Mayor says it was time for ‘new eyes’
Lake Santeetlah – On a contentious split vote of the council, the Town of Lake Santeetlah ended its contract with attorney Craig Justus and will go with another Asheville-based law firm for legal advice.
At its Feb. 15 meeting, the council ended its contract with Asheville-based law firm Van Winkle, Buck, Wall, Starnes & Davis, P.A. – through which lawyer Craig Justus handled town legal matters – and replaced it with another Asheville-based law firm, Allen Stahl + Kilbourne.
This was the first time the subject of replacing the town’s law firm came up under the new board, which took office in December.
Mayor Connie Gross told The Graham Star on Friday that she had become dissatisfied by the work and the cost of the previous law firm and took it on herself – as the town’s executive – to bring up the issue to a vote, as well as to research and negotiate a replacement.
Three years into its contract with Van Winkle, Buck, Wall, Starnes & Davis, the town has spent $328,68 on legal fees, of which $232,000 was on lawsuits and about $24,000 on zoning legal matters. This total comes from settlements, depositions, zoning, defending council members of the town and payment to Justus, Gross said.
Gross said that a few weeks earlier, Justus asked that a town employee drive through snowy weather to deliver a payment check.
She also complained about some things Justus may have missed during his review of town matters.
“I do feel it is time for new eyes,” Gross said.
Earlier in the meeting, council member Jim Hager said that Gross and member Tina Emerson have conflicts with Justus due to previous lawsuits in which they were involved. Hager said Justus had done a good job during his three years as the town attorney, and asked Gross and Emerson to recuse themselves from voting, which Gross rejected.
Hager threatened to file an ethics complaint with the state and later called the vote “totally ridiculous.”
During the public-comment section of the meeting, residents Keith Predmore and Bill Piel said they believed that terminating the contract with Justus was unethical. Justus defended the town and successfully recovered $40,000 from lawsuits – in which Gross and Emerson were involved – before they were elected to the board, lawsuits that Piel described as “frivolous.” Predmore called the action unethical and a case of reprisal.
Gross told The Graham Star that she had approached several law firms in her search for a replacement before obtaining a proposal from Allen Stahl + Kilbourne.
Council member Diane Simon requested other options for attorneys be given before hiring. Ignoring the request, Mayor Gross made a motion to cancel the contract with Justus. Council member Ralph Mitchell seconded the motion.
Simon asked Justus whether he served at the pleasure of the board, giving him one last moment to advise the board before it voted to can him.
Justus said he appreciated serving the board and was disappointed, and that his service depended on a majority vote of the council. The motion passed 3-2, at which time Justus dropped off the Zoom call and the meeting continued without a lawyer present. When that was noted, Gross said they don’t have to have a town attorney present at every meeting.
Predmore continued to make comments about the vote, which he called rubbish. Unable to mute Predmore, Gross asked him to mute himself.
Emerson then made a motion to hire Derek Allen, of Allen Stahl + Kilbourne, a law firm recommended by an unidentified town resident. Mitchell seconded.
Hager stated that it seemed Allen has more experience with lawsuits and municipalities than he does representing municipalities.
The rate for Derek Allen is the same as it was for Justus – $25,200 a year, payable at $2,100 per month for routine town matters, with additional work charged at the firm’s normal rates.
The motion passed 3-2, with Hager and Simon opposed.
TDA defunded
The council voted to defund the town’s tourism development authority, by reducing the occupancy tax from three percent to zero. The resolution – written by Emerson – was included in the agenda to cease collection of a three-percent occupancy tax. Emerson said the town has limited tourism and limited uses for occupancy tax proceeds.
Simon – who chairs the town’s TDA board – objected to the proposal. She said she was not advised that the proposal would be discussed and the resolution was not reviewed by the town attorney.
Simon alleged that Emerson – who owns a rental unit – has not been collecting the three-percent tax. Both Simon and Hager insisted that Emerson recuse herself from voting due to her financial interest and nonpayment. Emerson rejected the request.
Simon reported that as of Feb. 10, the authority’s balance was $38,106.95, with an annual budget is $22,000. Between July 2021 and January 2022, there were $17,308 in proceeds collected.
Keith Predmore had just resigned as a TDA Board member and Simon was prepared to nominate Karen Taylor – the former Robbinsville Tourism Authority director and a business owner – to be his replacement.
Emerson wrote the resolution to change the collection rate within the Town of Lake Santeetlah from three percent to zero and made the motion for the council to vote on it. She said occupancy tax funds are used to promote tourism and Lake Santeetlah does not have the need to promote tourism. She said she ultimately wants to dissolve the Town of Lake Santeetlah Tourism Development Authority.
If Emerson votes, Hager said, he would file an additional ethics complaint. Mitchell seconded the motion. The motion passed 3-2, with Hager and Simon opposed.
Simon then made a motion to appoint Taylor as a new member of the Lake Santeetlah Tourism Development Authority. Hager seconded. “We want to be able to control how money is spent in our community,” Simon said.
She said projects included beautifying the town and had considered adding a charging stations for electric cars. The authority and paid $5,000 for the planter at the front entrance.
Adding Karen Taylor – a landscaper – they will be able to further beautify the town, Simon said.
“I would like to know, Mrs. Emerson, who does not pay occupancy tax, what is your agenda? Are you trying to destroy revenue coming into our community?”
Emerson asked Simon to “don’t be a jerk.”