Rezko Reality: McCain misfires as he attacks Obama's home purchase

[halfback20]

On Aug. 21, Barack Obama released an ad chiding Sen. John McCain for his inability to remember how many houses he owns, and McCain responded the same day with a counterattack charging that Obama got help buying his house from a "convicted felon" who got $14 million in "political favors" from Obama. We find McCain's ad is careless with the facts and could easily leave a false impression.

 

A $14 Million "Favor"?

 

McCain's ad opens by turning Obama's housing problem attack back on Obama. The narrator says Chicago real estate developer Tony Rezko, one of Obama's "biggest fundraisers" helped Obama buy his "million-dollar mansion" by purchasing property that Obama couldn't afford. The ad goes on to charge that Obama helped Rezko receive "political favors" including "$14 million from taxpayers," and it points out that Rezko is now a convicted felon.

 

It's untrue that Rezko got "$14 million from taxpayers" for himself, as the ad seems to be saying. The "help" to which it refers is a one-page letter Obama signed in October 1998 urging the city housing commissioner to support an apartment project for low-income senior citizens. A copy went to the state housing development authority. The 97-unit Cottage View Terrace, which opened in 2002, was funded with taxpayer money, and Tony Rezko was involved in developing the project.

 

But the deal did not put $14 million into Rezko's pocket. That figure represents the total development cost for the project. According to the Chicago Sun-Times, Rezko and his partner, Allison Davis, netted about $855,000. That's not pocket change, but it's a far cry from $14 million. And the tenants of the building benefited too.

 

...

 

Million-Dollar Mansion

 

As for that claim about Rezko helping Obama buy his house, well, we've dealt with that one before. The gist of the story: In 2005, Barack and Michelle Obama found a house that they wanted to purchase. The property had been divided into two parcels, one containing a house and the other undeveloped land. The owner had listed the properties separately. After considerable haggling, the seller accepted the Obamas' third bid of $1.65 million for the parcel containing the house. Tony Rezko's wife, Rita, purchased the adjoining lot for $625,000.

 

When the Obamas wanted to increase the size of their yard, they approached the Rezkos about purchasing a strip of the adjacent parcel. Obama told the Sun-Times that a 10-foot strip of the 60-foot lot appraised for $40,000. The Obamas nevertheless paid Rita $104,500 (or 1/6 of the total purchase price of her lot) for the strip. In 2007, Rita sold the remaining lot for $575,000 (or roughly a $54,500 profit on the overall property).

 

McCain's ad, however, is worded in a way that could leave a false impression. It says Rezko "helped him buy his million-dollar mansion" by "purchasing part of the property he couldn't afford." That's true, but only because the seller wanted to sell the two parcels as a unit and the Obamas couldn't afford both. Rezko did not make a gift of any property to the Obamas. Furthermore, the fact that his wife sold her lot for more than she paid for it contradicts any suggestion that the Rezkos overpaid for their part of the deal as a way of getting the seller to lower the price to the Obamas for their part.

 

Convicted Felon?

The McCain ad says of Rezko, "Now, he's a convicted felon." That's true; Rezko was indicted in 2006 and convicted of corruption charges on June 4, 2008. But those charges came after the 2005 Obama home purchase and had nothing to do with that or with the $14 million project mentioned in the ad.

 

 

Fact Check

[Birdsfan]

Obama signed in October 1998 urging the city housing commissioner to support an apartment project...and Tony Rezko was involved in developing the project.

 

As for that claim about Rezko helping Obama buy his house...the seller accepted the Obamas' third bid of $1.65 million for the parcel containing the house. Tony Rezko's wife, Rita, purchased the adjoining lot for $625,000.

 

The McCain ad says of Rezko, "Now, he's a convicted felon." That's true; Rezko was indicted in 2006 and convicted of corruption charges on June 4, 2008.

Nuff said. :lol:

[halfback20]

Nuff said. :lol:

 

Obama (March 15, 2008): [He] did not solicit that from me. ... This was a project that was well-regarded in the community, has done well, and was supported on its own merits, and it was essentially a form letter of the sort that I did all [the] time.

...

 

The McCain ad says of Rezko, "Now, he's a convicted felon." That's true; Rezko was indicted in 2006 and convicted of corruption charges on June 4, 2008. But those charges came after the 2005 Obama home purchase and had nothing to do with that or with the $14 million project mentioned in the ad.

 

Did you read the entire article?

