Perdue's hypocrisy, cronyism and corruption shine through again
Perdue invests close to home
Governor appears to ignore his rationale in Florida deal
By JAMES SALZER
The Atlanta Journal-Constitution
Published on: 09/02/06
Gov. Sonny Perdue bought about 100 acres next to his Houston County home in 2004 even though he has since expressed reluctance about buying land in Georgia while in office because critics would assail him over potential conflicts of interest.
Perdue said last month that he bought $2 million of Florida land near Disney World in late 2004 after concluding that it wouldn't be a good idea for him to buy land in Georgia because critics would question any political decisions that could be seen as enhancing the value of any land he owned.
Gov. Sonny Perdue paid $2 million for about 20 acres of wooded and swampy land south of Orlando. The land is just outside Reunion Resort & Club, which is still being developed.
"If I bought land within 100 miles of a new road construction, I'd be accused by the other side of influencing that," he told the Associated Press the day after The Atlanta Journal-Constitution reported the Florida purchase. "So I chose to go out of state."
Even so, an examination of Houston County tax records by the newspaper show Perdue paid $305,000 for the Georgia land seven months before purchasing the property in Florida.
The property, just south of Perdue's Bonaire home, has more than doubled in value in the past two years, according to tax records.
The lawyer representing the partnership that sold the land to Perdue was House Ways & Means Chairman Larry O'Neal (R-Warner Robins). O'Neal later sponsored legislation that resulted in a new tax break that allowed Perdue to defer paying $100,000 to the state on the purchase of his Florida land. Citing attorney-client privilege, O'Neal refused to discuss the Georgia land deal.
Perdue, who has disclosed his ownership of the Georgia land, would not comment on the purchase. His spokesman, Derrick Dickey, would not answer questions about the land deal, other than to say: "The governor purchased a tract of land that adjoins his home. He intends to keep that land in his home place."
Perdue purchased the Georgia land from Maryson LLC, a corporation formed on July 23, 2003. The corporation was dissolved on July 9, 2005, a year after the sale.
Maryson bought the property for $303,000 in 2003, records show.
The corporation's state records do not list its principals but they do identify Maryson's registered agent as Stephan Holcomb, a Houston County dentist.
Perdue appointed Holcomb, a neighbor of the governor's sister in Houston County, to the state Board of Dentistry in 2003. Holcomb also served on the board under Govs. Zell Miller and Roy Barnes, but he had left the panel before being reappointed by Perdue.
Holcomb did not return phone calls seeking comment Thursday and Friday.
While there is nothing illegal about a sitting governor's investing in real estate, it is unusual. Unlike recent governors, such as Joe Frank Harris, Zell Miller and Roy Barnes, Perdue chose not to place put his assets into a blind trust when he took office. Under a blind trust, someone else looks after the governor's assets independent of the officeholder. Elected officials use blind trusts because it helps avoid the impression that they have made political decisions for personal gain.
Even so, Perdue noted that there is no law requiring him to place his assets in a blind trust. He also argued that such trusts have not performed well when they involve existing businesses, such as his grain and fertilizer company.
Perdue's net worth has increased substantially since he took office. His 2005 financial disclosure report lists his worth at $6 million. It was $4.48 million when he was elected in 2002.
Perdue's land purchases have raised questions since May, when he released a financial disclosure listing the Florida property he bought for $2 million in December 2004. The 20-acre tract is surrounded by pricey development and is near I-4 and a new toll road leading to Disney World,
The governor bought the Florida land from Newnan developer Stanley Thomas. Perdue had appointed Thomas to the state's economic development board in 2003. Perdue and Thomas said there was nothing wrong with the transaction. Thomas said he received nothing — other than the $2 million — from the governor for the land deal.
Perdue sold 318 acres of inherited Houston County property in 2004, then used $2 million from the sale to buy the Florida property. He said he needed to quickly reinvest the money from the Georgia sale to avoid paying federal capital gains taxes.
