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In key congressional race, Republicans criticize Democrat's Central Valley real estate deal

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In key congressional race, Republicans criticize Democrat's Central Valley real estate deal

When the federal government closed Castle Air Force Base in Merced County in the 1990s, the dilapidated buildings and vast expanse of aging tarmac left behind seemed more like a liability than an opportunity.

But by 2018, the old runways that once carried B-52 bombers had found a new and unexpected customer: Google, which was testing its experimental self-driving vehicles there, far from the prying eyes of Silicon Valley.

At the urging of then-state Assemblyman Adam Gray, California gave Merced County $6.5 million that year to expand the self-driving testing program at the old base.

A few years later, Gray invested there, too.

In 2022, a company in which Gray is a minority owner bought four apartment buildings on the former base from Merced County, according to a Times review of business filings, property records and Gray’s financial disclosures. Gray’s link to the real estate deal has not been previously reported.

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The sale closed for $600,000 in August 2022, records show, and the property is now valued at more than $2.5 million. Gray’s representatives said that the investment shows his interest in providing affordable housing, and that renovations have been so costly that he has yet to make money.

Nonetheless, the real estate deal in rural Atwater, Calif., has come under scrutiny as Gray, a Democrat, fights to unseat first-term Rep. John Duarte (R-Modesto). The race in California’s 13th Congressional District is a bitter rematch of 2022, when Duarte beat Gray by the second-closest margin in the nation: 564 votes.

The race is among the handful of contests across the U.S. that are seen as pivotal in determining which party controls Congress after the November election.

Republicans have questioned the timing of Gray’s purchase, which closed four months before he left the Legislature and less than a year before California officials awarded nearly $50 million in new funding for the site. The 2023 grant from the California State Transportation Agency helped Merced County build out a rail hub on the base site to handle cargo loaded onto trains from the ports of Long Beach and Los Angeles.

“Gray’s self-serving scheme reveals his true colors as a Sacramento politician who lines his own pockets at the expense of Valley families’ trust and hard-earned dollars,” said Ben Petersen, a spokesman for the National Republican Congressional Committee, which works to elect Republicans to the House of Representatives.

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Petersen accused Gray of “mixing taxpayer money with personal profit” and said the apartment deal should be investigated.

Far from Gray lining his pockets, his campaign and company said, the old Castle Air Force Base apartments have required so much renovation that Gray has actually lost money.

Ben Rodriguez, Gray’s campaign manager, said the allegations were false and “intended to distract voters from John Duarte’s disastrous record.”

“While Adam Gray has brought back real help for families across this district, Duarte is making things worse for families every day he spends in Congress,” Rodriguez said.

Gray is a minority owner in Gemenii LLC, the company that owns the apartment complex at the base. Gemenii is a subsidiary of a family-owned residential and commercial construction company of which Gray is also a member, the firm said.

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Gray learned about the Castle Air Force Base apartments about six months before the sale, when “partners that own other properties at Castle” approached him with the idea of renovating the 80-unit complex to provide affordable housing, the company said.

The four spartan buildings, once barracks for airmen, were in disrepair, and three were vacant. Merced County had classified the property as surplus and assessed the buildings and the 5.3 acres of land beneath them at $400,000 to $600,000, the company said.

When the county received “no other competitive offers,” the firm said, Merced County sold the buildings for $600,000.

The firm has since spent millions on renovations, “exactly as intended by Merced County when the property was sold in an open and public sale process,” company attorney Richard Marchini said in a written statement.

Gray was still representing the Modesto area in the state Assembly when the sale closed.

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A Google Waymo autonomous vehicle navigates the roads inside the company’s facility on the property of the former Castle Air Force Base, which is now a municipal airport, in Atwater, Calif. in 2017.

(San Francisco Chronicle / Hearst Newspapers via Getty Images )

Gray has a 30% stake in the firm that owns the apartments, the company said. His name does not appear in the company’s state business filings.

Gray first disclosed his investment in his 2022 Form 700, the financial disclosure that California lawmakers are required to file annually with state ethics officials.

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Government experts said it did not appear that Gray’s real estate deal broke the law.

But, they said, elected officials who invest in real estate must be aware of the appearance of conflicts of interest, particularly when investing in their districts.

Dan Schnur, the former head of the California Fair Political Practices Commission, said that Gray’s real estate investment at the site being bookended by the award of taxpayer funds seemed “suspicious.”

