SAN CLEMENTE : Official Resigns Amid Allegations

Beset by conflict of interest allegations, Harold Joseph has resigned from the city Planning Commission.

Joseph sat through the Planning Commission meeting Tuesday night before surprising the commission with his announcement that he was quitting “in the best interests of the city.”

He is being investigated by the Orange County district attorney’s office for allegedly violating conflict of interest laws by voting on three San Clemente housing projects being developed by a company in which Joseph owned $10,000 in stock.

The resignation ends a two-year controversy over Joseph’s connections to Centex Development Corp. that began in 1988 when he acknowledged receiving a finder’s fee of more than $10,000 for guiding the developer to property where the company is now building 398 homes.

“I feel terrific now that it’s over,” Joseph said. “I feel like a 10-ton weight is off my back. I know I’ve done the right thing for the city, my wife and myself. I know I’ve done nothing wrong, and there’s nothing for me to be ashamed of.”

Joseph’s announcement heads off a call for his resignation from the City Council, which was scheduled to vote Wednesday on sending him a letter asking him to step down.

“I don’t think he had any options,” Councilman Brian J. Rice said. “I think he realized that it was an embarrassment for the city. He says he did nothing wrong, and that is the saddest commentary of all.”

Joseph bought the Centex stock in April, 1989. He said he sold his Centex holdings when City Clerk Myrna Erway told him in late March that the stock might pose a conflict of interest.

Commission Chairman George Key said he never believed that Joseph was influenced by Centex or any other developer.

Still, Key said, “it’s always a difficult time when an individual under fire hangs on, thinking things will get better.”

The City Council will now decide whether to replace Joseph, who served on the Planning Commission for more than four years, or wait until his term expires in June.