Columbus Center: RIP | Back Bay

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Re: Columbus Center

[size=+2]Columbus Center investor questions Winn gift[/size]

Boston Globe, 27 January 2009

Investor-questions-Winn.jpg


http://www.boston.com/business/articles/2009/01/27/columbus_center_investor_questions_winn_gift/
 
Re: Columbus Center

[size=+2]What?s $10K among friends?[/size]
Boston Globe editorial, 28 January 2009

ALREADY under indictment on bribery charges, former state senator Dianne Wilkerson made a jaw-dropping disclosure in Sunday?s Globe, acknowledging she took more than $70,000 in gifts from friends and supporters. In an interview with reporter Donovan Slack, Wilkerson said that she took gifts of up to $10,000 per donor to pay off her own debts, and that the State Ethics Commission had advised her such gifts would be legal.

Yet one $10,000 gift came from a developer with interests in the former Democratic senator?s Boston district. If she thinks the ethics panel blessed such a gift, she?s reading the agency?s letters incorrectly.

No matter what, her disclosure still reveals a yawning chasm in the state?s campaign-finance and conflict-of-interest laws.

Big cash gifts to officials can be entirely legal ? a loophole that makes a mockery of the state?s $500 limit on individual campaign contributions. Under federal tax laws that are applicable to everyone, individuals can accept gifts of up to $12,000 without reporting them as income or paying taxes on them. Public officials in the state are under no special obligation to disclose such gifts.

There is one key restriction: Legislators must not take gifts from anyone with business before them ? and must disclose a past gift if a conflict of interest arises later. As the Ethics Commission advised Wilkerson in a confidential 1997 letter obtained by the Globe, the restriction applies when donors have an interest ?in any past, present, or future legislative act, including a bill, an appropriation, or a constituent service.? A 2003 letter was slightly muddier, citing a need ?to establish a link . . . between a gratuity and an official act.?

And yet a $10,000 gift to Wilkerson from Arthur Winn, a developer whose proposed Columbus Center project would be located in her former district, still appears to violate the law. Common sense applies: Developers rarely give large sums to public officials just to be friendly. And Wilkerson didn?t just lobby others on behalf of the project; she herself voted for state funding for it.

Under existing law, experts say, the burden falls on public servants to refuse improper gifts. Ethics legislation proposed by Governor Patrick would help by adding new criminal penalties for donors as well as for public officials who receive gifts for reasons connected to their public duties. Lawmakers should go further, by requiring public officials to disclose all gifts from non-relatives above a reasonable threshold ? say, $500.

Wilkerson?s situation also calls into question the role of the State Ethics Commission, which is required by statute to operate under strict confidentiality. When officials seek advice on whether certain conduct is legal, the agency?s informal advisory letters are kept secret. Even when the commission votes on formal opinions, the identity of the official in question is withheld.

Other states defer far less to the delicate sensibilities of their officials. In Rhode Island, requests for ethics advice are public records. The Ethics Commission takes them up in open session and issues public reports. Massachusetts needs the same transparency. Under these rules, Wilkerson?s constituents would have known a decade ago that she was asking about large gifts.

In her interview with the Globe, Wilkerson asserted that she never accepted money for any official act. ?If they?re going after corruption at the State House,? she said, ?I would be the 999th person on the list.? Such attempts to implicate others seem awfully self-serving, in light of FBI photos of Wilkerson stuffing cash into her sweater. Yet even if such conduct were widespread, how would anyone know? The state?s loose ethics rules do far too little to prevent improper payments ? or even bring them to light.

http://www.boston.com/bostonglobe/e.../articles/2009/01/28/whats_10k_among_friends/
 
Re: Columbus Center

Ned! The developer wouldn't need to give 10k gifts to anyone, had people like you not given them so much trouble getting Columbus Center built! They'd have more money, the project would be done faster, and pols wouldn't need to be paid off. But no, you had to give them crap, and now they need to get involved in dirty politics...so really, you're the reason we've got paid-off politicians going to court, not the developer.
 
