douglas £. mckinney, m.d., chairman

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  • 8/14/2019 Douglas . McKinney, M.D., Chairman

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    Douglas . McKinney, M.D., ChairmanWV Republican Party, Inc.

    636 Rivendell DriveBridgeport, West Virginia 26330-1358

    November 18,2009 . [. 5i Jonathan Levin, Esq. orn c"Office of General CounselFederal Election Commission999 E Street, NWWashington, DC 20463

    or-3Ei _ ac-in * zz

    ' . * * -..en ' Re: Request for Advisory Opinion . - r*Dear Mr. Levin:O n behalf of the Executive Com mittee of the West Virginia Republican Party,please consider this request, filed under provisions of 2 U.S .C.437 f(a)(l) and 11 CFR122.1(b) and (c), for an Advisory Opinion on the use of proceeds from the sale of abuilding owned by the State Party to "lease with an option to buy" an office building tobe used as headquarters for the State Party.The relevant facts are as follow s:1. Prior to November 5,2002, the West Virginia Republican Party received

    . corporate contributions into a Building Fund Account to be used to purchase anoffice building to be used as an office headquarters for the West Virginia StateRepublican Executive C omm ittee. No funds were received from any foreignnationals. . .2. By contract dated January 15,2003, the Republican State Executive Comm itteepurchased an office building in South Charleston, WV, for a fair market value of$187,000 from a local trade un ion, USWA Local #14614. A t closing, the sellersreceived $120,000 in cash and a promissory note for the balance of $67,000carried as a first deed of trust by the seller to be paid over 10 years at $743.84 permonth. The property was thereafter transferred, by quitclaim deed datedNovember 28,2005, from the Republican State Executive Committee to the WestVirginia Repub lican Party, Inc., which made monthly payments to the seller fo r

    i the balance owed.j 3. By deed dated February 12,2009, the West Virginia Republican Party, Inc., soldi - the building for a fair market value of $ 140,000 to a local family trust. The salesj proceeds were used to pay off the remaining promissory note and the balance of .: the proceeds were placed in a certificate of deposit and kept separate from thei remaining assets of the West V irginia Republican P arty, Inc.. No other funds1 were used in the purchase of the certificate of deposit.j The proceeds are currently in a certificate of deposit in a bank| account which is a segregated "Building Fund Account" and are notpartj of any Federal Account.

    i The present balance of the certificate of deposit is approximately| $76,000.00 and the bank account is$13,500. Since the original inquiry,| $12,500 hasbeen paid toWilliam Currey for security deposit and for leaseI of the building, which is being used as the State Party headquarters, for a| period of four months.304J641-1205 Cell304^842-6440 Home' [email protected] Fax . [email protected] for by the Republican Party, Inc.i . . '

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    4. The previous and the current West Virginia Secretaries of State have opined thatthe West Virginia Code does not address this situation. All transactions in regardto the headquarters have been reported to the State of West Virginia.

    5. The attached "lease with option to purchase is the only document governing theuse of the building. The lease amount is the "usual and customary" amount forsuch an office property in its location in this area of Charleston, West Virginia.The West Virginia Republican Party, Inc., desires to enter into this leaseagreement with an option to purchase with an unrelated third party to lease abuilding to be used as a headquarters for the West Virginia Republican Party, Inc.,in Charleston, West Virginia, and would like to use the funds held in thecertificate of deposit from the sale of the old office building to make payments onthe lease option. It is agreed by the West Virginia Republican Party, Inc., and theowner of such building that the option to purchase could be exercised at any timeprior to December 31,2012. It is an exclusive agreement.

