Comments (50)

MuckManMKE wrote on July 16, 2007 1:38 PM:

I had a Contracts professor who put things like this best:

"Are you outraged???"

Jake D. wrote on July 16, 2007 1:41 PM:

I wouldn't mind is Murkowski gets tossed out of the Senate.

Ed*ard Teller wrote on July 16, 2007 1:41 PM:

Laura,

Thanks for once again investigating our Alaska politicians, something the in-state media outlets can't seem to consider important. I predict that it will emerge that Sen. Murkowski got a nice little deal on the property, probably paying just under $175K for it, with about a $40K down payment.

bobh wrote on July 16, 2007 2:24 PM:

"...another one bites the dust...oh yeah..."

Orwell's Intuition wrote on July 16, 2007 2:34 PM:

Whitewater pales in comparison. I'm sure the GOP ethics police will be all over this. *snark*

Anonymous wrote on July 16, 2007 2:39 PM:

What the hell is with the Alaska Congressional delegation? Is "100 Percent Dirty" their motto?

Kuparuk wrote on July 16, 2007 2:52 PM:

Keeping in mind, of course, that *this* Sen. Murkowski was appointed by her father, Sen. Frank Murkowski, when he resigned and became Governor.

His friends are her friends.

Mike Conwell wrote on July 16, 2007 3:10 PM:

Here's a simple rule to figure out whether or not you got a special deal in a real estate transaction:

"If you don't feel like you've been screwed by the seller of the real estate, you got a favorable deal."

So Senator Murkowski, how do you feel about that land deal? Is Bob Penny still a friend of yours?

Mike Conwell wrote on July 16, 2007 3:12 PM:

Here's a simple rule to figure out whether or not you got a special deal in a real estate transaction:

"If you don't feel like you've been screwed by the seller of the real estate, you got a favorable deal."

So Senator Murkowski, how do you feel about that land deal? Is Bob Penny still a friend of yours?

FlyOnTheWall wrote on July 16, 2007 3:46 PM:

Great reporting.
You can see a plan of the property here: http://www.dnr.state.ak.us/recorded-plats/Phase1Plats/302-Kenai/1992/KN199244.tif

Jeremiah wrote on July 16, 2007 4:07 PM:

From the sounds of it, being a senator is a great home-based business idea. How can I get a franchise?

Ryan wrote on July 16, 2007 4:18 PM:

Considering that undeveloped riverfront property on the Kenai is at a premium, I'd argue she got quite the deal. My family owns a summer home on the river that was appraised well above what Murkowski paid for her lot, so I'd even argue that the borough assesment is low, especially on that part of the river, and considering that developed lots go for upwards of 600K, something fishy is going on. No pun intended.

Ryan wrote on July 16, 2007 4:18 PM:

Considering that undeveloped riverfront property on the Kenai is at a premium, I'd argue she got quite the deal. My family owns a summer home on the river that was appraised well above what Murkowski paid for her lot, so I'd even argue that the borough assesment is low, especially on that part of the river, and considering that developed lots go for upwards of 600K, something fishy is going on. No pun intended.

Ryan wrote on July 16, 2007 4:19 PM:

Considering that undeveloped riverfront property on the Kenai is at a premium, I'd argue she got quite the deal. My family owns a summer home on the river that was appraised well above what Murkowski paid for her lot, so I'd even argue that the borough assesment is low, especially on that part of the river, and considering that developed lots go for upwards of 600K, something fishy is going on. No pun intended.

FlyOnTheWall wrote on July 16, 2007 4:35 PM:

That's a nice piece of real estate. It comes off private drive, and cuts from the road right to the river. The opposite bank is owned by the State of Alaska, and so is unlikely to be developed. One adjacent plot is still owned by Penney; the other was also sold by its prior owner in 2006 - and so it's possible that the sale of Lot #3 triggered the much higher reassessments in the development, making it even harder to guess how much Murkowski actually paid - but potentially providing a fairer gauge of how much the property was really worth. (If the neighbors paid 50% more a few months before for a smaller, adjacent plot, that'd be pretty outrageous, right?)

