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Murkowski Sticks To Story On Land Price
Sen. Lisa Murkowski (R-AK) has taken a lot of heat from buying a plot of land far below market value from Alaskan businessman Bob Penney. But she's standing by her decision, saying that she relied on a local assessment to set the low sale price.
Murkowski, who has remained silent since the story broke, finally commented herself yesterday:
"By law in the state of Alaska, the municipalities are required to base their assessment on the fair market price," Murkowski said. "That's what our statute says. What we went off of, what we utilized as our transaction price, was the price that had been set by the municipality."
Despite what the law says, local real estate agents in the area disagree that assessed values do a good job representing market value. In the area where Murkowski purchased her property, value of land is "escalating rapidly" and the assessed value is not keeping up. There is also a limited amount of property along the renowned fishing river.
For Murkowski and Penney, the deal was clearly not based on competitive pricing, but on an agreement between old friends. Penney's family has also been a big financial backer for Murkowski, having donated $10,500 to her campaign fund since 2003.
"I bought the property from a friend that I think I have known since I was probably 5," she said. "It was before elementary school, let's put it that way. My husband knew him before he knew me. So we go back a long way."...
"And I remember saying, 'Oh yeah, but I can't buy a lot from you. I know you,'" she said. "And he said, 'Lisa, you know everybody in the state."
Nonetheless, if she paid less than what the land is worth, she ought to disclose the difference as a gift. Murkowski's office has filed an amendment with the Senate Ethics Committee, but it'll require a trip up to the public records office to take a look at what she changed. (The office of public records will not give out information over the phone or via fax and the pdf's are not online) We'll have an update for you this afternoon.
Josh
Zachary
If I recall correctly, she'll have to report both the transaction and the present value of the asset (since it sounds like she's abandoning her absurd claim that it qualifies as a residence). That should put her on the horns of a dilemma. She'll have to report the price she paid - in the 100-250k range. And then she'll have to report the present value of the asset. She can continue to rely on the official valuation, which would put it in the same range, but expose her to further criticism for plainly undervaluing her assets. Or she can be honest. We'll see.
July 20, 2007 12:25 PM | Reply | Permalink
What is that New Frontiers Venture LLC, real estate, outfit Lisa is involved with? Is Penney also involved there?
July 20, 2007 12:30 PM | Reply | Permalink
Rebel,
It's a real estate partnership with her dad, that holds commercial rental property in Anchorage, I seem to remember.
July 20, 2007 12:32 PM | Reply | Permalink
So another one bites the dust.... How long til they toss her in Alcatraz? Wouldn't it just be easier to toss the entire republican party in jail?
July 20, 2007 12:36 PM | Reply | Permalink
Time for a visit to the hoosegow.
July 20, 2007 12:41 PM | Reply | Permalink
Did the Murkowski family disclose the mine they own on Gravina Island. Just happens to be the island opposite Ketchikan where the "Bridge to Murkowksi's mine" I mean "Bridge to Nowhere"?
Enquiring minds want to know.
July 20, 2007 12:54 PM | Reply | Permalink
The question that still needs to be asked: When Lisa & Verne sold their home on Government Hill in Anchorage, did she rely on the city assessment to set the price, or did she go with market value?
Also, she seemed to know that as an elected public official she shouldn't take favors from people who would benefit from such an association. And yet she let some weak excuse like, "oh yeah, you've known me since I was a pre-schooler" dictate her decision?
Finally, she knew it was wrong. Otherwise she would've disclosed it.
It stinks. The Murkowski family has been operating this way so long it's second nature. The sad thing is - the electorate let themselves be fooled for over 20 years by Frank. Then, despite the corrupt way she was appointed to the seat, they elected her anyhow. And even though she votes like Dick Cheney's Robot, and acts as corrupt as every other Republican legislator, the media in Alaska still portrays her as moderate and ethical.
July 20, 2007 1:33 PM | Reply | Permalink
She went with market value. Although sale prices aren't publicly disclosed, the purchaser's mortgage alone on the property was worth more than the assessed value. And yeah, that's ironic.
July 20, 2007 1:40 PM | Reply | Permalink
Geez, does anyone else remember the days when the republican standard of behavior was "avoiding the appearance of unethical activities" rather than "whatever probably won't get me indicted right away"?
No, I didn't think so.
July 20, 2007 1:59 PM | Reply | Permalink
And while we're on the subject...
The rental property Murkowski sold on Government Hill was at 730 Ash Place; her home of record was 700 Ash Place. On Friday, 4/8/05, the ADN reported that the approach routes for the Knik Arm Crossing (better known as the "Bridge to Nowhere") would slice through Murkowski's neighborhood, and that neighborhood residents had been briefed that week. The paper's gossip column reported on Sunday 4/10/05 that Murkowski's home was on the market. When details emerged, it turned out that all proposals would negatively impact the property's value, and that one route ("Erickson Alternative") would actually require the removal of five homes, including both 700 and 730 Ash Place.
