The Real Story of Rezko and Obama: 10 Myths Debunked

The Real Story of Rezko and Obama: 10 Myths Debunked

Note: I'm the author of a new book, Barack Obama: This Improbable Quest, but I'm not part of the Obama campaign.

There’s been a huge amount of misinformation and rumor about Barack Obama’s dealings with Tony Rezko. This is not a new story. At the first Democratic debate in 2007, Brian Williams of NBC asked Obama about his connections to Rezko. The same thing happened on ABC’s This Week with George Stephanopoulos. But it’s a complex set of charges, and a lot of details have been falsely reported on blogs and in the mainstream press.

Here are 10 myths debunked about Obama and Rezko:

Myth #1: Obama did legal work for Rezko

Claim: Hillary Clinton during a debate denounced Obama for "representing your contributor, Rezko, in his slum landlord business in inner city Chicago."

The truth: According to Factcheck.org, "Obama was associated with a law firm that represented the community groups working with Rezko on several deals. There's no evidence that Obama spent much time on them, and he never represented Rezko directly. So it was wrong for Clinton to say he was ‘representing ... Rezko.’ That's untrue."

Myth #2: Obama knew Rezko was a slumlord

The truth: There’s no evidence that Obama knew about problems with Rezko’s buildings. A state senator doesn’t deal with tenant complaints, and the Chicago newspapers never reported on Rezko’s problems as a landlord until after he was indicted. According to the Chicago Tribune, "in the years before 2005, Rezko enjoyed a reputation in Illinois as an up-and-coming, even enlightened entrepreneur with a strong interest in the risky low-income and affordable housing markets."

http://www.chicagotribune.com/news/chi-rezkojan23,0,709353,full.story

Myth #3: Obama underpaid for his house in a deal with Rezko

Claim: Chicago Tribune columnist John Kass wrote: "Rezko paid more than the asking price for the side lot, and Obama paid less than the asking price for the big house. It’s the Chicago way." Kass claimed that Rezko was "Obama's Real Estate Fairy" and this is "the story of the dream house the Obamas wanted and couldn't quite afford and how the Rezkos helped."

The truth: None of this is true. The seller decided to divide the lot in offering it for sale, not Obama or Rezko. Rezko had paid the list price for his lot, not an excessive amount (as the resale value later proved). The owner reportedly had already been offered $625,000 for the side lot, so Rezko didn’t offer any more money and there was no way Obama could have gotten a special deal this way. The only special arrangement Rezko provided was selling the two lots on the same day, which simplified matters for the seller. Obama paid $1.65 million for a house originally priced at $1.95 million. His was the higher of two bids for the main property. It’s not unusual at all in the Chicago real estate business to see a 15 percent price cut on an expensive house that’s been on the market for four months. Nor is it unusual that a vacant lot next door would sell to a condo developer without such a discount. In the Hyde Park market, there are a lot of upper-middle-class residents making six figures, but not very many millionaires (it’s not Lincoln Park or the Gold Coast). Therefore, a pricey mansion is very difficult to sell, while a $300,000 townhouse is very common.

Myth #4: Rezko’s lot was a front (yard) deal

Claim: One blogger declared it was "a $925,000 favor to a sitting US Senator" because "the Rezko property was never intended to be a separate piece of land."

The truth: It’s insane to think that Obama arranged for Rezko to buy the lot as his front yard, and never intended for anyone to develop it. If Obama had arranged such a deal, it would be crazy for him to spend $104,500 to buy part of the land from Rezko. There is not even the slightest evidence to support this notion.

Myth #5: Obama underpaid (or overpaid) for the slice of Rezko’s lot<...>

Myth #6: Obama hasn’t returned all the money linked to Rezko’s donations

Myth #7: Rezko had a special relationship with Obama<...>

Myth #7: Rezko had a special relationship with Obama<...>

Myth #9: Obama should have known about Rezko’s sleazy background<...>

Myth #10: Obama hasn’t been forthcoming about his mistakes with Rezko

more

As a state senator, Barack Obama wrote letters to city and state officials supporting his political patron Tony Rezko's successful bid to get more than $14 million from taxpayers to build apartments for senior citizens.

The deal included $855,000 in development fees for Rezko and his partner, Allison S. Davis, Obama's former boss, according to records from the project, which was four blocks outside Obama's state Senate district.

Obama's letters, written nearly nine years ago, for the first time show the Democratic presidential hopeful did a political favor for Rezko -- a longtime friend, campaign fund-raiser and client of the law firm where Obama worked -- who was indicted last fall on federal charges that accuse him of demanding kickbacks from companies seeking state business under Gov. Blagojevich.


The letters appear to contradict a statement last December from Obama, who told the Chicago Tribune that, in all the years he's known Rezko, "I've never done any favors for him.''