Troopers to review probe report

WASILLA — The Alaska Bureau of Investigation is being asked to review an independent investigation into the city’s dealings with a developer for potential criminal or illegal repercussions.

The Denali Law Group report, which exposed cooperation among Wasilla Mayor Dianne M. Keller and some key city administrators to benefit a private developer, will soon be hand-delivered to the Alaska State Troopers Bureau of Investigation, Wasilla Police Chief Angella Long said. In its report, Denali Law Group says it believes some of the actions taken by Keller and the city staff were illegal.

Long said her department has made arrangements with troopers to forward the report to the bureau next week. Wasilla police will not look into the report case to avoid any perceived or real conflicts of interest.

“It would be difficult for us to pursue an investigation of this type given the participants,” Long said about the probe that deals with the city that employs her and her department.

Councilwoman Dianne Woodruff requested Wasilla City Attorney Thomas Klinkner forward the Denali Law Group report to law enforcement, Klinkner said.

“I just want them to finish looking at everything else,” Woodruff said of wanting a law enforcement review of the report’s findings. “If [troopers] find something criminal, they’ll go from there.”

Woodruff said she requested Klinkner send the report to law enforcement because an official investigation could potentially glean more information than Denali Law Group could. She called the original report “limited in scope” because Denali Law didn’t have the power to collect information that would require a warrant, such as financial records.

In the report, Denali Law Group says Keller and the city worked behind the scenes to benefit Meritage Development LLC in its plans to build a retail shopping center on two parcels of land along the Parks Highway.

An Aug. 24, 2007 letter to nearby business owners with an implied threat of eminent domain was at the crux of the probe, along with an e-mail chain discussing the contents of the letter before it was sent.

Denali Law Group attorney Richard Payne reported  Wasilla Economic Development Planner Casey Reynolds notified a representative of Meritage about the letters 10 days before they were sent. Keller was aware of Reynolds’ actions, the report says.

The notification amounts to the appearance of collusion between the city and Meritage, Payne has said.

Keller and Reynolds have denied any wrongdoing. Wasilla City Council officially asked Keller to resign. She refused. A motion by Woodruff on Monday to censure employees named in the report was defeated by the council.

Speaking through her executive assistant Wednesday, Keller said she will wait to see what, if anything, happens with the report in the hands of state law enforcement.

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