Michigan

Lobbyist sold his condo to a lawmaker at a loss while another rents rooms to legislators

Published

2 months ago

September 25, 2024

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Lobbyist sold his condo to a lawmaker at a loss while another rents rooms to legislators

Michigan lawmakers and lobbyists are doing deals that would raise red flags in other states, but we have no rules for such financial transactions here.

By Alex Walters and Jack Armstrong
| Special to the Detroit Free Press

A lobbyist sold his downtown Lansing condo to a state representative at a financial loss in the largest-ever financial transaction between a lobbyist and a Michigan legislator over the last 20 years, an Eye On Michigan investigation into freebies influencers lavish on lawmakers revealed.

Over the last 20 years or so, lobbyists reported spending more than $6.3 million on meals and trips for lawmakers and state officials. Eye On Michigan reviewed the 17,500 transactions that transpired between influencers and legislators from 2001, the first year for which data was available, to 2023, the last full year for which data is available.

The vast majority of those interactions between lobbyists and lawmakers involved food and travel. But the professionals who make a living influencing state officials are also required to report to the Michigan Secretary of State their financial transactions with legislators.

That’s why Nathan Piwowarski, while registered as a lobbyist, disclosed that he sold his condo to then-state Rep. Phil Potvin, a Republican from Cadillac. Piwowarski bought the condo for $106,900 in 2003 and sold it to Potvin for $79,000 in 2011, according to property records (Piwowarski told the Secretary of State he sold it to Potvin for $78,000).

Potvin refused to discuss the transaction, but Piwowarski said he sold the condo for fair market value. Michigan law does not require an independent evaluation of that claim, unlike other states where the hefty exchange would be closely scrutinized.

Had a sale like the one in question occurred in Washington state — ranked first in the country for disclosure policies by OpenSecrets — it could be reviewed by the state legislature’s independent ethics review board.

Jennifer Struss, the board’s counsel, told Eye On Michigan that if the condo sale was reported to the board, they would conduct an investigation to figure out if it was sold below market value and, if so, why.

“Is the lobbyist expecting the legislator to do something for their clients in a sort of quid-pro-quo thing?” Struss said. “That’s how we would look at it.”

The board would then make its findings and recommendations available to the legislature for potential hearings, censure or removal. A similar mechanism doesn’t exist in Michigan, Secretary of State officials told Eye On Michigan, adding that a complaint would have to be filed in order for them to investigate.

Michigan law does not forbid or regulate financial transactions between lobbyists and lawmakers.

Piwowarski told Eye On Michigan that while he was registered as a lobbyist, he never engaged “in any lobbying as it’s understood under the statute.”

He and a colleague “thought it would be a bright idea” to register him as a lobbyist, but it “never panned out.”

Piwowarski did once testify before the Michigan House Judiciary Committee on behalf of the State Bar of Michigan’s Estate Planning Section, House records show. He did so in 2018 when Potvin was no longer in office and he said he was not paid for his lobbying effort.

Piwowarski never testified before any of Potvin’s committees, according to the House Clerk’s office.

Piwowarski said he bought the condo with his wife when they both attended graduate school at Michigan State University. He said the couple tried to sell it when they moved away, but struggled because of the recession.

“It was very difficult to sell the place and so we rented it out for a few years,” Piwowarski said. “When Phil was elected, he was aware that I still owned a condo down there and we sold it to him for the price that we’d listed it for previously.”

Piwowarski said he’s known Potvin since he was around 10 or 11 years old — the two went to church together and Potvin was a scout leader when Piwowarski was a Boy Scout, he said.

Potvin did not return messages. His wife told Eye On Michigan she would pass on a message, but added she was unsure if he would respond as he “hasn’t held public office for years.”

Potvin sold the condo in 2017 for $70,000.

Other lawmakers have real estate dealings with a lobbyist.

Nine lawmakers rented rooms in a house across the street from the Capitol.

Public records show Rep. Greg Alexander, R-Carsonville; Rep. Timmy Beson, R-Bay City; Rep. Ken Borton, R-Gaylord; Sen. John Damoose, R-Harbor Springs; Rep. Gina Johnsen, R-Lake Odessa; Rep. Brad Paquette, R-Niles; Rep. David Prestin, R-Cedar River; Rep. John Roth, R-Interlochen; and Rep. Curt Vanderwall, R-Ludington paid rent to “Capitol House LLC,” which is owned by lobbyist Scott Everett.

Piwowarski said “the way influence is achieved in Lansing is largely undisclosed” and said it was interesting that Eye On Michigan took an interest in a “fair market value transaction” from more than a dozen years ago. He said further disclosures of the business arrangements of legislators and their spouses would be helpful.

Piwowarski, asked if he thought the public had any interest or concern over transactions like the sale of his condo, said “until I started getting calls about this maybe six months ago, no.”

The time period he referred to is when Eye On Michigan began making requests for comment.

Eye On Michigan is a student investigative reporting program based in Detroit and East Lansing. Our mission is to recruit and train the next generation of watchdog reporters, provide high-quality investigations to Michigan news organizations at no charge and to increase diversity in investigative reporting by engaging and inspiring high school students in under-served communities. To support our work, please consider making a donation.

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Michigan

Michigan State Overcame Surprising Deficit in 14-Point Victory

Published

6 hours ago

November 17, 2024

Press Room

Michigan State Overcame Surprising Deficit in 14-Point Victory

Michigan State had a rocky start in its matchup against Bowling Green, struggling to find its rhythm in the early stages of the game.

