04/05/2006

Put two real estate agents and the owners of sign, lumber and steel companies together in a room and what do you have?

Sussex County Council.

The elected body has been together seven years, presiding over an unprecedented construction and population boom. Each also has a business that profits in varying degrees from development, leading critics to charge that members are pro-growth in part because they benefit personally.

"They have become a blank check for developers and have self-interest at heart," said A. Judson Bennett , who lost a 2004 bid for council by three votes. "It shows a lack of integrity."

Members insist they have no conflicts of interest and have recused themselves from votes in any situation when they had a business relationship with a developer with a council proposal.

Members are paid $23,755 annually plus health care benefits.

Councilman Dale R. Dukes echoed colleagues in saying that running his business does not interfere with his public duties. "I did that before I got on County Council, and I'll do that after I get off County Council," he said. "I've been elected every time [with voters] knowing I own a lumber yard."

In 2000, the state Public Integrity Service Commission investigated council after a resident said Dukes should not vote for a rezoning of 887 acres for the Americana Bayside project because he might later sell lumber to the project.

The commission also examine whether the other members would have conflicts. All five denied any deals with the developer, Carl M. Freeman .

The board ruled that a conflict did not exist because there was no evidence members had any interest in the project, let alone one that would impair their "independent judgment."

Members only had "a potential speculative interest," which is insufficient to require recusal, the board ruled.

Bayside later was downsized from 2,900 to 1,640 homes, and the rezoning was approved.

All councilmen said their businesses have not performed any work on the project.

Janet Wright , the commission's attorney, said the law does not forbid elected officials from doing work for a project after they vote, as long as they recuse themselves if the project were to come back before the body.

The ruling disappointed resident Stephen E. Callanen , who had filed the complaint. "They are in the businesses they are in because they have an interest in seeing growth continue," he said of members. "And they are certainly seeing to it that the development continues at this high pace."

SUSSEX COUNTY COUNCIL MEMBERS

Dale R. Dukes ,  

Democrat; Laurel , Seaford area; Elected 1988  

Owner, Dukes Lumber Co.  

“I do not vote on any customer I sell to,” Dukes said.

When a contractor he sells to needed council approval to move an an office, “I recused myself and sat in the audience.”

Dukes will sell to a project he approved. “I have a right to as long as I don’t have a previous relationship, and they don’t say, ‘If you support me I’ll buy my lumber from you,’ ” he said.

His business, Duke said, is one of several large Sussex suppliers taking advantage of the demand for lumber. In 2005, the company had its best year, with about $18 million in revenues.

“I don’t care what they say,” Dukes, 65, said of critics. “I can lay down at night.”

George B. Cole  

Republican; Rehoboth Beach , Bethany Beach area; Elected 1986

Realtor with RE/ MAX by the Sea, owns Beach Plum Antiques

Of the five members, only Cole has consistently opposed sprawl. But he has made decent money as a part-time agent.

Last year, he sold four properties, including one for $2.7 million that earned him a commission in the upper five figures.

He has worked in offices at two subdivisions, Salt Pond and Savannah ’s Landing, that council approved. Cole said he sold a few dozen of the 600-plus lots. He worked there because he “had no connection” with developers and could work part time.

Cole said he has listed properties in projects he opposed, such as a recent home in Sea Colony, but didn’t see a problem, and has recused himself from votes concerning homes he had previously listed as an agent.

“You can wear different hats,” said Cole , 55. “You just have to separate them and not have them overlap.”

Lynn J. Rogers  

Democrat; Milton , Lewes , Milford area; Elected 1996

Owner, Rogers Sign Co.

Clients of Rogers ’ sign company, which he called one of Delaware ’s biggest, include developers, outlet stores, communities and restaurants. One banner on his Web site was done for the Robino development firm.

While the building boom has created clients for Rogers , he said it also has cost him work.

“Once I got on council, many people I worked with would no longer deal with me,” he said. “They would come before council, and I’d have to recuse myself so they stopped calling me.”

Rogers , 52, said he doesn’t do work for many of the large, out-of-state developers because they have their own sign providers.

His firm doesn’t seek developer work, he said, but “if they come to me, we’ll price it out.”

Vance C. Phillips  

Republican; Laurel , Delmar, Selbyville, Fenwick Island area; Elected 1998

Realtor for Laurel Realty , president of Vance Phillips Inc.

He mostly limits real estate work to helping “farmer friends” buy or sell land.

Some land stays in farming and some becomes subdivisions. “If a rural property owner wants you to get them the highest value for their property, you do the research, and if it’s worth developing, you show them what you think it’s worth,” he said.

He doesn’t like selling homes but “some fall into your lap, and you try to help folks,” he said.

Phillips , 43, also sells lots owned by Blue Ribbon Properties LLC, which is building the 57-home Shiloh Woods near Laurel and is partly owned by his children’s education trust.

He hasn’t had to recuse himself from votes involving the subdivision because projects that don’t require rezonings appear only before the Planning and Zoning Commission.

“If it ever did come before council, I would recuse myself.”

Finley B. Jones Jr.  

Democrat; Greenwood , Bridgeville, Georgetown area; Elected 1996

Owner, M.A. Willey & Sons, a steel materials supplier

Contractors who buy Willey’s steel to reinforce foundation footings are mostly small-time operators who build a few homes at a time, Jones said.

“I can’t compete with the big guys,” Jones said. “All I usually deal with are one- and two-man operations. None of the big developers that I know have come in and bought steel from me.”

Jones, 56, said his business does between $500,000 and $650,000 a year, with no upsurge during the recent boom.

“A normal 1,800-square-foot home might use $100 worth of rebar” steel, he said. “So the people who think I’m making millions are so full of crap. Our average sale is 50 to 100 bucks.”

Contact senior reporter Cris Barrish at 324-2785 or cbarrish@delawareonline.com.

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