The state has halted negotiations on a contract for redevelopment of the Department of Transportation’s headquarters in
The decision came after Gerald Peters, whose company SCS Development is negotiating a contract with the state for the project, made the request, according to a news release from Peters’ company. Peters also requested that the state lift confidentiality restrictions it has cited in refusing to comment on or release documents about the project.
“A transparent and open process and the conclusion of the governor’s investigation are needed steps to reconcile reality and perception regarding this project,” Peters said in the release.
Gov. Bill Richardson has asked DOT to review the headquarters project and another DOT project that was recently cancelled, and is also in the process of hiring independent council to review both projects.
“While I believe this is a worthy project that can and should move forward in the future, it is prudent to put negotiations on hold while we take an in-depth look at every facet of it,”
According to a news release from
A number of circumstances surrounding both projects have raised suspicion in recent weeks. Two men indicted in the Bernalillo County Metro Courthouse scandal had ties to the early stages of both projects, and prosecutors allege the men planned to expand their scheme to steal money from taxpayers to the second of the DOT projects.
It’s not alleged at this point that they were successful, and that project has since been cancelled. But there are other situations that raise questions about the DOT headquarters project:
• The state claimed in its original request for proposals that the project was not subject to the state procurement code, but has repeatedly cited the code in refusing to release documents or discuss negotiations.
• The scope of work in the RFP listed the DOT headquarters size at a minimum of 300,000 square feet, which the developer would be responsible for building in exchange for the right to develop the rest of the land. The state later cut the building’s size in half. Though both bidders were given an opportunity to respond to the change, it was apparently made after the deadline had passed for other prospective contractors to submit bids. Consequently, the change would cut the developers’ cost to build the public facility and increase the land available for private development.
• Peters donated to and held a fundraiser for the governor’s presidential campaign while the negotiations were ongoing.
Peters said the secrecy surrounding the project “just feeds the rumor mill and leads to inaccurate conjecture that has ended up in the local newspapers.” He said no one has made any inappropriate requests of him related to the project, adding that he would have withdrawn the bid if that had happened. Peters also pointed out in the release that no one associated with his team “is believed to have anything to do” with those indicted in the metro court case.
Peters said he looks forward to the reviews the governor has ordered.
“This should serve as a good housekeeping seal of ethical conduct on behalf of the team of consultants that are part of the selected bid,” he said. “This should be an important verification that everyone involved in the NMDOT headquarters project is ethical and that this bid was selected on the merits.”