    Accordingly, the West Virginia Republican Party, Inc., seeks an AdvisoryOpinion on the permissibility of using the funds held in a certificate of deposit forsuch purpose.In the event that it is not permissible to use the funds held in the certificateof deposit for such purpose, the West Virginia Republican Party, Inc., seeks anAdvisory Opinion on the permissibility of entering into a land sale contract for theoffice building, and using the funds held in the certificate of deposit to makepayments under such a land sale contract under which West Virginia RepublicanParty, Inc., holds the equitable title to the property while the seller retains legaltitle to the property until the final payment is made. Under such a contract buyerforfeits the equitable title and all rights to the property if it fails to make apayment and the building reverts to the seller.

    It is our position, that this same situation pertained with the sold buildingfor its occupancy from December, 2003, through August, 2009, by the WestVirginia Republican Executive Committee and later by the West VirginiaRepublican Party, Inc..

    Thank you for your time, advice and help in preparing this request.

    tfully yours,

    DouglaVE. McKinney, M.D.Chairman, West Virginia Republican Party, Inc.

    cc: Beth Elmore, Esq., Counsel WVGOPLynn Staton, Co-Chair WVGOP

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    Mat CurreyMat Currey

    304-342-8879304-342-8879

    p.2p.2

    REAL ESTATELEASELease Agreement (this "Lease") with option to purchase said property at a value of $750,000 is dated Septemberby and between William R. Currey ("Landlord"), and WV GO P, Inc. (Tenant'1). The parties agree as follows:

    Landlord, in consideration of the lease payments provided in this Lease, leases to Tenant 2600 Square fbuilding located at the comer of Greenbrier Street and Kanawha Boulevardremises") Located at #5 Greenbrier Street, Charleston, WV 25311The lease term will begin on September 1, 2009 and will terminate onDecember 31,2010.PAYMENTS.Tenant shall pay to Landlord monthly installmentsof $2,500 (Two Thousand Five Hundred Dinadvance on the first day of each month, for a total lease paymentof $ 40,000 (Forty Thousand Dollars).all be made to the Landlord at #7 Greenbrier St. Charleston, WV 25311, which address may be chatime to time by the Landlord. If purchase option is exercised, all payments will be applied to purchase price of(Seven Hundred Fifty Thousand Dollars).

    DEPOSIT.At the time of the signing ofthisLease, Tenant shallpay to Landlord, in trust, a security dep(Two Thousand Five Hundred Dollars) to be held and disbursed for Tenant damages to the Premises (if any) by law.Tenant shall beentitled to possession on the first day of the term of this Lease, and shall yield posseson the last day of the termof this Lease, unless otherwise agreed by both parties in writing. At the expirationall remove hs goods and effects and peaceably yield up the Premises to Landlord in as good a conditioto Tenant; ordinary wear and tear excepted.

    OFPREMISES.Tenant may use thePremises only for the operation of aPoliticalParty. Hie Premises maybeany other purpose only with the prior written consent of Landlord, which shall not be unreasonably withheld. Tennotify Landlord of any antxcipaied extended absence from the Premises not later man the first day of the extendece. SIGNS: Tenant shall only erect permanent signs which meet the City of Charleston and East End Historic Sods. No temporary banners or signs are to be placed on the property or building unless approved by the Landlorcase shall such temporary signs remain for longer man one week.INSURANCE. Landlord and Tenant shall each maintain appropriate insurance for their respective interLocated on the Premises. Landlord shall be named as an additional insured in suchpolicies.deliver appropriate evidence to Landlord asproof mat adequate insurance is in force issued by companies reasonto Landlord. Landlord shall receive advance written notice from the insurer prior to any termination of supolicies. Tenant shall also maintain any other insurance which Landlord may reasonably require for the proLandlord's interest in the Premises. Tenant is responsible for maintaining casualty insurance on its ownproperly.