But we can try. The precise sum of the loan is a little odd - $136,561.26. Let's assume that the figure includes the closing costs, because otherwise, it just don't make a whole heckuvalot of sense. (Who negotiates real estate down to the last cent? Who makes a downpayment on a round sum in fractional dollars?) The average closing cost in Alaska on a $200k loan last year was about $3,500. If we assume that Murkowski plopped down a standard 20% of the price, we may well be looking at a loan for $132,000, or 80% of the nice, round figure of $165,000. (It could also be somewhat higher - say, $168k - but given that Stevens sold his Utah property back to Penney for a nice, round sum of $150k, I'm going to wager on the rounder figure.) If so, that'd be less than the old assessed value of the property, making it a certifiably, uncontestably sweetheart deal.

Also, you're clearly using the wrong illustration. The appropriate picture of Sen. Murkowski may be found here: http://a.abcnews.com/images/US/3fa1b3e2-9223-442d-8941-7874c72d085f_nr.jpeg

Duckman GR wrote on July 16, 2007 5:27 PM:

Since assuming a Republican land deal or finance deal or political contribution or charitable contribution has an illegal or unseemly root does not risk the old adage about assumptions, it would be safe to say that Ted Stevens Kenai River fund raisers are nothing but slush funds from all those corporations sponsoring to their gop tools.

I blogged this a while back, comparing their list of sponsors to a charitable golf tournament we have down here, The Stan Humphries Rady Childrens Hospital Invitational. It's really revealing who gives for a sport fishing river and who gives to support a hospital that caters to children, says all you need to know about the values of the parties involved.

Here's the link if anybody is interested: http://theduckstream54.blogspot.com/2007/06/wanker-of-day.html

johnnydoughey wrote on July 16, 2007 5:33 PM:

I think if and when these clowns up there in A;aska are found guilty, it would only be fair that part of their penalty involves repaying the costs of their investigations and trials. These are not ordinary coourt cases and we, the taxpayers are being burdoned by tremendous costs involved in cases concerning elected officials, and I, for one, am tired of having to pay for their illegal escapades.

This, however, will never happen, will it?

Alaskan Reader wrote on July 16, 2007 5:58 PM:

The stories about Alaska's Congressional delegation just keep getting worse. Here's a verbatim posting from the Anchorage Daily News political blog about Don Young taking illegal campaign contributions:

"Why hasn't ADN reported on Don Young reporting to the Federal Elections Commission that for many years he has been taking illegal in-kind contributions from the seafood industry? He says he will repay some of the contributions, but will keep the contributions that he accepted during years for which the statute of limitations has run. Perhaps the ADN doesn't know about this letter, so here it is (and now perhaps it will be reported?):

From an official FEC filing.

June 28, 2007
Federal Election Commission
Reports Analysis Division
RE: Prior Year In-Kind Contributions Pacific Seafood Processors Association

On March 9, 2007 our Campaign Manager, Steven Dougherty, received an email from Dennis Phelan of the Pacific Seafood Processors Association (PSPA) saying that he had researched the PSPA records and determined that the PSPA had made In-Kind contributions of seafood to Alaskans for Don Young's annual "Crabfeed" which is held in Washington, DC each year. He listed the following In Kind contributions by year:
2000: $715.00
2001: $795.42
2002: $794.00
2003: $871.55
2004: $933.06
2005: $763.00
2006: $711.03

I did not have prior knowledge of these contributions until I was given a copy of the email from Dennis Phelan. Because we are prohibited from accepting contributions from an industry trade association that is not a PAC we propose to rectify the situation by refunding the contributions for 2004, 2005 and 2006 to the PSPA.

We will not refund the earlier In-Kind contributions for 2000, 2001, 2002 and 2003 because they were made before the three year statute of limitations.

Sincerely
Robert J Bohnert Treasurer,
Alaskans for Don Young C-00012229"

Ed*ard Teller wrote on July 16, 2007 6:00 PM:

johnnydoughey,

These seem to me to be ordinary court cases. I don't foresee them being treated any differently than any other corrupt politician or white-collar criminal from outside of Alaska. What is it about these cases you find unique, or different from the case of Randy Cunningham, for instance?

