Advisory Opinion No. 2007-13 Advisory Opinion No. 2007-13 Re: John A. Patterson QUESTION PRESENTED: The petitioner, a member of the North Kingstown Town Council, a municipal elected position, and a Director of the Quonset Development Corporation ("QDC"), a state appointed position, requests an advisory opinion regarding whether he may participate and vote on a development proposal pending before QDC. RESPONSE: It is the opinion of the Rhode Island Ethics Commission that the petitioner, a member of the North Kingstown Town Council, a municipal elected position, and a Director of the Quonset Development Corporation ("QDC"), a state appointed position, may participate and vote on a development proposal pending before QDC. The petitioner is a member of the North Kingstown Town Council. Located within the Town of North Kingstown ("the Town") is the Quonset Business Park ("Quonset"), a 3,174-acre former Naval Air Base that is being developed into a master-planned community including retail, residential and other business uses by the Quonset Development Corporation (QDC). The QDC is a subsidiary of the Rhode Island Economic Development Corporation (RIEDC) that is responsible for the development and management of Quonset. Pursuant to statute, the powers of the QDC are vested in an eleven-member, unpaid, Board of Directors. R.I. Gen. Laws § 42-64.10-7. Pursuant to the same statute, two of the eleven members are appointed by the North Kingstown Town Council. Id. The petitioner and another member of the Town Council were appointed by the Council to fill those appointments. The QDC recently awarded a contract to New Boston Development Corporation to design and develop a site at the western entry to Quonset for retail stores, office space, hotels, restaurants, walking paths and green space. This project is known as the Quonset Gateway Development The petitioner states that the North Kingstown Town Council recently held a special meeting to consider the proposed development, at which time it voted to express to the QDC its concerns regarding certain aspects of the proposal. Thereafter, a letter was sent from the Town to the QDC setting forth several concerns. The development proposal from New Boston Development Corporation will come before the QDC, at which time the QDC may consider the concerns raised by the Town. The petitioner wishes to participate in the QDC discussion and voting relative to these issues, and asks the Ethics Commission whether his position as an elected Town official precludes or limits his participation Under the Code of Ethics, a public official or employee may not participate in any matter in which he has an interest, financial or otherwise, which is in substantial conflict with the proper discharge of his duties in the public interest. R.I. Gen. Laws § 36-14-5(a). A substantial conflict of interest occurs if it is reasonably foreseeable that the petitioner or any family member or business associate, or any business by which he is employed or represents, will derive a direct monetary gain or suffer a direct monetary loss by reason of his official activity. R.I. Gen. Laws § 36-14-7(a). In addition, he is prohibited from using his public position or confidential information received through his position to obtain financial gain, other than that provided by law, for himself, a family member, business associate, or any business by which he is employed or represents. R.I. Gen. Laws § 36-14-5(d). The facts as represented by the petitioner do not lead the Commission to conclude that the petitioner is required to recuse from the QDC review of the development proposal by reason of his status as a member of the North Kingstown Town Council. While the Code would prohibit the petitioner from making decisions as a member of the QDC that would financially impact any business associate or any business by which he is employed or represents, the Town is not considered to be a "business" or "business associate" under the Code of Ethics. See A.O. 2005-31 (Town of Portsmouth is not a "business," nor is it a "business associate" of the Town's Director of Business Development); A.O. 2002-55 (term "business" as used in the Code of Ethics does not include municipal corporations such as the Town of Richmond). See also A.O. 2003-61 (Code of Ethics does not consider relationship between public official and public body to be that of "business associates"); A.O. 2002-63 (relationship between petitioner and RIDEM as parties to real estate transaction not that of "business associates" under the Code); A.O. 97-17 (finding, inter alia, that the definition of "business" does not extend to public entities such as the Warren Town Council or the Bristol County Water Authority). For these reasons, it is the opinion of the Rhode Island Ethics Commission that the petitioner may participate and vote as a Director of the QDC regarding the proposed Quonset Gateway Development in North Kingstown. Code Citations : 36-14-5(a) 36-14-5(d) 36-14-7(a) Related Advisory Opinions : 2005-31 2003-61 2002-63 2002-65 2002-55 2000-5 97-17 96-90 Keywords : Business Business associate