Re: Columbus Center
[size=+2]Developer defends giving Wilkerson money[/size]
Boston Globe ? 5 February 2009 ? By Casey Ross
Arthur Winn (center), shown with Bill Wollinger and Susan Malatesta of Winn Properties, said his gift to Dianne Wilkerson was unrelated to a quest for state subsidies.
Boston developer Arthur Winn said he gave $10,000 to former state senator Dianne Wilkerson in 2004 to help a "close friend" with her tax debts, and not because he wanted her assistance getting public funds for his troubled Columbus Center project.
Winn spoke for the first time about his long relationship with Wilkerson because he said disclosure of the payment threatened to tarnish his reputation and overshadow the $810 million development he is trying to build over the Massachusetts Turnpike in Boston. Winn's firm was subpoenaed by federal investigators who have brought unrelated bribery charges against Wilkerson.
The 69-year-old developer said he gave Wilkerson money because he did not want to see her career cut short by financial problems. And he vehemently denied the payment had anything to do with Wilkerson's efforts almost two years later to try to get public subsidies for Columbus Center.
"There was never a quid pro quo between Dianne and me," he said.
Speaking from the Faneuil Hall offices of WinnCompanies, Winn also said he would not be pushed out of the Columbus Center development by his partners, a California state pension fund and its real estate manager MacFarlane Partners, who own a controlling interest in the condo, hotel, and retail project. After The Boston Globe disclosed Winn's payment to Wilkerson last month, the California partners issued a statement saying the arrangement could constitute a "serious breach" of the partnership agreement. Such a violation could be grounds for removing Winn from the project.
"I'm not going to be booted out by this salacious attack on my reputation by the Globe," Winn said, his voice rising. "I've been at this . . . for 11 years. I've sunk a lot of time and effort in it, and I'd hate to see it die for many, many reasons, not the least of which is ego."
MacFarlane and the California fund declined to comment.
Wilkerson was arrested in October by federal agents and charged with taking thousands of dollars in bribes from a Roxbury nightclub operator who wanted a city liquor license and from an undercover FBI agent posing as a developer interested in building on state property.
Wilkerson could not be reached for comment, and her attorney did not return a call for comment.
Despite her history of financial problems, Winn said he remained a staunch fan of Wilkerson, who in 1997 was convicted of tax evasion and had two separate settlements with the Massachusetts attorney general for campaign finance violations. The two share an interest in affordable housing - his firm manages 4,000 apartments in her former district. Winn was an enthusiastic fund-raiser for her political campaigns, and Wilkerson emerged over the years as one of the most vocal supporters of Columbus Center.
"She's an accident looking for an intersection all the time," Winn said, adding that Wilkerson was also one of the most articulate politicians he'd ever met. "I thought she was terrific. I was always a big fan."
It was her tax conviction that led to the $10,000 payment from Winn. Faced with owing $100,000 in back taxes, Wilkerson told the Globe, she sought and obtained approval from the State Ethics Commission in 1997 to solicit donations to help with her personal finances. A fund was set up at the Boston law firm Foley Hoag to collect the donations.
"When I heard this was available," Winn recalled, "I said, 'Boy, whatever the powers that be, who knows what happened to get it set up that way.' But I sent my check to a very prestigious attorney, made out to Dianne." He said he did not recall when he learned of the fund's creation.
Even in hindsight, Winn said he never thought the gift would pose ethical or legal problems, and his own lawyers who reviewed the donation told him it was legal.
"I don't spend time studying the rules," he said. "I ask my attorneys, 'Can I give this gift? I'd love to.' And they say, 'Yes, it's been totally vetted at the ethics commissions.' The lawyers all looked at it and said I could do it."
Winn was one of several business executives who donated to the fund, but his payment appears to violate a key restriction the ethics commission placed on Wilkerson's fund raising: That she not take money from anyone with business before the Legislature. If someone later did have business before the Legislature, she was required to disclose it to the commission.
"The fact that she didn't do that is terrible, because it could get me into trouble," Winn said. "That would be the one thing that would make me angry about Dianne: She didn't do the right thing by the people who gave her the gift, because she didn't report it."
Winn's payment was made in January 2004. Then, 22 months later, in November 2005, Wilkerson successfully lobbied the state Senate to support a $4.3 million appropriation for Columbus Center, which needed help paying for a deck over the turnpike. The Legislature did not approve the funding.
Winn said there was never a "stated or unstated" understanding with Wilkerson surrounding his $10,000 payment, and that at the time he made it, he had no inkling Columbus Center would need help from the state.
"I don't follow those things," added Winn, who said he left issues involving public subsidies for the project to subordinates at his company. "And if I needed (Wilkerson's) vote, I wouldn't ask for it anyway."
Nonetheless, Winn said he and Wilkerson spoke frequently about Columbus Center, usually with the senator calling to ask how she could be helpful. Winn said he knew that whenever he would broach the topic of state financial help, Wilkerson would insist that, in turn, his project include jobs for her constituents.
"Dianne would give and get," Winn said. "Once she would get some money" for a development project, "she would associate it with a set-aside for minority employees, which is always what I expected."
Winn would not discuss the federal investigation into Wilkerson or his contact with authorities. Shortly after her arrest, his firm was among those rreceiving subpoenas asking for communications with Wilkerson and other individuals involved in her political dealings.
He said her arrest - and accompanying FBI surveillance images of her accepting wads of cash - was a "disgrace."
"It was a terrible, terrible day," he said. "I'm just very sad for her. I'm sad for many things. I'm sad she was the sole supporter of her family. I'm sad she never had any money. I'm sad she didn't have the support that many of the people on the hill have. It's a tragedy."