Housing commission to rewrite conflict policy

BRANSON, Mo. -- The Missouri Housing Development Commission plans to rewrite its policy regarding potential conflicts of interest following questions about commissioner Bill Luetkenhaus selling land at a profit to a developer.

Richard Baalmann Sr., the commission's chairman, said the board didn't find that Luetkenhaus violated any state statutes when he sold 20 acres in Wentzville last fall to Columbia developer Jeff Smith for $1.7 million.

Luetkenhaus bought the property two months earlier for $932,000.

But the commission did say toward the end of its two-day meeting here this weekend that it would craft rules to address these types of situations in the future.

Pete Ramsel, the commission's executive director, said proposed changes to the ethics regulations would require commission members to provide more complete disclosure of such deals. Staff members also are recommending the creation of a four-member committee to consider conflict-of-interest disclosures and make recommendations to the full board.

About a month before completing the sale to Smith, Luetkenhaus sent a letter on Oct. 9 to state Treasurer Sarah Steelman, advising the then-chairwoman of the commission that a deal with Smith was in the works. He provided no additional details and didn't tell Steeleman when the sale was closed.

"I assumed that if a sale actually occurred that Commissioner Luetkenhaus would notify the staff and all commissioners of such transactions," Steeleman told the commission recently in a letter.

She also said she had assumed Luetkenhaus had alerted the rest of the commission to the pending sale as well.

But some commissioners didn't hear about the sale until it was reported by the Columbia Daily Tribune on May 27.

Luetkenhaus told commissioners last week by letter than the current ethics standards don't deal with land sales between developers and commissioners but that he decided to be safe and alert the then-chairman.

"And just so the record is totally clear, the standards of conduct give no direction whatsoever to the chair as to what he or she is to do with any disclosure that is given," he wrote.

"This transaction was totally proper and transparent, and there was no conflict of interest," he added. Luetkenhaus didn't attend the meeting in Branson but participated by telephone.

The new rule would require commissioners to notify everyone on the board and the executive director about any transaction that could create a real or potential conflict of interest, or even the appearance of a conflict.

It would also require commissioners to recuse themselves from voting on matters with a real or perceived conflict, as determined by the conflict-of-interest committee.

Commissioners will consider the new rules in August.

The transaction drew scrutiny from Attorney General Jay Nixon's representative on the commission, Jeff Schaeperkoetter, as well as Gov. Matt Blunt, who said Luetkenhaus should avoid voting on any future issue involving Smith.