John McCain's Role in "Sweetheart Deals" With Fort Ord Developers
The New York Times today published a major exposé on John McCain's favors for a land developer at Fort Ord. Although McCain tells voters he does not do such political favors, the article demonstrates that in fact McCain helped the developer obtain a "sweetheart deal" that netted $20 million in profit, at the expense of not only the public interest, but also of stressed water supplies in the Monterey Peninsula/Fort Ord region.
According to the article, in 1994 McCain provided crucial assistance to the developer, Donald Diamond, who was looking to buy several housing complexes from the military as Fort Ord was closing. The talks "stalled over price and water supply" - Diamond was seeking more water than was reasonable - and McCain's legislative aide Ann Sauer "interceded with the Army" and "got the thing resolved." Diamond was sold the land for $250,000 and given an "unusual guarantee from the Army that provided a generous water allowance outside the standard allocation process" - despite the region's well-known and ongoing water shortage problems.
In 2001 Michael Keenan and his family bought the development from Diamond - for $30 million, giving Diamond a $20 million profit. Keenan told the New York Times it was a "sweetheart deal," and the paper quoted unnamed city officials on the Monterey Peninsula as being "rankled" by the unusual water bonus.
In 2002 Diamond sought to buy the two Fort Ord golf courses - Bayonet and Blackhorse - and included in the bid package a "laudatory letter" from McCain who was effectively lobbying on behalf of the developer with the city of Seaside. Diamond later was sued over his bid by a local civil rights activist and rival bidder over charges the process was rigged, and Diamond later settled out of court.
The article raises several troubling questions about John McCain. Is there more to his involvement with the Fort Ord developments than has been reported here? Can we really believe his claims that he doesn't do favors for lobbyists when his staff interceded on a developer's behalf at Fort Ord? Is McCain a proper steward of the public interest when a $30 million housing complex is sold for $250,000 and precious water rights are allocated outside the usual process and above the appropriate levels for our water-conscious region? What other deals has he cut in the past, and what deals would he cut as president?
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