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Miami, FL - An elected North Miami city official is under investigation for having a $270,000 financial arrangement with a developer at the same time the city is overseeing that development, according to people interviewed by county ethics commission investigators.

North Miami City Clerk Frank Wolland says the money isn't for him. Wolland was formerly mayor and councilman too.

Wolland debates how his city should govern over "Biscayne Landing," a $100 million development at Biscayne Boulevard and 150th street.

The developer gave $20 million to the city for parks and recreation, part of the permitting negotiations with city leaders.

"Let them do what you've given them permission to do," said Wolland at a May city council meeting.

But there's something that Wolland did not mention at these council meetings. A little known 2003 agreement between Wolland, who'd finished his term as mayor and was a private citizen, and the developer, Michael Swerdlow, for $270,000.

Wolland and a local rabbi have sole discretion in using the $270,000 for any local charitable use or grants or administrative costs.

North Miami's outgoing mayor says it's at very least unethical not to disclose that. North Miami Mayor Kevin Burns said, "It's required by law. It's already required and it's a good law. It's put in there for exactly this reason. And if you disclose it, it's not going to harm anybody. By not disclosing is where you add the air of suspicion."

Wolland has run the clerk's office since his 2005 election. So the financial agreement was active when he was sworn in and amended after he took office. But Wolland's financial disclosure forms do not mention it. And no mention of this $120,000 final installment just last March.

Wolland insists he doesn't need to mention it at meetings because he told city officials. But he refuses to say whom he told. The mayor says he wasn't told. Not the city attorney. Not the city manager.

"Once you were elected City Clerk, did you have a sense that you should be declaring this?" asked NBC 6's Jeff Burnside. "No. In other words, I receive no benefit from this. Not one cent," said Wolland.

NBC 6 asked to see the books. Wolland created a summary page, but he refused to let NBC 6 record names of needy recipient groups fearing they'd be embarrassed. He's says he's spent $167,6498 so far, for things like the police athletic league and Haitian assistance.

Wolland decides who gets the money and rabbi Jory Lang cuts the check for the charities because his synagogue's discretionary account holds the $270,000.

It's all accounted for, he says. Rabbi Jory Lang said, "For every single penny… not to the nearest dime, to the penny."

Wolland's critics say even if he doesn't keep the money an elected leader gains power by handing out someone else's money all over town.

"None of this money is for me," said Wolland. "None of this money is for Rabbi Lang. This is money to do good with. And that's how it's been used."

The new owners of Biscayne Landing, Boca Developers, are honoring the deal with Wolland even though they didn't ask him. "You know what I would have said," said wolland. " No thank you!" But that March check came from those new owners.

"Are you willing to give back the $120,000 to boca developers?" asked Burside. "Why would - first of all, this money is to be used to do good deeds." All this comes at a time when Wolland is gearing up for yet another run for the open North Miami Mayor's seat.

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