Eastern Oregon University has terminated its contract with Greg Smith, the state legislator who built a business selling services to public bodies. He is being cut loose from his role overseeing business counseling services at the La Grande university. An attorney representing the university said that on Aug. 15, the university “notified Mr. Smith of its intent to end the subcontract” with his company “upon the expiration of 60 days.” Reeves wrote that there was “no communications with Mr. Smith regarding the termination of that contract” before the August notice. The attorney, Liani Reeves of Portland, made the disclosure in a letter on Wednesday, Oct. 2, to Union County District Kelsie McDaniel that concerned public records. The change means the end of a contract that pays Smith’s company $138,9360 a year. Smith has used his legislative power to steer state money to the state university. Smith’s loss comes as he faces controversy at another of his public jobs, where a board recently stripped him of a large pay raise. The shift at EOU comes during the course of months-long investigation by the Enterprise into the university’s unusual relationship with Smith. The university in August posted a job opening for a new business center director, but university executives have ignored questions about the status of recruitment. Smith since 2008 has managed the university’s Small Business Development Center. He did so as an outside contractor through his Heppner-based company, Gregory Smith & Company LLC. “Over the last five months my contractual relationship has been winding down with Eastern Oregon University,” Smith wrote in a Sept. 18 email to the Enterprise. “I fully support the university’s strategic plan to bring the office back onto campus.” His contract wasn’t due to expire until Dec. 31, 2025. University officials have declined interviews and didn’t respond to written questions. Kelly Ryan, EOU president, said in a Sept. 17 email, “As with all matters related to personnel, EOU does not provide interviews or make public comments. To do so would violate the rights of those working with or for the university.” Earlier in the year, Ryan wrote that “I appreciate and respect the role of the media in educating the public and as a source of information for our community.” In April, Smith notified a university official late on a Friday afternoon that he was stepping down as the director and appointed his successor without the required state approval. When a state official noted that requirement, Smith responded: “Too late.” In his announcement, Smith didn’t disclose the new director was employed by his company. Greg Smith, executive director of the Columbia Development Authority, addresses the authority’s board in Pendleton on Friday, Sept. 20, regarding his pay raise. The board voted to rescind the raise. (LES ZAITZ/The Enterprise) Records obtained from EOU show university officials drafted a press release about the change but never released it. Justin Montgomery, the university’s communications director, said in a July 22 email that Smith was replaced “at EOU’s request.” University officials have not produced any documents explaining who made that request or why. Montgomery wrote in July that “EOU leadership is actively reviewing the contract to see if additional measures should be taken to assure that we provide the best possible services to the community.” No records about that review have been released by the university. University officials have said they haven’t required Smith to document his time working for the business center. That center is supervised by Scott McConnell, dean of EOU’s College of Business. University records showed McConnell in July wrote to Smith, “I need to have monthly records of your hours” and “this is something that is important we keep records of.” University officials said no such records were provided and there is no record McConnell or any other university official pressed the request. Instead, Smith wrote McConnell to “certify” that 51% of his “professional services” at EOU were devoted to the business center. Smith’s actual time on duty has been a central issue in the investigation by the Enterprise. Besides serving as the business center director, Smith is also the full-time executive director of the Columbia Development Authority in Boardman. He is employed by the agency rather than providing service as a contractor. That agency is 100 miles from the university and has the task of transforming a former military base into an industrial complex. Last month, the authority’s board revoked a major salary increase that Smith engineered for himself. He faces a new evaluation by the board in October following an incomplete review done last December. Smith has amassed wealth since going to the Oregon Legislature in 2001, a Republican representing rural counties in northeast Oregon. He has held a leadership role on the legislature’s budget-writing committee, giving him sway over how state money is spent. The public contracts that helped fuel his success have been eroding, often at Smith’s choice and sometimes in the face of controversy over his work. In 2018, Baker County signed a four-year contract with Smith that made at least one county commissioner uneasy.  “There was a lot of discussion about Malheur, Harney County, and all the different places he is representing and how do we know that we are getting represented like the others,” said then-Commissioner Fred Warner. The county terminated Smith’s contract after just one year, citing lack of money. In 2022, Smith quit his contracted role as Malheur County’s economic development director. He did so in the face of questions about his performance there. He said the environment had grown “toxic” as he was the subject of investigative reports by the Enterprise. He stayed on a few more months as project manager of the Treasure Valley Reload Center, abruptly quitting that $9,000-a-month role in 2023 with 11 days’ notice to officials. Smith in December told his Boardman employer that he intended to end another duty – economic development director for Harney County with an office in Burns. He said his top management goal was to “let my Harney County Economic Development contract expire.”  Bill Hart, Harney County judge, told the Enterprise Wednesday by email that he subsequently talked to Smith. He said the county expected soon to renew the contract, which currently pays Smith’s company $7,000 a month. Eastern Oregon University provides this space at no charge in La Grande to Greg Smith’s company to use for the Small Business Development Center. (LES ZAITZ/The Enterprise) RELATED COVERAGE: Smith loses big pay increase, faces salary repayment in controversy over his conduct Greg Smith exaggerates his duty to engineer major pay raise from struggling public agency Contact Editor Les Zaitz: [email protected]. STORY TIP OR IDEA? Send an email to Salem Reporter’s news team: [email protected]. A MOMENT MORE, PLEASE– If you found this story useful, consider subscribing to Salem Reporter if you don’t already. Work such as this, done by local professionals, depends on community support from subscribers. Please take a moment and sign up now – easy and secure: SUBSCRIBE. The post Eastern Oregon University ends Greg Smith contract, mum about the circumstances appeared first on Salem Reporter.