Mayor Jerry Thorne disclosed at the start of a public hearing July 19 that he owns shares of Costco Corp. stock.
He then promptly stepped down from the dais so as not to participate in the two-hour discussion and decision that followed on a proposed land-use initiative for the Nov. 8 General Election ballot that will determine if Costco can build a 148,000-square-foot membership store on Johnson Drive.
Thorne’s announcement came as a surprise, but it shouldn’t have. He’s owned Costco shares with a $2,000 to $10,000 fair market value at least since April 6, 2015 when he signed and filed Form 700 (“Statement of Economic Interests”) with the state’s Fair Political Practices Commission.
He just didn’t tell us, and proceeded to meet with a city task force he appointed that was considering land-use zoning changes that would allow big box stores like Costco to build on Johnson Drive.
During this time, it was also stated at City Council and other public meetings that Costco had signed a letter of intent to buy some or all of the 40 acres on Johnson Drive, including the site of the former Clorox Co. research center that had been torn down.
Like many small investors, Thorne had turned his portfolio over to a financial adviser, who buys and sells stock almost daily based on expertise and computer savvy. These advisers then send statements, usually once a quarter, to let clients know about their holdings. It just so happened that Costco shares were among Thorne’s holdings when he submitted his Form 700.
Still, he knew of the city’s involvement with Costco at the time and should have quickly sold those shares which he has now done, and also announced this transaction publicly. But he didn’t.
Waiting until others saw the possible conflict puts the mayor in ethical hot water. City attorney Daniel Sodergren told Thorne he will need a letter from the FPPC clearing him to participate in future City Council actions involving Costco and Johnson Drive.
If the initiative before voters on Nov. 8 is approved and Costco is banned from building here, the issue is moot. Otherwise, the mayor and his Costco stock will prove to be a political dilemma in the year ahead.