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    21 09 10:57ag 04 Od 03:21p

    Mat CurreyMat Currey

    304-342-8879304-342-6879

    P-3p.3

    TERMS.This Lease shall au tomatically renew for an additional period of Two Year per renewal term unparty gives written notice of termination no later than 60 days prior to the end of the term or renewal term. The lany such renewal term shall be the same as those contained in this Lease except that the lease installmentents shall remain $ 2,500 (Two Thousand Five Hundred Dollars), per month.

    for maintenance shall include:roof, outside walls, andother structural parts of the buildingtheparking lot,drivewayssewer, water pipes and other m atters related to plum bing (unless caused by tenant negligence)Landlord will repair bom upstairs bathrooms to restore full functionality.nt's obligations for m aintenance shall include:HVAC SYSTEMMaintain interior of building phis all maintenance of yard and shrubs.other Hems of maintenance not specifically delegated to Landlord under this lease.snow and ice removal from sidewalks, steps and porches.

    AND SERVICES. Tenant shall be responsible for all utilities and services incurred in connection with th(includes all city fees for garbage collection, sewer,fire,etc.)to the Premises or the use of the Premises shall be allocated as follows:

    pay all real estate taxes an assessments which are assessed against me Premisthe time of this Lease. Payments to be paid monthly and to be based on the prior year's assessmentO R CONDEMNATION O F PREMISES. If the Premises are partially destroyed by fire or otherto an extent that prevents the conduction of Tenant's use of the Premises in a normal manner, and if the damagnably repairable within sixty days after the occurrence of the destruction, and if the cost of repair is lessman $5.00shall repair the Premises and a justproportion of the lease paym ents shall abate during the period of the repaing to the extent to which the Premises have been rendered untenantable. However, if the damage is not repairabsixty days, or if the cost of repair is $5,000.00or more, or if Landlord is prevented from repairing the damage bybeyond Landlord'scontrol, or if the property is condemned, this Leaseshall terminate upon twenty days'writtenof such event or condition by either party and any unearned rent paid in advance by Tennant shall be apportionedto it Tenant shall give Landlord immediate notice of any damage to the Premises.

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    Mat CurreyMat Currey

    304-342-8879304-342-8879

    P-4p.4

    charges are designated as "additional rent". The rights provided by this paragraphare cumulative innature and are other rights afforded by law.PAYMENTS. For any payment that is not paid within 10 days after its due date, Tenant shall pay a late fee of

    RIGHTS.Hie rights of the parties under this Lease are cumulative, and shall not be construed asby law.FUNDS. Tenant shall be charged $25.00 for each check that is returned toLandlord for lack offunds.

    OR STRUCTURAL IMPROVEMENTS. Tenant shall have the obligation to conduct any constrube required to use the Premises as specified above. Tenant may also confixtures on the Premises (at Tenant's expense) that appropriately facilitate its use for such purposes. Such construbeundertaken and such fixtures may be erected only with the prior written consent of the Landlord -which shall nwithheld. Tenant shall not install awningsor advertisements on any part of the Premises without Landlowrittenconsent At the end of the lease term, Tenant shallbe entitled toremove (or at the request of Landlord shfixtures, andshall restore the Premises tosubstantially thesame condition of the Premises at theof mis Lease.

    LANDLORD TO PREMISES. Subjectto Tenant's consent (which shallnot be unreasonably withheldshall have the right to enter the Premises to make inspections, provide necessary services, or show the unit tobuyers, mortgagees, tenants or workers. However, Landlord does not assume any liability for the care orremises. As provided by law, in the case of an emergency. Landlord may enter the Premises withoconsent During the last three months of thisLease, or any extension of this Lease, Landlord shall be allowedthe usual "To Let" signs and show the Premises to prospective tenants.

