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Jones Property Development gives Bernero $5,000

May 19, 2016

 

As reported here before, Lansing mayor Virg Bernero has a 527 organization he uses to collect money from firms that do business with the City. He spends the money mostly on restaurant meals and juice. Since he took office in 2006, the organization has taken in $361,270 and spent $312,055.

 

The organization is called the City Administrative Account. Reports of contributions and expenditures are submitted periodically to the IRS and can be viewed on IRS' website.

 

In the report for the first quarter of 2016, the only contribution was $5,000 from Jones Property Development:

 

 

Although the reported address is Los Angeles, Jones Property Development has a local presence at 3800 Hagadorn Road, which - and this was news to me - is in the city of Lansing. I knew Lansing owned the property in Delta Township where the GM assembly plant is located and the property south of I-96 in Meridian Township where Jackson National Life Insurance is located, but was not aware of this parcel east of Hagadorn between Mt. Hope and Jolly.

 

 

Jones Property Development is the developer of College Fields, a community of 286 home sites surrounding an 18-hole golf course near the intersection of Hagadorn and Bennett Roads. Jim Rundquist is the manager. Mayberry Homes is the builder and, according to the website, there are 3 sections yet to be developed. The shape of the Lansing property is remarkably similar to the site plan for the development:

 

 

Jones Property Development is associated with (or one in the same as) McClelland & Anderson, a firm "specializing in real estate development, financing, zoning, land use and commercial litigation" at 1305 S. Washington, Suite 102 in Lansing. This I conclude from the "Re-Notice of Intent for Parkside at College Fields" attached to the City Council agenda for January 28, 2013 (pages 35-36).

 

The $5,000 is JPD's first contribution to the City Administrative Account in its 10-year existence. What sort of favor do you suppose they need - or got - from the mayor?

 

There are some possibilities. Although the manager of troubled Life O'Riley Moblile Home Park is sure it can be fixed up and re-opened, or turned into a private campground for recreation vehicles, Mayor Bernero is against it. (Lansing State Journal, 5/18/2016) His impatience with the owners is understandable, but there is something else. Look at its location - right next to Chisholm Hills Golf Course. What a great place for a condo development like College Fields!

 

 

Willoughby Park is nearby also, and Bernero wants to put that up for sale even though the Park Board voted against it 7 to 1. (Lansing City Pulse, 5/18/2016)

 

That $5,000 contribution from Jones Property Development is generous but not unique. There have been several individual contributions of $5,000 and one of $10,000:

 

Contributor Employer Date

Amount

Kevin Van Dertuig Tetra Tech 10/25/2007 10,000
Accident Fund   11/1/2008 5,000
AT&T   6/9/2010 5,000
Blue Cross Blue Shield   12/16/2009 5,000
Blue Cross Blue Shield   4/20/2011 5,000
Daniel Loepp Blue Cross Blue Shield of Michigan 2/7/2006 5,000
Joseph Reid Capitol National Bank 1/1/2006 5,000
The Christman Company   3/9/2011 5,000
The Christman Company   8/11/2011 5,000
Harry Hepler H, Inc. 6/3/2008 5,000
Scott Clark IBEW Local #655 8/31/2006 5,000
Jim Scholl Malcolm Pirnie, Inc. 1/4/2006 5,000
Malcolm Pirnie, Inc.   1/22/2010 5,000
Jim Scholl Malcom Pirnie 8/31/2006 5,000
C. Howard Haas Mercantile Bank of West Michigan 8/31/2006 5,000
Michigan Manufacturer Association   7/30/2013 5,000
Abraham Rahar, Jr. Plumbers and Pipefitters Local Union 333 1/1/2006 5,000
Doug Johns Riverview Associates One 1/1/2006 5,000
Kevin VanderTuig Tetra Tech 8/31/2006 5,000
Bruce McAttee United Auto Workers 8/31/2006 5,000

As for cumulative contributions, the Christman Company leads with $30,000. That is, unless you combine the contributions of BCBS and the Accident Fund, in which case they lead with $39,000. (The Accident Fund is owned by BCBS.) Here are the companies who have contributed over $10,000 (see entire list here):

Christman Company

30,000

Blue Cross Blue Shield

24,500

Tetra Tech

19,500

Malcolm Pirnie, Inc.

