TRACY — Tracy Mayor Anthony Dimmers once again asked Tracy City Council member Tony Peterson to voluntarily abstain.

Council member Jeri Schons pleaded with him to reconsider with not complying with Dimmers’ request.

Instead, Peterson doubled-down on the assertion he has no conflict of interest when it comes to making decisions involving his employer Jeff Salmon. But in the end, his fellow council members censured and suspended Peterson from participating in today’s 6:30 p.m. hearing to decide whether or not Salmon will continue to sit on the Economic Development Authority board.

Salmon is facing a complaint of “malicious character attacks” filed with the city by businessman James Mattson.

The council also voted to request Salmon to resign from the EDA board before the hearing.

That action was followed with a lawsuit threat against the city by Salmon’s attorney, Kevin Stroup of Stoneberg, Giles & Stroup in Marshall. He said the lawsuit that would be filed this morning would seek a temporary restraining order pending a final decision by the court.

When reached Tuesday night, City Administrator Kris Ambuehl brushed off the lawsuit threat as “fear mongering to intimidate the council.” He believes the council and city officials followed Minnesota state statutes, city charter and city codes throughout the whole process.

“Personally, I find it kind of repulsive,” Peterson said of the conflict of interest claim during Monday’s meeting.

At the July 8 Council meeting when discussing the same conflict of interest issue over the allegations against Salmon, Peterson refused Dimmers’ request for him to abstain.

“I resent the fact that you assume that I have a conflict. I don’t know where you come with that,” Peterson told Dimmers.

On Monday, Peterson repeated his stance against the conflict of interest claims. But Peterson eventually offered to compromise on not voting and second any motions involving the Salmon issue. But he vowed to be heard.

“I will not be silenced. And if that’s not good enough, I don’t know what else to do. It’s up to the board. But to tell me that I cannot participate in this after being a duly-elected officer the third time is offensive,” he said

The compromise offer followed Ambuehl’s conflict of interest presentation. He reported on answers given on sent emails to the League of Minnesota Cities and City Attorney Matt Gross with questions the council had on conflict of interest.

Pamela Whitmore, collaboration and mediation program manager with the League of Minnesota Cities, said she could not offer legal opinions or advice. She did offer general information on the law and Tracy’s city code involving conflict of interest.

In his memo, Gross said employment alone by the council member by the contracting party is not a conflict of interest in contractual situations. But urged the council to “err on the side of caution.”

“The appearance of any conflict of interest, even if it is not present, creates more problems with the perception of the council and its decisions,” he said. “Erring on the side of caution with these matters strengthens the public’s trust in the council and helps avoid liability and legal challenges with the council’s decision.”

Both Whitmore and Gross said censure is an option to address a council member’s failure to abstain when a conflict of interest is present.

Conflict of interest wasn’t the only factor working against Peterson’s stance to participate in the hearing. His name was mentioned in the complaint filed by Mattson, which was attached to a 338-page legal memorandum prepared by Gross. The city released the memorandum to all members of the council and to the media prior to Monday’s meeting.

In his complaint, Mattson asked and “praying” to have the city file a formal complaint against Jeff Salmon. “In addition, I am asking and praying he is removed from the EDA for this act of sabotage of my business and my character within the city of Tracy. As well I am asking and praying Tony Peterson to be removed for his actions toward me and my company.”

The memorandum also contained emails, minutes from past EDA board meetings and a redacted background and credit report. The memorandum also alleges Salmon violated the Open Meeting Law, EDA committee members codes of ethics, violation of the Fair Credit Reporting Act and city codes.

During Monday’s meeting, Peterson complained he didn’t even know he was named in Mattson’s complaint until he read it in a July 17 newspaper article on the legal memorandum.

“I always believed that any problem should be solved at the lowest possible level and that particular complaint that you (Ambuehl) acted upon should have been brought to the board,” Peterson said. “Then for me to find out in the Tracy paper that I was on it.”

Neither Dimmers, Schons and council member Kou Thao were swayed by Peterson’s arguments and rejected his compromise.

“My concern to me, Tony — it’s not your integrity or anything like that. But it’s also the appearance to the public,” Schons said.

Dimmers agreed saying there is a conflict of interest and there is not a partial way to participate.

“I’m not trying to insult your integrity. It’s just that I believe there is a conflict and if that’s the case — and I’m correct — then you can’t participate,” Dimmers said.

Schons asked Peterson to reconsider, but he refused.

“I just think there is too much evidence‚ sorry, Tony,” she said before making a motion to censure and suspend Peterson from participating in the Salmon issue. Thao offered the second and the motion passed with Council Member Dave Tiegs voting no.

Just before the vote, Peterson asked if he could testify during the hearing if asked by Stroup.

“I don’t think we can deny you that right,” Schons said. “That’s part of the reason I’m making the motion, because I know you are personally involved. So it wouldn’t surprise me if the lawyer would call you to testify. … This makes it easier for you.”

Before the meeting ended, Schons made two more motions. The first motion called to suspend Salmon “from any or all EDA meetings and activities pending the outcome of the hearing on Wednesday.”

Thao again offered the second before it was approved. Tiegs again voted no.

The second motion urged Salmon to resign before tonight’s hearing. Thao made the second, and Tiegs was once again the only no vote. Ambuehl said he will instruct the Gross to deliver that request to Stroup.

Salmon’s lawyer delivered a statement to the council during the public comment portion of the meeting. He urged the council to “quash” tonight’s hearing. He then went over the three complaints against his client, arguing there were no violations.

Stroup’s reply to Gross’ request for his client to resign before tonight’s meeting was dropped off at the Independent office.

“It was not on the agenda that there would be a discussion and vote to temporarily suspend Mr. Salmon,” the memo states. “Interesting that discussion on the agenda occurs and the agenda is ‘locked,’ but then the council promptly ignores their self-imposed and supposedly absolute agenda.”

“Their attempt to remove Mr. Peterson is an illegal act,” the memo also stated. “It needs to be rectified now — or the request is going to be made that the council resign on the basis they are acting illegally.”

Mattson and his wife, Lisa, also spoke during public comment.

He repeated a quote by Peterson in a newspaper article on the July 8 meeting.

“This fly by night came to town and act like the city owes him something. The city did owe me something. They owe me to be treated like everybody else,” Mattson said.

His wife reminded the council about the alleged Fair Credit Reporting violations.

“What was done was done improperly. It has to be done in a very specific way,” she said.