City supports KEDA receiving legal opinion on attorney

Koochiching County’s economic agency is seeking proposals for legal representation while International Falls officials are asking for a legal opinion on an alleged conflict of interest with the agency’s current attorney.
Koochiching Economic Development Authority Board members Wednesday discussed the possibility of seeking an opinion from the Minnesota Attorney General’s Office. But board member Mike Hanson, who also serves as a county commissioner, said he was not comfortable with that action without consulting other county commissioners first and learning more about what would be involved.
The attorney general would likely ask for statements from both sides of the dispute, board member Shawn Mason, who serves as Falls mayor, said in answer to Hanson’s query about what would be involved.
Mason said city officials support the county choosing a legal agency it is comfortable with for an opinion. The city wants the issue to be resolved in a “professional way,” Mason said, adding that she wants the bantering to stop.
The dispute over the conflict of interest stems from a letter the KEDA Board received from the Koochiching County Board stating that the county will not participate in any partnerships with the city of International Falls in which the Falls city attorney provides legal representation.
“As things have unfolded with the city’s dispute on the county’s Highway 332 Development Project, the county now questions how City Attorney (Joe) Boyle can equally represent the interests of the county in the KEDA and Airport partnerships when first and foremost he is legal counsel to the city of International Falls,” the letter stated.
The KEDA Board also heard that the city did not ask the county’s attorney appointed by the Minnesota Counties Insurance Trust to remove himself from the Highway 332 case, according to KEDA Board member and Falls City Councilor Tim “Chopper” McBride. The League of Minnesota Cities, of which International Falls is a member, sought the attorney’s removal from the case, citing a conflict of interest based on a previous case.
The removal of the county’s attorney caused the county to request the city attorney remove himself from agencies that included city and county officials.
In a statement from McBride and Mason given to the KEDA Board, city officials do not “perceive there is a conflict of interest” in the city attorney representing joint powers agencies that include city and county officials.
“We believe the county’s position on this topic is precipitated simply by anger because the city of International Falls participated in legally challenging the Minnesota Department of Transportation Dispute Board and the Commissioner of Transportation on the 332 reroute issue. Anger is driving the county’s proposed action,” the statement said.
Mason said she would support the county receiving an outside legal opinion on the issue of an attorney representing the joint powers agencies.
If that legal opinion is that the city attorney does have a conflict of interest, the city attorney will be dismissed from representing the KEDA, Mason said.
McBride said he’s concerned about how dismissing the attorney would impact an open case involving the KEDA’s former administrative assistant. He called it hard and “dangerous” to dismiss an attorney during an open case.
Board member Alan Rasmussen said the board needs resolution of the issue and supported seeking an opinion from Minnesota Attorney General’s Office. However, he pointed out that the county could still disagree with the opinion and continue to state that the city attorney has a conflict of interest.
The Airport Commission removed Boyle as its attorney after receiving the letter from the county board expressing concern, McBride noted.
The KEDA Board agreed to seek proposals for legal representation. Board member Mike Fairchild voted against the motion, stating that the issue over the alleged conflict of interest with the current attorney has not yet been resolved.
Mason said she would like to have the conflict of interest issue resolved either before or during the call for proposals for an attorney. She questioned what the board would do if Boyle submits a proposal.
Hanson said seeking proposal for legal representation is a routine board action completed by the KEDA Board every few years.

KEDA Board News Notes
• The Koochiching Economic Development Authority Board approved using the northern portion of the foreign trade zone as wetland mitigation property. The board intends to designate it as developable and then instead use it for mitigation as it is considered wetland. The result will be a buffer between Ranier and the FTZ.
Dave Serrano, of Arro of the North, told the board his focus is on creating a mitigation plan for the property. He also presented the board with an option for building a road into the FTZ from County Road 144, also known as the Moonlight Rock Road.
• The board approved Mike Fairchild for the board position vacated by Rob Boyd. According to a letter submitted to the board, Boyd resigned after the board agreed in June to house a partnership between the cities located within Koochiching County.
The board agreed to advertise for an alternative board member to attend meetings when Fairchild is absent.
• The board received a letter from Curt and Jane Wagner voicing concern about the Can-Am Fisheries potentially taking fish from Rainy Lake. In the letter, they asked that the fish acquired by the fisheries company comes from lakes elsewhere.
The board agreed to address public concerns about the origin of the fish at its August meeting.
• The board heard that the first organizational meeting for the development partnership between the cities located in the county is scheduled for 6 p.m. tonight in Littlefork City Hall.
• The board agreed to meet in the Koochiching County Courthouse boardroom for its August meeting due to a lack of space in the KEDA office.
Board member Wade Pavleck said he was “embarrassed” by the tight space in the KEDA office where board meetings are conducted. He said the small room makes it uncomfortable for people to attend the public meetings. The board is expected to discuss a more permanent meeting area that has more space at its August meeting.