Politics
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.
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.
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.
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.
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.
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.
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.
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.
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.”
Politics
Column: Some leaders will do anything to cling to positions of power
One of the most important political stories in American history — one that is particularly germane to our current, tumultuous time — unfolded in Los Angeles some 65 years ago.
Sen. John F. Kennedy, a Catholic, had just received his party’s nomination for president and in turn he shunned the desires of his most liberal supporters by choosing a conservative out of Texas as his running mate. He did so in large part to address concerns that his faith would somehow usurp his oath to uphold the Constitution. The last time the Democrats nominated a Catholic — New York Gov. Al Smith in 1928 — he lost in a landslide, so folks were more than a little jittery about Kennedy’s chances.
“I am fully aware of the fact that the Democratic Party, by nominating someone of my faith, has taken on what many regard as a new and hazardous risk,” Kennedy told the crowd at the Memorial Coliseum. “But I look at it this way: The Democratic Party has once again placed its confidence in the American people, and in their ability to render a free, fair judgment.”
The most important part of the story is what happened before Kennedy gave that acceptance speech.
While his faith made party leaders nervous, they were downright afraid of the impact a civil rights protest during the Democratic National Convention could have on November’s election. This was 1960. The year began with Black college students challenging segregation with lunch counter sit-ins across the Deep South, and by spring the Student Nonviolent Coordinating Committee had formed. The Rev. Martin Luther King Jr. was not the organizer of the protest at the convention, but he planned to be there, guaranteeing media attention. To try to prevent this whole scene, the most powerful Black man in Congress was sent to stop him.
The Rev. Adam Clayton Powell Jr. was also a warrior for civil rights, but the House representative preferred the legislative approach, where backroom deals were quietly made and his power most concentrated. He and King wanted the same things for Black people. But Powell — who was first elected to Congress in 1944, the same year King enrolled at Morehouse College at the age of 15 — was threatened by the younger man’s growing influence. He was also concerned that his inability to stop the protest at the convention would harm his chance to become chairman of a House committee.
And so Powell — the son of a preacher, and himself a Baptist preacher in Harlem — told King that if he didn’t cancel, Powell would tell journalists a lie that King was having a homosexual affair with his mentor, Bayard Rustin. King stuck to his plan and led a protest — even though such a rumor would not only have harmed King, but also would have undermined the credibility of the entire civil rights movement. Remember, this was 1960. Before the March on Washington, before passage of the Voting Rights Act, before the dismantling of the very Jim Crow laws Powell had vowed to dismantle when first running for office.
That threat, my friends, is the most important part of the story.
It’s not that Powell didn’t want the best for the country. It’s just that he wanted to be seen as the one doing it and was willing to derail the good stemming from the civil rights movement to secure his own place in power. There have always been people willing to make such trade-offs. Sometimes they dress up their intentions with scriptures to make it more palatable; other times they play on our darkest fears. They do not care how many people get hurt in the process, even if it’s the same people they profess to care for.
That was true in Los Angeles in 1960.
That was true in Washington, D.C., on Jan. 6, 2021.
That is true in the streets of America today.
Whether we are talking about an older pastor who is threatened by the growing influence of a younger voice or a president clinging to office after losing an election: To remain king, some men are willing to burn the entire kingdom down.
YouTube: @LZGrandersonShow
Politics
Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns
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A federal judge Friday temporarily blocked the Trump administration from stopping subsidies on childcare programs in five states, including Minnesota, amid allegations of fraud.
U.S. District Judge Arun Subramanian, a Biden appointee, didn’t rule on the legality of the funding freeze, but said the states had met the legal threshold to maintain the “status quo” on funding for at least two weeks while arguments continue.
On Tuesday, the U.S. Department of Health and Human Services (HHS) said it would withhold funds for programs in five Democratic states over fraud concerns.
The programs include the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant, all of which help needy families.
USDA IMMEDIATELY SUSPENDS ALL FEDERAL FUNDING TO MINNESOTA AMID FRAUD INVESTIGATION
On Tuesday, the U.S. Department of Health and Human Services said it would withhold funds for programs in five Democratic states over fraud concerns. (AP Photo/Jose Luis Magana, File)
“Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” HHS Deputy Secretary Jim O’Neill said in a statement on Tuesday.
The states, which include California, Colorado, Illinois, Minnesota and New York, argued in court filings that the federal government didn’t have the legal right to end the funds and that the new policy is creating “operational chaos” in the states.
U.S. District Judge Arun Subramanian at his nomination hearing in 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
In total, the states said they receive more than $10 billion in federal funding for the programs.
HHS said it had “reason to believe” that the programs were offering funds to people in the country illegally.
‘TIP OF THE ICEBERG’: SENATE REPUBLICANS PRESS GOV WALZ OVER MINNESOTA FRAUD SCANDAL
The table above shows the five states and their social safety net funding for various programs which are being withheld by the Trump administration over allegations of fraud. (AP Digital Embed)
New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.”
New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.” (Win McNamee/Getty Images)
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Fox News Digital has reached out to HHS for comment.
Politics
Washington National Opera is leaving the Kennedy Center in wake of Trump upset
In what might be the most decisive critique yet of President Trump’s remake of the Kennedy Center, the Washington National Opera’s board approved a resolution on Friday to leave the venue it has occupied since 1971.
“Today, the Washington National Opera announced its decision to seek an amicable early termination of its affiliation agreement with the Kennedy Center and resume operations as a fully independent nonprofit entity,” the company said in a statement to the Associated Press.
Roma Daravi, Kennedy Center’s vice president of public relations, described the relationship with Washington National Opera as “financially challenging.”
“After careful consideration, we have made the difficult decision to part ways with the WNO due to a financially challenging relationship,” Daravi said in a statement. “We believe this represents the best path forward for both organizations and enables us to make responsible choices that support the financial stability and long-term future of the Trump Kennedy Center.”
Kennedy Center President Ambassador Richard Grenell tweeted that the call was made by the Kennedy Center, writing that its leadership had “approached the Opera leadership last year with this idea and they began to be open to it.”
“Having an exclusive relationship has been extremely expensive and limiting in choice and variety,” Grenell wrote. “We have spent millions of dollars to support the Washington Opera’s exclusivity and yet they were still millions of dollars in the hole – and getting worse.”
WNO’s decision to vacate the Kennedy Center’s 2,364-seat Opera House comes amid a wave of artist cancellations that came after the venue’s board voted to rename the center the Donald J. Trump and the John F. Kennedy Memorial Center for the Performing Arts. New signage featuring Trump’s name went up on the building’s exterior just days after the vote while debate raged over whether an official name change could be made without congressional approval.
That same day, Rep. Joyce Beatty (D-Ohio) — an ex officio member of the board — wrote on social media that the vote was not unanimous and that she and others who might have voiced their dissent were muted on the call.
Grenell countered that ex officio members don’t get a vote.
Cancellations soon began to mount — as did Kennedy Center‘s rebukes against the artists who chose not to appear. Jazz drummer Chuck Redd pulled out of his annual Christmas Eve concert; jazz supergroup the Cookers nixed New Year’s Eve shows; New York-based Doug Varone and Dancers dropped out of April performances; and Grammy Award-winning banjo player Béla Fleck wrote on social media that he would no longer play at the venue in February.
WNO’s departure, however, represents a new level of artist defection. The company’s name is synonymous with the Kennedy Center and it has served as an artistic center of gravity for the complex since the building first opened.
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