    ITY REGARDING USE OF PREMISES. To the extent permitted by law, Tenant agrees to indemnify, hoand defend Landlord from and against any and all losses,claims, liabilities, and expenses, including reasonafees, if any, which Landlordmay suffer or incur inconnection with Tenant's possession, use or misuse of themises, except Landlord's act or negligence.MATERIALS.Tenant shall not keep or have on the Premises any article or thing of a dangerous,or explosive character that might substantially increase the danger of fire on the Premises, or that might besidered hazardous by a responsible insurance company, unless the prior written consent of Landlord is obtained anadequate

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    09.05:57p Mat Currey . 304-342-8879 p.5

    protection is provided by Tenant to Landlord.WITH REGULATIONS, Tenant shall promptly comply with all laws, ordinances, requirements anof the federal, state, county, municipal andother authorities, and the fire insurance underwriters. Howeveshall not by thisprovision be required to make alterations to the exterior of thebuilding oralterations of astru

    LIENS.Neither the Tenant nor anyone claiming through the Tenant shall have me right to file mechor any other kind of Hen on thePremises and the filing of this Lease constitutes notice that such liens are invalidTenant agrees to (1) give actual advance notice to any contractors, subcontractors or suppliers of goods, labovices that such liens will not be valid, and (2) take whatever additional steps that are necessary in order to keep thefree of all Kens resulting from construction done by or in* he TenantAny controversy orclaim relating to mis contract, including the construction or application of thisct, will be settled by binding arbitration under the rules of the American Arbitration Association, and any udgmby the arbitrators) may be enforced in any court ofproper jurisdiction.

    OFLEASE.This Lease is subordinate to anymortgage that now exists,or may begiven later bwith respect to thePremises.Tenant may not assign orsublease any interest in the Premises, nor effect a chamajority ownershipof the Tenant (from the ownership existing at the inception of this lease), nor assign, mortgagLease, without the prior written consent ofLandlord, which shall not be unreasonably withheld.

    Notices under thisLease shall not be deemed valid unless given or served in writing and forwarded by maas follows:

    R. Currey

    WV 25311

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    t)5:57pg *04 09 03:23p

    Mat CurreyMat Currey

    304-342-8879304-342-8879

    P-6P.1

    addresses may be changed fromTime to time to time byeither party byproviding notice as set forth above. Noaccordance with the above provisions shall be deemed received on the thirdday after posting.G LAW. This Lease shall be construed inaccordance with the lawsof the State of West Virginia

    Lease Agreement contains the entire agreement of the parties and tno other promises, conditions, understandingsor other agreements, whether oral orwritten, relating to the subjectthis Lease. This Lease may be modified or amended in writing, if the writing is signed by the party obligated unde

    If any portion of this Lease shall beheld to be invalid orunenforceable for any reason, theremainsnail continue to be valid and enforceable. If a court finds that any provision of this Lease is invalid orbut that by limiting such provision, it would become valid and enforceable, then such provision shall bed to be written, construed, and enforced as so limited.The failure of either parry to enforce any provisions of this Lease shall not be construed as a waiver orlimthat party's right tosubsequently enforce and compel strict compliance with every provision of thisLease.EFFECT,Theprovisionsof this Lease shall bebinding uponand inure to the benefit ofparties andtheirsuccessorsand assigns.

    Date:

    Date:

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    ALL BLANKS NOT APPLICABLE SHOULD BE MARKED "N/A*11. DATE. Date of thto Agreement / I f r V ? ' '* ^ t*am. j |ff"| *^Lf T ifc>-tyiArt | l >ji|nfl)t rf't~ i d f'iy\ " 1 I u ~.l ~j ijft ~ ~ ~ - ' 4

    3An? .13. EAHNE8TMONEY ANDDESCRIPTION. Rece ived rom PurchaserJ

    Orcssh D note D check payabtoto.offer, as deposit and part of thto purchase price of theHid Pelttofll/TiVprterftrwtatevilngThscrfbedpi

    | aaearnest money evidenced, Droker, to tohelduncashed untlacceptanc

    (S_[cglsV J with thebalance ol thepurchase pricetalHgt * * k rwl *t C . A J - . C Li h u d . a n rt15. O ALLCASHTRANSMIncash payable to Mar by Purchaser ondeflveryof the Dead.

