CHARLESTON — A developer of the Milton Place housing complex under construction in the Grand View area had his offices raided by federal agents on Tuesday, according to a Charleston news publication.
Douglas E. Pauley, a Charleston developer, is being investigated by the FBI and US Attorney General’s Office, according to the newspaper.
Pauley is a familiar figure to residents in the Grand View area and members of the Mason County Commission — the majority of residents in the area and the entire commission opposed the development, which happened anyway. Commissioners also refused to agree to write a letter of support so that Pauley could get a tax credit on the project, yet, Pauley ended up getting the tax credit. This has left many wondering how Pauley got what he wanted.
Tuesday’s article called Pauley “politically connected” and pointed out he submits applications for low-interest loans and tax credits to the West Virginia Housing Development Fund, reporting the fund’s board members approve the loans, allowing Pauley to compete for tax credits allotted to housing projects in West Virginia. On the Housing Development Fund’s board is West Virginia State Treasurer John Perdue, among others. Perdue also owned the property on which the Milton Place housing development now sits.
In a deed filed in the Mason County Clerk’s Office dated on Dec. 17, 2010, the property changed hands, going from Perdue and wife Robin to Milton Place Limited Partnerships. The amount, if any, of the sale was not known at press time though it most definitely belonged to the Perdues prior to the development.The deed states the property was 11.30 acres with a valuation of $215,000.
The Charleston newspaper also reported Pauley has been one of Perdue’s largest campaign contributors in recent years and in March gave $1,000 to Perdue’s unsuccessful campaign in the Democratic gubernatorial primary.
Also filed with the Mason County Clerk’s office on April 20 of this year was a Land Use Agreement stating Milton Place Limited was applying to the Housing Development Fund for grant of Exchange Program Funds to assist in financing the construction of the property in the principal amount of $3.67 million.
The article also reported Pauley has developed more tax-credit financed housing projects over the past decade than any other tax credit program recipient in the state, according to the Housing Development Fund.