Keller made the statement during a special meeting of the Wasilla City Council to discuss the findings of a report authored by Denali Law Group that accuses Keller and other city staff of acting inappropriately in their dealings with Meritage Development LLC.
Speaking to Windbreak Café owner Annette Andres — who again was critical of the mayor at Monday’s meeting — Keller told Andres she could have directed the Wasilla Police Department to perform breathalyzer tests on every patron leaving the Windbreak. Keller said that hypothetical directive would have been in response to what she calls degrading public statements from Andres over an Aug. 24, 2007 letter the city sent her and other businesses. The letter, which was also the focal point of Denali Law Group’s investigation, threatened eminent domain against the Windbreak and other businesses if they didn’t cooperate with the city’s development plan.
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“I almost walked out,” she said.
Wasilla Police Chief Angella Long also responded that Keller’s statement does not reflect accepted practices of the Wasilla Police Department.
“The mayor used [the threat] to illustrate a point,” Long said.
Monday’s meeting was the first time Keller talked publicly about the report, which alleges she and her administration acted illegally and inappropriately to benefit Meritage’s development.
She first questioned Denali Law attorney Richard Payne’s legal experience, then went on to point out sections of the report authored by Payne vindicating Keller of wrongdoing in some actions. Those vindications begin on page 42 of the 52-page report.
Keller’s questioning became heated after Councilman Steve Menard attempted to limit the mayor’s time.
Keller snapped back at Menard, asking for her fair share of time.
“I’m merely asking the attorneys for the same opportunity you had,” Keller said.
As Keller continued, she strayed from questioning Payne and began defending her actions and those of the city.
The culmination of her comments came when Keller singled out Andres and eliciting a loud reaction from the nearly full council chambers. Councilman Marty Metiva then called for a five-minute break.
Metiva said he thought the meeting was getting out of hand.
During that break, Menard said he was worried Keller’s threat of directing Wasilla police to harass Windbreak patrons would undermine the department.
“If anyone leaves the Windbreak and gets pulled over now, they could make the case it was entrapment,” Menard said.
Denali Law Group’s report was commissioned after city council received complaints from some Wasilla business owners reacting to the Aug. 24, 2007 letter that includes what has become known as the veiled threat of eminent domain.
In that letter, signed by Keller, business owners who had not cooperated with the city’s plan to realign the East Sun Mountain Avenue and Hermon Road intersection, an area Keller has called a safety hazard, were warned the city can take more serious measures.
“We are confident that you are aware we are well within our purview to pursue more aggressive means for this public purpose,” the letter says.
At a June 23 city council meeting, Payne said the investigation uncovered incriminating e-mails sent nine minutes apart that point toward alleged behind-the-doors cooperation between the city and Meritage.
In one of those e-mails, Wasilla Economic Development Planner Casey Reynolds tells Keller a commercial broker with Meritage Realty USA had been informed the strongly worded letter would be sent to business 10 days before they were sent.
Following Keller’s comments, Reynolds testified the letter seemingly threatening eminent domain was not meant to scare anyone, but was intentionally strongly worded.
Reynolds said the city did this so “they wouldn’t feel threatened by it, but become aware of the city’s position on this.”
Two resolutions were also on Monday’s special meeting agenda, one from Councilwoman Dianne Woodruff calling for the council to ask for Keller’s resignation, and another from Menard calling for a vote of no confidence in the mayor.
Monday’s meeting was still in progress a press time. Visit www.frontiersman.com for updates and more about Monday’s special council meeting and any actions taken.
Contact Michael Rovito at michael.rovito@frontiersman.com or 352-2252.

Comments
38 comment(s)Is she wrote on Jul 14, 2008 6:27 AM:
Hosed wrote on Jul 10, 2008 7:59 PM:
What is a Public Servant wrote on Jul 5, 2008 6:59 PM:
jimmer wrote on Jul 5, 2008 12:32 PM:
Governor Keller wrote on Jul 4, 2008 9:51 AM:
Crime doesnt pay wrote on Jul 3, 2008 9:55 AM:
Disappointed wrote on Jul 3, 2008 9:16 AM:
IHatePoliticians wrote on Jul 2, 2008 7:40 PM:
Department to do illegal things. What's in this for you Mayor; a remodel on your house, a credit card paid off? Go Away and quit embarassing Wasilla. "
resign Keller wrote on Jul 2, 2008 4:38 PM:
Hmmm wrote on Jul 2, 2008 9:38 AM:
Chale wrote on Jul 1, 2008 11:51 PM:
Gentle wrote on Jul 1, 2008 10:21 PM:
Perhaps she needs her meds increased? "
the keller ethics rule wrote on Jul 1, 2008 9:53 PM:
New ethics rules becaue of her.
The Keller Ethics Law.
Nice legacy.
And Walmart has higher standards than her.
Sorry. "
for real wrote on Jul 1, 2008 9:05 PM:
Go ahead wrote on Jul 1, 2008 8:31 PM:
Dear Kellers Heavy Hand wrote on Jul 1, 2008 7:40 PM:
Ugly Power wrote on Jul 1, 2008 7:33 PM:
Dont threaten US wrote on Jul 1, 2008 7:25 PM:
WASILLA wrote on Jul 1, 2008 4:33 PM:
I THINK IT BRINGS A BIT OF BALANCE TO THE EQUATION
THIS MAYOR IS OUT OF CONTROL UNETHICAL "
I really hope wrote on Jul 1, 2008 4:18 PM:
Biased Much wrote on Jul 1, 2008 4:06 PM:
Glad I live in Anchorage where at least our reporters pretend to be unbiased in their reporting. The ADN reports; "What I have done is denied myself to have the best bacon-cheeseburger in Alaska since November," Keller said. "If I was truly the woman you have said, I would have directed the Wasilla police department to..."
Doesn't sound like a threat to me so much as a clearing of the air.
Leave it to VT to take a persons words completely out of context. "
annoymous wrote on Jul 1, 2008 3:07 PM:
Twisted words wrote on Jul 1, 2008 2:56 PM:
Her poor choice of words "If I was truly the woman you have said" is bizarre!!!!!! and troubling. But report the story here with a little accuracy. "
Sarah wrote on Jul 1, 2008 1:10 PM:
I really do not think some of you folks really know who you are voting for....Diane is NOT married.. Do you really know who you put in office?? "
Enough with Keller wrote on Jul 1, 2008 12:15 PM:
You know wrote on Jul 1, 2008 11:28 AM:
what a joke wrote on Jul 1, 2008 10:55 AM:
Relieved wrote on Jul 1, 2008 10:52 AM:
the truth revealed wrote on Jul 1, 2008 10:18 AM:
fangler wrote on Jul 1, 2008 9:52 AM:
Oust Her wrote on Jul 1, 2008 9:50 AM:
Chale wrote on Jul 1, 2008 8:53 AM:
Laura McCammo wrote on Jul 1, 2008 8:30 AM:
Keller, another politician embarrising our Great Valley. Shame on you. "
TAX PAYER wrote on Jul 1, 2008 7:15 AM:
resign please wrote on Jul 1, 2008 6:52 AM:
EMac.valleyfbks. wrote on Jul 1, 2008 6:13 AM:
Shes dangerous wrote on Jul 1, 2008 6:04 AM:
Kellers Heavy Hand wrote on Jul 1, 2008 1:42 AM: