Residents Question Whether City Administrator Mixed Public Office With Private Real Estate Business

For a while, residents in Tracy, Minnesota say they watched something they believed should never happen inside a taxpayer-funded city office: a city administrator allegedly operating a private real estate business while on the public clock.

Now, frustrated citizens are asking why repeated concerns surrounding Jeff Carpenter were allegedly ignored by city leadership despite warnings dating back to his hiring process.

At issue is whether Carpenter — while serving as Tracy’s city administrator — blurred the line between public service and private profit.

The Warning Signs Were There From The Beginning

Before becoming city administrator, Carpenter served as Tracy’s Economic Development Authority director, building relationships with city leadership, business contacts, developers, and members of the community. To including the involvement of the Senior Citizen Center sale during his time in this position.

When he later applied for the city administrator role, concerns reportedly surfaced immediately.

According to individuals familiar with the hiring discussions, council members questioned whether Carpenter could simultaneously manage the demands of city administration while continuing work in real estate.

The concern was straightforward:

Would taxpayers receive a full-time city administrator — or a public official splitting time between city business and private commissions?

Residents say the council accepted Carpenter’s assurances that his outside business would not interfere with city responsibilities.

But critics now argue those assurances did not match what followed.

“People Started Seeing It Everywhere”

Residents and some City employees claim it began subtly.

A call here. A property showing there.

Then, according to multiple citizens, sightings became increasingly common: Carpenter allegedly leaving during city office hours, handling client communications, showing homes, and conducting apparent real estate activity during the workday.

Some residents say they documented what they saw with photographs, timestamps, and saved communications.

Others claim they brought concerns directly to city leadership Like Pam Cooreman and other Council Members.

According to those residents, they were brushed aside.

“They won’t do anything about it,” one longtime resident said. “People were talking about it openly, but city hall acted like it wasn’t happening.”

The city has not publicly announced any investigation into the allegations.

Social Media Complaints On City Facebook And Alleged Dismissals

Residents also claim concerns extended beyond real estate activity alone.

According to multiple citizens, complaints have repeatedly surfaced on social media and through direct communications involving frustrations with criminal complaints filed with or against the Tracy Police Department and city administration.

One recently receiving a Cease & Desist from the City Attorney Matt Gross. Does this breach this citizens first amendment liberties in trying to silence citizens?

Some residents allege they attempted to raise concerns directly with Carpenter himself regarding police-related matters, ethics concerns, or complaints involving city operations, only to feel dismissed or ignored.

Others claim public comments and questions posted online were minimized, disregarded, or met with little meaningful response from city leadership.

The article does not allege wrongdoing regarding any specific criminal complaint, and no court findings related to those claims have been publicly established. However, residents argue the pattern contributes to what they describe as a broader atmosphere of unaccountability inside Tracy city government.

Critics say the issue is becoming less about one isolated concern and more about whether citizens feel comfortable questioning local leadership without being ignored.

Taxpayer Office Or Private Brokerage?

The controversy reaches beyond questions of time management.

Residents and local business owners are now asking whether Carpenter effectively operated portions of a private real estate business from taxpayer-funded property.

Local long established real estate offices like Knakmuhs Real Estate, Murrayland Agency Inc and Real Estate Retrievers in Tracy own or pay rent, utilities, taxes, insurance, internet costs, staffing expenses, and operational overhead out of pocket. How is that fair to them when the competition is essentially operating out of the city office? 

Critics argue taxpayers should not be subsidizing a competing private business — directly or indirectly — through publicly funded office space.

“If regular businesses have to pay for everything themselves,” one resident asked, “why should a city official get to run business out of city hall?”

Residents point specifically to city-funded:

• Office space

• Utilities

• Internet

• Heating and cooling

• Administrative access during city hours

No public audit or independent review has been released examining whether any city resources were used improperly.

Property Listings During City Hours Raise More Questions

Among the concerns raised by residents are reports of real estate listings and client activity allegedly occurring during normal business hours.

Residents point to a property listing on East First Street in Tracy allegedly posted May 13, 2026 at approximately 10:38 a.m. — squarely within the city workday. While there are more evidentiary examples available, this is the most recent.

Citizens also claim text message conversations beginning on weekends continued directly into weekday city office hours with little separation between public responsibilities and private business dealings.

The existence of listings or messages alone does not prove wrongdoing. However, critics argue the pattern deserves independent scrutiny.

“I’m The City Administrator”

Perhaps most troubling to some residents are accounts from prospective homebuyers who reportedly toured homes with Carpenter.

According to individuals familiar with those interactions, Carpenter allegedly referenced his city position repeatedly during showings, telling at least one couple, “I’m the city administrator, so I know the area.” And “I’m not supposed to mention this but future road construction tax assessments will be potentially applied on this property”

Isn’t Jeff Carpenter supposed to be working on behalf of his clients listings? What is the fiduciary responsibilities owed to the clients he has listings with? One would think that Jeff Carpenter as a Real estate professional owes fiduciary duties to their clients, including loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting, all of which require acting in the client’s best interests throughout the transaction.

The couple reportedly later described the comments as uncomfortable and inappropriate.

Residents say the issue is not whether a realtor knows the community — but whether public office itself became part of a sales pitch.

Questions Over EDA Property Access

Additional questions emerged after allegations involving a recently completed EDA-related property at 122 2nd Street.

According to witnesses, Carpenter allegedly showed the property the second week of May while stating he “wasn’t supposed to be showing the house” but knew where hidden keys were located.

Still, critics say the allegation deepens concerns over whether public connections and access tied to city government became intertwined with private business activity.

Why Hasn’t City Leadership Responded?

Perhaps the most politically damaging issue facing Tracy leadership is not the allegations themselves — but the perception that officials knew concerns existed and failed to act.

Residents say the same ethical concerns discussed during Carpenter’s hiring process were repeatedly raised afterward by citizens.

Yet according to community members, meaningful public discussion never followed.

Now questions are mounting for the mayor and city council:

• Were complaints formally documented?

• Was any internal review conducted?

• Were city policies regarding outside employment enforced?

• Did officials ignore complaints because of personal or political relationships?

At the time of publication, no public disciplinary findings or formal ethics determinations involving Carpenter had been announced.

A Crisis Of Public Trust

For many Tracy residents, the controversy is no longer only about one official or one job.

It is about whether small-town government applies the same standards to insiders that ordinary taxpayers are expected to follow.

Residents say they are tired of being dismissed as rumor spreaders for asking questions they believe deserve answers.

“People aren’t asking for perfection,” one resident said. “They’re asking for accountability.”

Until city leadership publicly addresses the concerns — or conducts an independent review — many residents say those questions will only grow louder.

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