Stillwater mayor, citing "personal issues," quits abruptly

Stillwater Mayor Ken Harycki, whose private accounting business was raided by the Internal Revenue Service last spring, resigned abruptly Friday afternoon from his elected office.

"Effective today I am stepping down as mayor and allow the vice mayor to complete the transition to the newly elected council," Harycki wrote from his city government e-mail address. "This will allow me to better focus on personal issues. It has been an honor to serve the citizens of Stillwater."

Mike Polehna, the city's vice mayor, immediately became Stillwater's transitional mayor, said Ted Kozlowski, who won election Tuesday to become the city's new mayor come January.

"I think we've all been prepared that something like this would happen based on his personal situation," Kozlowski said of Harycki.

Polehna, who talked Friday with Harycki, said he was "shocked" by the news. "He just said he had personal issues and he said he wanted to resign so it doesn't affect the city," Polehna said.

Harycki announced in May that he wouldn't run for a third term. He was elected mayor in 2006 after serving on the City Council and was narrowly re-elected in 2010. His term would have expired Jan. 1.

Efforts to contact Harycki for comment at his business and home were unsuccessful Friday.

On March 20, several agents from the IRS and the inspector general's office of the U.S. Health and Human Services Department sifted through Harycki's business records at his Stillwater business and loaded confiscated boxes and a computer tower into a government vehicle. The IRS hasn't acknowledged any charges filed in connection with the raid, but has said repeatedly since March that the findings remain under investigation.

On Friday, officials at the IRS and U.S. attorney's office declined to comment on the status of that investigation.

Harycki has said little about the search warrant executed at Customized Payroll Solutions, other than to comment through a spokesman that it involved a former client.

Harycki's business provides tax preparation services, including corporate tax preparation and other accounting and business management services, according to his website.

As mayor, his signature accomplishment was leading the city in a successful effort to move interstate commuter traffic to a new St. Croix River bridge, now under construction at Oak Park Heights. He also worked to bring flood protection to downtown, create a state trail on the old Minnesota Zephyr rail corridor and plan a new city fire station.

However, his watch as the city's elected leader also was beset with controversy, including a critical state auditor's review that said taxpayer money had been donated without a contract to the coalition promoting the new bridge, which Harycki chaired.

Kozlowski, a first-term City Council member, defeated John Rheinberger on Tuesday in the campaign to replace Harycki, but can't take his new job until January. Kozlowski said Polehna will serve the last two months of Harycki's term.

"Mike Polehna is a wonderful council member. I'm glad he gets to be the mayor for a little bit," Kozlowski said of the longtime public servant. "We can operate just fine with four members."

Polehna said his priorities will include setting a final 2015 city budget and hiring a new city administrator by late December to replace Larry Hansen, who retires in January.

"We're all just trying to do the best for Stillwater," Polehna said.

Kevin Giles • 651-925-5037