Barbie wrote on July 16, 2007 6:49 PM:

this is 100% B.S.: unless Murkowski releases full records of this transaction, it must be assumed that she and Penney's asses should be locked up; I've work in corporate commercial real estate for years--there's just no serious market-based reason for not disclosing, especially when the assumption should be that a bribe has taken place

Rusty Austin wrote on July 16, 2007 6:54 PM:

Of course she got it at a reduced price. If she paid fair market value for it, she would be first in line to proclaim it. If you have nothing to hide, you don't hide it, at least if you are a politician...the real question is, does anyone care?

alaskanandy wrote on July 16, 2007 7:05 PM:

Hey while your at it "muck rackers" don't forget to look at Democratic Mayor Marky Mark Begich and his bestest buddy Tony Robbins Knowles. Lots of muck to be racked up between the two of them, but hey why bother when you can attempt to act like only Republicans in Alaska have sweet heart deals right?

Be fair or don't report

FlyOnTheWall wrote on July 16, 2007 7:16 PM:

Hey Andy - cool down. If you're aware of corruption that can be documented, then by all means, e-mail TPM and share it with them. Saying that there's "lots of muck" doesn't cut it, nor does citing rumors.

Also, this is a national political site, and it generally confines its postings to federal figures and statewide office-holders. Begich doesn't qualify, and won't, until he declares candidacy for something larger than a mayoralty. But I'd point out that TPM has been going after NC speaker Jim Black, who's a Democrat, and LA Rep. Jefferson, also a member of the Democratic party. Corruption, however, tends to fester among the powerful, and the blunt truth is that Republicans have long held the levers of power in Alaska. The grand juries up your way aren't targeting Democrats, and neither are the Republican-appointed prosecutors, so cut TPM some slack, huh?

Alaskan Reader wrote on July 16, 2007 7:21 PM:

Alaskanandy, I think TPM deals with national news, not local. Ted Stevens', Don Young's, and Lisa Murkowski's doings are national news. The doings of a has-been former politician (Tony Knowles) and the mayor of a small city (Mark Begich) just don't have any relevance to the national political scene.

Alaskan Reader wrote on July 16, 2007 7:22 PM:

Alaskanandy, I think TPM deals with national news, not local. Ted Stevens', Don Young's, and Lisa Murkowski's doings are national news. The doings of a has-been former politician (Tony Knowles) and the mayor of a small city (Mark Begich) just don't have any relevance to the national political scene.

northofdenali wrote on July 16, 2007 7:35 PM:

Anyone who thinks Chicago and Louisiana politics are dirty should take another look at Alaska. It's been this way since Statehood, and got worse with the influx of Big Oil and Big Oil's hangers-on, like Bill Allen's VECO. Now that State Rep. Anderson has been convicted, there will be a lot of state politicians running scared. Ted Stevens and Frank Murkowski have been corrupt from the start - and Frank's little girl is no better.

Denny wrote on July 16, 2007 8:09 PM:

The shame of this--Lisa's supposed sweetheart land deal--is that of the national three representing our Last Frontier, she's generally been held in the higher regard: well above Don and Uncle Ted. Shame.

Biff Spaceman wrote on July 16, 2007 10:50 PM:

The fact is Alaska has been crook since day one and has been a federal money sink and graft machine since the Russian Czar took 200,000 in gold to pay bribes to the US Senate for purchasing the great land, just to spite Great Britain.
Alaskan Andy, if anybody had anything on Knowles or Begich they would have brought that gun to bear by now, considering there is basically no Democratic Party in this state. I think you should put up or shut up, basically, or quit whining. Republicans are like obese children, I swear, always screaming for one more candy bar, one more soda, and two more hours of playstation or the terrorists will come and you'll be sorry.

Petunia wrote on July 16, 2007 11:41 PM:

I hope that there is nothing untoward here. We need full disclosure, especially now.

I do find it interesting that the deal closed after Lisa won her first election, which up here seems to mean Senator for Life.

