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City Administrator Schroeder stated he has not been able to schedule a workshop bringing <br />in a consultant to discuss how to handle situations wherein there could potentially be a <br />conflict of interest. He hoped to be able to schedule such meeting in late September or <br />October. He presented the letter from Attorney Goodrich to the County Attorney regarding <br />the alleged violation of statutes, as well as a letter from the Northeast State Bank on the <br />same issue. A letter was also included from the Anoka County Attorney's office <br />concluding that after conducting an investigation, "there is no criminal conduct in the facts <br />we have found and are closing our file in this matter". An alleged manipulation of the <br />Amber Ridge development agreement by then Councilmember Hardin has also been <br />discussed. He stated that he (Schroeder) was intimately involved in this development <br />agreement. The developer had suggested using a pledge and payment agreement to meet <br />our security demands. He (Schroeder) contacted Mr. Hardin for his opinion on the use of <br />that security and was informed that he (Hardin) preferred not to discuss it in that the <br />developers did business with the Northeast State Bank. No other discussion/contact with <br />Mr. Hardin was made. Mr. Schroeder felt that the net of this summary is that no member <br />of Council was involved in the development agreement; the Council as a whole received the <br />staff recommendation on the agreement and Mayor Hardin abstained on the final plat <br />approval wherein the security instrument was approved by Council. He recommended that <br />Council bring closure to this issue and added that if that is what Council determines, he will <br />not place "conflict of issue" on any future agenda, with the exception of the workshop, <br />without specific Council direction. He pointed out that since he's been at the City, he has <br />put issues on the agenda that someone wants to bring to City Council, but as it relates to the <br />on-going allegations - it seems to him that there's a definite pattern that if satisfaction is not <br />found in an answer, then another issue comes back. He explained he wants to get out of <br />the middle of that. He does not want to be the person that brings this to the table. If City <br />Council tells him to, he will then, but only then. <br /> <br />Councilmember Zimmerman inquired if the pledge and payment that Amber Ridge <br />developers were allowed to use has been used by other contractors also. <br /> <br />Mr. Schroeder stated that he does not recall but, typically, as it relates to securities, he will <br />allow any type of financial agreement that is satisfactory with the Finance Officer. <br /> <br />Finance Officer Hart stated that the City has handled different pledge and payments and <br />used Wood Pond Hills as an example. She explained that any developer is able to use this <br />type of security. <br /> <br />Councilmember Beahen stated that last week, City Council met for a workshop with the <br />Planning Commission. Following that workshop, she asked Councilmember Peterson if <br />she might have a minute of his time to discuss an issue; he agreed. They left the Council <br />Chambers to discuss this issue. Prior to this, she heard Mayor Hardin say he was going to <br />meet with Zoning Administrator Sylvia Frolik because she had some things for him to look <br />at. She did not know where the City Administrator and the other two Councilmembers <br />were. Councilmember Peterson and she went in to the Administrative offices and about <br />three-quarters of the way through their discussion, she noted Mayor Hardin and City <br />Administrator Schroeder walk through to go to Mr. Schroeder's office. They did not <br />interrupt the conversation she was having with Councilmember Peterson. Councilmember <br />Peterson then left and she walked to Mr. Schroeder's office to say goodnight to Mayor <br />Hardin and Mr. Schroeder. They all then left together. She got in her van and left while <br />Mayor Hardin and Mr. Schroeder were still talking in the parking lot. Councilmember <br />Beahen stated she has now become aware of a fax transmission to the City Attorney from <br />Mr. Terry Hendriksen. She stated she wasn't sure she was going to bring this all public, <br />but because Terry I lendriksen has had other issues, she decided it should be public. She <br />proceeded to read the fax from Mr. Hendriksen which basically stated that the meeting <br /> <br />City Council/August 8, 1995 <br /> Page 13 of 15 <br /> <br /> <br />