Texas Mayor Steps Down After Fall Festival Funding Scandal

Political Upheaval in Small Town Texas

Lacee Duke, the mayor of Uhland, Texas, has resigned from office following months of controversy over her alleged misuse of a quarter-million dollars in city funds. Duke announced her resignation on May 4, approximately six months after she was arrested on allegations of improper disbursement of $250,000 in city funds to the operator of the Uhland Fall Fest.

Duke, who has maintained her innocence and pleaded not guilty in the ongoing case, said her resignation comes in the wake of May elections, where new blood was elected to lead Uhland with one incumbent council member ousted. The timing suggests that recent election results played a significant role in her decision to step down from the position she was elected to hold until 2027.

In her resignation statement, Duke said "The majority of Uhland's voters in this recent election have made their preference known and I cannot, in good conscience, stand shoulder-to-shoulder with people who subvert law, order and justice." Her departure marks the end of a tumultuous period for the small Central Texas community.

The Festival Funding Controversy

Duke was indicted in Caldwell County and arrested by Texas Rangers in early December, accused of misapplication of fiduciary property. The charges stem from allegations of an improper disbursement of $250,000 from the City of Uhland to Old Town Uhland LLC in connection with the 2024 Uhland Fall Fest.

Duke had championed the Uhland Fall Fest as the flagship attraction in the city's most ambitious development push to date, leading the approval of a $1.5 million Chapter 380 incentives deal that cleared the way for festival founder Christopher Durst to relocate his Dripping Springs Pumpkin Festival to Uhland. The festival was part of a larger vision to develop Old Town Uhland, a 97-acre Old West-themed destination.

Durst and his company have not been implicated in any wrongdoing or charged with any crimes related to the Uhland Fall Fest. The festival organizer expressed sadness about the situation while maintaining that his organization had positive experiences working with the city.

Community Division and Political Response

The scandal created deep divisions within Uhland's small community of just over 1,500 residents. Duke led city council meetings in front of a packed chamber and divided constituency, with several residents raising signs calling for her ouster while others donned red lapel pins supporting her continued leadership.

When directly asked by Council Member Mary LaPoint if she would resign her post, Duke flatly responded "No." However, the city council took action to limit her authority. The council opted to confine restrictions on Duke to financial matters, but did not limit Duke's ability to preside over meetings or access the city's facilities.

A Change.org petition calling for Mayor Duke to be removed from office gathered 201 signatures from residents. The controversy highlighted the challenges facing small towns as they pursue ambitious development projects while maintaining public trust.

Looking Ahead for Uhland

Duke's resignation leaves Uhland at a crossroads as it continues to pursue aggressive growth plans. The city's economic development corporation projects the population will grow from just over 1,500 to past 18,000. The departure of the mayor who spearheaded the Fall Fest initiative raises questions about the future of the Old Town Uhland development project.

The legal case against Duke remains pending, with the felony charge carrying potential penalties of two to 20 years in prison. Her resignation allows the city to move forward with new leadership while the criminal proceedings continue. For residents of this growing community south of Austin, the scandal serves as a reminder of the importance of financial oversight and transparency in local government, especially during periods of rapid development and change.