City Hall And Parking Lot

Mark Begich accepted thousands of dollars in campaign contributions from two developers who were part of a group that purchased the City Hall building in 2001 for more than $14 million. Last year, Begich suggested the City buy the building, which he now believes is worth $25 million, from those same developers.

In 2001, two developers were part of a group that purchased City Hall for more than $14 million.

In May 2007, the Anchorage Daily News reported, "In December 2001, a group headed by Pfeffer, a local developer and architect, bought the building from the Washington state-based Weyerhaeuser Co. Pfeffer said he hasn't publicly disclosed how much he paid, but that it was more than $14 million. His partners included Jerry Neeser and Jeff Koonce. ¹

Between 1999 and 2005, Begich took thousands of dollars from Mark Pfeffer and Neeser. ²

• On Oct. 14, 1999, Pfeffer gave $250 in campaign money to Begich
   
• On Dec. 3, 1999, Neeser gave $250 in campaign money to Begich
   
• On Jan. 27, 2000, Pfeffer gave $490 in campaign money to Begich
   
• On April 25, 2003, Neeser gave $500 in campaign money to Begich
   
• On May 16, 2003, Pfeffer gave $500 in campaign money to Begich
   
• On June 24, 2005, Pfeffer gave $1,000 in campaign money to Begich
   
• On Nov. 28, 2005 Neeser gave $1,000 in campaign money to Begich

In May of 2007, Begich proposed that the city should buy City Hall from Pfeffer

In May 2007, the Anchorage Daily News reported, "The city of Anchorage doesn't own its own home. The big blue City Hall building downtown is a rental and, according to Mayor Mark Begich, an 'awful' deal.

"He's thinking maybe we should buy it.

"'Everything's paid for by us, even the property taxes,' Begich said.

"His staff is studying whether it makes sense for the city to purchase the building from local developer Mark Pfeffer." ³

The City Assessor's office said the building was worth about $17.3 million:

According to an August 2007, article in the Anchorage Daily News reported, "But deciding just how much the city should pay is another matter.

"The building is worth about $17.3 million according to the city assessor's office, which estimates the value of buildings in order to levy property taxes." ⁴

Begich said the assessed value seemed low, and the property is worth about $23 to $25 million:

• In May 2007, the Anchorage Daily News reported, "Begich said it's likely worth millions more, as much as $23 million or $25 million.
  
  "'I looked at the price; I said that seems low,' Begich said. 'I asked (chief financial officer) Jeff Sinz to ask the assessor's office to see if we're appraising it right.'" ⁵
   
• According to an August 2007 article, the Anchorage Daily News reported, "In May, Begich said he thought the assessed value on the property was low, and that he asked chief financial officer Jeff Sinz to talk to the assessor's office to see if the building was being valued correctly. At the time, Begich -- a landlord and real estate dealer in private life -- said he figured the property was worth about $23 million to $25 million." ⁶

In another deal for friends, the Begich administration paid $29,000 a month to a company owned by the same two developers who purchased City Hall. A deal the administration later implicitly admitted was overpaid. A local newspaper even editorialized on the deal saying, "But whether it was favoritism or just an honestly overpriced contract, it turned out to be an embarrassingly bad deal for a mayor who prides himself on his business acumen." ^7,8

¹ Kyle Hopkins, "Fed Up With Rent, Begich Wants City To Buy City Hall," Anchorage Daily News, May 11, 2007

² Mark Pfeffer and Gerald Neeser Campaign Contributions, 1999-2006, Alaska Public Offices Commission, Accessed March 7, 2008

³ Kyle Hopkins, "Fed Up With Rent, Begich Wants City To Buy City Hall," Anchorage Daily News, May 11, 2007

⁴ Kyle Hopkins, "Mayor Advised To Buy City Hall," Anchorage Daily News, Aug. 30, 2007

⁵ Kyle Hopkins, "Fed Up With Rent, Begich Wants City To Buy City Hall," Anchorage Daily News, May 11, 2007

⁶ Kyle Hopkins, "Mayor Advised To Buy City Hall," Anchorage Daily News, Aug. 30, 2007

⁷ Richard Richtmyer, "Buildings To Be Torn Down; Parking Lot Will Replace Experience Theatre And Former Offices," Anchorage Daily News, April 7, 2007

⁸ Editorial, "Opinion: Parking Deal," Anchorage Daily News, Sept. 9, 2007