The governor said he also had no plans to develop the Florida land, even though half-acre lots nearby sell for upwards of $650,000.
A month before Perdue sold the inherited Georgia land, he bought the 101 acres in Houston County. The property is next to a 21,000-acre tract that includes a county wildlife preserve. The land's owners told a local newspaper in 2004 that they also planned housing and shopping development on the property.
A month after Perdue bought the Florida property, O'Neal sponsored a bill to allow Georgians who sell property in the state and buy out-of-state property to defer capital gains taxes.
State Senate President Pro-tempore Eric Johnson (R-Savannah), said there was no "secret deal" to get Perdue a tax break after buying the Florida land.
"The fact that this helped the governor was a surprise to everyone, including him. I am confident that others were helped as well," he said.
But, Rep. Tom Bordeaux (D-Savannah), said he's skeptical of Republican arguments that the timing of the land deals and tax change are a coincidence.
"Maybe you believe in coincidences, but I don't," he said. "When not just this deal, but every one that's been revealed smells, I say there's something rotten in the governor's office."
Maryson LLC isn't the only business connection between Perdue and O'Neal. Five days after Maryson was incorporated, O'Neal also incorporated a partnership for Perdue and his wife, Mary, called Perdue Plantation LLC, according to the Secretary of State's Office.
The partnership was not listed on Perdue's 2004 financial disclosure report. The Secretary of State's Office said an official is required to report ownership or a fiduciary position in a company. No other information about the partnership was available.
Former Savannah U.S. Attorney Donnie Dixon, House and Senate Democratic leaders and the Georgia Democratic Party have all called for state and federal investigations of the land and tax deals. The U.S. Attorney's Office and Georgia Attorney General's Office have declined to comment.
Perdue, a Republican, is currently locked in a re-election battle with Democratic Lt. Gov. Mark Taylor, who has not commented on the deals. The Democratic Party originally made the Journal-Constitution aware of the Florida land deal, and has been sending out regular press releases on the issue.
Governor appears to ignore his rationale in Florida deal
By JAMES SALZER
The Atlanta Journal-Constitution
Published on: 09/02/06
Gov. Sonny Perdue bought about 100 acres next to his Houston County home in 2004 even though he has since expressed reluctance about buying land in Georgia while in office because critics would assail him over potential conflicts of interest.
Perdue said last month that he bought $2 million of Florida land near Disney World in late 2004 after concluding that it wouldn't be a good idea for him to buy land in Georgia because critics would question any political decisions that could be seen as enhancing the value of any land he owned.
Gov. Sonny Perdue paid $2 million for about 20 acres of wooded and swampy land south of Orlando. The land is just outside Reunion Resort & Club, which is still being developed.
"If I bought land within 100 miles of a new road construction, I'd be accused by the other side of influencing that," he told the Associated Press the day after The Atlanta Journal-Constitution reported the Florida purchase. "So I chose to go out of state."
Even so, an examination of Houston County tax records by the newspaper show Perdue paid $305,000 for the Georgia land seven months before purchasing the property in Florida.
The property, just south of Perdue's Bonaire home, has more than doubled in value in the past two years, according to tax records.
The lawyer representing the partnership that sold the land to Perdue was House Ways & Means Chairman Larry O'Neal (R-Warner Robins). O'Neal later sponsored legislation that resulted in a new tax break that allowed Perdue to defer paying $100,000 to the state on the purchase of his Florida land. Citing attorney-client privilege, O'Neal refused to discuss the Georgia land deal.
Perdue, who has disclosed his ownership of the Georgia land, would not comment on the purchase. His spokesman, Derrick Dickey, would not answer questions about the land deal, other than to say: "The governor purchased a tract of land that adjoins his home. He intends to keep that land in his home place."
Perdue purchased the Georgia land from Maryson LLC, a corporation formed on July 23, 2003. The corporation was dissolved on July 9, 2005, a year after the sale.