    O ASSUMPTION. (See Addendum)DLOANCONTINQENCY: Tlfeagreernem tosubject andcx>ntmgarrt upon Purchwthan$___/J/xl wHh annterest ralenotInexcesscf_/i//L___.* secured by adeed of

    n(9.loan In an amount

    on me subject property, payabtohi(exclusive of any escrow amounts for taxes and Insurance). Putorsuch oan and ocontinue with duedOgence and Ingood falmto'make every msoiiabtoeftort tosectrasiw

    any other torn the purohaseraposes tor from any source found by Puichaforegoing. Purchaser tounabletoobtain either ban, orsofne other loan, hen thto agroometit may tocancelledmwriting rtand all eameal money paid hereunder by Purchaser shaH be rotundod to P unsnaaer.18. Ht-a-.H,,Jnn-- |MBB,-nlnraiy ruyuiy rar mspecnm! BuyerD Seller

    D BuyerD SeBerD BuyerQ SaOarD}* Buyer D SeftorO'BuyerD Setter

    ictton .Time PorioiftyWi-frfy Obtained ByO-Buyer D SeasrO BuyerD SellerD BuyerD SsflsrO' BuyerD SellerO^BuyerD Seller

    RepaV AmountNottoEnaad

    a SEEADDENDUHf.Ttw InspectionbtedeboveenaB (toIm , lead based pafnt hiepectfonorany ether Inspection hto shaB toconslderad waived by heparties.AB me InspectionsBsted above shall tocabove.TTiereeuteolaBlnspec Any Inspectionwldch o not comple(to resutto of saidInspectionnot dtockwed to aH parttoa wHhbi the above time periodshall to deemed to have bean waived.Mltoabove IrapucltoisievealinrtaiyphysMor II there are termites or wooddestroying Insect Infestation or damage, such defects shai to corrected a t Sonar's expense; not to roooed th e doOar amII meeast of correcting the condMons exceeds me dollar amount sot out In thepreceedkig paragraph;a. The Ssser may refuse to pay me addMonal monlea. If the Sefler so refuses, the Purchaser, If permitted bv the tender "rJnveMor. may elect toIt ^IftA O ^ nM1 |k OkHH^Ba^^* MI H ^MV^^ kft m**jt B^M B M n f l f f a M k fANkA MBAl jf*^**m*Mmt** H&wBtmmiouU' S llf^^MM J "- " - tarn4nr mmhm^mmtmD. ine aeaar ano no ruranaaer may wjiw ID eesn pay a umuui %n me uuw 01 oonacnng meconanKns, Rpenaneooy me wnoor or MIVH'C. If me Sessr end me Purchaser are both unwUng (or tte Purchaser to precfudsd from paying the cost by h to tendmg mstHutton) to pay (to adinofuy neoesaan/ to ooinMl me uunuMuns, men Into agreement may to canceled to wrtdng at the optionof the Purchaser or the Sefler and any money paid hereunder by Purchaser she! to refunded to me PMctossr. Should Purchaser or Seasr request the Brokers to obtain any Inspsurveys or tfwr eunaiiadon ta furmeranoe of thto umhSLt, me Purchaaer and Sesar shaH offljJto|Bjnfiera harrrdasSiand bring no action against t

    17.surveys or tNhr eiaiirfiwdon ta lurmerance of thto cut h act, me Purchaser and SeBsr shallftoldj JftOvBjpfcors harany Mglbjrwe of tte party perfom^ the Inspector J3L *CLOSHia Thto aato'ahall to conaHstod and al necaasarv oaoeni axeeutod anddeltveradwasfr Iram the date ofTime shal NOT to olfto In Ms agreemenL TIMdoting officer dosing this sato tohereby drected and authorized tocalled arri cfisb

    18. arlUnUALniYSKALpwassslondltopiapsra Possession osubtoet o me ightoof tenanto.