Re: Columbus Center

I agree, its Ned that should be in jail for hurting this project, killing jobs and damaging the local economy
 
Re: Columbus Center

[size=+2]Who might be bailed out?[/size]

Boston Courant, 23 January 2009

Who-bail.jpg
 
Re: Columbus Center

[size=+2]Why Columbus Center is disqualified from federal economic stimulus funds[/size]

1. Columbus Center is not fully permitted, shovel-ready, or criteria-compliant.

The developers claim that their proposal is ?fully permitted.?_ That is untrue._ MTA never issued permission to start building the 7 acres of tunnels which under the lease had to be finished by 30 November 2008._ That?s because the owners never delivered the $295 million in performance bonds that the 2008 lease amendment required them to buy.

The developers also claim that their proposal is ?shovel-ready.?_ It is not._ No bank issued the required construction loans._ And the new tunnel designs haven?t been submitted MTA for approval (because they haven?t been drawn yet), and haven?t been submitted to the sworn, independent tunnel safety engineers, as required by a new state law enacted 8 August 2008._ Furthermore, the developers recently shrank their tunnel budget from $295 million to only $50 million, raising critical new questions about tunnel durability and passenger safety.

With no bank loans, no approved tunnel designs, and no tunnel safety certification, the proposed tunnels are nowhere near the federal requirement for being ?shovel-ready.?

The developers also claim that the project ?meets the federal criteria for stimulus dollars.?_ That, too, is untrue._ There are no such criteria, because the new law hasn?t been written yet._ No one knows what criteria Congress will impose when it finishes writing the new law next month, or what restrictions the Commonwealth will add for spending in Massachusetts.

2. Fifteen-year delay prevents immediate results.

The MTA?s 99-year lease to the developers includes a 10-year construction delay (2013 - 2022), pushing the grand opening to as late as 2026, when the first new, permanent jobs would be created._ Even though the developers must pay over $8.1 million for this delay privilege, they insisted upon keeping it during the 2006 lease negotiations, and again during the 2008 re-negotiations.

3. Privately owned tunnels don?t meet the public ownership requirement.

The project has no publicly owned infrastructure._ All project components ? especially tunnel walls, tunnel ceilings, tunnel roofs, decks, platforms, and public parks ? are 100% privately owned._ That private ownership of the tunnels is why the state disqualified Columbus Center?s $20 million M.O.R.E. grant application (?State denies subsidies for condo complex?, Boston Globe, 14 November 2007), and then reassigned the funds to other towns (?State pulls $10m slated for Columbus Center?, Boston Globe, 8 April 2008).

Economic Development Undersecretary Greg Bialecki says that Columbus Center?s tunnels, decks, and platforms might qualify for federal funding, but those are the very elements that disqualify it._ Because all components are 100% privately owned, the project has no publicly owned infrastructure.

The private ownership clauses appear in the 2006 original lease (on which the owners defaulted 3 years ago), and also in the 2008 amended lease (which the owners never signed).
 
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Re: Columbus Center

Hi.

I just want to randomly mention that there are two (or more) "John Keith's" who are real estate agents in the Commonwealth.

Totally random, and completely unrelated to upcoming stories the Globe may or may not publish in the near future.
 
Re: Columbus Center

[size=+2]Mass Pike official hits $10G gift to Dianne Wilkerson[/size]
By Thomas Grillo
January 29, 2009

A Massachusetts Turnpike Authority official said reports of a Columbus Center developer?s cash donation to disgraced former state Sen. Dianne Wilkerson raise new questions about the stalled project.

?The commonwealth can?t afford any more ethical lapses,? said Mary Connaughton, a Turnpike board member. ?If the allegations are true, it casts a pall over Columbus Center and will influence our decision-making about the development going forward.?

Reports that Arthur Winn gave Wilkerson $10,000 to defray her delinquent tax and mortgage bills are just the latest issues facing the controversial mixed-use development.

At stake is the 1.3 million-square-foot neighborhood to be built on a seven-acre deck above the Massachusetts Turnpike straddling the Back Bay and South End.

Approved by the Boston Redevelopment Authority in 2003, the plan calls for condominiums, a hotel, parks and retail space. But the $800 million project has yet to be built, due to financing problems. Wilkerson has reportedly accepted cash gifts from a variety of individuals including Winn, but she has said the donations were allowed by the state Ethics Commission.

The panel, however, prohibits donations for ?personal financial assistance from anyone with an interest in legislative business,? according to its Web site.

In December, Wilkerson was arraigned on extortion charges. Investigators allege she took $23,500 in bribes. The 53-year-old Democrat pleaded not guilty.

