Friday, May 09, 2008

McCain's involvement in land swap deals

I found this Washington Post story through The Carpetbagger Report, which brings up some serious questions about Arizona Senator John McCain's involvement into several land-swap deals. First, the Washington Post story, titled McCain pushed land swap that benefits backer:

PRESCOTT, Ariz. -- Sen. John McCain championed legislation that will let an Arizona rancher trade remote grassland and ponderosa pine forest here for acres of valuable federally owned property that is ready for development, a land swap that now stands to directly benefit one of his top presidential campaign fundraisers].

Initially reluctant to support the swap, the Arizona Republican became a key figure in pushing the deal through Congress after the rancher and his partners hired lobbyists that included McCain's 1992 Senate campaign manager, two of his former Senate staff members (one of whom has returned as his chief of staff), and an Arizona insider who was a major McCain donor and is now bundling campaign checks.

When McCain's legislation passed in November 2005, the ranch owner gave the job of building as many as 12,000 homes to SunCor Development, a firm in Tempe, Ariz., run by Steven A. Betts, a longtime McCain supporter who has raised more than $100,000 for the presumptive Republican nominee. Betts said he and McCain never discussed the deal.

The Audubon Society described the exchange as the largest in Arizona history. The swap involved more than 55,000 acres of land in all, including rare expanses of desert woodland and pronghorn antelope habitat. The deal had support from many local officials and the Arizona Republic newspaper for its expansion of the Prescott National Forest. But it brought an outcry from some Arizona environmentalists when it was proposed in 2002, partly because it went through Congress rather than a process that allowed more citizen input.

Although the bill called for the two parcels to be of equal value, a federal forestry official told a congressional committee that he was concerned that "the public would not receive fair value" for its land. A formal appraisal has not yet begun. A town official opposed to the swap said other Yavapai Ranch land sold nine years ago for about $2,000 per acre, while some of the prime commercial land near a parcel that the developers will get has brought as much as $120,000 per acre.

In an interview, Betts said there is "absolutely no" connection between his contributions to McCain's presidential bids and the deal involving rancher Fred Ruskin and the Yavapai Ranch Limited Partnership. While his company's possible involvement was discussed casually before the bill's passage, Betts said SunCor did not sign on to the project until afterward. "At no time during the consideration of this legislation was there any involvement by officials of SunCor," McCain spokesman Brian Rogers said in a written response to questions [read the campaign's full answers].

Betts is among a string of donors who have benefited from McCain-engineered land swaps. In 1994, the senator helped a lobbyist for land developer Del Webb Corp. pursue an exchange in the Las Vegas area, according to the Center for Public Integrity. McCain sponsored two bills, in 1991 and 1994, sought by donor Donald R. Diamond that yielded the developer thousands of acres in trade for national parkland.

In the late 1990s, McCain promoted a deal in Arizona's Tonto National Forest involving property part-owned by Great American Life Insurance, a company run by billionaire Carl H. Lindner Jr., a prolific contributor to national political parties and presidential candidates.

So Senator John McCain pushes legislation through Congress to help an Arizona rancher, Fred Ruskin, swap 55,000 acres of land to help develop a huge housing tract of 12,000 homes. Ruskin gives the job of developing these homes to SunCor, which is run by longtime McCain supporter Steven A. Betts. In exchange, Ruskin and the Yavapai Ranch Limited Partnership hired lobbyists that included McCain's 1992 Senate campaign manager and two of his former staff members, while Betts has gone on to raised $100,000 to the McCain presidential campaign.

This deal stinks.

And this is not the only foul-smelling land-swap that McCain has been involved in. Consider this April 22, 2008 New York Times story, titled A developer, his deals and his ties to McCain:

Donald R. Diamond, a wealthy Arizona real estate developer, was racing to snap up a stretch of virgin California coast freed by the closing of an Army base a decade ago when he turned to an old friend, Senator John McCain.

When Mr. Diamond wanted to buy land at the base, Fort Ord, Mr. McCain assigned an aide who set up a meeting at the Pentagon and later stepped in again to help speed up the sale, according to people involved and a deposition Mr. Diamond gave for a related lawsuit. When he appealed to a nearby city for the right to develop other property at the former base, Mr. Diamond submitted Mr. McCain’s endorsement as “a close personal friend.”

Writing to officials in the city, Seaside, Calif., the senator said, “You will find him as honorable and committed as I have.”

Courting local officials and potential partners, Mr. Diamond’s team promised that he could “help get through some of the red tape in dealing with the Department of the Army” because Mr. Diamond “has been very active with Senator McCain,” a partner said in a deposition.

For Mr. McCain, the Arizona Republican who has staked two presidential campaigns on pledges to avoid even the appearance of dispensing an official favor for a donor, Mr. Diamond is the kind of friend who can pose a test.

