GENOLA — A town councilman's lawyer said he doesn't think the town official violated state ethics when he failed to disclose an interest before voting on a heavily contested subdivision.

But Mayor Eric Hazelet said the council will revote on the issue at an upcoming meeting after councilman Bryan Draper discloses his interest in the Genola Meadows subdivision, a joint venture between the town and Planning Commission chairman Marty Larson. Hazelet also reassigned oversight of the town's water system from Draper to another council member. He said the measure was a cautionary one, not a punitive action.

"When we as a town are not in compliance in a certain fashion, we need to do all we can to come into compliance," Hazelet said.

Bill Hansen, legal counsel for Draper, said his client has done nothing wrong.

"I don't believe legally there was a conflict of interest," he said.

Hansen said Draper didn't think he had to disclose that he held trust deeds in the development.

"He believed that the only type of conflict of interest was if he had an ownership interest," he said.

Hansen then said Draper has financed and held trust deeds on several lots in the Genola Meadows subdivision.

Hansen also said several lawsuits that were previously filed against Draper and his son, Dale Draper, who was hired as project manager for the subdivision, were dismissed with prejudice. One of the lawsuits had a $250,000 default judgment against Dale Draper.

Residents of this small Utah town raised concerns, saying Draper had a compelling conflict of interest when he participated in votes on the Genola Meadows subdivision because the councilman has held three trust deeds in the development. There has also been argument over the subdivision because eight of the 10 lots range in size from 2.08 to 2.31 acres — smaller than the 2.5-acre minimum mandated in town zoning.

The issue came to a head when Genola resident Emily Clinger filed a formal complaint June 19 with Hazelet, stating she believes Draper violated state code by failing to disclose that he held trust deeds in the 10-lot subdivision located at 350 E. 800 North when he voted 'aye" with council member Vail and Hazelet May 28 to lift a temporary ordinance that prevented the town from issuing building permits for the subdivision.

"I believe Councilman Bryan Draper has violated Utah Code 10-3-1308 by holding investments trust deeds in the Genola Meadows subdivision and failing to disclose this in a public meeting," she wrote.

Hazelet said he's researched the issue and feels there might have been a misstep in protocol.

"I felt there was a conflict of interest during my research," he said.