Sourdough wrote on July 17, 2007 12:45 AM:

Alaska is full of voters who expect nothing more of their politicians than to claim to accept Jesus and their Lord and Personal Savior. Since Democrats there are more reluctant to pound the Bible, they are out of the running, mostly. One middle-aged state Representative, Vic Khoring, who is due to be tried in October, proved that you don't even have to live in the state to get reelected. When he wasn't collecting per diem for attending to his high-maintenance wife in Oregon, he was either sleeping on his parents' couch, borrowing dad's car, or crashing in his legislative office which smelled somewhere between a stable and a WWF locker room. He did pepper his conversation with Amens and Hallelujahs, though, and was reelected by a wide margin three months after his offices were searched by the FBI.

Of all the many politicians implicated or indicted in the growning scandals, by the way, only one was a Democrat and he appears so far to be the sole legislator who has been exonerated.

ryan wrote on July 17, 2007 3:58 AM:

Kuparuk, to be fair Lisa did win re-election fair and square(?) which drives me nuts since I worked 14 hours a day 7 days a week on the knowles campaign. If she ends up being as corrupt the rest of then it will completely piss me off. Also to be fair, Ray Metcalf who is single handily responsible for uncovering Alaska's political mess, thinks that Knowles did some corrupt real estate deals in the 90's. As pointed out though, Knowles isn't in office.

Begich would be more interesting since he's the mayor of Anchorage, which may be small by national standards but is by far the biggest city up here. Everyone thinks he'll run for the House or Senate someday. Since every state big or small gets 2 senators, skeletons in Begich's closet could have national implications.

Andy if you have specifics please post. Send them to all the news outlets up here too. I'm a life-long Alaskan and a dem. Part of me does get satisfaction seeing all these republicans go down, but I'd rather it be at the polls because Alaskans recognize that dems have better ideas than because of a corruption scandal. More than anything I feel this has been terrible for the state and weakens people's respect for their gov't.

JEP wrote on July 17, 2007 9:13 AM:

The fact that you are covering this exhaustively will probably scare these AK-R's right down to their mukluks (some bad Muck Luck, huh?).

But the fact that you have regular readers who just happen to live in the area who just happen to know the spot who just happen to own a digital camera and the necessary computer gear to email those pics to you; that scares ALL the bad actors in the modern political world, particularly the more-traditional media outlets.

Makes me proud to be a member of the Muckraker community.

And as for those AK-R's, I bet they're all standing there in a pool of yellow snow...

JEP wrote on July 17, 2007 9:23 AM:

Alaska andy;

wah wah wah!!

Your turn to cry. And yoiu get to cry over chesters getting caught and punished, we cried over the demise of habeas corpus, and the death of so many innocents in another Bush War.

But don't forget, your constant trump card, "Clinton did it, too!!"

There's no selective raking going on here, The Muck gets raked here wherever it pools... so if the R's seem to be taking most of the hits, what does that suggest, at least to most intelligent people?

Bob Lester wrote on July 17, 2007 11:13 AM:

From a reliable source. She paid $10 bucks for it. Yep...TEN dollars.

That's a pretty good deal.

Aaron Brakel wrote on July 17, 2007 11:52 AM:

Senator Murkowski,

You need to disclose all of the details of this transaction immediately. Your constituents need timely transparency in the face of this wave of corruption investigations.

Douglas, Alaska

Anonymous wrote on July 17, 2007 12:15 PM:

A majority of the more publicized federal corruption probes have Russia (specifically its FSB oligarchs...the mob!) as an underlying common thread. Veco falls under that caterory and is a good Russian company. No company such as Veco could do business in Russia without making concessions with its oligarchs who are extensions of Kremlin policy. Concessions aren't just ownership percentages but often include Russian agendas in the US that can be unrelated to the core biz of a US company doing biz in Russia. When we speak of ownership percentages we're speaking of becoming shareholders. When Putin controlled the FSB, its members...the Mob began to began to invest in legitimate businesses, from Motorola to security/defense/homeland defense solutions including Lockheed and the companies that secured DHS contracts Lockheed since has acquired. Journalists who've died because they reported that the FSB members were financing and training rebels seem to have hit it right on the nail in that the FSB made sure their deaths guaranteed they could no longer report the truth. Of course, how best to keep shareholder revenue up on defense/homeland defense solutions providers than to keep financing homegrown terror cells so that we keep buying the solutions FSB members are shareholders of?

