Todd Penske, 1st Ward Austin City Council member, may submit his resignation from the council in the next few weeks.

Sunday, December 05, 1999

Todd Penske, 1st Ward Austin City Council member, may submit his resignation from the council in the next few weeks.

The reason for his possible resignation is a possible conflict of interest, when the council considers a land transfer involving Cooperative Response Center. Penske is the firm’s president.

The resignation could come at Monday’s regular meeting of the council or Thursday, when the council’s finance committee meets to consider the land transfer.

"Unfortunately, this may have to happen," acknowledged Councilmember-at-large Richard Chaffee, whose position Penske was appointed to last year. "As a citizen and a person on the council, you have to weigh what’s best."

If all things proposed and hoped for by CRC and the council fall into place, CRC would find itself in the position of buying from the city, which would create the conflict of interest. The city code requires all seven members of the council to vote on some issues, including land transfers.

While Penske could not be reached for comment on Friday or Saturday, Chaffee and Mayor Bonnie Rietz said should he have to step down, he would be sorely missed.

"He is doing a very fine job as councilman," Rietz said. "We, the council, however, simply can’t move forward with the project if he’s on the council."

"With the past year, and his great technology background, he was an excellent candidate," Chaffee said. "On this council, it takes about two years to figure out where you’re going, so it would be sad to lose Todd at this point. Him being an honorable person, he’ll make the right decision."

Rietz described CRC’s possible move to Austin as an "excellent project."

"We’d be getting a very good company," she stressed. "We want to be able to have CRC in Austin; I believe they have 50 employees now and plan to add 30 more positions in the future."

CRC is now located in a building at the intersection of Interstate 90 and Highway 56 east of Austin. It is expected to move into the building occupied by the Joseph Company along 18th Ave. NW in Austin, and bring over 40 jobs with it.

In turn, the Joseph Company would move into the speculation building built by the city of Austin in the Northeast Industrial Park, formerly occupied by Edge Concepts.

That business failed.

Although details have yet to be revealed, it is expected the Joseph Company will be able to acquire the land and former Edge Concepts building in the city-owned industrial park for less than it cost to acquire and build.

If the finance committee approves the transaction and recommends it to the council for consideration Thursday, the Joseph Company will trade their 18th Avenue NW land and building to the city, who will, in turn, sell the same to CRC for $1.

If Penske does, in fact, resign his 1st Ward post, that would create a situation seemingly common to the city’s 1st Ward, where Mayor Bonnie Rietz would have to appoint a successor to fill his unexpired term. He himself was appointed to fulfill the two years left in Chaffee’s term when that councilman was elected to the Councilmember-at-large position in 1998.

Neil Fedson gained the other 1st Ward council post through appointment as well, when he was appointed to fill Roberto Romo’s unexpired term. Romo resigned when he went on leave of abscence from Riverland Community College to return to Spain to take care of personal concerns.

Chaffee also noted that in a community the size of Austin, conflicts like Penske’s arise with some frequency.

Rietz reminded all council members they must be present for Thursday’s meeting, which begins at 4:30 p.m. in council chambers at the Austin Municipal Building.

Both Rietz and Chaffee said should Penske not need to resign, they would be delighted to have him stay on the council, and didn’t want to chase him off if there turns out to be no need.