An earful

WASILLA — Mayor Dianne M. Keller and three top city administrators may have attempted to coerce local business owners for the benefit of a developer. That’s what a lawyer told Wasilla City Council Monday while reviewing a 52-page report based on an investigation initiated by the council.

In outlining the report for council, Denali Law Group attorney Richard Payne went as far as saying the Wasilla Police Department or Alaska State Troopers could bring criminal charges against top administration if there were found to be a motive of financial gain, evil intent or malice, which would qualify as attempted coercion. Keller, Economic Development Planner Casey Reynolds, Public Works Director Archie Giddings and former Deputy Administrator Sandra Garley knew about the threatening Aug. 24, 2007 letter, which was signed by Keller, and were wrong for not questioning it or attempting to stop it from being sent to business owners, Payne said.

The report probes Keller’s dealings with developer Meritage Development LLC. Meritage proposes to develop two parcels of property along the Parks Highway into the Creekside retail park. Much of the investigation and report blasts Keller for the August letter that threatens nearby landowners — including the Windbreak Café— that the city could use eminent domain to take their land if they didn’t voluntarily sell to Meritage.

The most important aspect of the investigation, Payne said, is a pair of e-mails sent nine minutes apart on Aug. 14, 2007, from Meritage Commercial Broker James Wood and Reynolds, remarking about the content of the letter concerning “frontage road changes” and its probable impact on negotiations for sales of property to Meritage. These exchanges, which also included a local real estate agent, occurred 10 days before the Keller later was dated.

“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.

In one of the e-mails, dated Aug. 14, 2007, Reynolds tells Keller, “I spoke with Jim Wood this afternoon regarding the 6 Robblees property and Anita Michaels’ property along Sun Mountain Ave. that we were going to send the ‘Lithia-esc’ (sic) letters to.”

Lithia-esque refers to letters the city had previously sent to Lithia Motors threatening eminent domain.

Annette Andres said she and her husband, Bob, who own the Windbreak Café, were sickened when learning of e-mail exchanges among some top Wasilla city administrators and a private developer seemingly bent on acquiring private land for a new development.

Andres had strong words for Keller at Monday’s council meeting after representatives from Denali Law Group presented the findings of the probe.

“I’d love it if someone bought us out, because we don’t want to do business here anymore,” Andres said.

The report says that, in the opinion of the law firm, Keller acted inappropriately, showed favoritism and acted against policies, codes and statutes while dealing with Meritage. The investigation was commissioned for more than $23,000 after the council heard concerns from property owners who believed they were being threatened.

At Monday’s council meeting, Denali Law Group attorney Payne said Keller was “willing to throw under the bus the local business owners” standing in the way of a plan to realign East Sun Mountain Avenue and its intersection with Hermon Road.

On Monday, Keller wouldn’t say whether she was right or wrong in sending the letter, instead focusing on what she called the safety aspect of the situation.

“I think that particular section of the city has been a safety issue,” Keller said, referring to the intersection.

When asked about her next course of action following the release of the report, Keller said it’s the council’s decision as to what will happen next.

“The ball is not in my court,” Keller said. “I respectfully disagree with [Denali Law Group’s] findings.”

Wasilla mayoral candidate Verne Rupright, who is also a lawyer, said the council should objectively restructure its questions regarding the Meritage situation. He didn’t mince words when asked about the city’s alleged actions.

“I don’t think that any administration should act that way,” Rupright said, adding that the council’s biggest challenge will be rebuilding its credibility.

The council didn’t discuss any possible actions Monday and set a special meeting to further discuss the Denali Law report at 7 p.m. June 30 at Wasilla City Hall.

Contact Michael Rovito at michael.rovito@frontiersman.com or 352-2252. Contact Derek Casanovas at derek.casanovas@frontiersman.com 352-2284.