Daily Real Estate News  |  July 26, 2007  |   Alaskan Senator Criticized for Cheap Land Deal
U.S. Sen. Lisa Murkowski (R-Alaska) is the target of a complaint filed by the National Legal and Policy Center with the Senate Select Committee on Ethics.

The complaint accuses Murkowski of purchasing a property on Alaska’s Kenai River from a politically connected developer last year for $179,400, substantially less than it’s valued. Previous sales of similar properties put the value between $250,000 and $350,000.

Linda McLane, an associate with the Ron Moore Co. who has worked in that area for 14 years, said she would likely ask $300,000 for Murkowski's property were she to sell the land.

"Maybe even $350,000," she said. "Would I get $350,000 for it? Maybe I would, I don't know. But that is a very nice area back there with lovely homes and it's near town but still has the seclusion you want."

Real estate developer Bob Penney, who owns the adjoining property, sold the land to Murkowski. He said he had known the senator since she was 5 years old and it was a deal between old friends.

Murkowski, who says the price was fair, has already broken ground to build a home on the site.

Penney, who is a licensed real estate broker, was previously investigated by the U.S. Justice Department in relation to a land deal with Alaska's senior senator, Ted Stevens (R-Alaska). Penney brokered the sale of land in Utah to Stevens for $15,000. The property appreciated more than 500 percent within a few months.

Source: Compiled from various national news reports