Maryson bought the property for $303,000 in 2003, records show.
The corporation's state records do not list its principals but they do identify Maryson's registered agent as Stephan Holcomb, a Houston County dentist.
Perdue appointed Holcomb, a neighbor of the governor's sister in Houston County, to the state Board of Dentistry in 2003. Holcomb also served on the board under Govs. Zell Miller and Roy Barnes, but he had left the panel before being reappointed by Perdue.
Holcomb did not return phone calls seeking comment Thursday and Friday.
While there is nothing illegal about a sitting governor's investing in real estate, it is unusual. Unlike recent governors, such as Joe Frank Harris, Zell Miller and Roy Barnes, Perdue chose not to place put his assets into a blind trust when he took office. Under a blind trust, someone else looks after the governor's assets independent of the officeholder. Elected officials use blind trusts because it helps avoid the impression that they have made political decisions for personal gain.
Even so, Perdue noted that there is no law requiring him to place his assets in a blind trust. He also argued that such trusts have not performed well when they involve existing businesses, such as his grain and fertilizer company.
Perdue's net worth has increased substantially since he took office. His 2005 financial disclosure report lists his worth at $6 million. It was $4.48 million when he was elected in 2002.
Perdue's land purchases have raised questions since May, when he released a financial disclosure listing the Florida property he bought for $2 million in December 2004. The 20-acre tract is surrounded by pricey development and is near I-4 and a new toll road leading to Disney World,
The governor bought the Florida land from Newnan developer Stanley Thomas. Perdue had appointed Thomas to the state's economic development board in 2003. Perdue and Thomas said there was nothing wrong with the transaction. Thomas said he received nothing — other than the $2 million — from the governor for the land deal.
Perdue sold 318 acres of inherited Houston County property in 2004, then used $2 million from the sale to buy the Florida property. He said he needed to quickly reinvest the money from the Georgia sale to avoid paying federal capital gains taxes.
The governor said he also had no plans to develop the Florida land, even though half-acre lots nearby sell for upwards of $650,000.
A month before Perdue sold the inherited Georgia land, he bought the 101 acres in Houston County. The property is next to a 21,000-acre tract that includes a county wildlife preserve. The land's owners told a local newspaper in 2004 that they also planned housing and shopping development on the property.
A month after Perdue bought the Florida property, O'Neal sponsored a bill to allow Georgians who sell property in the state and buy out-of-state property to defer capital gains taxes.
State Senate President Pro-tempore Eric Johnson (R-Savannah), said there was no "secret deal" to get Perdue a tax break after buying the Florida land.
"The fact that this helped the governor was a surprise to everyone, including him. I am confident that others were helped as well," he said.
But, Rep. Tom Bordeaux (D-Savannah), said he's skeptical of Republican arguments that the timing of the land deals and tax change are a coincidence.
"Maybe you believe in coincidences, but I don't," he said. "When not just this deal, but every one that's been revealed smells, I say there's something rotten in the governor's office."
Maryson LLC isn't the only business connection between Perdue and O'Neal. Five days after Maryson was incorporated, O'Neal also incorporated a partnership for Perdue and his wife, Mary, called Perdue Plantation LLC, according to the Secretary of State's Office.
The partnership was not listed on Perdue's 2004 financial disclosure report. The Secretary of State's Office said an official is required to report ownership or a fiduciary position in a company. No other information about the partnership was available.
Former Savannah U.S. Attorney Donnie Dixon, House and Senate Democratic leaders and the Georgia Democratic Party have all called for state and federal investigations of the land and tax deals. The U.S. Attorney's Office and Georgia Attorney General's Office have declined to comment.
Perdue, a Republican, is currently locked in a re-election battle with Democratic Lt. Gov. Mark Taylor, who has not commented on the deals. The Democratic Party originally made the Journal-Constitution aware of the Florida land deal, and has been sending out regular press releases on the issue.
Comments