So yes, it's impressive that Murkowski managed to sell 730 Ash Place for 30% more than the assessed value. But it was doubly impressive, because the spectre of seizure via eminent domain was hanging over the property at the time; and at the very least, it seemed likely it was about to end up next to a highway. Imagine what it would have gone for without that impairment. And I, for one, would just love to know the exact date that the route through Government Hill became public - and the exact date when Murkowski put her home on the market.
July 20, 2007 2:21 PM | Reply | Permalink
I apologize for spamming like this, but I'm posting as I sort through things, in the hope that others will do the same. Above, I referred to the 2005 sale of Murkowski's rental property at 730 Ash Place. The next year, her husband sold their home of record at 700 Ash Place. The appraised value in '06 was $344,400; the purchasers' mortgage was $319,200, which implies a sale price of $399,000. (That's especially clear because there was a second mortgage for $39,900 - an implied 80/10/10 arrangement.)
So, for those keeping score at home, that's two separate properties sold by the Murkowskis in the two years before their purchase - both for substantially more than the assessed value.
And that's also one enormous financial transaction that never made it into any disclosure forms. As an asset, it didn't have to be reported. But when a Senator sells a $399k home, she absolutely has to tell the world about it.
Looks to me like Murkowski is going to have to file *another* amendment to her disclosure forms.
July 20, 2007 2:42 PM | Reply | Permalink
FlyOnTheWall:
You're on a roll! Go for it!
July 20, 2007 3:42 PM | Reply | Permalink
I wonder when it comes time to sell this property if she will use assessed value or market value?
d
July 20, 2007 4:07 PM | Reply | Permalink
There is a "Sin of Evasion of Responsibility" known as COCOONING - "to retreat into a small, defined world of one’s own making and dismissing the needs of others." Another is AMUSING SELF – “evading responsibility through amusement with the unreal in a world where money keeps score”
When a "friend" becomes a United States Senator, every normal person knows that their friend in office has just escalated beyond parochial and familial responsibilities to special responsibilities to a greater constituency and all U.S. citizens. And they know it is not acceptable to offhandedly treat real estate as if it is not at political bargaining chip too.
Just look at Randall "Duke" Cunningham. Lisa got a significant amount of campaign contributions from Alaska seafood processors for the 2004 campaign, right after daddy Frank Murkowski (governor then, former US Senator) overturned long state policy and made it so the processor line workers could be charged for daily room and board - a dimunition of minimal wages, in effect.
These are the same companies who lavished funds on the Winter Games when Ben Stevens walked away with over $750,000. Lisa is aware of all of this, and the fact that Bob Penney was on the North Pacific Fisheries Management Council. Through his efforts on fish boards, councils etc. he pretty much crashed the Cook Inlet commercial gillnet fishery, just so more large king salmon could swim by his doorstep on that Kenai River. Lisa caught her big king there, but at what negative effect on commercial fisheries that bring money home to the state economy too?
Not accusing anyone here of a direct crime, but the law on Bribery of a Public Official covers to indirectly corrupt, demand, seek, receive, and accept items of value from Coconspirators. Lisa does have a lot to do with voting on fishery laws in the Senate, and her power carries over at home. The Honest Services Fraud laws also cover material schemes to defraud others of their rights to a Congressman's conscientious, loyal, faithful, disinterested, unbiased service, to be performed free of deceit, undue influence, conflict of interest, self-enrichment, and self-dealing etc.
The friendship has to take take a significant second seat to her public responsibilities. Her excuses show that it has not. Now, Lisa has not been shown to be a Cunningham, but there are overall general similarities about property that enriches from certain constituents who might expect special access of favors. After all, it was weeks ago the Grand Jury in DC questioned Penney re the FBI probes in Alaska fisheries.
And he has serious concerns for his lodges/charter businesses in fisheries that are soon to be on the main agenda at the NPFMC, in October. The timing, and insensitivity to all of these issues by Lisa is very disturbing. Especially in light of FlyOnTheWall's insightful note of how she always profits on sales, so why shouldn't others.
Only a thorough federal investigation will clear this up, along with testimony of their real state of mind, and whether a grand jury believes either's version.
Send this one up the federal probe line! for a deeper look!! To do any less would be LEAVING TOWN - “to go AWOL (absent without leave), as when those with the power to make decisions put themselves out of reach.” Somehow though, it looks like those days are over in Alaska...
July 20, 2007 5:40 PM | Reply | Permalink
So let's skip the adjectives; is the governor of Alaska a republican hack, or will we have two new Democratic senators and a Democratic congressperson as the new delegation from the state of Alaska?
there is no further doubt that all three of them are going to have to leave public life. 2 are looking at jail time, and this one has all the ethics required to be following them to the pokey. They will join the other members of the family and friends from the state house. Pretty interesting when the whole of the government representing the people of their state are shown to be conspiratorially corrupt.
how do you feel Alaska?
July 20, 2007 6:04 PM | Reply | Permalink
Let us not forget that Lisa Murkowski is a lawyer. She should know both the letter and the spirit of the law. Every single person in the State of Alaska knows that "assessed" is lower than "appraised."
Most of us, apparently, are victims of Stockholm Syndrome, in which the victims get to believing the perps egregious line of reasoning.
We (well, some of us) feel like dog poop!
July 20, 2007 10:47 PM | Reply | Permalink