TERRE HAUTE —
County officials are looking into a potential conflict of interest by a board member whose votes helped spur development of a housing project in which he had financial interest.
At a meeting of the Area Plan Commission on Wednesday, board member Norm Froderman said he “probably” had a financial interest in Cobblestone Crossing in 2007, when he and other commissioners approved new apartment construction where single-family homes or condominiums had previously been planned at the southside residential complex.
Froderman did acknowledge a present-day financial interest in Cobblestone.
Conduct guidelines from multiple government documents — Vigo County ordinance, the Vigo County employee handbook and the Plan Commission bylaws — all indicate that a commissioner is not to take part in any decision-making in which he has a financial stake.
In addition, the action also may be a violation of Indiana state law.
Michael Wright, attorney for the Vigo County government, said Thursday that Indiana law seems “pretty clear that if there is a financial interest in a project, then [the plan commissioner] is not to be a part of the decision on the project.”
Wright said he is seeking to learn whether Froderman had such an interest.
Froderman, a property developer and real estate professional, reached Thursday said he could not comment at this time.
In addition to state law, Vigo County’s Unified Zoning Ordinance spells out the role of the Area Plan Commission. It specifically states that a board member is prohibited from participating “in a hearing or decision of the Board concerning a matter in which he has a direct or indirect financial interest…”
The Plan Commission’s own bylaws, requested by the Tribune-Star on Thursday, also indicate a conflict of interest may have existed, if Froderman owned a share of Cobblestone in 2007. Those bylaws state: “No member of the Commission shall participate in a hearing, discussion, or decision of the Commission upon any zoning matter in which the member has a direct or indirect financial interest.”
Finally, the Vigo County employee handbook, which was also provided to the Tribune-Star upon request, states that a “person acting on behalf of the County who knowingly or intentionally has a pecuniary interest in or derives a profit from a business transaction in which he/she acts on behalf of the County has a conflict of interest.”
A spokesman in the Indiana Attorney General’s office, when contacted Thursday, said the matter was outside of that office’s jurisdiction and fell to the county prosecutor’s office to determine whether a state statue was violated.
Vigo County Prosecutor Terry Modesitt, reached late Thursday, said his office had not received a complaint about the matter and much would remain to be done if it had. It would have to be determined, the prosecutor said, whether Froderman “for sure” had a financial interest in Cobblestone. Modesitt would then need to review state law to see whether what happened rose to the level of a crime.
“We’re a long way from that,” Modesitt said.
Reporter Arthur Foulkes can be reached at 812-231-4232 or arthur.foulkes@tribstar.com.
Local & Bistate
Related Photos
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Tribune-Star/Jim Avelis Entryway: The signage for Cobblestone Crossing is among the first advertising one sees as they approach Terre Haute from the south on U.S. 41.
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Officials looking into possible misconduct by Plan Commission member
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