“It’s my belief that if that stands true, there’s a conflict with a section of our charter that restricts council members from having any interest in a contract or service that the city is involved with,” said Joshua Long, vice president of Xenia City Council.
The city asked the state to look into the issue, but neither the State Auditor’s Office nor the Ohio Ethics Commission have completed their investigations. Long said that, unlike the Auditor’s Office and Ethics Commission, which will focus on a violation of state law, the council’s inquiry is concentrated on a potential violation of city charter.
Louderback called the inquiry a trial by a “kangaroo court” and, in a joint statement, both councilmen claimed it wasted taxpayer money “in a politically driven effort” to remove them from council.
“I feel that the action you’re contemplating tonight is a serious step toward taking away the voice of the voters,” said David Buccalo, one of several Xenia residents to face council in defense of Caupp and Louderback on Thursday night. “I think you need to step back and let the Ethics Commission to its job.”
Louderback and his wife planned to invest $37,500 in the project, according to city documents. It is unknown how much Caupp planned to invest.
In an earlier interview, Louderback and Caupp told this newspaper they talked to the city manager and received a legal opinion from the city law director before getting involved in the project. Both have said they had no intention of voting on anything concerning the project after becoming personally involved.
The city charter prohibits council members from having any “interest” in contracts, jobs, work or service with or for the city, and bans council members from profiting from them.
“There is no precedence for this,” Long said. “The outcome of the inquiry is not determined.”
However, if there is a determination the councilmen violated the charter, criminal charges could be filed. The councilmen could also lose their seats on the council, according to the charter.
Caupp said both he and Louderback have no current involvement with the project, which he described as “unfortunately, probably dead.”
According to Long, Starmax and High Velocity Entertainment Xenia pulled out of the deal and Creative Entertainment Concepts and Genesis Development are still seeking funding.
The public inquiry will be held on Aug. 19-20 at city hall, 101 N. Detroit St.
About the Author