A newly elected Portland city councilor is under pressure to sit out discussions about developing the Maine State Pier now that her former employer has expressed interest in the multimillion dollar project.

A bloc of three councilors is questioning Dory Waxman’s objectivity when it comes to Ocean Properties, which stepped forward after negotiations with the front-runner for the project, Olympia Cos., collapsed earlier this month.

Conflict of interest

Councilors John Anton, Kevin Donoghue and David Marshall believe Waxman’s history of working for Ocean, and the campaign contributions she took from its executives, creates the appearance of a conflict of interest and would damage public perception as the council begins plotting a new course for the pier.

“If there’s ever a project with a contentious history that suggests someone should err on the side of caution, it’s this one,” Anton said.

Waxman, who worked as a community organizer for Ocean Properties, said she has no plans to step aside during the pier debate.

“I don’t think I’m going to tarnish anything,” she said. “And if people felt that way I don’t think they would have voted for me.”

Waxman’s tie to Ocean Properties was first raised during her successful campaign to unseat incumbent Mayor Ed Suslovic. It has resurfaced as the city prepares to swear in Waxman and other City Council members on Monday. The new nine-member council will renew the debate of the future of the publicly owned pier.

Pier up for development

The former council voted Nov. 17 to end contract negotiations with The Olympia Cos. on a $100 million deal that would put a hotel and office complex on the pier and land nearby.

The vote ended nearly a year of negotiations with Olympia, which defeated Ocean in a sometimes bitter, two-way contest for the right to develop what many observers consider Portland’s most coveted piece of public land up for development.

While councilors have said they plan to weigh a number of options for the pier, the Portsmouth, N.H.-based Ocean Properties will at least play a role in the initial talks about the pier’s future.

Ocean officials reiterated the company’s interest in the project during a meeting with City Manager Joseph Gray earlier this week.

Campaign contributions

Three of the Ocean supporters – Waxman, Duson and Skolnik – received at least $1,000 each in campaign contributions from company officials, their families, unions and others who publicly supported Ocean during the pier debate.

Waxman, however, once worked for Ocean as a paid contractor. She spent five months working as a community organizer for the company as it competed for the pier project last year. She helped arrange community meetings about the Ocean’s vision for the pier.

No plans to step aside

As a councilor, Waxman is now in a position to vote on whether Ocean should get the development project. Waxman said she consulted with City Attorney Gary Wood, who said she falls short of the legal standard for a conflict of interest and could vote if Ocean came before the council again.

She said she will follow his advice, despite objections from Anton, Donoghue and Marshall.

Waxman said she would “never” use her position to do a favor for an old employer or campaign contributor.

“I don’t operate that way. I never would,” she said.

Both state law and the city charter require councilors to abstain from voting when they have a stake in a company that’s appearing before the council for a vote. State law sets the minimum threshold for a conflict of interest at 10 percent ownership. State law also says elected officials should attempt to avoid the appearance of a conflict of interest in order to maintain public confidence in their work.

Ocean Properties is headed by developer Tom Walsh. Robert Baldacci, who was part of the Ocean team that competed for the pier project and is now a consultant for the company, is part of an investment group that has signed an agreement to purchase Blethen Maine Newspapers, which includes the Portland Press Herald.