Wasilla council puts bid out for probe

WASILLA — Some city council members concerned city staff and administration may have behaved unethically and shown favoritism to a developer will ask an independent investigator if their suspicions are warranted.

Council asked Wasilla City Attorney Thomas Klinkner on Nov. 26 to conduct a probe into the city’s dealings with Meritage Development Corp. regarding its proposed Creekside Town Square project. Since that time, strong public opinion has swayed council to vote unanimously this week to seek an independent investigator with no ties to the city. Council has put a Feb. 11 deadline on a request for proposal (RFP) for firms wanting to conduct the probe.

“We are going to look for someone totally independent and do it through the RFP process,” Councilwoman Dianne Woodruff said. “I feel better about it knowing at least we’re going to have somebody not connected to the city looking at this.”

Although council has confidence in Klinkner, it is best to not leave any doubt about the investigation being thorough or unbiased, said Councilman Steve Menard, who proposed the investigation.

“Ultimately, it comes down to the public’s perception,” he said, referring to an unscientific online poll at www.frontiersman.com where 93 percent of those responding said the city should use someone totally independent.

“It was pretty overwhelming out there,” Menard said of the poll. “On top of that, a lot of people came up to me with their support, but said they had reservations about using the city attorney.”

Although putting the process out to bid will take longer, it’s more important to have the job done right, Menard said.

“Let’s take our time and do it right,” he said. “All this is already documented. We all want to have this resolved and move forward, but we felt it prudent to do it right the first time.”

The investigation comes following months of city dealings with Meritage about Creekside Town Square, which is proposed along the Parks Highway between Sportsman’s Warehouse and the Windbreak Café. Meritage’s preferred access route to the proposed retail center went through the property of nearby businesses, including the Windbreak. Questions began to arise after owners at the Windbreak, Six Robblees’ and other nearby businesses received a letter signed by Wasilla Mayor Dianne M. Keller that tacitly threatened the city would take the property if they wouldn’t sell.

One of the specific questions spelled out for the independent investigator is if the mayor acted inappropriately in her Aug. 24 letter or within her power. Other directions include determining if city staff was inappropriate, if so, was the behavior unethical or misleading. Council members also want to know if the city was “secretly working with Meritage Development to develop Creekside Town Square,” according to the ordinance. Also under the microscope is a May 2007 trip to Las Vegas by the mayor and other staff, where they met with Meritage representatives.

Asked if he believes Wasilla administration crossed the line of ethical behavior, Menard was clear.

“Absolutely,” he said. “That’s why I’m the sponsor of [the probe], and that’s why I put forward the question. You remove the dollar figure from the equation, because that’s not what’s most important. [Without an investigation] you can lose the public’s trust, No. 1. No. 2, if there is some type of corruption in government, that has to be investigated thoroughly.

“If people’s hunches are correct, there’s definitely some ethical changes that have to happen. It doesn’t pass the smell test. It just doesn’t. If you’ve taken the time, and I have, to read the documentation, something’s fishy.”

Keller said council members can have all the hunches they want, she has done nothing wrong and any investigation will show that.

“I welcome with open arms an investigation or review by a professional entity,” she said. “The administration is moving forward with the initiatives that the last body of council has told us to do. I don’t believe anything has been done in violation of that.”

Keller admits to some frustration with continued allegation she or her administration has acted unethically.

“That’s a matter of perspective,” she said. “If there are no ethics standards set, whose standards do you use? In my view, you either have ethics or you don’t.

“I believe I am an ethical individual. I know the difference between right and wrong and between good and bad.”

Woodruff isn’t so sure.

“I think it’s appropriate for us to be looking at some things,” she said, adding that council would take such a drastic step sends a message to city hall. “I hope it does. I hope it says to city administration and staff that they need to be transparent and fair with everybody when they do their business. That is exactly why this has come about, because we have an administration that gives the appearance that some parties are being given favoritism over another.”

For Menard, the choice became clear when it appeared the city began working for the developer against a group of local small business owners that didn’t want to sell out.

The investigation is also affecting the morale of city staff, Keller said.

“I wish [council] would hurry up and make up their minds,” she said. “I don’t think they’re aware of how this is affecting the staff. What I would like is for [council members] to make a decision and move forward. If they want to have an investigation, do it.”

The developer “brought in the administration and tried to influence them to sell,” Menard said. “Then the mayor’s proposing to run a road right through your business, it doesn’t get any more blatantly thuggish than that.”

Contact Greg Johnson at greg.johnson@frontiersman.com or 352-2268.