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employer, North East State Bmr. In spite of this conflict of interest, Mr. Hardin voted for <br />approval of the Amber Ridge development. <br /> <br />We don't know if Mr. Hardin illegally benefited from the development of Amber Ridge or if <br />Mr. Hardin used his influence inappropriately to gain financial concessions for Gary Gorham <br />and Tony Emmerich (city code required cash or a $750,000.00 irrevocable letter of credit <br />which was reduced to $120,000.00). <br /> <br />We do know Mr. Hardin claims the April 15, 1994, opinion from City Attorney Goodrich, and <br />a letter from League of Minnesota Cities attorney Ckristopher Smith prove he is "conducting <br />city business properly". On July 6, 1995, League attorney Smith wrote "I do not believe I <br />have ever taken the position that your actions areFer se legal or ethical." We have also <br />learned that no meaningful investigation was conducted in com~ection with the April 15, 1994 <br />opinion. <br /> <br />The 1994 investigation consisted of a "conversation" with Mr. Hardin. Mr. Goodrich did not <br />document this conversation or require Mr. Hardin sign a statement. Mr. Goodrich did not <br />independently verify the information Mr. Hardin provided and Mr. Goodrich didn't make any <br />notes. Mr. Goodrich relied solely upon his recollection of this conversation when he wrote his <br />April 15, 1994 opinion. <br /> <br />Conclusion: <br /> <br />North East State Bank can not be designated as a depository for city funds as long as Mr. <br />Hardin retains his employment with North East State Bank and serves as Mayor or <br />Councilmember. <br /> <br />Mr. Hardin's failure to disclose his relationship with North East State Bank, on the record, is <br />probably a violation of state law. <br /> <br />Mr. Hardin may have improperly influenced the selection of North East State Bank as a city <br />depository but this can't be determined without an investigation. <br /> <br />Mr. Hardin may have violated MS 471.87. This can not be determined without evaluating <br />Mr. Hardin's compensated from North East State Bank and other sources, if any. <br /> <br />The 1994 investigation into Amber Ridge was conducted by an official who is appointed by <br />the council. The inadequate investigation may have resulted from this conflict. <br /> <br />Recommendation: <br /> <br />Remove North East State Bank from the list of authorized city depositories. <br /> <br />Initiate an independent investigation into the unresolved issues under provisions of the <br />city charter. <br /> <br />Report the findings publicly and provide public access to the information collected <br />during the investigation. <br /> <br />Page 2 of 2 <br /> <br /> <br />