Mayfield Heights Council to Investigate Deal Between Mayor, Development Company

Mayfield Heights City Council will hire an attorney to investigate a contract between Mayor Gregory Costabile and Seagull Development Company.

Council President Michael Ballistrea said Costabile would not share details of the contract with council, so research needs to be done to determine if there is any conflict of interest. Council voted 4-2 Monday to hire legal counsel, with Councilmen Ronald Kobunski and David Sasak and Councilwoman Donna Finney in favor along with Ballistrea.

Councilmen Joe Mercurio and Anthony DiCicco voted no, while Councilwoman Diane Snider abstained because her husband is a union official for the police department.

"Council just wants to be transparent and have full disclosure," Ballistrea said.

Ballistrea said Costabile was part of a gas well aggregation group that signed an agreement with Seagull in 2008. Although Costabile excused himself from later city business with Seagull, Ballistrea said that may not be enough to ensure there was no conflict involving a 2009 city easement granted to Seagull. Costabile excused himself from taking part in that agreement and the contract was signed by Ballistrea.

Costabile said he advised the city's law director of his private contract, for which he will receive a portion of royalties for leasing mineral rights under the non-drilling lease, and has had no subsequent involvement in any city dealings with Seagull.

"They chose to ignore that. It's really a waste of taxpayer dollars," Costabile said.

He said that he can keep certain details of the lease private as a private citizen.

"They have all these facts," Costabile said. "There have been no inappropriate actions taken."

"Look at my body of work. Has there been any influence in city contracts? The answer is clearly no," he added.

Mercurio said the matter was personal with some council members.

"I think it's unfortunate that tax money is being used for a personal vendetta of a few people," he said.

DiCicco said there was no evidence anything has been done wrong and no reason to investigate.

But Ballistrea said council is still looking for evidence that has not been supplied.

"You don't have the evidence and then conduct an investigation," he said.