Councilman’s Business Activities Blur Conflict Of Interest
After a month long investigation KESQ discovered at the beginning of the year, Rancho Mirage City Councilman Scott Hines introduced Kevin Blessing of the Capitas Real Estate Group to Rancho Mirage city leaders. Reports show didn’t however reveal their professional and possible personal relationship.
Hines is a real estate agent with blessing’s Capitas real estate company. His picture was listed on its website.
At the time the two wanted Rancho Mirage to finance the Capitas group’s purchase of Porcupine Creek, the former estate owned by Tim and Edra Blixseth. There appears to be a conflict of interest because according to documents we obtained, Councilman Hines and Blessing would have brokered the deal.
Hines said because of his schedule he couldn’t sit down for an interview. He did however write in an email, “I follow the rules. But, it is a common ploy by political detractors to file unsubstaniated complaints against opponents. Any partisan attacks on this nature are frivilous. I’m not intimidated by troublemakers, most of whom operate anonymously.”
Ira Laufer ran against hines and lost by 11 votes. Laufer is still on the city’s planning commission and says he’s seen the conflict of interest firsthand. Laufer spoke about the potential conflict of interest, “That’s not what we put people in council for. Rancho Mirage is a great place.”
In February, Hines set up a meeting between himself, Blessing and a lawyer for the Ritz Carlton Hotel without letting anyone at City Hall know about it.
Hines and Blessing tried to broker a deal to again use city bond money to complete construction of the hotel. This appears to be another conflict of interest.
Emily Hemphil is the lawyer for Ritz Carlton Hotel. She said, “It was at that point he said Capitas would play that role (of managing the bond), and I realized there was a conflict of interest.” The Ritz Carlton found other funding and plans to open soon.
Hines writes in an email to KESQ: “I was elected to invigorate the city with fresh, new ideas that come from my experience in the business world. I have disclosed any conflicts and recused myself when appropriate. I have no conflicts in this matter.”
We asked Rancho Mirage city attorney Steve Quintanilla about the meetings and possible conflicts of interests. “I always like to be involved when any members on the council meet in case there are any legal concerns and any legal issues,” said Quintanilla.
Hines has not been accused nor is he charged for his involvement in either proposed deal.
Both deals fell through. The Porcupine Creek was purchased by a private party. The Ritz Carlton has found new funding options.