[halfback20]

Who cares if the Rezko's bought the adjoining lot? The seller sold the house to the Obama's because they couldn't afford the entire property. The Rezko's bought the adjoining lot and then sold 1/6th of it to the Obama's for over $100,000. The land they sold to the Obama's was worth around $40,000 and they made over $100,000. Sure seems like a favor.

[AcesFull]

:lol: What a great defense! Obama spent 14 million taxpayer dollars to put only $855,000 in the hands of Tonly Rezko and his partner.

 

Obama needs to set the record straight ASAP by running a national ad to explain that Obama only diverted $855,000 to convicted felon Tony Rezko and his partner. Every American needs to know the truth about Obama's dealings with Rezko before the election. Thank you for bringing this fact to light. :thumb:

[Birdsfan]

Did you read the entire article?

I summarized the important points for you above.

[halfback20]

:lol: What a great defense! Obama spent 14 million taxpayer dollars to put only $855,000 in the hands of Tonly Rezko and his partner.

 

Obama needs to set the record straight ASAP by running a national ad to explain that Obama only diverted $855,000 to convicted felon Tony Rezko and his partner. Every American needs to know the truth about Obama's dealings with Rezko before the election. Thank you for bringing this fact to light. :thumb:

 

Obama wrote a 1 page letter supporting the project. How did he spend $14 million?

[halfback20]

I summarized the important points for you above.

 

You picked out the parts you thought you could use as ammunition against Barack.

[Birdsfan]

You picked out the parts you thought you could use as ammunition against Barack.

I picked out the parts that told the story in simplest terms.

[AcesFull]

Obama wrote a 1 page letter supporting the project. How did he spend $14 million?

What did the project that Obama helped Rezko and his partner land cost taxpayers? Unless I misread your post, the number was $14 million. That is how corruption is done in this country.

 

The fact that Obama could not personally repay a political debt by personally signing a government check made out to Rezko does not mitigate the stench of Obama's dealings with Rezko. If it walks like a duck...

[halfback20]

What did the project that Obama helped Rezko and his partner land cost taxpayers? Unless I misread your post, the number was $14 million. That is how corruption is done in this country.

 

The fact that Obama could not personally repay a political debt by personally signing a government check made out to Rezko does not mitigate the stench of Obama's dealings with Rezko. If it walks like a duck...

 

Obama wrote a 1 page letter. He was not entirely responsible for the project, like you are trying claim.

 

I'm not an Obama supporter. I'm not a McCain supporter. I don't like either one of them. That said, this looks like a bunch of nothing.

[AcesFull]

Obama wrote a 1 page letter. He was not entirely responsible for the project, like you are trying claim.

 

I'm not an Obama supporter. I'm not a McCain supporter. I don't like either one of them. That said, this looks like a bunch of nothing.

As I said, no single politician can direct money to a political supporter without cutting some deals with fellow politicians. That is true in most scandals. Rezko and Obama were close associates. Believe what you want but I do not believe that Obama's only act as an Illinois State Senator to help his buddy Rezko was writing a single letter on his behalf.

 

Rezko is a convicted felon and he was an active supporter of Barack Obama and profited from the association. Those are the stubborn facts of the matter.

[JCHS_EAGLE_4_LIFE]

So Bush has never done this ??? Thats the reason we're paying 4.00 a gallon for gas.. Because it was Saudi/Terrorist money that kept his own businesses running. And he's had to still alot more than 900,000 from the taxpayers maybe 5,000,000,000 is more like it...

[75center]

So Bush has never done this ??? Thats the reason we're paying 4.00 a gallon for gas.. Because it was Saudi/Terrorist money that kept his own businesses running. And he's had to still alot more than 900,000 from the taxpayers maybe 5,000,000,000 is more like it...

 

Not that I agree with anything you said but are you mounting the old "he did it too!" defense? That will win some votes.

[cch5432]

Obama wrote a 1 page letter. He was not entirely responsible for the project, like you are trying claim.

 

I'm not an Obama supporter. I'm not a McCain supporter. I don't like either one of them. That said, this looks like a bunch of nothing.

Without coming off as rude......do you seriously think that putting the disclaimer "I don't know who I am voting for" at the end of all your posts exempts you from criticism and/or accusations of bias?

 

I have plenty of reasons not to vote for Senator Obama, but the continued associations with convicted felon Rezko and admitted terrorist Ayers is disturbing, to say the least.