Builder Ends VIP Sales Policy for Politicians

Though it sees nothing wrong with the practice, the Fieldstone Co. has reversed its longstanding policy of giving VIP status to elected officials and government employees, a spokesman said Monday.

Since 1981, when the company began building homes in the San Diego area, Fieldstone had offered the priority status so government officials and others would not have to wait in line for new home purchases--saving them the time and expense of hiring someone else to camp out for first choice on fast-selling properties.

In Carlsbad, for example, City Councilman Mark Pettine, planning director Michael Holzmiller and county planning director Lauren Wasserman all were recently put at the head of a list to buy Fieldstone homes in the company’s La Costa Alga Hills development, said John Barone, senior project for the company’s La Costa properties.

The company had long maintained that the VIP policy made good business sense. Because of recent adverse publicity, however, Fieldstone announced that it was scrapping the practice.

“For years, we had offered pre-sale registration as a courtesy not only to some public employees and elected officials, but to subcontractors, suppliers and consultants--people we believed we had established some relationship with,” Barone said. “But, obviously, that was not the public’s perception.”

Before reaching its decision, Barone said, the company recently consulted what it called “an independent tribunal” made up of a local clergyman, judge and educator for an opinion on the practice.

“We wanted an independent view on the issue, ‘Should we continue this?’ Is this type of preference appropriate?’ ” Barone said. “They indicated that, while they did not think our policy was ethically wrong, they also had to consider the negative publicity and the appearance of a potential conflict of interest with public officials.”

Barone said several news stories on the practice had influenced the company’s decision to consult the independent counsel--composed of the Rev. Duane Walker of Oceanside; James Burns, dean of the school of business administration at University of San Diego, and Municipal Judge Larry Sterling. None could be reached for comment Monday.

Once the public flap hit last month, Carlsbad Mayor Bud Lewis asked City Atty. Vince Biondo for a formal opinion on whether the arrangement represented a conflict of interest that could bar councilman Pettine, a deputy district attorney and leading slow-growth advocate, from voting on Fieldstone projects.

After conferring with the state Fair Political Practices Commission, Biondo decided that the deal was not a conflict or an improper gift because it did not result in a direct financial benefit.

Officials noted that only eight of the 33 homes--priced from $245,000 to $307,000--in the first phase of Alga Hills were presold. The rest were available to the public at the same price.

Barone said the panel expressed full confidence in Fieldstone, despite appearances.

“They said we were an ethical company and didn’t try to influence anyone,” he said. “But they said there were also things in dealing with public officials that we had to consider.”