Connaughton said Columbus Center has the potential to beautify the area near the Back Bay MBTA station. ?Theoretically, the project is a good one,? she said. ?But it must be done in accordance with sound public policy. Revelations like this don?t help.?

Winn, through a spokesman, declined to comment.

http://www.bostonherald.com/busines...t_to_Dianne_Wilkerson/srvc=home&position=also
 
Re: Columbus Center

[size=+2]Why Columbus Center is disqualified from federal economic stimulus funds[/size]

The developers also claim that the project ?meets the federal criteria for stimulus dollars.?_ That, too, is untrue._ There are no such criteria, because the new law hasn?t been written yet._ No one knows what criteria Congress will impose when it finishes writing the new law next month, or what restrictions the Commonwealth will add for spending in Massachusetts.

Nice contradiction. You say they are disqualified but then say there are no such criteria to meet. You fail.
 
Re: Columbus Center

Ned! The developer wouldn't need to give 10k gifts to anyone, had people like you not given them so much trouble getting Columbus Center built! They'd have more money, the project would be done faster, and pols wouldn't need to be paid off. But no, you had to give them crap, and now they need to get involved in dirty politics...so really, you're the reason we've got paid-off politicians going to court, not the developer.

This is the most absurd thing I've ever read on this forum. I hope you're kidding??
 
Re: Columbus Center

I hate how people here divide into rabid pro- and anti- Columbus Center camps, excluding the middle position that says "this is a worthwhile project, but not necessarily so worthwhile that it should receive taxpayer subsidies (especially compared to other infrastructure projects)." Am I the only person who falls into that category?
 
Re: Columbus Center

I can certainly understand the spirit of your reluctance to offer subsidies to this project, Ron. The rational that there will be an uptick in auto sales revenue because the hotel rooms added at Columbus Center will require that cab companies add to their fleets is a little absurd. Voodoo economics indeed.

The entire process around getting this and other large scale projects off the ground reminds me an awful lot of Vietnam logic: "We had to destroy the project to get it built."
 
Re: Columbus Center

I hate how people here divide into rabid pro- and anti- Columbus Center camps, excluding the middle position that says "this is a worthwhile project, but not necessarily so worthwhile that it should receive taxpayer subsidies (especially compared to other infrastructure projects)." Am I the only person who falls into that category?

I don't think you are alone. The discussion is polar, and the facts presented are often used in the service of rhetoric rather than in the pursuit of truth. The developers want a building that is very tall; others want something very short. Each marshalls its straw men for the line of battle.
 
Re: Columbus Center

I hate how people here divide into rabid pro- and anti- Columbus Center camps, excluding the middle position that says "this is a worthwhile project, but not necessarily so worthwhile that it should receive taxpayer subsidies (especially compared to other infrastructure projects)." Am I the only person who falls into that category?

We have no way of knowing if public subsidies are really needed or if they?re just extra profit for the owners. The project was proposed (and approved) as being funded 100% by the developer, with no public money needed. The City of Boston hired real estate Certified Public Accountants, who certified that no subsidies were necessary. Those findings were presented during many public hearings, and also in the written proposal. That was 5 years ago.

Since that time, the developers claim the cost of the project has increased from 300 million to over 800 million. They just expect us to take their word for it.

Until the developers allow an updated independent audit of the true costs and profits, no one has any idea about anything, and as long as they refuse to open their books and prove that public subsidies are really needed, the answer should continue to be "NO."
 
Re: Columbus Center

This is the most absurd thing I've ever read on this forum. I hope you're kidding??

Only partially. Mostly just trying to get Ned to cut it out, so we can have something built over the Pike.
 
Re: Columbus Center

Nice contradiction. You say they are disqualified but then say there are no such criteria to meet.

DarkFenX, you misunderstand the purpose of the federal initiative, the status of the legislation, and my comment._ The objective of the Congress is already fixed:_ to stimulate the economy with construction on publicly owned infrastructure._ The specific criteria that California?s public relations spokeswoman claims to have met aren?t even written yet._ So, that?s how the project is already disqualified from the overall program, and that?s also how the developers are dishonestly claiming to meet specific criteria that don?t even exist yet.
 
Re: Columbus Center

. . . The developers want a building that is very tall; others want something very short.

The proposal has many fundamental failings:_ no developer pre-screening, no competitive bids, no financial disclosure, no bank loans, violations of the Turnpike Master Plan, and although proposed and approved as subsidy-free, the California-based owners have already sought 19 subsidies totaling $605 million._

Knowledgeable people, on this forum and elsewhere, legitimately find much fault with the proposal, for the above reasons, and others.

