Richardson donors tied to rail project

Richardson donors tied to rail project

	Published : Wed, 29 Aug 2007 19:24 By : Agencies Print this Story

SANTA FE, N.M. (AP) - Contracting and development executives with a financial stake in a $400 million commuter rail system pushed by New Mexico Gov. Bill Richardson have contributed thousands of dollars to his presidential campaign and provided him the use of corporate planes.

Some donations by one businessman -- developer and art dealer Gerald Peters -- were given while contract negotiations were under way with the state.

Also, executives with a Missouri-based company that's paid to operate the rail service, Herzog Contracting, contributed $13,800 to Richardson's presidential campaign in March and April, according to federal campaign finance reports.

Earlier this month, a joint venture that includes the company's parent, Herzog Companies, won a $117 million state contract to design and build an extension of the rail system.

The contract was awarded by a Richardson administration agency through competitive bidding, which began about two months after the contributions were made to the presidential campaign. However, it was known long before the bid process opened that the state intended to expand the commuter rail from the Albuquerque area to Santa Fe.

Herzog contributed $25,000 to Richardson's gubernatorial campaign in late December -- more than a month after he won re-election. The campaign used its postelection fundraising to help pay for Richardson's inauguration in January.

Pahl Shipley, a spokesman for Richardson's campaign, said, 'Contributions or support of any kind have no effect on decisions made by state agencies or the governor's office.'

Richardson's presidential campaign also has received contributions from a Santa Fe developer, whose company was selected by the state in December for a multimillion dollar construction project that includes a commuter rail hub and a new headquarters for the Transportation Department on state land near downtown Santa Fe.

Peters, the developer, hosted a fundraiser last week for Richardson at a home he owns in the resort town of Jackson, Wyo. Shipley said Peters was among a dozen people who co-hosted the fundraiser. Peters is a longtime Richardson supporter and friend.

Peters, his wife and son each gave $2,300 to Richardson's campaign in late June.

At the time of the contributions and the Wyoming fundraiser, Peters' company, SCS Development, was negotiating a final contract with the Transportation Department.

Peters flew to Wyoming with Richardson, but Shipley said the campaign paid for all the travel, including for Peters. They did not travel aboard a jet owned by Peters.

However, Richardson has used a jet owned by a Peters' company for a half dozen presidential campaign trips from February through May. The campaign paid the company for use of its aircraft, but the reimbursement was at the equivalent of first-class airfare, according to Shipley. The travel would have cost more had the reimbursement been at the charter rate for a private aircraft. The favorable reimbursement rate is permitted under federal election rules.

Richardson also used a plane owned by Herzog for a presidential campaign trip earlier this year, according to the campaign's federal finance report. That travel was reimbursed at the rate for a first-class ticket, according to Shipley.

Massie Ritsch, a spokesman for the Center for Responsive Politics, said, 'Providing an airplane to a candidate who needs to be able to travel quickly to campaign events is a great way to curry favor with that candidate.'

Peters' development company is slated to finance the construction project for the state, including the rail station. In return, the developer is given rights to put up commercial and residential buildings on the 25 acres of state property. Final contract negotiations with the state will help determine how much money the company must spend before it can start to recover its investment through the commercial and residential development.

Peters has been a major political donor to Richardson in the past. He contributed about $130,000 in monetary and in-kind contributions to Richardson's campaign for governor in 2002.

Ritsch said Richardson 'has to strike a difficult balance as he is campaigning for president because he is also the governor of a state and the contributors who are giving to his presidential campaign might not care at all whether he becomes president, their focus may be just on what he can do for them as governor.'

'Politically that is a difficult dance because you don't want your presidential campaign to be tarnished by any appearance of impropriety because of the work you have been doing at the state level,' said Ritsch.