Officials complain of possible conflict of interest in DNR

JEFFERSON CITY, Mo. -- State officials have complained about efforts to gain federal recognition for a group of historic Jefferson City properties, citing close ties between some property owners and employees in the Department of Natural Resources, which has jurisdiction over the effort.

But DNR Director Steve Mahfood, whose wife, Kas Mahfood, owns property in the Old Munichburg neighborhood, told the Columbia Daily Tribune there has been no conflict of interest because he recused himself from involvement in the project last year.

"She does what she wants to do," Mahfood said of his wife. "I make sure that ... I stay the heck away. I can't even tell you about her business. I can honestly say that."

The controversy centers on the Old Munichburg neighborhood in Jefferson City. Last spring, DNR's Historic Preservation Program awarded a $5,940 grant to Jefferson City to cover the research and writing costs associated with nominating properties in the neighborhood to the National Register of Historic Places.

Nominations to the National Register are approved by the federally designated state historic preservation officer -- Steve Mahfood fills that role in Missouri -- in conjunction with the Missouri Advisory Council on Historic Preservation. A spot on the register is valuable because it can qualify property owners for federal and state tax credits.

The grant in question is federal money distributed by the DNR and matched by local money from the city and the Old Munichburg Association.

The neighborhood also includes property owned by Jon Beetem, a private attorney in Jefferson City. Beetem's wife, Jane, works in the DNR director's office -- although she does not report directly to Steve Mahfood -- and is a former employee of the historic preservation office, where she was the coordinator for a different grant program.

Appearance 'not good'

Last month, the state's Advisory Council on Historic Preservation, whose members are appointed by the governor, declined to vote on the Old Munichburg nomination, citing a lack of time to review application materials. The chairwoman of the council, Linda Becker, also said connections of Beetem and Mahfood present an appearance "that is not particularly good."

"It does raise a question," Becker said, "and I think that ... if everybody had looked at this clearly and seen some questions were being raised, I think the best thing would have been to get a legal opinion. ... Whether there's a conflict I don't know."

Timothy Baumann, another member of the advisory council, said the proposed district is worthy of nomination, but said he also was concerned about the conflict-of-interest issue. Baumann said that was one of several reasons why the nomination was tabled.