Lawrence Mayor Sue Hack made an image-tarnishing blunder after neglecting to fill out a form.
According to the Lawrence Journal World, Hack didn't turn in a "substantial interest form" before Douglas County Commission approved giving $3 million for economic development to Deciphera Pharmacy -- a company Hack has financial interest in.
Hack has over $5,000 invested in the company, but didn't make it public, she said, because she didn't think she had to. She thought she was only required to expose financial interest if it reached 5 percent of the company's stock.
Hack hasn't disclosed her exact stake in the company. All that's known is her investment teeters between $5,000 and 5 percent of the company's total value-- whatever that is.
When the commission reviewed options for Deciphera, Hack participated in a closed-door executive session. Details about the meeting are murky.
District Attorney Charles Branson is investigating whether the closed-door session violated the Kansas Open Meetings Act.
Hack said she didn't say anything that would reveal her position on the issue, and she didn't write the contract, which gives Deciphera a cut on property taxes without having to go through the standard tax abatement process.
Commission also authorized giving Deciphera cash payments when certain job totals are reached.
It hasn't been determined whether Hack will be charged for not filing the form. Hack said it was a mistake, but she could still get in trouble. Members with financial interest in a company are supposed to stay clear of executive sessions and discussions that determine the amount of monetary assistance given to said company.
Douglas County Commissioner Bob Johnson also had stock --$8,200-- in Deciphera. But Johnson followed the rules, filled out the form and didn't attend the closed-door session.
Observers are left confused.
While the pharmacy might very well improve the Lawrence community, one can't help but wonder if other companies could do the same; companies that council members don't have stock in. Have council members adopted a "might as well" mentality,(as in the commission is going to authorize investing millions to ensure a successful launch for the company, so I might as well cash in) and does this mentality reflect the best interests of Lawrence, or the best interest of the mayor?
Until more information unfolds, I'm going to abstain from making a call. But you would think that the mayor would have a better hold on commission rules.
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2 comments:
That's sticky. One time the guy who was elected mayor of a city I lived in owned all of the businesses, so he always had to leave the meetings when there were contracts for about his companies, like money to give them and stuff. He didn't spend much time in the meetings at all, so it was like "what do you do anyways?"
I don't trust the elected officials for reasons just like this one. Course not many care about it because it's just the way things work. The leaders own everything and then they get to invest tax dollars into what they own so they can own even more.
Well, at least Deciphera decided not to start shop in Lawrence because of the deceptive nature of assembling the contract. So, even if it's to save face, some companies still have integrity.
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