There is very little known of Bob Penney. Maybe some digging will turn-up links to Russia and its FSB/Mafia members?

Utah eagle wrote on July 17, 2007 1:44 PM:

Yep....lot's of sweetheart Stevens land transactions. What would be nice to know for the Utah location: 1. Knowing who were all of the investors in this land deal 2. What was there cost basis 3. And who the previous owners were. And finally, their holding period.

Utah eagle wrote on July 17, 2007 1:44 PM:

Yep....lot's of sweetheart Stevens land transactions. What would be nice to know for the Utah location: 1. Knowing who were all of the investors in this land deal 2. What was there cost basis 3. And who the previous owners were. And finally, their holding period.

Grant W. Hunter wrote on July 18, 2007 9:53 PM:

This attack shows the increasing depravity of our collective soul. Do we not remember that we "shall not covet"?

Lisa Murkowski is a fine Christian woman with a proper upbringing as Sarah Palin is a fine Christian woman with a proer upbringing. They are both examples to the daughters of the Great Land on combining motherhood and civic activities. If Sarah Palin were the object of this attack, I would be defending her.

Like most honest women with a proper upbringing, Lisa believes in projecting an image of modesty with respect to the display of wordly goods. Her instinctive goodness (coupled with her family's record of goodnes to the people--especially disadvantaged women and children--of this state) probably caused her to underestimate the vileness of the human soul in some, using the term loosely, persons. She probably received help from her devoted and extended family. This purchase shows her devotion to Alaska.

Lisa should publish the details of the land deal and blast these howling coyotes to perdition.

mellifluous wrote on July 19, 2007 10:17 AM:

Murkowski (R-of course)

Thomas W. Rodd wrote on July 19, 2007 10:24 AM:

Since this post (somewhat gratuitouly, I think)mentions my Congressman, Alan Mollohan, who I admit I admire, could we get some clarification? Are you suggesting that he did not report his transactions? I think I remember that he did, and also that there were some relatively minor errors in the reporting, that he corrected. I also don't think anyone has yet pointed to him securing any sort of deal, bargain, or unearned benefit in his couple of private and unrelated (and fairly modest) investments with friends who work for nonprofits that he has gotten earmarks for. Isn't this correct?

Pywiak wrote on July 19, 2007 10:45 AM:

Any chance that Penney had an interest in that island to which Stevens wanted to build the "bridge to nowhere"?

mo wrote on July 19, 2007 12:53 PM:

I'm not sure how they got it, but Westlaw gives a sale price: $181,626. One way to get a sale price is to check the transaction fee, typically recorded with the deed, which is sometimes proportional to the sale price. It MIGHT also be found on the mortgage document which should be in the recorder/clerk's office. For my fellow nerds:
http://www.dnr.state.ak.us/recorders/sag/NameSearchMenu.cfm

(NOTE THIS IS FROM WESTLAW!!! NOT DEPENDABLE!!!)
REAL PROPERTY TRANSACTION RECORD

Filings Collected Through: 05-18-2005

County Last Updated: 06-11-2005

Frequency of Update: WEEKLY

Current Date: 07/19/2007

Source: DISTRICT RECORDER , KENAI PENINSULA, ALASKA

OWNER INFORMATION

Owner(s): MARTELL VERNE J

Owner Relationship: HUSBAND/WIFE

Ownership Rights: TENANTS BY ENTIRETY

Additional Owner #1: MARTELL VERNE J

Owner Relationship: HUSBAND/WIFE

Owner Rights: TENANTS BY ENTIRETY

Additional Owner #2: MURKOWSKI LISA A

Owner Relationship: HUSBAND/WIFE

Owner Rights: TENANTS BY ENTIRETY

Property Address: 905 KENAI RIVER ESTATES DR

SOLDOTNA AK 99669

Mailing Address: 232 S CAROLINA AVE SE

WASHINGTON DC 20003-1940

PROPERTY INFORMATION

County: KENAI PENINSULA

Assessor's Parcel Number: 06034340

Property Type: SINGLE FAMILY RESIDENCE - TOWNHOUSE

Land Use: VACANT LAND (NEC)

