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<br />To build~ the center without
<br />going to votera for construction
<br />money, officials' are seeking a
<br />pri4ate developer to back the
<br />project and turn 'a profit off pri-
<br />va~e office and retail space in the
<br />b~ti~lding.
<br />Conaidering the complexity of
<br />th~ proposal and that both men
<br />are~ active commercial real eatate
<br />players; •the potential conflicts
<br />may not come as a aurprise.
<br />Frey's possible conflict comes
<br />as. the sales•leaeing agent on the
<br />' Betnard Building at 626 Court
<br />S~ NE - one of the three proper-
<br />tiea on the ~ilock not owned by
<br />~i
<br />the.county.
<br />This summer, Frey was the
<br />chairman of•the committee that
<br />studied sites for the bus transfer
<br />stAtion. The committee split on
<br />which of three sitea to recom-
<br />mend for the facility.
<br />"The Senator Block wasn't m~
<br />fira'~ choice, because I didn t
<br />think it wae going to be available
<br />(from the county)," Frey said.
<br />1Vlore recently, when the tran-
<br />ait , board voted to ~ursue ttie
<br />SenaLor Block as a aite and en-
<br />doreed the Courthouse Square
<br />project, Frey abstained from the
<br />vote, and said he will stay out of
<br />futt~re decisions on this site.
<br />Although the county must ac-
<br />quire the building if the project is
<br />to~ ' go ahead, Frey said he
<br />wduldn't neceasarily profit.
<br />"It's a~ bigger disadvantage
<br />Ethics law 10.1
<br />Oregon law has specisl prov(-
<br />slons to deal wlth coMl(cts ot Inter-
<br />est, circur~stences when an oi-
<br />flclal's personal flnanclal (nterest
<br />overfaps wlth his or her decision-
<br />making authority.
<br />Oregon ethics laws recognlze
<br />that most etected officlats are voi-
<br />unteers wtth jobs, property and
<br />businesses, so R's not unusuat tor
<br />them to face decisions that could
<br />deal them - or their bus(nesses or
<br />famiy members - a gain ar loss.
<br />: ihe law does not ban conflicts of
<br />(nterest but sets up spbdai rutes to
<br />d(sclos~ and avofd such conflicts;
<br />7he law requtres•that ottlclals make
<br />a pubilc announcement K there Is ~,
<br />potentla~ confli~t of fnterest, a sitva-
<br />tion where an pfficial acilon could
<br />financially effect the official.
<br />If there (s an actual conflict of (n•
<br />terest - a decision that would ef-
<br />fect the official - the law requlres
<br />the person to disclose.the conflict
<br />end stay out ot the discusslon and
<br />the decisTon.
<br />After irnestigating ~ complaint,
<br />holding a hear(ng and provlding
<br />opportunhy for appeal, the Oregon
<br />Qovemment Standarcis and Prao-
<br />41ces Comm(ssion may impose
<br />ftnes of up to $1,000 for each viola-
<br />tlon and require a fo~teiture of any
<br />financial gain.
<br />than it is an advantage," Frey
<br />eaid. "The county hean't come
<br />forward with any offera. Nobody
<br />else wants to buy the building"
<br />ae long as the cou'nty-Lransit dis-
<br />trict proposal is pending.
<br />Hearn said state ethics laws
<br />don't prevent Frey from having
<br />an interest in the building. How-
<br />ever, he must announce that
<br />there ia a•possible conElict and
<br />keep out of final decisions on the
<br />site.
<br />Berrey, an asaociate broker
<br />wiLh Prudential Real Eetate Pro-
<br />fesaionals in 3alem, may.pursue
<br />a role as a private developer of
<br />the project. A~nderaen-Wyckoff
<br />asked Berrey, ae well as
<br />other developers, to analyze
<br />Courthouse Square pro ect to ~ee
<br />if it is financially feasib~e.
<br />AfLer running the numbers,
<br />Berrey said he might be inter-
<br />ested in taking on the pro ect. "I
<br />found that it was possib~e, hut
<br />not a slam-dunk;' he said,
<br />,P,ndersen•Wyckoff said that in
<br />asking Berrey's advice, he didn't
<br />give out any inside information
<br />that would be advantageous
<br />later. All the information about
<br />the project proposal was avail-
<br />able to the public, he said.
<br />The county is developing a re-
<br />quest-for-proposals process to so-
<br />licit~ int~rest from' developers, If .
<br />~ he decidea to bid on the contract,
<br />Berrey would be treated lik~e any
<br />other developer; ~said Randq Cur-
<br />tis, county general services man-
<br />ager, • •
<br />:"We'll ' make eure that every
<br />one has the same information in
<br />harid,"- he~said,. "We will have to
<br />' keep an~arma=lerigth relationship
<br />with~him:and other developers."
<br />County.~ ' commissioners will
<br />take the lead in selecting a pri-
<br />vate developer, but the transit
<br />board definitely, will have a•.role
<br />because; 'of its interest in the
<br />proj~ct. Oherriots will provide $2
<br />million of federal money toyvard •
<br />the transit portibn of the project,
<br />With~~a direct interest in the
<br />project, Berrey would have to
<br />two kee~ out of any transit district
<br />the deciaion related to it, Hearn said.
<br />"That one really gets sticky,"
<br />he said. "If he got to the point
<br />where he wa:; serving as devel-
<br />oper of the project, it would be
<br />almost impossible as a practical
<br />matter for him to continue on the
<br />board."
<br />Berrey said that he's moving
<br />cautiously to avoid violating the
<br />law, but that he may end up not
<br />bidding on the project.
<br />"It may come do~vn to that, be-
<br />cause my reputation is all I
<br />have," he snid. "I can't afford to
<br />have my clientele think that I'm
<br />~not doing things aboveboard."
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