Mike Richards, newest Iowa regent, resigns Minnesota post to avoid conflict

The newest Iowa Board of Regents member resigned Wednesday as a director for the Minnesota Children's Hospital Foundation 'to resolve any appearance of conflict of interest.”

Mike Richards made his resignation from the foundation's board of directors the same day he filed his first conflict of interest disclosure form with the Iowa regents.

'The University of Iowa has a medical school and teaching hospital with a new free standing Children's Hospital,” Richards wrote. 'Although I do not feel that there is a direct conflict of interest, to avoid any doubt and resolve any appearance of conflict of interest, I am tendering my resignation.”

Richards, 68, who last month was appointed to the Board of Regents after former Regent Mary Andringa resigned, also listed potential conflicts involving Quatro Composites, an Orange City manufacturing company he co-founded and manages. He cited several projects his company is engaged in involving Iowa State University and the state of Iowa.

All nine of the volunteer regents must file conflict of interest disclosures annually, updating them as necessary. Richards' disclosures this week supplement the other regents' 2016 forms filed earlier this month - most of which stayed largely unchanged from 2015.

According to regent policy, management plans 'shall be developed for disclosed conflicts,” although disclosure alone may be sufficient for some, according to the policy. Regents spokesman Josh Lehman said management plans exist for some of the potential conflicts but not all, adding, 'They aren't written management plans.”

Richards' disclosures do not cite his extensive financial and political connections with Gov. Terry Branstad, who appointed him to the board, and Regents President Bruce Rastetter. Records show Richards has given more than $40,000 to Branstad's political committee since at least 2009 and given $12,500 to Lt. Gov. Kim Reynolds since 2013.

Richards, a Republican, has donated tens of thousands of dollars to other GOP politicians locally and nationally, including New Jersey Gov. Chris Christie, U.S. Sen. Chuck Grassley, and U.S. Rep Steve King, according to public records.

Earlier this year, like in 2011, Richards and Rastetter were among those labeled 'Iowa kingmakers” in their combined efforts backing a Christie bid for the White House. Richards in 2007 joined Rastetter and others as investors in the Iowa Energy, an NBA D-League expansion team.

Richards also lists his involvement with Wild Rose Entertainment as co-founder, board member and owner. He cites possible conflicts related to financial gifts the casino and resort venture has made to ISU and the UI.

In his application for the regents, Richards wrote that Wild Rose is a venture of his longtime colleague Gary Kirke, founder of Kirke Financial Services, a business consulting and real estate development company.

Kirke, a key investor in Quatro Composites, also was touted with Richards and Rastetter among the 'kingmakers” supporting Christie and he was involved with Rastetter and Richards in urging Branstad to run again for governor in 2009, according to records and media reports.

Rastetter, Richards and Kirke have co-hosted political fundraisers, including one for Grassley last year.

Spokesman Lehman told The Gazette, 'Past contributions and political connections are not necessary to list.”

Richards did list personal financial contributions he has made to ISU and the UI, the Wild Rose donations to the universities and Quatro's gift of expired materials to ISU students in 2014 and 2015.

Rastetter's disclosure forms, among other things, list contributions he has made to each university and that his company has made to the UI Foundation. He also notes his service as a trustee of the Richard O. Jacobson Trust and director of the Richard O. Jacobson Foundation, both of which have made contributions to the three regent universities.

'I also have given funds to Alpha Gamma Rho fraternity for the scholarship programs,” Rastetter reported.

Richards, among his disclosures, reported that Quatro has two 'Iowa Industry New Jobs Training” grant projects 'funded by the State of Iowa through Iowa withholding tax.” And the company received the Iowa Student Internship Grant, which is funded by the state and administered by the Iowa Economic Development Authority.

Richards' son, Michael C. Richards, is a partner in the Des Moines-based David Brown law firm, which is representing a defendant in a regents and University of Northern Iowa lawsuit against Larson Construction Co. and InVision Architecture. His daughter, Theresa E. Corona, is an attorney for Ecolabs, which could occasionally sell health safety equipment and services to regent institutions.

In Richards' regent application and resume provided Wednesday to The Gazette, he cites opportunities the state afforded him 'to get a great education, raise a family, practice medicine and to grow several businesses” in driving his interest to serve.

'The regents institutions are an integral part of that Iowa social fabric,” he wrote, 'and I welcome the opportunity to serve on the board to strengthen and preserve them for the next generation of Iowa's students.”

Richards earned undergraduate and graduate degrees from the UI and its School of Medicine, according to a professional summary on his resume, which Branstad distributed upon appointing him May 6.

His term began that day and runs through April 30, 2021, although his appointment is subject to Senate confirmation when the Legislature convenes next year.