    19. nmnw3IAaiwaaacWa(llnolurmeraBnMinsite

    20. SUETO !>ROPeRTY MCLOBURE. BTV QwH rto pnvldad to Airehnera21. SELUNQCOftlPANYtoacllngasa IT Buyers Agent D Seder D Dual Agent22. BiiOKEHCOyMiaBaaiiM J/ %OPQHOaBBeLLBtaPRICE .5V/>% ^23. EXPMATION OF OFFER. Thto offer to purchase shai expire and become void If notice of accsptance by Seller to rt received by tra Purchase, mi / pni onttw. .day of.

    offer to purchase to hereby accepted by the Seller

    Seserv SignatureDATA FORCLOSING AGENT. This Information is not part of the purchase

    SeOert Signature

    Company

    CompanySefcr

    Seller/ PurchaserAnn Not112 (RM)CapfrigM KMNaVWkr BMld ol lEALTOTO SSS O feard* torn CRCMVN ORAPHICS - O04I 744 22

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    MemoJune 24,2009To: Doug, Craig, Jonathan, MartiFrom: GaryRe: Building fundOverviewWest Virginia is, by state law, a "non corporate" state, meaning that neither candidatesnor the state party can raise or spend donations from corporations. Conversely, somestates do permit corporate money in politics.However, prior topassage of the McCain-Feingold Act (aka the Bipartisan CampaignReform Act, or BCRA), which took effect the day after the 2002 General Election, evennon-corporate states like West Virginia were permitted, under federal law, to raise andspend corporate money for the express purpose of purchasing a headquarters. The WestVirginia Republican Party did exactly that in the fall of 2002, prior to the enactment ofMcCain-Feingold. Once McCain-Feingold took effect, state parties in non-corporatestates like West Virginia lost their ability to use corporate money even for the purchase ofa headquarters.Sometime within the last year or two (Doug or Marti would have the exact date), theWVGOP sold the headquarters which was purchased in 2002. The profit from the sale,roughly $90,000, wasplaced in a CDuntil such time as its legal disposition can bedetermined.Given that the original source of the funds used to purchase the headquarters in 2002 wascorporate in nature, the proceeds from the sale of the headquarters are also corporate innature. The WVGOP understands that these proceeds cannot be used for the day-to-dayoperations of the party, salaries,or candidate support. However, the WVGOP believesthat the funds - since they were legally raised when originally obtained - remain legal innature and can again be used for the same legal purpose, i.e., the purchase (or lease?) of adifferent headquarters.April 2009 actionsIn April 2009, acting in my capacity as Executive Director of the WVGOP, I discussedthis issue with Heather Sidwell, Deputy Counsel of the Republican National Committee.Ms. Sidwell suggested that I meet with the West Virginia Secretary of State to determinewhat the attitude of the WVSOSoffice would be on this issue.

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    O n Wednesday, April 22,2009,1met with Secretary of State Natalie Tennant, her chiefof staff, Cedric Greene, and her chief legal counsel, Elizabeth Summitt,at theWVSOSoffice hi Charleston. They agreed that West Virginia law does not address this specificissue. Secretary Tennant suggested that she would be willing to consider supportingpassage of a law that would allow both parties toraise corporate and/or union funds forthe express purpose of purchasing or leasing a party headquarters. She also said thatwhile the WVGOP could proceed with using the proceeds from the sale of theheadquarters, itmightbe challenged by someone in court, withan unknown result. Shedid not indicate whether she, in her capacity as Secretary of State, would challenge such amove.Recommended actionI reported the results of this meeting to Ms. Sidwell of the RNC,who suggested that webring TomJosefiak into the discussion. Mr. Josefiak is former Chief Counsel of the RNCand former Chairmanof the Federal Election Commission. It is my recommendation thatthis be the course next taken by the WVGOP.Ms. Sidwell's office number is 202-863-8638, and her email is [email protected] her and remindingher of this chain of events would be the best way to bringMr. Josefiak into the mix.

