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From the office of State Representative Scott Dianda:
CALUMET — State Representative Scott Dianda (D-Calumet) demands House Republicans immediately take up his resolution (HR 344) for a hearing after new documents released shed light on the purchase agreement between former Senate Majority Leader Randy Richardville and a well-connected political contributor to the Republican party for lavish new senate offices.
“We know the Senate will spend $134 million of the taxpayers money over the next 30 years to pay for fancy new offices, but the purchase agreement shows that there are millions more in costs beyond the purchase price,” said Dianda. New documents released show that the developer, Boji Group LLC, will manage the office building and that the Michigan Senate will continue to pay Boji over a million dollars per year for those services.
“The story is clear. The developer is on record donating money to top Republican leaders. Soon after, Senate leadership awarded the same developer a $134 million contract for new office space. Senate leadership then gave the same developer a million dollar management contract to maintain those offices after completion. Finally, the Senator who signed the purchase agreement now consults for the developer. This is corruption and abuse of power,” said Dianda.
With no attempt to conduct an appraisal, the $41 million purchase price was approved leaving taxpayers in the dark about the true value. Purchase documents indicate the Senate will occupy only seven floors at the cost of $320.00 a square foot. However, new documents show the City of Lansing Building and Safety Office valued the Capitol View Building at less than $18 million.
“I have said it since the beginning that this deal does not pass the smell test. The numbers prove this deal was shrouded in secrecy and that we wastefully overpaid for a building at the will of political favoritism. An unjustified profit is being handed over to the developer at the cost of taxpayers pocket books. The right move forward would be an immediate investigation into the waste, fraud and abuse for those who sat at the closing table,” said Dianda.
Michigan’s campaign finance records indicate that the developer of this deal made multiple political contributions to top officials involved just weeks prior to its approval. “My resolution (HR 344) would compel Michigan’s Attorney General Bill Schuette to open an investigation into the transaction. My U.P. constituents and I agree that this is a shameful waste of taxpayer money, and it’s time we get answers to our questions,” said Dianda.
“It’s our jobs as elected officials to represent our constituencies and not those with the biggest checkbook. House Republicans had plenty of opportunities to put an end to this corrupt deal, but they voted to finalize the project and the people of Michigan are going to pay the consequences”