The Falcons, with their quick pace, came out strong, forcing the Spartans to play catch-up throughout much of the first half. MSU’s offense looked disjointed, with turnovers and missed opportunities disrupting any flow. Despite their difficulties, the Spartans’ defense kept them in the game, limiting Bowling Green’s ability to pull away.

The early part of the first half saw MSU unable to get comfortable on either side of the ball. It had trouble converting in transition and was inconsistent with its shot selection.

Meanwhile, Bowling Green capitalized on MSU’s mistakes, hitting timely shots and taking advantage of defensive lapses. The Falcons’ high-energy play gave them a brief but significant advantage as they stayed within striking distance. The Spartans seemed to struggle with the intensity of the game and could not find an answer for the Falcons’ perimeter shooting.

However, as the game wore on, MSU started to show signs of life. The team regrouped during halftime, with adjustments made to both the offensive and defensive schemes.

When the second half began, the Spartans came out with renewed focus and energy. They began to push the ball more effectively, working the offense with better ball movement and finding better shooting opportunities. The defense also stepped up, creating more turnovers and forcing Bowling Green to take contested shots.

What helped MSU pull away in the second half was its depth. Seven Spartans finished in double figures, underscoring the balanced scoring attack that eventually overwhelmed the Falcons. As the game progressed, Bowling Green’s defense could not keep up with the Spartans’ fresh legs and increased intensity. MSU’s ability to share the scoring load became evident, with multiple players stepping up at crucial moments.

By the time the final buzzer sounded, MSU had secured a comfortable 86-72 victory. Despite their early struggles, the Spartans showed resilience and depth in their comeback, particularly in the second half. The balanced scoring attack and improved defense allowed MSU to finish strong and come away with a solid win, setting a positive tone for the rest of the season.

Don’t forget to follow the official Spartan Nation Page on Facebook Spartan Nation WHEN YOU CLICK RIGHT HERE, and be a part of our vibrant community group Go Green Go White as well WHEN YOU CLICK RIGHT HERE.

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Michigan

Overheard in Michigan State’s locker room: Lid on rim and strength in numbers

Published

14 hours ago

November 17, 2024

Press Room

Overheard in Michigan State’s locker room: Lid on rim and strength in numbers

EAST LANSING – Bowling Green owned the start but it was all Michigan State at the finish.

The Spartans (3-1) rebounded from a double-digit deficit and closed the game on an 18-0 run for an 86-72 win against the Falcons (1-3) on Saturday night at the Breslin Center.

Here are notable quotes from coach Tom Izzo and players following the game:

Izzo on Bowling Green going scoreless over the final 7:11 and missing its last nine field goal attempts: “I think we had something to do with it, I also think they wore down a little bit and I think that’s what we can do if our strength is in our numbers.”

Guard Jaden Akins on leading the Spartans with 13 points, 12 rebounds and six assists: “I feel like I played decent. I felt like I stayed aggressive throughout the game, no matter if I miss a couple shots or make some shots.”

Izzo on facing former Michigan State guard and captain Lourawls “Tum Tum” Nairn, who is a Bowling Green assistant coach: “It’s hard enough to coach against your former assistants but it’s really hard to coach against your former players.”

Forward Carson Cooper on scoring a career-high 12: “I’m not usually the go-to guy, the scorer on the team so being able to see that first shot go in just kind of instilled some confidence.”

Izzo on Bowling Green forward Marcus Johnson, who scored 13 of his game-high 23 points in the first half: “He wasn’t Marcus Johnson, he was Magic Johnson there for that early stretch, the shots he made.”

Izzo on not calling timeout early as Bowling Green made 15 of its first 20 field goals and led by 12: “I didn’t call any timeouts because the shots they were making, I did not think they could keep making them and they kept making them for a while. I do want to see this team, how they’re going to respond, what they’re going to do.”

Akins on Bowling Green’s first-half shooting: “We had a couple mistakes on defense but a lot of the time, they were just making good shots. I felt like we knew they couldn’t sustain that for the whole game so we were just trying to make sure they took tough shots and eventually they’d miss a couple.”

Izzo on starting forward Jaxon Kohler over Xaiver Booker: “I’m trying to help Book too. … We’re just working on how do we get that motor going all the time? Everybody talks about it but it is getting better.”

Booker on shooting just 2-for-14 from 3-point range through four games: “Just taking shots and not forcing it. I think I do a good job of that. It’s going to come.”

Forward Frankie Fidler on missing all five of his triple tries on Saturday to fall to 2-for-16 for the season: “I think there is kind of a lid on the rim right now but I’m getting great looks. Just continue to shoot and continue to be confident in my shot.”

Forward Coen Carr, who scored 11 points with a trio of thunderous dunks: “I don’t feel like my dunks are worth two points, I feel like it’s more than that. I feel like it’s worth two points and it’s worth help us get a stop on defense, it’s worth the other team not knowing what they’re calling on offense because the gym is screaming so loud.”

Izzo on Saturday’s performance after an eight-point loss to No. 1 Kansas on Tuesday: “I think we played better Tuesday night but Bowling Green came after us and did some things as well or harder than anybody we played Tuesday night too, to be very honest about it.”

Akins on the team’s strong finish against the Falcons: “We just had to lock in on defense and close the game out. That shows our fight and resilience.”

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