A Sitka businessman has filed multiple lawsuit against Assembly member Aaron Bean, who is currently running for mayor. Connor Nelson, who is married to Assembly candidate and former mayor Valorie Nelson, is seeking repayments for loans and eviction of Green Leaf Inc., a marijuana business Bean has operated since 2016.
Connor Nelson is married to Valorie Nelson, who is running for the Sitka Assembly. But the lawsuits are filed by Connor. He was a 10% shareholder in Green Leaf Inc. and in 2016, leased his two buildings on Halibut Point Road to Aaron Bean to get the marijuana business on its feet.
In February 2016, Nelson offered loans to Bean through cash contributions and direct vendor payments. The money was lent with the understanding that Bean would pay back the debt through multiple cash payments, the assignment of equity interest, and by eventually purchasing the buildings. That’s according to court documents.
Those documents also say that Green Leaf Inc. paid back some of the money. But, Nelson alleges in his complaint – filed in July 2018- that the business stopped making payments after a certain point. Bean denies this. Nelson also alleges that Bean backed out of a promise to purchase buildings housing Green Leaf. Bean also denies this, saying Nelson is the one unwilling to move forward with the building sale. Both parties say the other breached the terms of the lease.
Nelson is represented by Sitka attorney Brita Speck. He filed suit against both Green Leaf Inc and Bean, seeking $135,545.67 in debt payments. The complaint states, “Despite the repeated demand for payment, Bean refuses to enter into a written loan repayment arrangement or make consistent payments to payback the debt.”
Bean, represented by Homer attorney Erik Groves, filed counterclaims in August 2018. He said he agreed to purchase the two units for $180,000 each and to transfer 10% of Green Leaf capital stock to Nelson. As Bean describes it, Nelson is seeking payments in excess of what was agreed. The counterclaim continues that Nelson’s “refusal to consummate the real estate acquisition on the agreed upon terms will cause Green Leaf to suffer damages.”
Nelson flatly denied that notion. He answered the counterclaims on September 10th. On September 24th, he filed to evict Green Leaf from the property altogether. The eviction is based on Bean’s failure to pay for liability insurances, property tax, and an increase in Fire and Extended coverage due in November, among other damages.
In the “Notice to Quit” letter, Speck also wrote about Green Leaf’s failure to pay for liability insurance. The state discovered as much during a routine inspection in June 2017, a few months after Green Leaf opened. The Alaska Workers’ Compensation Board fined the business $5,500.
As for the eviction hearing, it will take place on Monday, October 8th, just one day before the election results are certified.
Raven News reached out to both Aaron Bean and Valorie Nelson asking whether, if both elected, the lawsuits would impact their ability to work together. Both said it would not.
Speaking over the phone, Nelson said she would be “as professional as possible.” She added that while she and Conner tried to settle the matter out of court, Bean was “less than honest.”
Bean responded by saying he’s done nothing wrong and that if is elected, he will not let the outcome of the lawsuit interfere with policy decisions. “I would never use my position as a cudgel. I question whether that could be said both ways, but that’s just not in my nature. It’s not the type of person I am.”
Polls for the municipal election open tomorrow at 7 a.m.
Correction: In an earlier version of this article, we stated the Bean did not pay September rent. That is not correct. Bean he has paid all past rent due. The eviction is based on the failure to pay for liability insurances, property tax, and an increase in Fire and Extended coverage due in November, among other damages.
