If Obamamania is to continue and Obama makes a serious run at the nomination, it will be necessary to evaluate whether his land purchase will create problems which affect his electability and whether there were any real ethics violations which should preclude him from being President. This was discussed briefly in the earlier post on Obama today. Slate reviews this in more detail:
The Chicago Tribune broke the story back in November. It begins in 2004 with Obama’s $1.9 million book advance for The Audacity of Hope. In June 2005, Obama used the money to purchase a $1.65 million Georgian revival home on Chicago’s South Side—$300,000 less than the asking price. On the very same day, Rezko, a Democratic Party fund-raiser and developer, bought the adjacent empty lot at the asking price from the same owner (the house and the lot were previously owned by the same person). Rezko, who had raised money for Obama and known him since the senator attended Harvard Law School, did not develop the empty lot. In January 2006, he sold a 1,500-square-foot slice of it to Obama for $104,000, a fair sum in that market.
Here’s the question: Did Rezko orchestrate his same-day purchase of the lot at full price so that the seller would give Obama a break on the price of the adjacent house? Was Obama in on the deal? And did Rezko never intend to develop the lot, giving Obama a nice roomy side yard, a favor which he’d call in later?
Obama says he did talk to Rezko before the purchase, but only because a person who had renovated it for a previous owner had once worked with Rezko, who owns other properties in the South Side. He didn’t arrange the joint purchase with him. He bought the house at such a good price, Obama has told the papers, because it was being unloaded in a “fire sale.”
There’s no evidence that the senator is fibbing or that the indicted fund-raiser asked anything in return for his neighborly behavior (though that might have been just a matter of time). Obama hasn’t tried to change his story, even though Rezko is now talking to investigators.
What about Obama’s judgment? Chicago politicians with national aspirations have to think a little harder about appearances than their colleagues from other cities that don’t have reputations for corruption. Shouldn’t Obama have known not to get anywhere near a sketchy character like Rezko?
When Obama bought his house, Rezko was not as radioactive as he is today. Newspaper accounts contained allegations about his business practices, but he was regarded as a typical power broker who cannily cultivates politicians. But by the time that Obama bought the strip of land, Rezko was glowing. The papers were reporting that he was under investigation by federal prosecutors. In October, he was charged in a 24-count indictment with trying to obtain kickbacks from companies seeking state business.
Obama presents himself as a squeaky-clean politician, so the dubious association with Rezko has caused him more trouble that it would, say, anyone else in the history of Chicago or Illinois politics. To defuse the issue, the junior senator has done a good John McCain imitation: swamping critics with apologies, admissions, and candor. “This is the first time this has happened and I don’t like the feeling,” Obama said at a press conference in November. “It’s frustrating to me, and I’m kicking myself about it.” He told the Associated Press: “Purchasing a piece of property from somebody who has been a supporter of yours I think is a bad idea. It’s an example of where every once in a while you’re going to make a mistake and hopefully you learn from it.” He told the Chicago Sun-Times that he made a mistake and, “I regret it. … One of the things you purchase in public life is that there are going to be a different set of standards, I’m going to make sure from this point that I don’t even come close to the line.”
So far it doesn’t look like there is much of anything there. Obviously if the facts turn out to be different than stated by Obama it will change everything, and there is no doubt that the deal will be scrutinized very closely.