But no critic, here or anywhere, ever argued for ?something very short.?

Based on that comment, Tobyjug, you are either in the wrong thread, or on the wrong forum.
 
Re: Columbus Center

[size=+2]Money to spurn[/size]

By Globe columnist Adrian Walker ? January 30, 2009

I?ve spent several days trying to make sense of the sheer lunacy that seems to form the heart of Dianne Wilkerson?s defense.

In Sunday?s Globe, the indicted former senator trotted out a defense that baffled the city. She told the Globe?s Donovan Slack that over the years she has taken at least triple the $23,000 she has been charged with grabbing illegally.

This is all legal - she said - because the state ethics commission wrote a letter saying she could take whatever she wants as long as she didn't cast votes benefiting her donors.

Say what?

Ethics Commission members maintained that their advice to public officials is private, and would not comment.

I?m going to go out on a limb and say no one told her she could start accepting unmarked envelopes full of cash. I also suspect that their advice did not say she could take payments to grease the skids for liquor licenses and real estate developments, as the US attorney?s office alleges she did.

The juiciest issue in the story Sunday is the allegation that the developer of Columbus Center, Arthur Winn, generously wrote a check for $10,000 before she spent years trying to pry loose tens of millions of dollars in state subsidies for his project. She probably would have succeeded if not for the vigorous opposition of everyone else who represents the district, including Sal DiMasi, that well-known crusader for clean government.

It?s easy to poke fun, but the interview reflected a person who seems to have lost any significant contact with reality.

She said she could accept gifts up to $12,000 without having to report them to the IRS, which is true. But tax crime has nothing to do with bribery, even if a person who has been accused of both can be forgiven for confusing them.

Typically, lawmakers have a few facts of life explained to them when they take office. One is that you don?t take cash from people who will want something in return. Two, anyone who would give you cash wants something in return. Therefore, you don?t take little envelopes from anybody, and you certainly don?t want to be caught on camera sticking a wad of hundreds down your bra.

This is more sad than funny. Wilkerson was once a crusading civil rights lawyer. She took on Boston City Hall over segregated public housing and won, changing the face of Charlestown and South Boston. Now she is sitting in a diner explaining that she did take money, but she has some letter that says really, it?s all fine. Good luck with that defense.

People have asked what her fall means for black leadership in the city, a question that makes me crazy. The city and state have a leadership vacuum in general, but it isn?t about ?black leadership.? DiMasi just left under fire, and others in the State House may follow. This isn?t about ethnicity.

Wilkerson?s grasp of conflicts of interest is obviously shaky, but it does offer another window into how such a talented person has made such a mess of her career. The compass that guided her, or seemed to, at the beginning got dropped somewhere along the way. She won her first race by assailing incumbent Bill Owens, but he never took thousands from fat-cat developers and told the world he?d done nothing wrong.

Wilkerson seems to have saved her best parting shot for the clergy, whom she has accused of smearing her for years. Heaven knows they are not above criticism, and in fact I personally know some of her complaints about them to be true.

But just as Wilkerson doesn't quite grasp bribery, she also doesn't understand the idea of a moral high ground. But how would someone who thinks there?s nothing wrong with taking envelopes stuffed with cash ever understand that?

http://www.boston.com/news/local/massachusetts/articles/2009/01/30/money_to_spurn/
 
Re: Columbus Center

Based on that comment, Tobyjug, you are either in the wrong thread, or on the wrong forum.

No no. Quite the contrary. Toby belongs right where he is, and many would be sad if he went away.

His humorous quips are sometimes the only thing that saves some of these endless monotonous threads. Couple that with an excellent understanding of law and business in this city he is an excellent contributor.

He like many others who also have the ability to look at things from more than one perspective. Imagine that, someone who is not afraid to play devil's advocate to something that they themselves may support in an effort to fully understand an issue or to educate others.

Did I mention the ability to not take everything so damn seriously.

I think I've said this before. Forums do not require any prerequisites when it comes to education, social status, age, blah blah blah. It's a free open forum. Because someone does not agree with your logic (which might I remind you, no matter how many "facts" you trot out there, your logic is still only based on your own personal opinions) does not mean they don't belong.

Sorry Toby..... I know you don't need any defense.
 
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