Conflict of interest in Genola?

Greenwood said he thinks Draper has a compelling interest in the future of the development because if the lots fall into foreclosure, Draper obtains the titles, along with added infrastructure.

"He clearly had a personal interest in it," Greenwood said.

There is also concern Draper's son, Dale, has been called in to act as project manager for the development. According to a contract dated Oct. 25, 2006, Dale Draper was expected to review all real estate and trade documents and oversee construction at the development for $18,900. But Greenwood said he's concerned because the job wasn't put up for bid.

"Why didn't we bid it out?" he asked Hazelet at the May 28 meeting.

"Because the price was low enough that we didn't bother," Hazelet said.

Court documents show that nearly a year before the town hired Dale Draper, a default judgment of $250,000 was placed against him after he was accused of fraudulent real estate activity.

The subdivision has been a divisive topic for the community for several years. Recently, objections were raised because eight of the 10 lots range in size from 2.08 to 2.31 acres — smaller than the 2.5-acre minimum mandated by town zoning.

In the May 28 meeting, Hazelet reportedly said the subdivision was plotted using a method where lots were measured at a minimum size of 2.5 acres and then roads were dedicated. Clinger said that conflicts with current ordinances that require road dedication before lot measurement.

Hazelet said the council removed road dedication from the subdivision ordinance in October 2006. Greenwood said a revised ordinance has not appeared in the records, but Vail said the process was completed legally except for one detail.

"It was legally and lawfully done," he said in a recording of the meeting. "We did everything correctly, it just didn't get written and put in the books."

But all that matters is what's on the books, Clinger said, which is what this whole situation is about.

"I'm just trying to maintain the law," she said.

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