By STEVE QUINN, Associated Press Writer
July 20, 2007
JUNEAU, Alaska - Sen. Lisa Murkowski's purchase of prized
land on the banks of Alaska's Kenai River from a longtime political
backer is being questioned by a watchdog group.
Murkowski, R-Alaska, bought the 1.27-acre vacant tract late
last year for $179,400 from real estate developer Bob Penney,
who recently testified in a grand jury investigation touching
on the state's senior U.S. senator, Republican Ted Stevens.
The National Legal and Policy Center, a government and ethics
watchdog group, raised questions this week about how much she
paid for the land.
"Land deals have been a way that public integrity can
be bent a little, so it's very important to ask if she paid
the fair market value," said Ken Boehm, the center's chairman.
Penney, who lives two lots from the tract he sold to Murkowski
and owns the land in between, said he considers the price fair
for a welcome neighbor.
"I've known Lisa since she was 5 and we'd like to have
the family for neighbors," Penney said. "Part of
the reason is that they're longtime friends and we like the
entire family."
He said the price was the assessed value of the property at
the time and nearly four times the $46,000 that he paid for
it in 1996. The assessed value of the property in 2005 was
$120,000, Penney said.
The issue was first raised Monday by a political Web log,
tpmmuckraker.com. Since then, Murkowski has been criticized
on radio talk shows and in other political blogs.
The purchase was not fully reflected in Murkowski's financial
disclosure report for 2006 filed last May. Her spokesman, Kevin
Sweeney, said the senator did everything required by the Senate
Ethics Committee.
"She's not buying this to make an investment on it; she's
building a home," Sweeney said.
Area real estate broker Marty Radvansky said since January
2006, undeveloped land in that area has sold for between $250,000
to $350,000 depending on the waterfront location and the size,
which is normally a minimum of nine-tenths of an acre.
The area's strong lure isn't just the beauty. The Kenai River
attracts visitors nationwide seeking to enjoy time on the banks
with a fishing rod hoping to take advantage of the huge seasonal
salmon runs.
Linda McLane, a broker with the Ron Moore Co. who has worked
in that area for 14 years, agreed with Radvansky's estimates,
adding she would likely ask $300,000 for Murkowski's property
were she to sell the land.
"Maybe even $350,000," she said. "Would I get
$350,000 for it? Maybe I would, I don't know, but that is a
very nice area back there with lovely homes and it's near town
(Soldotna) but still has the seclusion you want."
The assessed value of the property was $214,900 as of May,
according to the Kenai Borough assessing department.
On her financial disclosure form, Murkowski reported a mortgage
in Kenai but did not initially check a box to identify the
cost range into which the mortgage falls. Sweeney said she
has since amended that, but he did not have a figure available.
Murkowski, who sold her Anchorage home, now lists a cabin
in the ski resort community of Girdwood as her state residence.
Boehm said that precludes her from exempting a disclosure on
the riverfront land.
Gerald McBeath, political science professor at the University
of Alaska Fairbanks, said Murkowski should not be surprised
at the attention.
"Anything involving money, especially a large amount
is going to attract attention," McBeath said. "She
ought to have expected that. She's no longer a kid."
Still, McBeath said critics "may be reaching a bit."
"If the question of market value is the issue, market
value is what somebody pays for it," he said.
___
Associated Press writer Rachel D'Oro in Anchorage, Alaska,
contributed to this report.
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