A Deal That Stinks to High Heaven

Last week we learned of yet another absurd conflict of interest story that seems to be all to pervasive in New Mexico politics. This one involves a sweetheart deal that took place two years ago. Just last week Democratic Party activist and district court judge Sarah Singleton ruled the entire arrangement to be legally kosher. And with the ruling it seems we have yet another perfect example of how something might be technically “legal” without being either ethical or moral.

Judge Sarah Singleton

The deal in question came about as the result of agreements by Santa Fe County and the State of New Mexico to provide millions of dollars in funds and other considerations for private developers to build a movie studio in Santa Fe in 2009. The terms of the scheme were nothing if not remarkably brazen. Somehow Santa Fe county commissioners and the New Mexico state government agreed to give Santa Fe Studios partners: which included Current State Democratic Party Chairman Javier Gonzales, Lance Hool, Jason Hool and Conrad Hool the following: land, free water utility hookups, a $10 million grant and a $6.5 million loan. Why? Somehow these men convinced elected officials and/or decision makers that it was in the “public interest” to construct this particular facility to “lure Hollywood producers to New Mexico.” How could such a scheme come off? It seems that a longtime friendship between the principals and former Governor Bill Richardson provided significant political lubricant in the funding process.

Javier Gonzales

The information for this story comes to us courtesy of a story published on Capitol Report New Mexico last week. According to CRNM, State Democratic Party Chairman Javier Gonzales said recently that he has since “detached himself” from the project. When we attempted to contact Gonzales to determine exactly what “detaching” meant in financial terms, we received no response.
Several basic questions about the culture of government in New Mexico come to mind. Was this good stewardship of state and county taxpayer dollars? Was it reasonable or ethical for a State Democratic Party Chairman to be on the receiving end of a $10 million grant, a $6.5 loan, free land, and free utility hookups from a government where he is presumed to have so much influence? Would this be the sort of opportunity available to everyone in New Mexico including those who are not well-connected politically? Will there be an alternative explanation forthcoming from Mr. Gonzales regarding his financial involvement and subsequent “detachment?" Or is this story just going to lay there and stink while those involved hope it goes away or gets buried by the passage of time?

A Deal That Stinks to High Heaven