06-13-1994 EDA MIN - Laserfiche WebLink

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EDA Minutes June 13, 1994 Page 4 Discussion followed regarding various options for distributing information on companies expressing interest in locating in Elk River, while maintaining some confidentiality. The EDA further discussed what type of report they would like and what information it should contain. COMMISSIONER DIETZ MOVED AUTHORIZE THE EDA EXECUTIVE DIRECTOR TO PREPARE A GENERIC MONTHLY PROSPECT STATUS REPORT, TO BE SENT TO THE EDA UNDER SEPARATE COVER AND NOT DISCUSSED AS A REGULAR AGENDA ITEM. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. B. Conflict of Interest President Gongoll stated that it has been difficult not to take this issue personally. He stated that as Peter Beck generally pointed out, there is no .conflict of interest, since he does not have ownership in Riverside Development Company and his salary is not based on commission. President Gongoll continued to say that both verbal and written perceptions were made based on petty jealousy and the simple lack of any relevant facts, and that it wasn't until he decided to join Riverside that this issue was raised. President Gongoll explained that he has worked hard to improve the tax base in Elk River by serving in his position on the EDA. President Gongoll further stated that he was hired by Riverside to represent them before municipal organizations, including planning commissions, eda's, parks commissions, etc. As such, he indicated that if the City Attorney has determined this to be in violation of the conflict of interest ordinance, he has little choice but to resign from his position on the EDA. President Gongoll stated that the City's Conflict of Interest Ordinance could have broad ramifications, as the Ordinance affects several persons serving on every board or commission in the City. Commissioner Dwyer stated that he would have a problem with his position on the EDA, since he is a minority interest owner of the Bank of Elk River. He further stated that the Ordinance specifies a City official may not have ownership in a company that has direct dealings with the City, and it that is the case, how is this issue going to be resolved. He further questioned how is the City going to find people with expertise in a small town who don't have some perceived conflict of interest to serve on board and commissions. He continued to say that in his case, it would not be realistic to ask the Bank of Elk River to sever its ties with the City, so that he could serve on the EDA. Commissioner Dwyer questioned whether or not it was the Council's intent to have such a restrictive ordinance. Commissioner Scheel stated that it was her understanding that some of the restrictions were part of the State Statutes.