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Rep. Dion urges AG to act on Constitution given new information on Treasurer’s real estate dealings
February 7, 2012
AUGUSTA – Portland lawmaker Rep. Mark Dion today unveiled new information showing that Treasurer Bruce Poliquin is actively engaging in commerce as real estate developer under Dirigo Holdings, LLC. Public documents reveal that 92 residential units on a 183 acre-parcel are being developed by Dirigo Holdings, with some properties aggressively marketed for sale under his real estate development in the Popham Woods Condominium in Phippsburg.
The new information was disclosed as part of the Treasurer’s amendment to the Ethics Commission regarding his income disclosure form. In his response to an Ethics complaint against him, he does not disclose that he is the developer of the $17 million Popham Woods Condominium. Instead, he says that he has an “investment” and that his bookkeeper operates and manages the real estate development.
According to a site law permit filed with the Department of Environmental Protection, Poliquin self-financed $1.7 million of the first phase of the development.
“The notion that Mr. Poliquin’s bookkeeper is handling all the decisions on his $17 million development doesn’t pass a straight face test,” said Dion. “He’s invested millions of dollars into this real estate project. Are we supposed to believe he has left it in the hands of a book keeper?”
The new information comes after Dion made two unanswered requests of the Attorney General to rule on whether Poliquin’s business dealings in the Popham Beach Club are in violation of Article V, Pt. 3, § 3 of the Maine Constitution, which prohibits the Treasurer from engaging in commerce while serving in office.
Article V, Pt. 3, § 3 reads as follows:
“The Treasurer shall not, during the treasurer's continuance in office, engage in any business of trade or commerce, or as a broker, nor as an agent or factor for any merchant or trader.”
“This is further evidence that we have more questions than we do answers about the Treasurer’s business involvement in both the beach club and now as active real estate developer,” said Dion. “These new allegations increase the sense of urgency. It is time for the AG to give answers to the Maine people.”
A 1978 legal opinion from then Deputy Attorney General Donald Alexander clearly states that this kind of activity is a violation of the Maine Constitution.
Thank you for coming.
The purpose of this meeting is to highlight new information about Treasurer Bruce Poliquin’s business dealings.
Three weeks ago I first asked the AG to provide an opinion on whether Mr. Poliquin’s effort to expand the operations of his Popham Beach Club property was a violation of the Maine Constitution, which prohibits the treasurer from engaging in commerce. We now have new, additional information.
It is clear that Mr. Poliquin is activity participating in “commerce” as a real estate developer. And what is disturbing is how he characterizes his business dealings. It is clear that he is a real estate developer and owner/operator of the Popham Beach Club. These two businesses are linked. Mr. Poliquin’s own actions, words and public documents all point to possible violations of the Constitution.
Article V, Pt. 3, § 3 reads as follows:
“The Treasurer shall not, during the treasurer's continuance in office, engage in any business of trade or commerce, or as a broker, nor as an agent or factor for any merchant or trader.”
EXHIBIT A: In the latest response to the Ethics Commission questions about his business dealings, the Treasurer wrote that he is the sole shareholder of Dirigo Holdings, LLC Popham Woods Condominium.
Popham Woods Condominium is a $17 million dollar real estate development, currently in its first phase of development. Lots and homes are currently being sold on the market reference him as the “developer”.
EXHIBIT B: This property is being marketed by Allen Selig Realty. Show brochure property. “The Developer”
It even includes a 1 year membership to the Popham Beach Club.
EXHIBIT C: According to the property tax cards and Secretary of State filing, Mr. Poliquin is the business agent for Popham Woods.
EXHIBIT D: Here is the site law permit showing the value of the Popham Woods to be at $17 million. Poliquin self-financed $1.7 million for the cost of Phase 1, but at the same time has exploited tax law to avoid paying his fair share on other properties that he owns as revealed last week in his participation in Maine’s tree growth tax credit.
EXHIBIT E: Here is the plan for the Popham Woods developments.
Just a few weeks ago he appeared, according to press reports, as the sole agent for the Beach Club in front of the Phippsburg Planning Board.
Based on his Response to the Ethics filing he never mentions that he is the “developer” of the $17M Popham Woods Condominium. He just said that he has an “investment” and that his bookkeeper operates and manages the real estate development. This is very misleading.
The notion that Mr. Poliquin’s bookkeeper is handling all the decisions on his $17 million development doesn’t pass a straight face test. Plus, the marketing materials list him as the “developer” and all public business documents (tax bills, marketing materials, deeds, etc.) list Mr. Poliquin as the contact person.
It is clear to me that Mr. Poliquin has more than an “investment” in real estate. He is an active real estate developer. It appears he or his lawyer, if he has one, is trying to match words with the Opinion of State Supreme Court Justice Donald Alexander when he was a Deputy Attorney General, which states you can still have investments but “not engage in another business.”
The facts speak for themselves. Mr. Poliquin is operating a business, he is participating in commerce. He is in violation of the Constitution. And at best, he is sidestepping the Ethics Commission and the public.
More than a year ago, the Treasurer came to former AG Janet Mills asking for an opinion on how to handle his real estate dealings. Now it has come to light that he has continued to pursue his real estate business even while knowing the boundaries of the law. He knew at the time, at best, he was skating on thin ice.
Plus, he has never taken any formal action to put his so-called “investments” in a blind trust.
As State Supreme Court Justice Alexander said in 1978 when he was a Deputy Attorney General, the Constitution “require[s] [the Treasurer to give] full fidelity to the position.” Being a real estate developer and operating the Popham Beach Club does not allow this to happen.
Given these new facts and the cloud of suspicion that they raise, it is unclear why the AG is delaying a ruling. All this information is in the public domain.
Mr. Poliquin conduct raises the possibility that he may be skirting the edges of the law.
I’ve sent two letters to the AG requesting an opinion. I’ve not even received any indication of when I might hear a response. The question is straight forward -- has the Treasurer violated his Constitutional duties.
These new allegations increase the sense of urgency.
It is time for the AG to give answers to the Maine people.
Contact:
Jodi Quintero [Dion] 287-1488, c. 841-6279