HomeMy WebLinkAbout1977-01-20 CorrespondenceMM FROM ASST. CITY ATM TO PRWEC`r WORD. FOR U.R. re: Conflict
of'Interest in Contract for Professional Services (Hansen, Lind,
Meyer & Plaza Center One 1 1198
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DATE: January 20, 1-977
TO: Paul Glaves, Prog. Coord. (Urban Redevelopment)
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FROM: Bob Bowlin, Asst. City Attorney
RE; conflict of Interest in Contract for Professional Services
FACTS
The architectural firm of Hansen, Lind, Meyer is interested
in contracting with the City for professional architectural
services with regard to the inprovements in the R-14 Urban
Renewal area. The Plaza Centre One building is located in the
R-14 Urban Renewal area.': Hansen & Lind, as, individuais; own'a
50% interest in the Plaza Centre One,building.:,
QUESTION PRESENM
Does the architectural firm of Hansen, Lind, Meyer have an
interest i in the R-14 Urban Renewal area that would prevent them
f rom contractingiwith the focal public agency for architectural
, se r , vices on iRproverrents for the R-14 project area?
CONCLUSION
The architectural firm of Hansen, Lind, Meyer has a definite
direct interest in a parcel in the R-14 project area, and therefore
is ineligible to contract with the local public agency for urban
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renewalarchitectural serviced
DISCUSSION
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The Iowa City R-14 Urban Renewal projectincludes all under-
takings and activities of the local public agency in the urban
renewal area. In accordance with the urban renewal plan, the local
public agency may undertake a nunber, of activities, including "the
instalfition,-'tiLiction or, r600nstruction by the local public,
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agency, in the urban renewal area,, of streets, utilities, parks,
ents necessary,-
playgrounds, and otherlinprovemfor carrying out in
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the urban, renewal area!the urban renewal objectives of Title I
in accordance with the!urban renewal plan." See section 11C
pub agency.
of contract between Hand d the local public
: :
TIMM 7217A, Chapter 2 (3) (a)
The HUD Urban Renewal Handbook, I
stat Terms -es that Form HUD -621B, Part 2, Teand Conditions, contains
those provisions which'are mandatory requiramnts for each, oon-
tract mde by the local public agency for professional services.
Section l of said Chapter 2 makes it clear that the services of architects
,are among those professional services. Section 16 of the said Part 2 of
Form HUD -62713 provides as follows:
The 'contractor covenants that he presently has no interest
and shall not acquire any interest, direct or indirect, in the
above-described project area or any parcels therein or any
other interest which would conflict in any manner or degree
with the performance of his services hereunder. The contrac-
tor further covenants --that in the performance of this contract.
no person having any such interest shall be employed.
This quoted paragraph is a requirement for any contract between the local
public agency and an architect for work in the urban renewal area.
Itis possible to say that Hansen, Lind, Meyer as a corporation or
partnership does not have, an interest in the Plaza CentreOne, building,
because the interest is held (apparently) by Hansen &,Lind as individuals. .
However, { if Hansen, Lind & Mayer were to be the contractor, they would also -
have to covenantthatin the performance'of the contract no person having
such en' interest would be employed. < I should think it would be impossible
for them to meet this test, because: lclearly ,Hansens'& Lind are principals
in the entity known as Hansen, Lind, Meyer.> Further, itwould not be
sufficient that Hansen '& Lind nerely refrain from doing any work on'the
project, but' it must affirmatively appear t that they are not employees or
have any,linterest in Hansen, Lind, Meyer.
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For; these reasons, it'seelas r quite clear to me that Hansen, Lind, Meyer
may not perform architectural services for the local, public agency in the
urban, renewal project area because' of their conflict of interest.
If you have any further questions, Paul, please do not hesitate to
contact, me. Thank you.
Robert H. Bowlin
cc: Neal Berlin, City Manager
John' Hayek,' City Attorney
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