Agenda - Council - 07/25/1995 - Laserfiche WebLink

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JUN 29 '95 02i51 RANDALL DEHM~OODRICH interesrt is so particular and distinct from the public interes~ that the member cannot be exl)ected to represent the public interest fairly in deciding the matter. The issue then becomes whether Councilmember ~ardin had a disqualifying interest in voting on the A~ber Ridge preliminary plat. The Minnesota Supreme Court addressed this issue generally in Lenz X. coon Cre~ Watershed Dlstrio~ 153 N.W.2d 209 (1967), which is Minnesota's llandmark case on non-contract conflict of interest issues. In ~enz, the Court held: The pumpose behind the creation of a rule which would disqualify public officials from participating in proceedings in a decision making ~apacity when they have a direct interest in its outcome is to ensure that their decision will not be an arbitrary reflection of their own selfish interest. There is no settled general rule as to whether such an interest will disqualify an official. Each ca~e must be decided on the basis of the particular facts present. Among the relevant factors that should be considered in making this determination are: (1) the nature 6f the decision being made; (2) the nature of the pecuniary interest; (3) the number of officials making the decision who are interested; (4) the need, if any, to have,interested persons ~ake the decision; and (5) the other means available, if any, such as the opportunity for review, that serve to ensure that the officials will not act arbitrarily to further their selfish interest ~enz, I~. 219. Examination of each of the five rellevant factors laid out in Len~ compared to the present issue reveals the following: (1) The mature of the decisio~ being made; the decision being in the present case made was the approval of a prelim- inary plat. This action had previously received the planning commission's recommendation by a vote of six to one. Under Minnesota Statute and the City's Subdivision code, the City is required to grant preliminary plat approval when the subdivider has complied with the subdivision ordinance requirements. The Amber Ridge Subdivision had complied with the City's Subdivision Code at the time the developer requested preliminary plat approval. (2) The Nature of the Peouniary Interest; Councilmember Ha=din reports that he is an officer of Northeast State Bahk which bank provided certain financing for the Amber Ri4ge project. Councilme~ber Hardin further reports that his salary was not affected in any way by the bank approving or disapproving the loan for the ~her Ridge development and that his salary from the bank was not