The Genola mayor took action Wednesday night in a Town Council meeting amid allegations of a councilman's conflicts of interest in the Genola Meadows subdivision.

In a Town Council vote in Genola on May 28, Bryan Draper made no response to repeated requests that council members disclose any conflicts. Draper then joined in a vote to lift a moratorium on the subdivision, which has come under fire for containing lots with sizes below the town's requirement of 2.5 acres.

"At the end of last month, we voted as a council 3-2 to lift that moratorium," Mayor Eric Hazelet said. "Because I felt that there was a conflict of interest, I put it back on [the agenda Wednesday] that we would vote again with that conflict of interest disclosed."

Although the council was to re-vote on the moratorium Wednesday, Hazelet said he had been advised by the attorney general's office not to do so. Councilman Michael Vail was excused from the night's meeting, and the council could not vote on the same measure without the same number of council members present as the initial vote. Vail was hospitalized Wednesday after a heart attack.

While a vote could not be taken, Hazelet and the council heard a prepared statement from Draper's lawyer, Bill Hansen, citing different allegations of conflicts of interest raised by the public and the media. Hansen said he does not believe there was a legal conflict of interest, but Draper now wants to disclose all interests in the Genola Meadows subdivision out of an "abundance of caution."

Hansen acknowledged that Draper holds the trust deeds to two lots in the subdivision, but he said no disclosure was made because Draper did not have an "ownership" interest in any lots. Draper also obtained the trust deeds after the town approved the subdivision in July 2007.

"At this time, Mr. Draper had no interest in the Genola Meadows subdivision whatsoever," he said.

Hansen also said legal action in the suit against Draper and his son had been set aside and dismissed with prejudice, which could indicate a settlement or an error in bringing the suit. Also, Old Republic agreed to set aside the default judgement made against Dale Draper.

Councilman Chris Greenwood questioned whether Bryan Draper believed the lawsuit was justified and whether $100,000 had been paid to settle the cases.

"That's privileged information, of course," Hansen replied.

Greenwood and Hansen sparred over several legal terms used in the statement concerning Draper. Hansen said allegations were made that alluded to wrongdoing by Draper, but he again referred to the lawsuits being "dismissed with prejudice." He said a lawsuit was never served to Draper or any of the other defendants, but Greenwood pointed out that may be common procedure when a settlement is being worked out.

Hazelet announced several decisions resulting from his own research of the conflicts with the development, including cancelling the contracts of A-Team Realty and Dale Draper.

"One of the thing's I've done is verbally discussed with A-Team Realty, and they have agreed to drop our contract," he said.

Hazelet said the cancellation paperwork had not been received in time to vote Wednesday. Two lots have already been sold through the Realtor, but Hazelet said the town will not be responsible to pay the company for any further sales.

Hazelet also said Draper will no longer be in charge of the water department, which will now be overseen by Vail and Hazelet. The mayor also emphasized that he does not intend to embarrass anyone, and he has appreciated Draper's long service on the council.

After the meeting, Hansen emphasized that he does not believe Draper acted incorrectly, but someone who is not legal-minded could have seen a conflict of interest. Hansen said Greenwood's comments were self-serving and he has shown he has an agenda on the subdivision.

"I think he's trying to put the Drapers in as bad a light as possible," he said.

Genola resident Emily Clinger said she is glad the town has taken action on the issue, and she is anxious to see what more the mayor will do. She said she is encouraged by the meeting, but she said it seems the town will take the position that Draper did not know he had a conflict.

"If it was me, I would believe I have an interest in that," she said.