“Everyone deserves the benefit of the doubt, but the best way to receive the benefit of the doubt is to earn it,” Schnur said. “A public servant ought to be aware of how these things might be perceived.”

After Gray lost his run for Congress in 2022, he filed a federal financial disclosure with the House in which he did not disclose the real estate investment or his stake in the LLC that owns the buildings.

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His campaign said that Gray did not mention the apartment complex investment because there was no revenue to report, but that he disclosed his position in the parent company.

In a new filing made public this month, for Gray’s second run for Congress, he said he received between $100,000 and $1 million from the LLC that owns the apartments in 2023, and between $50,000 and $100,000 in the first half of 2024.

Those figures represent the company’s total revenue, rather than Gray’s, and were listed “out of an abundance of caution,” the campaign said.

Gray has not received any income from the business in 2023 or 2024, the campaign said, and the investment has not made a profit.

The former air base, now called Castle Commerce Center, covers about 3 square miles. It’s home to miles of empty roads, as well as dozens of private and government tenants, including a federal prison, a post office, Merced’s commercial airport and Waymo, Google’s autonomous vehicle company.

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After Gray helped secure the $6.5-million grant for the self-driving car testing site in 2018, Merced County converted vast stretches of unused tarmac at the base into a testing hub. There are now full intersections with traffic lights and signage and a 2.2-mile test freeway with on- and off-ramps where vehicles can practice driving in urban environments.

The site, operated by an Ohio-based company, has hosted two dozen companies from Silicon Valley and major automotive firms.

In the midst of that boom, Merced County’s supervisors continued selling portions of the base as surplus land. That included the 5.3-acre site and the 80-unit apartment complex, which the board sold on a 4-0 vote in May 2022 to Gemenii.

At the time of the sale, the land was valued at $465,000, and the structures were valued at $135,000, according to tax records provided by the company.

The company took out an $885,000, 30-year mortgage at the end of 2022, and a $3-million, 15-year mortgage in June of this year, to finance renovations at the building, the company said.

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Two buildings have been gutted and renovated so far, a process that included asbestos removal and replacing windows and appliances, the company said.

The renovated buildings are now valued at more than $2 million, while the underlying land value has risen by $9,300, according to tax bills provided by the company.

The increase in value is “directly connected to the material financial efforts of Gemenii to revitalize the property,” the firm said. Any developments at the air base site, the company said, “have had no impact on the property’s value.”

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Dan Bongino officially leaves FBI deputy director role after less than a year, returns to ‘civilian life’

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Dan Bongino officially leaves FBI deputy director role after less than a year, returns to ‘civilian life’

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Dan Bongino returned to private life on Sunday after serving as deputy director of the Federal Bureau of Investigation (FBI) for less than a year.

Bongino said on X that Saturday was his last day on the job before he would return to “civilian life.”

“It’s been an incredible year thanks to the leadership and decisiveness of President Trump. It was the honor of a lifetime to work with Director Patel, and to serve you, the American people. See you on the other side,” he wrote.

The former FBI deputy director announced in mid-December that he would be leaving his role at the bureau at the start of the new year.

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BONDI, PATEL TAP MISSOURI AG AS ADDITIONAL FBI CO-DEPUTY DIRECTOR ALONGSIDE BONGINO

Dan Bongino speaks with FBI Director Kash Patel as they attend the annual 9/11 Commemoration Ceremony at the National 9/11 Memorial and Museum in New York City on Sept. 11, 2025. (Michael M. Santiago/Getty Images)

President Donald Trump previously praised Bongino, who assumed office in March, for his work at the FBI.

“Dan did a great job. I think he wants to go back to his show,” Trump told reporters.

FBI DIRECTOR, TOP DOJ OFFICIAL RESPOND TO ‘FAILING’ NY TIMES ARTICLE CLAIMING ‘DISDAIN’ FOR EACH OTHER

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“After his swearing-in ceremony as FBI Deputy Director, Dan Bongino paid his respects at the Wall of Honor, honoring the brave members of the #FBI who made the ultimate sacrifice and reflecting on the legacy of those who paved the way in the pursuit of justice and security,” the FBI said in a post on X. (@FBI on X)

Bongino spoke publicly about the personal toll of the job during a May appearance on “Fox & Friends,” saying he had sacrificed a lot to take the role.

“I gave up everything for this,” he said, citing the long hours both he and FBI Director Kash Patel work.

