Mysterious FBI probe perturbs Tallahassee
Mayor: Prosecutor says I’m not a target
TALLAHASSEE — A mysterious FBI investigation has embroiled Florida’s capital city, jangling the nerves of Tallahassee’s business and political elite and hindering the aspirations of its mayor, who’s running for governor.
As part of a probe into construction deals, thousands of documents from city commissioners and the city’s Community Redevelopment Agency were handed over to federal investigators last month.
An FBI subpoena demanded emails, letters, checks and wire transfers between city officials, eight business executives and 16 companies involved in development deals dating back five years. Among those included in the list was Adam Corey, a Tallahassee lobbyist and businessman who co-owns The Edison, a high-end restaurant that received $2 million in taxpayer money.
Corey is a friend of Mayor
Andrew Gillum, a Democratic candidate for governor in 2018, and served as his campaign treasurer in his run for mayor.
Gillum is seen as an upand-coming star in Democratic politics, a young, African-American mayor of a small but diverse city. He was first elected to the City Council at 23.
But a cloud from the FBI investigation has hovered over his campaign in the early stages of what is already becoming a crowded Democratic primary. Former U.S. Rep. Gwen Graham and Winter Park businessman Chris King have declared their candidacies, and Miami Beach Mayor Phillip Levine and Orlando lawyer John Morgan are publicly mulling campaigns as well.
In an interview with reporters last week, Gillum, 38, said he was told by a federal prosecutor that he wasn’t a target of the investigation. Still, he acknowledged that the probe has disturbed his campaign and he called for the FBI to finish its work swiftly.
“The longer this drags out, I think, the more damaging it is for our community, our community’s reputation, certainly for me not only as a candidate for governor but also as the mayor of this city,” he said. “We’re left to wonder and others are left to speculate — in some cases, wildly — about what’s going on.’’
After raising nearly $500,000 in the first three months of his campaign through May, Gillum has raised less than $150,000 since, including just $48,500 in July for his main campaign account. A political committee backing him, Forward Florida, pulled in more than $428,500 in March, but raised just $10,000 in July.
Republicans have slammed the mayor over his call to speed up the investigation.
“Gillum is desperate to end any potential involvement
Leon County commissioners voted last month to leave the CRA, which has ceased work on any new major development deals for the time being, although two projects are still in the works.
in a FBI investigation that he knows could impact his political ambitions,” the Republican Governor’s Association said in a statement. “With each passing day, it becomes more apparent that Andrew Gillum has a huge problem on his hands and that contrary to his wishes, voters won’t be misled by his empty rhetoric.”
Few details about the investigation have emerged so far. An especially intriguing character is someone who introduced himself to CRA officials as “Mike Miller,” an Atlanta developer. The Tallahassee Democrat has reported he was an undercover FBI agent.
A probe of this magnitude by the FBI, which is not commenting on the case, isn’t typical for this city of about 190,000 people.
“It’s pretty unusual,” said Steve Uhlfelder, a longtime Tallahassee lobbyist and former state government official. “I’m just really surprised by it all, having lived here so long.”
But some point to previous FBI probes and note that nothing’s settled until indictments and convictions are made.
Mark Herron, a Tallahassee lawyer representing mostly Democratic clients, noted a recent investigation into the Leon County School District over suspected bid rigging hasn’t resulted in any charges. In another case in the 1980s involving an undercover FBI agent, former House Speaker and Senate President Mallory Horne was acquitted of helping drug smugglers.
The current investigation has prompted much speculation.
“Last night while I was playing baseball ... I heard guys in the [other] dugout — they’ve already formed the opinion that all these guys are guilty, and they should go to jail,” Herron said.
It’s the unknown parts of the investigation — who is ultimately the target, which deals are being scrutinized, how the FBI came to consider the deals suspect — that are making Gillum’s donors as well as potential business investors in the city skittish.
Leon County commissioners voted last month to leave the CRA, which has ceased work on any new major development deals for the time being, although two projects are still in the works. CRAs are special taxing districts designed to use increases in property tax revenues to refurbish blighted areas.
“It’s just the uncertainty that’s really the biggest thing. People just want some closure,” said Bob Lotane, who is running to succeed Gillum as mayor. “In a certain few instances, you’re probably going to see people maybe take a breath and see if the other shoe drops — if there is another shoe.”
The suspicion, however, could linger, putting a drag on Gillum’s aspirations as he revs up his campaign heading into 2018.
“Investigations, especially federal investigations, will go as fast or slow as the investigation will go,” Herron said. “They are often times glacial in their movements.”