A longtime political patron, Mr. Diamond is one of the elite fund-raisers Mr. McCain’s current presidential campaign calls Innovators, having raised more than $250,000 so far. At home, Mr. Diamond is sometimes referred to as “The Donald,” Arizona’s answer to Donald Trump — an outsized personality who invites public officials aboard his flotilla of yachts (the Ace, King, Jack and Queen of Diamonds), specializes in deals with the government, and unabashedly solicits support for his business interests from the recipients of his campaign contributions.

Mr. McCain has occasionally rebuffed Mr. Diamond’s entreaties as inappropriate, but he has also taken steps that benefited his friend’s real estate empire. Their 26-year relationship illuminates how Mr. McCain weighs requests from a benefactor against his vows, adopted after a brush with scandal two decades ago, not to intercede with government authorities on behalf of a donor or take other official action that serves no clear public interest.

In California, the McCain aide’s assistance with the Army helped Mr. Diamond complete a purchase in 1999 that he soon turned over for a $20 million profit. And Mr. McCain’s letter of recommendation reinforced Mr. Diamond’s selling point about his McCain connections as he pursued — and won in 2005 — a potentially much more lucrative deal to develop a resort hotel and luxury housing.

In Arizona, Mr. McCain has helped Mr. Diamond with matters as small as forwarding a complaint in a regulatory skirmish over the endangered pygmy owl, and as large as introducing legislation remapping public lands. In 1991 and 1994, Mr. McCain sponsored two laws sought by Mr. Diamond that resulted in providing him millions of dollars and thousands of acres in exchange for adding some of his properties to national parks. The Arizona senator co-sponsored a third similar bill now before the Senate.

Again, we have the Straight Talk Express McCain handing out land-swap deals to big developer friends in exchange for big political campaign contributions. In this case, Diamond had given McCain's presidential campaign $250,000 in return for McCain's assistance in providing Diamond the ability to speculate on prime Fort Ord beachfront property that netted Diamond a hefty $20 million profit. And this close relationship between Diamond and McCain is continuing even now. From The NY Times:

Over the years, Mr. Diamond and his wife, Joan, visited the McCains at their ranch in Sedona, Ariz., and entertained them in their Tucson home and in the Bahamas, where Mr. Diamond sometimes keeps his 134-foot yacht, the Queen of Diamonds. In 2001, the two men attended a Yankees-Diamondback World Series game together. “He is just very, very good company,” Mr. Diamond said of Mr. McCain. “I knew all his people and the staff.”

Mr. Diamond and his family have given more than $55,000 to Mr. McCain’s campaigns (and more than $600,000 to other federal candidates). More significantly, the developer has collected (or “bundled”) hundreds of thousands of dollars in contributions from others, and is now serving as a national co-chairman of the finance committee for Mr. McCain’s current presidential run. In the spring of 2000, when Mr. Diamond was in the thick of the negotiations for his California deals, he traveled with Mr. McCain through the early Republican primaries. Mr. Diamond was on the campaign trail again this year.

So now Diamond is not only serving as McCain's national co-chairman in the finance committee, but he is also on the campaign trail with McCain. In addition to raising the $250,000 for McCain's presidential campaign, Diamond has also given $55,000 to McCain's senate and presidential campaigns. Again, we have McCain giving preferential treatment to a land developer (who makes a huge profit) in exchange for campaign contributions. Again, this stinks.

And finally, we have McCain's connection with Arizona Representative Rick Renzi, who has been indicted on federal corruption charges in his own land-swap deal:

PHOENIX — Federal authorities announced corruption charges Friday accusing Rep. Rick Renzi of engineering a swap of federally owned mining land to benefit himself and a former business partner and stealing from his insurance company's clients.

A lengthy federal investigation that had put the three-term Republican congressman under a cloud for more than a year culminated in a 26-page indictment issued Thursday against him and two other men. Renzi announced Aug. 23 that he wouldn't run for re-election in Arizona's mostly rural 1st Congressional District.

"Congressman Renzi deprived the citizens of Arizona of his honest services as a United States elected representative," U.S. Attorney Diane J. Humetewa said.

The indictment's 35 counts include charges of conspiracy, wire fraud, money laundering, insurance fraud and extortion. Most of the charges allege Renzi, 49, used his office to promote a land swap to collect on a debt owed by former Renzi associate James W. Sandlin of Sherman, Texas.

[....]

Renzi is one of 24 co-chairmen for Sen. John McCain's presidential campaign in Arizona. McCain seemed surprised when asked about the indictment Friday at a campaign stop in Indianapolis, choosing his words carefully, shaking his head and speaking slowly.

Now I don't believe that McCain had any involvement with Renzi's land-swap deals or his corruption, however the fact that Renzi was one of the co-chairmen for McCain's presidential campaign does show the close relationships that McCain has with these big land developers, and how these developers respond in kind to McCain with big campaign checks. You can certainly bet that Renzi was going through his Rolodex, calling his land developing friends, asking for money to be given to McCain's campaign. What do you think all these big land developers are hoping to get in return for sending McCain into the White House?

Disturbing.

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