“I stare at these four walls all day in D.C., by myself, divorced from my wife — not divorced, but I mean separated — and it’s hard. I mean, we love each other, and it’s hard to be apart,” he added.

The FBI’s J. Edgar Hoover headquarters building in Washington on Nov. 2, 2016. (AP Photo/Cliff Owen, File)

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Bongino’s departure leaves Andrew Bailey, who was appointed co-deputy director in September 2025, as the bureau’s other deputy director.

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Commentary: Unhappy with the choices for California governor? Get real

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Commentary: Unhappy with the choices for California governor? Get real

California has tried all manner of design in choosing its governor.

Democrat Gray Davis, to name a recent example, had an extensive background in government and politics and a bland demeanor that suggested his first name was also a fitting adjective.

Republican Arnold Schwarzenegger, by contrast, was a novice candidate who ran for governor on a whim. His super-sized action hero persona dazzled Californians like the pyrotechnics in one of his Hollywood blockbusters.

In the end, however, their political fates were the same. Both left office humbled, burdened with lousy poll numbers and facing a well of deep voter discontent.

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(Schwarzenegger, at least, departed on his own terms. He chased Davis from the Capitol in an extraordinary recall and won reelection before his approval ratings tanked during his second term.)

There are roughly a dozen major candidates for California governor in 2026 and, taken together, they lack even a small fraction of Schwarzenegger’s celebrity wattage.

Nor do any have the extensive Sacramento experience of Davis, who was a gubernatorial chief of staff under Jerry Brown before serving in the Legislature, then winning election as state controller and lieutenant governor.

That’s not, however, to disparage those running.

The contestants include a former Los Angeles mayor, Antonio Villaraigosa; three candidates who’ve won statewide office, former Atty. Gen. Xavier Becerra, schools Supt. Tony Thurmond and former Controller Betty Yee; two others who gained national recognition during their time in Congress, Katie Porter and Eric Swalwell; and Riverside County’s elected sheriff, Chad Bianco.

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The large field offers an ample buffet from which to choose.

The rap on this particular batch of hopefuls is they’re a collective bore, which, honestly, seems a greater concern to those writing and spitballing about the race than a reflection of some great upwelling of citizens clamoring for bread and circuses.

In scores of conversations with voters over the past year, the sentiment that came through, above all, was a sense of practicality and pragmatism. (And, this being a blue bastion, no small amount of horror, fear and loathing directed at the vengeful and belligerent Trump administration.)

It’s never been more challenging and expensive to live in California, a place of great bounty that often exacts in dollars and stress what it offers in opportunity and wondrous beauty.

With a governor seemingly more focused on his personal agenda, a 2028 bid for president, than the people who put him in office, many said they’d like to replace Gavin Newsom with someone who will prioritize California and their needs above his own.

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That means a focus on matters such as traffic, crime, fire prevention, housing and homelessness. In other words, pedestrian stuff that doesn’t light up social media or earn an invitation to hold forth on one of the Beltway chat shows.

“Why does it take so long to do simple things?” asked one of those voters, the Bay Area’s Michael Duncan, as he lamented his pothole-ridden, 120-mile round-trip commute between Fairfield and an environmental analyst job in Livermore.

The answer is not a simple one.

Politics are messy, like any human endeavor. Governing is a long and laborious process, requiring study, deliberation and the weighing of competing forces. Frankly, it can be rather dull.

Certainly the humdrum of legislation or bureaucratic rule-marking is nothing like the gossipy speculation about who may or may not bid to lead California as its 41st governor.

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Why else was so much coverage devoted to whether Sen. Alex Padilla would jump into the gubernatorial race — he chose not to — and the possible impact his entry would have on the contest, as opposed to, say, his thinking on CEQA or FMAP?

(The former is California’s much-contested Environmental Quality Act; the latter is the formula that determines federal reimbursement for Medi-Cal, the state’s healthcare program for low-income residents.)

Just between us, political reporters tend to be like children in front of a toy shop window. Their bedroom may be cluttered with all manner of diversion and playthings, but what they really want is that shiny, as-yet unattained object — Rick Caruso! — beckoning from behind glass.

Soon enough, once a candidate has entered the race, boredom sets in and the speculation and desire for someone fresh and different starts anew. (Will Atty. Gen. Rob Bonta change his mind and run for governor?)

For their part, many voters always seem to be searching for some idealized candidate who exists only in their imagination.

