Can a board member who owns a business review a subdivision application abutting the business?
May 31, 2006Q: Can an elected planning board member who is also a business owner participate in the review of a residential subdivision application for property abutting her business?
A: No, according to the State Ethics Commission. Under the conflict of interest law, a property owner is presumed to have a financial interest in matters affecting abutting and nearby property. Thus, unless she can clearly demonstrate that she does not have a financial interest, a public employee should not take any action in her official capacity on matters affecting property that is near or directly abuts:
• Her own property
• Property owned by a business partner
• Property owned by any immediate family members
• Property owned by a private employer, or prospective employer
• Property owned by any organization in which the public employee is an officer, director, partner or trustee
Otherwise, she risks violating the conflict of interest law.
The following factors are considered to determine whether, in a particular situation, a person or organization has a financial interest in an abutting or nearby property. A financial interest is presumed whenever her property directly abuts (i.e., it shares any part of a property line); or her property is directly opposite a street, public way or private way, or she is an abutter to an abutter within 300 feet of the property line; or she, because of an act or failure to act by the board or commission, may suffer an injury in fact which is different either in kind or magnitude from that suffered by the general public; or the matter would otherwise alter her property value, rights, or use.
For example, a property owner is presumed to have a financial interest in zoning changes, variances, nearby subdivision or development approvals, and roadway, sewerage or safety improvements.
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