15,000

Accident Fund

14,500

E .T. Mackenzie Companies

12,500

Riverview Associates

11,500

527 accounts are named for Section 527 of the IRS Code, which deals with political organizations. Essentially, it says income spent by an organization on political activities is exempt from taxation, and that includes expenditures relating to an elected office “which, if incurred by the individual, would be allowable as a deduction under section 162(a)." Section 162(a) deals with trade or business expenses and says a deduction shall be allowed for "ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business [including] traveling expenses . . . while away from home in the pursuit of a trade or business." That would not seem to include restaurant meals in one's home town. Here's how the mayor spent $4,208 in the first quarter of this year:

 

Recipient

City

Purpose

Date

Amount

JUICE NATION

LANSING

DINE

1/11/2016

7

BIGALORA

SOUTHFIELD, MI

DINE

1/13/2016

187

CRAVINGS GOURMET

LANSING

DINE

1/14/2016

156

PORT ATWATER PARKING

DETROIT, MI

PARKING

1/19/2016

20

NATIONAL CONEY ISLAND

DETROIT, MI

DINE

1/21/2016

2

CAVA MEZZE MEDITERANIAN

ARLINGTON, VA

DINE

1/25/2016

12

DIAL CAB CO.

WASHINGTON, DC

CAB SERVICE

1/25/2016

22

CAPITAL NATIONAL BANK

LANSING

BANK SERVICE CHARGE

1/29/2016

10

CLERGY FORUM FOR FLINT BOTTLED WATER

LANSING

DONATION

2/3/2016

100

GRAND TRAVERSE PIE COMPANY

LANSING

DINE

2/8/2016

5

JUICE NATION

LANSING

DINE

2/8/2016

43

ORIGINAL HOUSE OF PANCAKES

SOUTHFIELD, MI

DINE

2/8/2016

8

ORIGINAL HOUSE OF PANCAKES

SOUTHFIELD, MI

DINE

2/8/2016

31

QDOBA MEXICAN GRILL

EAST LANSING

DINE

2/11/2016

17

LANSING REGIONAL CHAMBER OF COMMERCE

LANSING

DUES

2/16/2016

190

MIDTOWN BEER CO.

LANSING

DINE

2/22/2016

61

BIG APPLE BAGELS

EAST LANSING

DINE

2/23/2016

10

BIGGBY COFFEE

LANSING

DINE

2/25/2016

5

CAPITAL NATIONAL BANK

LANSING

BANK SERVICE CHARGE

2/29/2016

11

BLACKSTONE GRILL & PUB

FLINT, MI

DINE

3/1/2016

32

TABOONS OF SAGINAW

FLINT, MI

DINE

3/1/2016

66

LINKS INC.

EAST LANSING

CHARITABLE DONATION

3/2/2016

100

G L A C

LANSING

CHARITABLE DONATION

3/3/2016

250

THAI VILLAGE RESTAURANT

LANSING

DINE

3/4/2016

30

D T W

DETROIT, MI

BEVERAGE

3/7/2016

2

B R D PRINTING

LANSING

PRINTING

3/9/2016

2009

HILTON COFFEE SHOP

WASHINGTON, DC

DINE

3/9/2016

19

OLD EBBITT GRILL

WASHINGTON, DC

DINE

3/9/2016

185

THAIPHOON RESTAURANT

WASHINGTON, DC

DINE

3/9/2016

60

HILTON COFFEE SHOP

WASHINGTON, DC

DINE

3/10/2016

10

HUDSON NEWS

WASHINGTON, DC

NEWSPAPER

3/10/2016

9

HILTON COFFEE SHOP

WASHINGTON, DC

DINE

3/11/2016

12

BIGGBY COFFEE

LANSING

DINE

3/16/2016

7

GLAZED AND CONFUSED BAKERY

LANSING

DINE

3/16/2016

4

ZONTA FOUNDATION

LANSING

CHARITABLE DONATION

3/17/2016

400

LOS TRES AMIGOS

LANSING

DINE

3/21/2016

80

FOR CREPE SAKE

LANSING

DINE

3/22/2016

18

JUICE NATION

LANSING

DINE

3/25/2016

7

CAPITAL NATIONAL BANK

LANSING

BANK SERVICE CHARGE

3/31/2016

11

     

TOTAL:

$4,208

 

I've compiled lists of contributions to and expenditures from the City Administrative Account since its inception:

Contributions Sorted by Date

Contributions Sorted by Employer

Contributions Sorted by Employer Total

Expenditures Sorted by Date

Expenditures Sorted by Recipient

Expenditures Sorted by Purpose

More about the City Administrative Account here.

 

Send comments, questions and tips to stevenrharry@gmail.com. If you'd like to be notified by email when I post a new story, let me know.

 

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