5.0.-10.0. EDSR 06-13-1994 - Laserfiche WebLink

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LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Mr. Bill Rubin, Executive Director Economic Development Authority .Tune 7, 1994 Page 3 personally benefit financially therefrom. Every public officer who violates this provision is guilty of a gross misdemeanor. Minnesota Statutes Section 469 . 098 provides as follows: Except as authorized in Section 471. 88 a commissioner, officer or employee of an [economic development] authority must not acquire any financial interest, direct or indirect, in any project or in any property included or planned to be included in any project, nor shall the person have any financial interests, direct or indirect, in any contract or proposed contract for materials or service to be furnished or used in connection with any project. Minnesota Statutes Section 471. 88 sets forth 16 exceptions to Sections 471. 87 and 469 . 098 . The only relevant exception provides that the governing body of the EDA may, by unanimous vote, contract for goods and services with an interested officer in the case of a contract for which competitive bids are not required by law. The state conflict of interest laws prohibit an EDA Commissioner from having a "financial interest" in a sale, lease, contract, proposed contract or project of the EDA. The prohibition here is against a financial interest. " An employee, who has no ownership interest in he company, and whose compensation is not dependent upon the company' s dealings with the EDA, does not have a "financial interest" within the scope of these statutes. I am not aware of President Gongoll ' s specific relationship with Riverside Development. If President Gongoll is an employee of Riverside, with no ownership interest in Riverside or any of its subsidiaries; and if President Gongoll ' s compensation is not dependent upon the outcome of his employer' s dealings with the EDA or City, he would not have a financial interest sufficient to cause a violation of the state conflict of interest statutes. My analysis would be different, however, if President Gongoll does have an ownership interest in Riverside or any of its subsidiaries and/or if President Gongoll ' s compensation with Riverside is dependent on the outcome of Riverside' s dealings with the EDA or City. City Conflict of Interest Ordinance The City of Elk River' s conflict of interest ordinance is found at Section 218 . 08 (9) of the Elk River City Code. The conflict of interest ordinance, as revised by the City Council approximately a year ago, applies to all "officials and employees" of the City. The term "official" is defined in Section 9 (b) of the ordinance to include appointed officials to the EDA. The conflict of interest ordinance 4iioes, therefore, apply to President Gongoll .