TRANSACTION INFORMATION

Transaction Date: 12/22/2006

Seller Name: PENCO AK

Sale Price: $181,626.00

Consideration: ESTIMATED

Deed Type: GRANT DEED

Type of Transaction: RESALE

Mortgage Amount: $136,561.00

Mortgage Type: CONVENTIONAL

Mortgage Term: 40 YEARS

Mortgage Deed Type: DEED OF TRUST

Mortgage Date: 12/27/2006

Mortgage Due Date: 01/01/2046

Lender Name: FIRST BK

Lender Address: KETCHIKAN, AK 99901

Recording Date: 12/29/2006

Document Number: 14031

Title Company: FIRST AMERICAN TITLE INSURANCE

Construction Type: RESALE

Purchase Payment: MORTGAGE

Phil Ball wrote on July 19, 2007 1:13 PM:

Don't confuse assessed value with fair market value. And drop the 'fair' from FMR. Market value is the last price paid in a competitive market. Assessed value is whatever the assessing authority-city, state, county, sewer district...-says it is. And often, for a variety of local/technical reasons, property is assessed at a percentage of market value(determined by comprable recent sales.)
For real estate scams, begin with an examination of the seller's efforts get market value-was the property advertised? MLS listed?
Did the normal market for such property know of the offering?
If it was an in house sale, private, and the normal market was unaware, unleash the hounds.

Grant W. Hunter wrote on July 19, 2007 8:27 PM:

Mr. Phil Ball:

Your comments bespeak a malformation of the spirit and a lack of respect for the Great Mother.

Are you a front man for the realtors and/or George Soros?

By your logic, any young woman wishing to marry would be required to offer herself on ebay instead of marrying the lad next door with whom she had played in the sandbox as a tot. You would require our young women to sell their virtue in the manner of ancient Babylon.

Mr. Penny has known Lisa since she was a little one. He most certainly looks on her as a surrogate niece or daughter.

Would you replace family, faith and loyalty with alienation, apathy and betrayal? Would you replace marriage with the brothel? Would you replace birth with partial-birth abortion?

Grant W. Hunter

hunterpp@gci.net

Grant W. Hunter wrote on July 19, 2007 9:26 PM:

mellifluous wrote:

Murkowski (R-of course)

My reply:

R = GOP

G = God

O = Own

P = Party

Therefore: Lisa is of God.

The Lord loves a sinner coming to his understanding.

I rejoice that you have embraced Lisa's goodness.

Grant W. Hunter

hunterpp@gci.net

7-19-2007

Grant W. Hunter wrote on July 19, 2007 9:32 PM:

Denny:

Why don 't you have the guts to identify yourself?

Are you a liar, a coward or a combination of the two?

Grant W. Hunter

hunterpp@gci.net

7-17-2007

Grant W. Hunter wrote on July 19, 2007 9:40 PM:

Ryan wrote:

Considering that undeveloped riverfront property on the Kenai is at a premium, I'd argue she got quite the deal. My family owns a summer home on the river that was appraised well above what Murkowski paid for her lot, so I'd even argue that the borough assesment is low, especially on that part of the river, and considering that developed lots go for upwards of 600K, something fishy is going on. No pun intended.

Posted by: Ryan
Date: July 16, 2007 4:18 PM

Reply:

Why are you soliciting an increase in your property taxes?

Grant W. Hunter

hunterpp@gci.net

7-19-2007

Jake wrote on August 3, 2007 11:56 AM:

Gee Whiz, I was hoping for an expose of Harry Reid's funny land deal in Nevada and all we got was a phony attempt at humor in Alaska.
Or perhaps a study on the earmark Pelosi put up that would have greatly enhanced the business holdings of her husband. Now that WOULD be interesting. But no, just more liberal blather looking for a speck in the eye of the GOP when they have beam in their own democrat eye.

ftnyvzh uspl wrote on August 30, 2007 7:14 AM:

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