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Someone strong, but not dug in. Willing to compromise, but never caving to the other side. Someone with the virginal purity of a political outsider and the intrinsic capability of an insider who’s spent decades cutting deals and keeping the government wheels spinning.

They look over their choices and ask, in the words of an old song, is that all there is? (Spoiler alert: There are no white knights out there.)

Donald Trump was, foremost, a celebrity before his burst into politics. First as a denizen of New York’s tabloid culture and then as the star of TV’s faux-boardroom drama, “The Apprentice.”

His pizzazz was a large measure of his appeal, along with his manufactured image as a shrewd businessman with a kingly touch and infallible judgment.

His freewheeling political rallies and frothy social media presence were, and continue to be, a source of great glee to his fans and followers.

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His performance as president has been altogether different, and far less amusing.

If the candidates for California governor fail to light up a room, that’s not such a bad thing. Fix the roads. Make housing more affordable. Help keep the place from burning to the ground.

Leave the fun and games to the professionals.

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Kamala Harris blasts Trump administration’s capture of Venezuela’s Maduro as ‘unlawful and unwise’

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Kamala Harris blasts Trump administration’s capture of Venezuela’s Maduro as ‘unlawful and unwise’

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Former Vice President Kamala Harris on Saturday evening condemned the Trump administration’s capture of Venezuelan dictator Nicolás Maduro and his wife, calling the operation both “unlawful” and “unwise.”

In a lengthy post on X, Harris acknowledged that Maduro is a “brutal” and “illegitimate” dictator but said that President Donald Trump’s actions in Venezuela “do not make America safer, stronger, or more affordable.”

“Donald Trump’s actions in Venezuela do not make America safer, stronger, or more affordable,” Harris wrote. “That Maduro is a brutal, illegitimate dictator does not change the fact that this action was both unlawful and unwise. We’ve seen this movie before.

“Wars for regime change or oil that are sold as strength but turn into chaos, and American families pay the price.”

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SEE PICS: VENEZUELANS WORLDWIDE CELEBRATE AS EXILES REACT TO MADURO’S CAPTURE

Vice President Kamala Harris had strong words for the Trump administration’s capture of Venezuelan leader Nicolás Maduro. (Montinique Monroe/Getty Images)

Harris made the remarks hours after the Trump administration confirmed that Maduro and his wife were captured and transported out of Venezuela as part of “Operation Absolute Resolve.”

The former vice president also accused the administration of being motivated by oil interests rather than efforts to combat drug trafficking or promote democracy.

“The American people do not want this, and they are tired of being lied to. This is not about drugs or democracy. It is about oil and Donald Trump’s desire to play the regional strongman,” Harris said. “If he cared about either, he wouldn’t pardon a convicted drug trafficker or sideline Venezuela’s legitimate opposition while pursuing deals with Maduro’s cronies.”

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SECOND FRONT: HOW A SOCIALIST CELL IN THE US MOBILIZED PRO-MADURO FOOT SOLDIERS WITHIN 12 HOURS

President Donald Trump shared a photo of captured Venezuelan President Nicolás Maduro aboard the USS Iwo Jima after Saturday’s strikes on Venezuela. (Donald Trump via Truth Social)

Harris, who has been rumored as a potential Democratic contender in the 2028 presidential race, additionally accused the president of endangering U.S. troops and destabilizing the region.

“The President is putting troops at risk, spending billions, destabilizing a region, and offering no legal authority, no exit plan, and no benefit at home,” she said. “America needs leadership whose priorities are lowering costs for working families, enforcing the rule of law, strengthening alliances, and — most importantly — putting the American people first.”

MADURO’S FALL SPARKS SUSPICION OF BETRAYAL INSIDE VENEZUELA’S RULING ELITE

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CIA Director John Ratcliffe, left, President Donald Trump and Secretary of State Marco Rubio watch U.S. military operations in Venezuela from Mar-a-Lago in Florida early Saturday. (Donald Trump via Truth Social)

Maduro and his wife arrived at the Metropolitan Detention Center in Brooklyn late Saturday after being transported by helicopter from the DEA in Manhattan after being processed.

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Earlier in the day, Trump said that the U.S. government will “run” Venezuela “until such time as we can do a safe, proper and judicious transition.”

Harris’ office did not immediately respond to Fox News Digital’s request for comment.

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Fox News Digital’s Jasmine Baehr contributed to this report.

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