Beaufort development director has conflict due to wife’s job, Ethics Commission says
An attorney for the State Ethics Commission is advising the city of Beaufort that David Prichard, director of Community and Economic Development, should recuse himself from matters involving 303 Associates because his wife works there.
The city and Prichard had sought the opinion Tuesday on whether a conflict of interest existed after questions arose. They received a quick reply.
In an informal opinion returned to the city later the same day, Courtney Laster, the commission’s general counsel, noted that the Ethics Act requires public employees to recuse themselves from any matter in which they, a family member, an individual or a business with which they are associated has an economic interest.
“Here, Mr. Prichard’s spouse is an employee of 303 Associates,” Laster writes. “Therefore, 303 Associates is a ‘business with which (Mr. Prichard) is associated’ for the purposes of recusal.”
Vanessa Prichard, David Prichard’s wife, works as a receptionist and leasing agent for 303 Associates, which owns and operates numerous properties in Beaufort. The company also is proposing an apartment complex, hotel and parking garage in downtown Beaufort.
David Prichard had said previously there is no conflict because his wife does not work on development projects for 303 but the Ethics Commission disagreed.
“Mrs. Prichard’s job duties or title at 303 Associates is immaterial,” the opinion states — “as long as she is an employee of 303 Associates, then 303 Associates is a business with which Mr. Prichard is associated.”
What happens next?
When Prichard is required to take an action in which 303 Associates has an economic interest, he must recuse himself in writing pursuant to state law, the opinion says. His supervisor, City Manager Bill Prokop, must assign the matter to another employee who does not have a conflict of interest.
To alleviate any perception of conflict of interest, the architects contracted by the city to write staff reports on projects that come before the city’s design boards will report directly to Prokop on any project from 303 Associates, the city said in a statement. This will begin immediately.
“Transparency is important to us, which is why we asked for the opinion,” Prokop said in a statement. “We will make this change to ensure that there is no conflict.”
Prichard has said he is not directly involved with projects involving 303 Associates or any developer, leaving the details to planners.
Beaufort hired Prichard as director of Community and Economic Development in November 2018. His staff reviews development projects, issues permits, and advises city boards and commissions that vote on them.
His wife has been employed at 303 Associates since Jan. 4, 2021.
The opinion is informal and non-binding because state law does not allow formal opinions when the actions in a case already have occurred, Laster wrote to City Attorney Bill Harvey.
“Any advice given herein applies only to conduct occurring after the date of this opinion,” the informal opinion states.
However, the opinion continues, conduct occurring prior to the date of the opinion may be subject to investigation by the commission, it says.
Vanessa Prichard’s employment with 303, while known within City Hall, surprised some City Council members and opponents of the projects it’s involved with and raised concerns about conflict of interest or the appearance of it, especially given the controversy surrounding the projects that are planned for the city’s Historic District.
Some council members first learned of Vanessa Prichard’s job after a photo was published on 303’s Facebook page just before Christmas. The photo showed employees and spouses including the Prichards.
Mayor Stephen Murray, with support from council members, asked Prokop to seek an opinion from the Ethics Commission and the request was filed Tuesday by Harvey.
“The City would seek the opinion of the Ethic Commission on the question of whether there is a conflict of interest with David Prichard’s wife being employed by 303 Associates,” Harvey writes in the request.
The State Ethics Commission issues advisory opinions to elected officials and public employees on ethics questions. It also conducts investigations and hearings into complaints. Beaufort sought an advisory opinion, with Prichard’s blessing. A local government can seek ethics advice on behalf of an individual, with their permission. Individual city employees or elected officials may also request opinions to clarify ethical situations they may find themselves facing.
Murray said council members sought the opinion “to be above board.”
“There are a number of us who are concerned about the appearance,” Murray said.
The State Ethics Act says no public official may use their office to influence a governmental decision in which they or a family member has an economic interest. The economic interest must be “distinct from the public,” meaning the general public could not get the same benefit.
If there is a potential conflict, the Ethics Act requires employees to prepare a written statement describing it before giving it to a superior, who must decide whether a conflict exists.
The commission teaches that it’s the responsibility of both elected and public officials to point out these potential conflicts of interest.
It’s the second time that accusations of conflict of interest have been raised regarding 303 Associates’ downtown projects.
Earlier this year, Dick Stewart, the owner of 303, questioned the city on whether Maxine Lutz, who had been appointed to the Historic District Review Board, could review his projects objectively. Lutz is the former executive director of the Historic Beaufort Foundation, which is fighting the city and Stewart in court over the projects. She also had written an opinion piece that raised concerns about the size of the developments in the Historic District. The city, with Lutz’s OK, requested an opinion from the State Ethics Commission, which ruled she had no conflict.
“I see this as something very similar,” Murray said of asking for an opinion on Prichard.
This story was originally published January 5, 2022 at 9:46 AM.
