Councilwoman moves to plug loophole

Erin Neff

Monday, Aug. 2, 1999 | 11:30 a.m.

Drawing on her past experience as an assistant city manager, new City Councilwoman Lynette Boggs McDonald will propose a change in a disclosure law this week to close what she said is a loophole she first discovered when she worked for the city.

A resolution she will propose during Wednesday's council meeting would require disclosure of all investors in an entity entering into certain contracts or other transactions with the city.

The resolution applies to franchise agreements, contracts for exclusive services, consultant contracts and land transfers. Public works projects, such as traffic signals and roads, are not included.

When she worked for the city from 1994 to 1997, Boggs McDonald said she noticed some agreements listed only the principal involved.

"There was nothing else to see who else was privy to this land deal," she said in reference to one 10-year lease the city entered into with 730 Ltd. for the building that now houses the planning and development departments.

Although she alleges no wrongdoing with that lease, she cites it as an example of a case in which council members and the public don't know everyone involved.

"I would always sit back and wonder what's the real story here," Boggs McDonald said.

In addition, she said, the loophole in the disclosure requirements could create unknown conflicts for council members who might vote for a project without knowing a friend or relative is one of the investors.

"You can never be too careful," she said.

But not everyone agrees more disclosure is needed.

Ken Templeton, who serves on the board of the City Centre Development Corp., said some investors shy away from publicity and don't want people to know where they invest their money.

He also said in big projects -- like the $92 million Neonopolis entertainment retail center under construction downtown -- finding all of the investors could take time and stall the process.

Boggs McDonald disagreed, saying "I can't even see or understand any potential objections to this."

Mayor Oscar Goodman, who read the proposal Friday, said "In essence, it's heading in the right direction."

Local taxpayers seemed to agree.

"It's time for people to stop hiding," said Art Williams, 68, a downtown resident. "If people want to do business with the city, then we have a right to know who they are."

In a related disclosure item, the council acting as the city's Redevelopment Agency will receive a report on which city officials have financial interests within the city's redevelopment areas.

Those included are: Goodman, who owns property at the southwest corner of Casino Center Boulevard and Bonneville Avenue and at 1000 E. Sahara Ave.; City Councilman Gary Reese, who owns property at 2341 E. Bonanza Ave.; Neighborhood Services Director Sharon Segerblom, who owns property at 704 S. 9th St.; and Planning Commissioner Michael Mack who owns property at 324 Fremont St.

Also: Planning Commissioner Marilyn Moran, who owns property at 640 S. 4th St.; City Centre Development Corp. board member George Kunz, who owns property at the southwest corner of Charleston Boulevard and Eastern Avenue; and city building inspector Patty Jacobs, who owns property at 1561 Comstock Drive.