The Solvang City Council amended its code of ethics late Monday—expanding transparency rules while giving members the ability to censure one another—a policy evolution inspired by a controversial tourism app developed and owned by Mayor David Brown.

“This allows the council and the staff to be more accountable,” Councilmember Elizabeth Orona said before the 4-1 vote.

Brown, the lone dissenter, said after the meeting he’d look to potentially distance himself and his company from directly managing Solvang Passport, perhaps licensing the app to another entity while possibly expanding its business model to other tourist destinations like Pismo Beach or the Funk Zone in Santa Barbara.

A webpage advertises Solvang Passport (Image from screen grab)

Brown also signaled the app’s business model might become less exclusive. In one key point of contention, it aspires to limit at 100 the number of Solvang companies it features.

“That can change,” Brown told the News-Press, acknowledging the discontent while defending the business venture as a good-faith effort to boost the Danish-inspired town. “It’s for the benefit of Solvang.”

Not everyone has agreed.

Official or private actions?

Leading up to Monday’s vote, some council members over the past three months said Brown’s involvement presented a clear conflict of interest—especially in a city that runs on tourism. They’ve alleged the app undercuts taxpayer-funded efforts to deliver visitors to all of Solvang.

These critics have questioned whether the local shop and restaurant owners invited by Brown to participate could reasonably discern whether he was acting in his official capacity or as a private businessman.

Compounding the controversy, Brown had launched the app using city-owned content including marketing video and copy developed for city-funded tourism promotions. He has since removed those assets.

The app gamifies a visit to Solvang, recommending activities and awarding redeemable passport “stamps” to users as they make their way through the city’s popular Copenhagen-styled core and nearby sites.

Businesses promoted as destinations will eventually pay $249 a month to be featured. But so far, Brown said, participation has come free.

Solvang Passport aspires to limit participation, but that could change. (Image from screen grab)

About 84% of Solvang annual tax revenue, or more than $9 million, comes from hotel occupancy and sales taxes. The municipality will spend $1.1 million on visitor-focused marketing and activities in its proposed fiscal year 2026-27 budget.

‘A fair space’

Concern gained momentum on Feb. 23, when the owner of the Solvang Skate Shop told the council during open public comment he’d learned about the app earlier that day.

“I just wanted to make sure that we are creating a fair space for all the businesses to be successful and thrive in the city of Solvang,” Robert Hargreaves said at the time. 

Mayor Brown during that same meeting confirmed his role with the project.

A licensed real estate broker, licensed mortgage loan officer and private pilot, he’s also the founder and CEO of G3 Acuity. It’s a holding company with several digital marketing, wellness and healthcare brands including Solvang Passport.

Asked by Councilmember Orona on Feb. 23 if the app was revenue generating, Brown said not yet, adding “I hope it is. Stand by.”

Months-long debate

Brown until Monday had recused himself from subsequent hearings during at least three council meetings that touched on two core concerns—his initial use of city-owned marketing content and his pursuit of a business model some council members say directly competes with efforts like solvangusa.com, a publicly funded visitors concierge website.

“It’s not just whether the app is using city assets,” Orona said on March 23. “There’s also… conflict where business decisions that we make as a council could be influenced by the mayor’s thinking because of his business, the business of selling Solvang to the same addressable market that we market to.”

Added Councilmember Louise Smith:  “We are held to a high standard here, and ethically this doesn’t look good.

“All businesses need to be represented by the mayor,” Smith said. “As long as he’s in the city government, this is not appropriate.”

Two women sit at dais.
Council members Louise Smith, left, and Elizabeth Orona on Monday night. (Photo by Tom Schultz/Santa Barbara News-Press)

On Monday, Brown pointed to a legal disclaimer he’d added: “Solvang Passport is not connected, authorized, sponsored, funded or endorsed by the city of Solvang. The city neither expresses nor implies any approval, association or endorsement of Solvang Passport. Play at your own risk of having fun.”

The ethics code amendments

Under the new rules, council members on an ongoing basis must tell City Hall leadership about any new reportable financial interests within 30 days. This is in addition to reports to the California Fair Political Practices Commission already requires annually. 

The city manager in turn must share this information with the other council members quarterly.

Any council member can initiate an investigation into alleged ethics violations of another council member, a process that could lead to sanctions that include a reprimand, a formal censure by resolution, or the loss of seniority or committee assignments. 

Similar rules applied to appointed advisory board members could lead to their removal.

Monday’s deliberations

In opposing the revisions, Brown said he objected to giving the council the power to investigate “alleged” violations.

“I think they should be ‘explicit and identified,’” he said. “You might allege that I’ve got green hair on Thursday. I don’t have the time or effort, and I don’t know about other people, to go through alleged issues. Anybody can make any alleged item that they wish.

“This is potentially a playbook to silence differences of opinion,” Brown said.

City Attorney Chelsea O’Sullivan said the ethics code amendments reference “alleged” allegations to reflect the due process afforded a council member accused of a violation.

Councilmember Claudia Orona has consistently questioned whether Brown’s app does in fact represent a conflict of interest, and she’s repeatedly stated that it’s voters who should ultimately hold elected officials accountable. She co-owns Solvang Trolley & Carriage Co, which is featured on the app.

Councilmember Claudia Orona on Monday night. (Photo by Tom Schultz/Santa Barbara News-Press)

On Monday, Claudia Orona said she also worried that the ethics rule changes could be weaponized, but she ultimately voted with the majority for the new rules.

“I would hope that everybody here acts in the best interests of the city,” she said. “But I could also see how these could get abused.”

Tom Schultz has rejoined the News-Press. He previously worked at the newspaper from 1998 to 2007, covering government, healthcare, crime, education, science, business, lifestyle and more. Tom lives in the Santa Ynez Valley. You can email him at tom.schultz@newspress.com