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    Jonathan Levin/FEC/US To "Dr. Doug McKinney" 01/06/201012:49 PM cc Robert Knop/FEC/US@FEC

    bccSubject Additionaland Clarifying Information

    I have added your amended information in a newfootnote 1. If you believe that this document isaccurate, please send ane-mail confirming that it is accurate. Upon receipt ofyour confirmation, youradvisory opinion request will be considered complete.

    WVa Republicans-Supplemental Facts to Party ChairZdoc

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    West Virginia Republican Party - Additional andClarifying InformationSubsequent to the receipt, on December 1,2009, of a letter from Dr. DouglasE. McKinney, Chairman of the West Virginia Republican Party ("the Party"),Robert M. Knop and Jonathan M.Levin of the Commission's Office of General

    Counsel engaged in phone conversations with Dr. McKinney to clarify certain pointsand to obtain some additional facts. The additional and clarifying informationobtained is as follows:

    1. The monthly rental amount in the current lease with an option to buy is the usualand normal rental charge for a lease payment without a purchase option. No extrarental charge is added to pay for the purchase option.1

    2. There are no other arrangements for a payment by the Party to retain the option topurchase, such as an up-front payment or periodic payments.

    3. Other than the one-month rental payment for a security deposit and the monthlyrental payments, the only payment by the Party in connection with the currentlease was a one-time $500 payment (made from the Federal account) duringpreliminary negotiations with the owner to leave open the opportunity to enterinto the lease with an option to buy.

    4. Currently, the proceeds from the Party's sale of its previous headquarters in 2008are in CDs and a bank account that are not part of any Federal account. Prior tothe payment of the security deposit and four months' rent (totaling $12,500), therewere $76,000 in a CD and $13,500 in a bank account. All of these sums camefrom the proceeds of the $140,000 sale minus the payments for the remaining fiveyears on the Deed of Trust for the previous headquarters and realtor's fees on thesale. Currently, there is approximately $1,500 remaining in the bank account,$20,000 in one CD, and $56,000 in another CD. The Party is using these funds topay the rent on the lease and would use these funds to make the payments on aland sales contract.

    5. Thus far, the Party has not reported any of the transactions related to the previousand current headquarters in reports filed with the West Virginia Secretary ofState. The FEC reports of the predecessor State committee disclosed a $10,000payment from the Federal account on the principal for the previous headquartersin 2003, and the FEC reports of the predecessor and current State committeesdisclosed periodic payments from the Federal account on the Deed of Trust untilearly 2006.2 In the next report due to the West Virginia Secretary of State, the

    1 Dr. McKinney represents that the currentowner of the building says that he has entered into several priorleases with options to buy and has never asked for a separatepayment to secure the option,nor has he everdivided the payment to allot a portion for the option.2 The Party's reports filed with the FEC also disclosed rental payments on the previous headquarters in2008 an d 2009 which were paid to the new ow ners to allow the Party to continue to occupy the building.

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    West Virginia Republican Party - Additional an d Clarifying InformationPage 2Party will disclose the proceeds of the sale of the previous headquarters and therental payments that the Party has made on the current headquarters.

    6. If the Commission concludes that the exemption for the purchase or constructionof a party office building does not apply to the lease with an option to buy, theParty might exercise the option to buy. The purchase would entail entering into aland sales contract on the same property with the owner. The monthly rentalpayments already made on the lease prior to the exercise of the option to buywould apply to the Party's installment payments on the land sales contract.

    7. The Party is unable to give any more details on the attributes of any possible landsales contract it may enter. That would be up to the owner, and the Party has notnegotiated with the owner over such a contract.8. The contract for the Party's purchase of its previous headquarters in late 2002(submitted with the letter received on December 1) was not a land sales contract.

    Dr. McKinney submitted it to show that, like a land sales contract, the 2002agreement entailed the Party obtaining equitable title upon entering the agreementand no t gaining legal title until it had made all of the payments on the Deed ofTrust.

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    RECEIVEDFEDERAL ELECTIONCOMMISSION"McKinney, Douglas" To