http://www.duluthsuperior.com/mld/duluthsuperior/news/8215371.htm

Posted on Thurs, Mar. 18, 2004

Group questions Dill's ties to snowmobile club

BY SCOTT THISTLE

NEWS TRIBUNE STAFF WRITER

ST. PAUL - State Rep. David Dill was on the political defensive Wednesday after a Northland environmental group requested an investigation into his relationship with Voyageur Trail Society Inc.

Duluth-based Minnesotans for Responsible Recreation asked the state auditor to investigate how Dill and the city of Orr have handled state grant-in-aid money allocated for snowmobile trail construction and maintenance.

In addition to representing District 6A in the Legislature and serving as Orr's city administrator, Dill works for the society, a nonprofit umbrella organization that serves five northern Minnesota snowmobile clubs.

Minnesotans for Responsible Recreation has documents that say Dill was paid $2,250 a month by the society in 2001. The society also paid $440 a month to cover family health insurance premiums during 2002.

Dill, DFL-Crane Lake, has been on the society's payroll for at least 10 years.

"I was put on the payroll," Dill said Wednesday. But he added "I wasn't an officer, and I don't handle the money."

Jeff Brown, executive director for Minnesotans for Responsible Recreation, believes Dill has a conflict of interest. He said Dill holds the top administrative post for Orr, which is fiscal agent for grant-in-aid money going to the society. Annually, the city funnels $80,000 in state snowmobile trail grant money to the trail group.

"He is, in fact, a staff person employed by the fiscal agent and the grant recipient," Brown said.

He cited city records that show Orr was paid $5,000 by the society to cover Dill's salary for time Dill spent working as a trail administrator. That flow of money, Brown said, should raise concern.

"Why are they taking club money and giving it back to the city?" he asked.

Dill, who is on leave from the city while in St. Paul, said the money paid for economic development work he performed as city administrator through a partnership Orr has with the club and others.

Brown conceded Minnesotans for Responsible Recreation can't prove the society paid Dill with grant-in-aid money, saying the money is merged with other revenue the society collects, including its pull-tab gambling income.

The News Tribune could not reach Voyageur Trail Society President Joel Astleford for comment Wednesday.

Legislation pending in the Minnesota Senate would prevent such relationships, prohibiting grant-in-aid fiscal agents from also working for grant recipients.

"We should all be interested in sound accountability for these state funds," said Sen. Scott Dibble, DFL-Minneapolis, a co-sponsor of the bill.

Dibble said his legislation is not prompted by the Dill matter. He agreed it could be difficult for public leaders in smaller communities to avoid obvious conflicts of interest.

"But certainly, a grant administrator can't likewise be a grant recipient," Dibble said.

He said his goal is to ensure that public money allocated for snowmobile trails is serving its intended purpose.

With more than 100 snowmobile trail administrators in Northeastern Minnesota, Brown is most troubled by the lack of public oversight on how they spend grant-in-aid money.

"If they are all being paid at the David Dill rate, we would have over $4 million going out the door," Brown said.

Dill said there is nothing illegal in the way Minnesota grant-in-aid money is handled by him or the city of Orr. He contends Minnesotans for Responsible Recreation is waging a smear campaign during an election year.

"This is wholly political, and they've been on this kick for a long time," Dill said. "This MRR is the extreme of the extreme, and they are going to do anything they can to get after me."

Another Northland lawmaker said the group was attacking Dill because they oppose all motorized recreation.

"These people are so far out there. They want to ban everything," said Rep. Tom Rukavina, DFL-Virginia. "This is a concerted effort to go after his character, but this is an upright and honorable man."

Wednesday's accusations were the second lodged this month against Dill. On March 3, DFL officials called on the state's Campaign Finance and Public Disclosure Board to investigate Dill's 2002 election campaign, contending he exceeded state spending limits, misrepresented expenses, accepted illegal gifts and failed to file reports on time.

Dill denied the March 3 allegations, also saying they were politically motivated.