Coleman Still Won’t — or Can’t — Show How He’s Receiving Market Value

07/03/2008

Coleman claims his housing deal is fair market value — but listings tell a different story


St. Paul (July 3, 2008) — Senator Norm Coleman, the subject of an ethics complaint filed with the Senate Ethics Committee, continues his string of evasions about his sweetheart housing deal in Washington, D.C., claiming that Minnesotans could find on craigslist.org listings similar to the deal he is getting.

The Minnesota DFL Party has found on craigslist.org and in other public listings that there are no publicly listed rentals of English basements in the same Capitol Hill neighborhood with amenities and safety comparable to Coleman’s at anywhere near $600 a month.

The Minnesota DFL Party released the following statement from Chair Brian Melendez:

“Senator Coleman continues to mislead Minnesotans about his sweetheart deal when he states — without providing any proof — that $600 a month is fair market value for what he is receiving. But he offers no actual evidence to support his bogus claim — he has not offered a single example of comparable housing in a comparable location at a comparable price. Indeed, our research shows that not only is he paying far under market value, he is paying less than half as much as he should be paying.

“We have found an extremely similar space to Coleman’s that rents for $1,700 a month, while other English basements nearby rent for $1,100 to $1,800. Yet another space, seven blocks farther from the Capitol than Coleman’s, rents for $1,475 a month — but on a block with an incidence of crime five times higher, and an incidence of violent crime 12 times higher.

“The only $600 rooms available were in shared houses located anywhere from 20 blocks to nearly five miles from the Capitol.

“So Senator Coleman, can you prove through publicly available listings that you are paying fair market value? If you cannot, will you and your campaign please stop claiming that you are?

“And Senator Coleman, do you think it’s fair that when so many Minnesotans are worried about keeping their homes, that you get a cut-rate sweetheart deal from Jeff Larson, one of the most well-connected political operatives in America, and a paid political operative with whom you and your campaign have done more than a million dollars’ worth of business?”

Coleman Claims About Sweetheart Deal Contradicted by Facts, Own Statements:

Coleman claims his staff has looked at craigslist to determine market value of his apartment. “In terms of market value, you know, we’ve looked at craigslist, we can do all that.” [Coleman Press Conference, St. Paul, 7/2/08]

Coleman spokesman still claims that Coleman is paying “fair market value.” “The record is clear that Senator Coleman paid fair market value for a cramped basement bedroom,” said Luke Friedrich, the Coleman campaign’s press secretary. [Pioneer Press “Political Animal” blog, 7/1/08]

English-basement apartments and studios on Capitol Hill comparable to Coleman’s for rent at amounts far in excess of $600 per month. In addition to the research that it released last Monday, the DFL Party today released more research showing that rentals of English basements and small apartments comparable in location, safety and amenity to Coleman’s run from $1,100 to $1,800 per month. One Capitol Hill one-bedroom English basement is nearly identical to Coleman’s in location and safety, for $1,700; another at $1,475 per month sits on a block with five times the number of crimes committed in the last year, including 12 times the number of violent crimes; and another at $1,350 a month is a mere 625 square feet in size. [Craigslist.org, accessed 7/1/08, 7/1/08, 7/1/08, 7/1/08; complete research records available on request.]

Crime rates for most locations higher than for Coleman’s. The Party also compiled crime statistics for each location. Coleman’s English basement sits on a relatively safe block: The District of Columbia crime report for Coleman’s English basement at 140 North Carolina Avenue SE shows that in the last year, a total of 13 crimes were committed within 500 feet of the house, including one violent crime. In all instances but one — an apartment building literally across the street from the Capitol — the number of crimes committed within 500 feet of the other comparable Capitol Hill English-basement apartments was equal to (in one instance) or greater than (in all other instances) the number of crimes committed in the vicinity of Coleman’s residence, by on average a factor of nearly three. [District of Columbia Metropolitan Police Department, accessed 7/1/08]

Available rentals at $600 far away from Capitol, in shared houses. The DFL Party released more research showing that rooms for rent for $600 Washington, D.C., are only available in shared houses at anywhere from two to five miles from the Capitol. [Craigslist.org, accessed 7/1/08, 7/1/08, 7/1/08; complete research records available on request.]

Coleman spokesman continues to claim that Coleman occupies “cramped basement bedroom.” “Coleman campaign spokesman Luke Friedrich replied that Coleman is paying fair market value ‘for a cramped basement bedroom.’” [WCCO (AP), 7/1/08]

Realtor’s description of English basement contradicts Coleman’s assertion. A real-estate agent’s listing of Larson’s million-dollar townhome reads: “Downstairs, a huge English basement with a media center, office space, gorgeous custom marble and oak bar — plus an airy guest bedroom and bath.” [Phyllis Jane Young.com, accessed 7/2/08]

FACT: Descriptions Of Coleman’s Access to Living Space Have Been Inconsistent.

In first article, National Journal reported Coleman had access to just bedroom, bathroom, sink and small refrigerator. June 28 National Journal article, “[Jeff] Larson also described Coleman's living arrangements: "He has one bedroom in the back. I was actually surprised [the bed] fits into it. Somehow, he jumps into it at night and has just a bathroom, sink, and small refrigerator." He said that the apartment does not even have a stove.” [National Journal, 6/28/08]

In second article, National Journal reports that Coleman acknowledges he shares common “living space” with FLS-Connect. “In a statement issued to National Journal, Coleman said that in July last year he moved into the basement apartment of the townhouse. He said he had ‘a 10-by-10-foot bedroom, bathroom, no kitchen or cooking facilities and living space that I share with an office,’ meaning FLS Connect.” [National Journal, 7/1/08, emphasis added]

While Coleman gets sweetheart deal, 27,000 Minnesota homes in foreclosure; prime-mortgage foreclosures in Minnesota up 118.8% in one year. According to the U.S. Congress Joint Economic Committee, at the end of FY2008 Q1, 11,965 homes in Minnesota were in prime mortgage foreclosure, up 118.8% from FY2007 Q1. 15,270 homes in Minnesota are in subprime foreclosures, up 67.8% from FY2007 Q1. [U.S. Congress Joint Economic Committee, State by State Breakdown of MBA Report, accessed 7/2/08]