BAR HARBOR – Town Councilor Jeff Dobbs denied Thursday that he has a conflict of interest in voting on issues regarding developer Thomas Walsh, even though Walsh is one of Dobbs’ business clients and the two men are good friends.

Dobbs, a veteran councilor, said he has so many friends in Bar Harbor, where he has lived most of his life, that he would have to recuse himself from virtually all town business. He said that’s the same for all councilors who serve in small towns.

Dobbs, who owns a video production company, said he does not derive more than 10 percent of his annual income from Walsh and therefore under municipal ethics rules does not have to recuse himself.

“People know I am fair,” Dobbs said. “They know I am not influenced by people no matter what my relationship is. I feel confident that I don’t have a conflict. I have great faith in my ability to distinguish between a conflict and not a conflict. Most people I talk to respect my opinion. I believe people trust me.”

The Town Council is developing ethical standards because of a growing concern by residents over conflicts of interest with all town boards.

Dobbs was visibly upset Tuesday when the council declined to issue permits to Walsh on the spot. He called the debate over whether Walsh needed a wharf permit “baloney” and later tried to make a motion to waive local regulations so Walsh immediately could get an after-the-fact building permit.

Town Council Chairman Ken Smith told the council that state law mandates the wharf permit and that town laws require developers to get all other permits before applying for an actual building permit.

“I wasn’t trying to circumvent anything,” Dobbs said. “I simply asked if [Walsh] could go forward [with his marina project] while the permitting process went forward.

“… To me this is a shame,” he added. “These are fairly minute issues that don’t necessarily have to happen.”

Smith discouraged Dobbs from even making his motion to waive the building permit regulations and he told the council it could not take up the wharf permit until Walsh filed an application.

Earlier in Tuesday’s meeting, Smith recused himself from hearing comment on Walsh’s application for a special amusement permit. Smith and his wife own a bed-and-breakfast across from Walsh’s West Street hotel, and Smith’s wife had questions about the amusement permit during a public hearing.