Mayor lashes out

WASILLA — Mayor Dianne M. Keller said Monday she could have taken revenge on a local business owner because of the woman’s public comments about Keller’s involvement with a developer that became the subject of an independent investigation.

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.

Andres said the mayor’s comment made her ill.

“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.