question is whether that lease is fair to TeamBuilders.
“The publicly filed, annual 990 tax forms have always disclosed the fact that certain TeamBuilders executives and family members, among others, are investors in the holding companies that lease properties to TeamBuilders.”
IRS Form 990, entitled “Return of Organization Exempt From Income Tax” is a public-access document filed by non-profit organizations like TeamBuilders.
Holding companies, like Full Circle Holdings LLC, actually shelter TeamBuilders from “significant financial risk and potential financial hardship,” Richards said. Without the holding company’s involvement, Richards said, TeamBuilders would likely have had to capitalize 25-30% of the total cost of some projects, which would tie up cash. That cash, he explained, is better used to maintain liquidity and cash reserves needed “to responsibly manage and effectively operate within best-practices of the industry.“
While TeamBuilders owns the day care center at 302 E. Tucumcari Blvd., Full Circle is listed as the owner for TeamBuilders’ main Tucumcari clinic at 301 S. Lake St. and its offices at 214 E. Main St., Tucumcari, Quay County assessor’s records show.
All three show owners based at 222 Sidney Baker St., Kerrville, Texas. TeamBuilders and one instance of Full Circle Holdings are based in Suite 415 of that building. The other Full Circle Holdings is shown as being based in Suite 635 of that building. Suite 635 is also the home of Davidson Freedle Espenhover & Overby, P.C., a certified public accounting firm whose principals include Patrick Freedle, Shannon Freedle’s brother.
Shannon Freedle said his brother does accounting work for TeamBuilders.