Woodruff: Mayor Keller should resign following report

Wasilla -- At least one Wasilla City Council member is calling for Wasilla Mayor Dianne Keller to resign following an independent law firm’s report accusing Keller of acting inappropriately in the development of two parcels adjacent to the Parks Highway.

Council member Dianne Woodruff said Keller should resign right away, but said she doesn’t expect Keller will agree.

“I think that would be the appropriate thing,” Woodruff said.

On Tuesday, Denali Law Group released a report saying actions of some Wasilla city staff and the mayor violated city policies and possibly state statutes in its dealings with Meritage Development Group LLC.

Denali Law Group was hired by the Wasilla City Council to probe relationships between city administrators and Meritage, the company looking to develop the parcels near Sportsman’s Warehouse into Creekside Town Square retail park.

Wasilla City Councilman Steve Menard asked council to approve the investigation �” which cost $23,500 �” after learning of a letter sent to businesses refusing to cooperate with the city. Those letters, according to the report, amounted to “attempted coercion.”

“The issue that eclipses all other concerns and complaints involves the use of a feigned threat of eminent domain sent by Mayor Dianne Keller on Aug. 24, 2007 to the property owners affected by the Herman Road traffic circulation plan,” the report says.

Keller’s April letter addressed the city's need to realign East Sun Mountain Avenue and its intersection with Herman Road. The city contends the realignment is needed to make an off-highway traffic corridor, the report states. The letter also says the reroute will most likely bisect portions of properties along the corridor.

Keller, whose term in office runs out this fall, does not mince words in her letter.

“We are confident that you are aware we are well within our purview to pursue more aggressive means for this public purpose,” Keller wrote, alluding to the use of eminent domain.

Responding to the report’s findings, Keller said she is pleased because many allegations against her were proven untrue. She added the plan to realign the road was done for health and safety reasons.

Whether or not she will resign is unclear.

“I think the best course of action is to let them have the opportunity to say what they want to say and see what comes of that,” Keller said.

She added, citing a paragraph from page 13 of the report, that the law firm states questions such as the ones posed by city council for Denali law to answer are “based on personal belief and judgment and are therefore open to debate.”

During the project’s initial stages, the city said it would only support the reroute plan if “100 percent of the property owners on any one segment are in agreement with the plan.”

After some business owners began resisting the city’s plan, Keller’s letter started appearing.

Menard said Denali Law Group’s findings are what he expected.

Speaking from his cell phone Tuesday, Menard said he’s asked the Wasilla city clerk to get in touch with the city attorney to find out what sort of action the council can take. Menard said a vote of no confidence or reprimands are possible. “The mayor should be absolutely ashamed and embarrassed,” Menard said.

He added his concerns initially rose after Windbreak Cafe owner Bob Andres called to express concern over a letter he received from Keller containing warnings of the use of aggressive means. Andres refused to cooperate with plans for an easement through his property before receiving that letter, Menard said.

Andres said Tuesday he hasn’t heard anything from the city since the investigation began. He said he’d like to read the entire report before commenting.

When asked if she has any animosity toward city council members asking for her resignation, or against those who called for an investigation, Keller said she separates personal feelings from the workplace.

“My personal beliefs should not be playing into my job,” she said. “And I try to segregate those two.”

For Menard, Keller’s involvement in pushing for cooperation from business owners has a historical significance.

“I believe she was looking for a legacy project,” Menard said.

Contact Michael Rovito at 352-2252 or michael.rovito@frontiersman.com.