Columbus Center investor questions Winn gift
A schism is developing in the management of the $800 million Columbus Center project after the disclosure that developer Arthur Winn gave a $10,000 gift to former state Senator Dianne Wilkerson, who was arrested last fall on bribery charges.
An executive with the project's largest investor, the California Urban Investment Partnership, said yesterday the gift could constitute a violation of its contract with Winn's development company. Wilkerson has been a vigorous supporter of public subsidies for Columbus Center, an ambitious project to build condominiums, stores, and a hotel over the Massachusetts Turnpike in Boston.
"CUIP has a strict policy regarding contributions to elected officials and does not condone any contribution of this type," Chuck Berman, managing principal of the investment fund, said in a statement. "If in fact these allegations are true, CUIP would find this to be a serious breach of its partnership agreement with Winn."
The statement raises the specter of discord on the project as its managers struggle to move forward after financial troubles halted construction last year. The partnership is the investment entity that manages money for the California state pension fund, the primary investor in Columbus Center since May 2006.
Winn's donation to Wilkerson, however, predated the pension fund's investment in Columbus Center. A spokeswoman for the fund would not elaborate on how the donation would violate its contract with Winn.
The Boston Globe reported Sunday that Winn gave Wilkerson $10,000 after she began soliciting money from supporters in 1997 to pay off mortgage and federal tax debts. Wilkerson obtained a letter from the state Ethics Commission granting her approval to accept the gifts.
Winn's money came in the form of a check sent to a Boston law firm that was handling the fund-raising for Wilkerson, according to a person briefed on the transaction. Winn was one of several executives who contributed to Wilkerson's fund.
The Ethics Commission's letter, a copy of which was obtained by the Globe, did place conditions on the fund-raising, stating that Wilkerson could not accept gifts from anyone with business before the Legislature. If they later did have business before the Legislature, Wilkerson was advised to publicly disclose that she received the gifts.
Wilkerson voted in favor of public funding for Columbus Center in 2005 and lobbied state officials on multiple occasions to provide tens of millions of dollars in additional assistance to the development team. A spokesman for the Ethics Commission said yesterday it does not have any disclosures on file from Wilkerson.
A spokesman for Winn did not respond to questions yesterday.
Meanwhile, opponents of Columbus Center said the disclosure of Winn's payment to Wilkerson raises new concerns about the project, which is angling for money from a federal stimulus bill to help pay for a deck over the turnpike.
Aaron Michelwitz, the constituent services director for House Speaker Sal DiMasi said, "There doesn't seem to be any reason for the public to trust the process surrounding Columbus Center. This is a very hard pill to swallow."
Michelwitz said he intends to run for DiMasi's seat after the speaker's planned resignation today.
The Patrick administration did not rule out any funding for Columbus Center. "Decisions relative to any future public funding - whether state or federal - for any project in the Commonwealth will be based, as always, on merit," spokeswoman Kofi Jones said in a statement.
The California pension fund and its development consultant, MacFarlane Partners, said they will continue to seek a way to move forward with the project.
Casey Ross can be reached at cross@globe.com.
