BANGOR – While his City Council colleagues have yet to find fault with Councilor David Nealley’s conduct during meetings, some suggest that perceived conflicts of interest stemming from Nealley’s job with Capital Seven LLC should be explored by the city’s ethics committee.

“The problem is that his roles [as councilor and Capital Seven’s executive vice president] are getting muddy,” Councilor Anne Allen said Friday.

“In fairness to David, I’d like to see the ethics committee look at what is the role of the city councilors in that scenario and how we should act,” she said.

Owned by entrepreneur Shawn Scott, Capital Seven is the Nevada-based company that plans to open Maine’s first racetrack casino, an issue that has generated much controversy in recent weeks as information about Scott’s past business dealings and about some of his associates has come to light.

Nealley, who is in the third year of his three-year council term, last week was named executive vice president of Capital Seven, the company with which he has been employed since February.

The potential for conflict has some in Bangor – including the city’s mayor – suggesting Nealley should choose between his job and his elective position.

“I think it’s up to him,” Mayor Dan Tremble said Friday. “He’s followed the [ethics] code to the letter, but [his role in Scott’s company] puts him in a difficult position.”

Councilor Gerry Palmer agreed to some extent, but said, “I would not support his being removed from the council at this time.

“In this case, I really feel that it’s up to the public and it’s something that the ethics committee probably should look at,” he said.

On Friday, Nealley declined further comment on the matter.

However, on Thursday, he said that his position with Capital Seven did not affect his ability to perform his city duties, noting that the council dealt with dozens of matters each week that did not involve the racino, which he noted was among the biggest development projects the city has seen in some time.

City Manager Edward Barrett said that members of the ethics committee are appointed by the council. Membership consists of five voting members and two associate members.

He said the panel’s role is to conduct fact-finding investigations into issues referred to it by the council. The most common issues brought before the ethics committee are those involving potential conflicts of interest.

Residents now serving on the ethics panel are Alfred Banfield, Anne Blanke, James “Todd” Dubose, Philip Hunter and William Meade, according to City Clerk Gail Campbell. Associate members are Aaron Sines and Denise O’Connell.

The group is scheduled to conduct its annual organizational meeting at 6 p.m. Thursday at City Hall. At that time, committee members will elect a chairman and undergo orientation.

Although it has led to some concern, Nealley’s post with the racino developer is not prohibited by the city’s ethics code.

Nealley has complied with all aspects of the code. He disclosed his financial interest in the racino project and relationship with Capital Seven the day he started work in February.

It then was up to fellow councilors to determine whether he had a conflict of interest, which they agreed he did.

Since then, Nealley has not participated in deliberations or votes related to the project or represented or negotiated for Capital Seven in its dealing with the city.