Coeur d'Alene Press Newspaper | CDAPress.com

Local and National News - Kootenai County, Idaho

Full disclosure will build trust

Posted: Saturday, Sep 06, 2008 - 07:48:55 pm PDT
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Most people aren't very good at explaining "conflict of interest," but it's a little bit like obscenity: They know it when they see it. And if it's not distinguishable to the eye, it likely is to the gut.

In our view, even if you can't define it, you can tell when conflict of interest exists because it is always accompanied by an erosion of public confidence in the decision makers.

Conflict of interest actually has little to do with whether or not any illegal or unethical activity is taking place. It has everything to do with suspicion, with a wary, worried public connecting dots that may or may not implicate someone in a violation of the public trust.

Our community is grappling with just such an issue right now. In fact, our community is grappling with many such issues right now, and we assert that the perception of conflict of interest is at the root of many of our community's divisions at this very moment.

There are some wonderful, capable, ethical citizens who are punished in one form or another because they have made successful careers and are attempting to give back to the community through volunteer service on a board or other position of power. Acknowledging that we live in an increasingly hostile world that holds many of its public servants to unreasonable standards, that doesn't change the fact that in some of these cases, using our description above, the individuals clearly have conflicts of interest.

So how do you distinguish between the people who are unethically padding their nests in one fashion or another through their position of public power, and those who are guilty of nothing more than serving the public after making themselves personally successful?

You don't.

They must.

In the most recent case, a prominent, highly respected appraiser did not disclose business relationships that, according to our definition above, constitute a conflict of interest. We won't attempt to judge him but rather use this example as a way we might come together more as a community.

Public officials and those with whom they do the public's business should fully disclose all conflicts of interest before public discussion, let alone decision-making, takes place. We're not talking about Idaho conflict of interest statutory requirements here; we're talking about common sense, complete honesty and openness and, from that, improving trust.


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boxers wrote on Sep 8, 2008 6:48 AM:

" there should be NO appraisal done before the site is remediated and given a clean bill of health, just because marshall says it will be clean doesn't mean much when you are talking TEN MILLION DOLLARS OF PUBLIC MONEY! TIMES ARE TOUGH AND THE LITTLE GUY IS GOING TO START TO CARE WHAT HAPPENS TO OUR MONEY,THE OLD SAYING WASTE NOT WANT NOT PERTAINS TO ELECTED OFFICIALS NOT JUST TO THE PUBLIC WHO CAN HARDLY AFFORD TO MAKE ENDS MEET LET ALONE ACCEPT WASTE IN OUR GOVERNMENT. IT'S YOUR MONEY KEEP AN EYE ON IT CUZ THEY DONT CARE! "

LTR wrote on Sep 7, 2008 4:17 PM:

" Full disclosure of business conflicts of interest and transparency is being honest and builds trust. Making the citizens dig for the real answers will always keep a cloud hanging over their business dealings.

I also ask for unity to work for the community as a whole rather than continue to work in the dark behind closed doors. "

Smell test wrote on Sep 7, 2008 1:46 PM:

" This whole deal does not pass the smell test. You hit the nail on the head with your description that it should be about Common Sense, as opposed to their current tactic. "

On the nose wrote on Sep 7, 2008 10:41 AM:

" Clearly, the attorney did not do his homework. It wouldn't have been difficult to discover this connection between the board member and the appraiser. Just exactly how much is this attorney receiving for doing a slap dash job? But, the appraiser knew and he went ahead with his "appraisal". So, it doesn't matter who chose the appraiser, the conflict absolutely existed and Mr. Phenneger is correct. Isn't it sad that a few selfish people ruin things for everybody. "

Niles wrote on Sep 7, 2008 8:23 AM:

" Everyone should investigate this episode that has just now been completed in the Los Angeles Unified School District. The Belmont Learning Center is the most expensive high school on the planet not because of its amenities but because the city got tricked into purchasing land that was contaminated with hazardous conditions and had to pay to accommodate them. Literally they had major buildings nearly complete that had to be demolished because the hazardous waste surfaced. Kids could not safely use the buildings as constructed. They had to be torn down, the soil reworked and new buildings, with heftier protection built. We are talking 100s of millions in expenses.

The appraisal for the NIC property has got to be done right. It cannot be done by someone with any connection to anyone associated with the project. The appraisal done by Morse has to be set aside and 2 new appraisals done using appraisers from outside of CdA and unrelated to the issues at hand.

Imagine NIC digging into this land and finding hazardous waste that Morse somehow (wink, wink) failed to note. Then it begins. NIC owns the problem and will have to pay to fix it. Since the citizens own NIC WE will have to pay to fix it.

Toss the appraisal and discipline those involved in getting it done that way. "

Larry Spencer wrote on Sep 7, 2008 8:08 AM:

" I have a bit of history with Ed Morse, and I once thought he was a competent appraiser as well, but no longer.

I entered into a binding contract to purchase two adjacent ten acre parcels of bare undeveloped land near Athol. We agreed that the price would be determined by appraisal, and since Morse was not a friend or associate of either party, he would do the appraisal.

After making the agreement, I went to the real estate sold listings in the MLS, just so I would know what price I would be paying when the official appraisal was completed. I found that a completely identical parcel adjacent to the parcels I was purchasing had sold for $110k, so I knew that that would be the "weighted" sale, and would be used to set the price.

Several months and twelve hundred dollars later, the appraisal came back, with Morse claiming the value was $150k each.

He had missed the sale right next door when he did his search, and because of the agreement I had signed and the substantial investment I had already made, I ended up purchasing the properties for the price determined by the very sloppy appraisal of Ed Morse.

When I talked to him, he was apologetic for not seeing the sale next door, but he then sent me a nasty letter warning me not to pursue a legal action against him for professional negligence.

So is the Education Corridor really worth 13 million? It may be or it may not be, but I wouldn't think it is just because Ed Morse said it is. "

The Lesson wrote on Sep 7, 2008 6:20 AM:

" Mayor Bloem states that no CDA tax dollars will be given to the Kroc Center.

Mayor Bloem is the sitting board chair for the Kroc Center.

Mayor Bloem gives over 3 million dollars of city money to the Kroc Center.

The Mayor did not see this as a conflict of interest.

A Lesson:

Hayden Mayor, Ron McIntire owns Super1 Foods.

WalMart begins a "move" to build a store in Hayden.

Because Walmart would be a direct competitor to the mayor's grocery store, Mayor McIntire removes himself form any discussions or votes regarding WalMart. This to avoid even the appearance of a conflict of intetest. Honorable behavior indeed.

Mayor Bloem - take a lesson here. "

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