Kentucky Gov. Pulls Out Of Florida R.E. Deals; N.Y. Gov. Profits Handsomely From His Own

Kentucky Governor Ernie Fletcher has divested his interests in a pair of Florida real estate deals in order to avoid impropriety, reports the Lexington Herald-Leader.

Fletcher (left) discussed his real estate dealings at a news conference after filing his financial disclosure statement with Kentucky’s Executive Branch Ethics Commission. Such statements are required by state executives by April 15 of every year.

Fletcher said he invested between $160,000 and $170,000 in Florida real estate with Sunshine State businessman Larry Becker. His partners in the deal included a top Republican donor whom he appointed to the University of Kentucky board of trustees, the treasurer for the state GOP and UK basketball coach Tubby Smith. Fletcher revealed that he had invested $97,600 in condominiums in Destin, Fla., last year.

Fletcher said he re-evaluated that investment after the media questioned his business relationships with the real estate developer and his fellow investors.

“I looked at that, and I don’t want any hint of impropriety — and believe me, there was none. But I don’t want even a perception of that,” he said.

Even though the properties had significantly appreciated (along with most Florida condos these days) the Republican said he told his partners to release him from the preconstruction deals with the same amount of money he put in.

“It’s supposed to be the same amount that I had put in. I divested myself of those two things,” he said.

While we’re on the subject of South Florida real estate investments by out-of-state governors, the Westchester (N.Y.) Journal-News reports that New York’s George Pataki earned almost $900,000 last year, according to tax returns. That amount was drastically boosted by their Florida property. The Patakis bought a three-bedroom, single-family home in Palm Beach for $360,000 in May 2004 and sold it 17 months later for $675,000.

Looks like Gov. Pataki (right) got out while the getting was good. With the South Florida housing market looking stagnant at best, clearing that 87.5 percent appreciation on an investment of less than a year and a half was, well, smart. No wonder this guy got elected three times.

Incidentally, the Democratic candidate to succeed Pataki, Eliot Spitzer, made $1.35 million last year, most of it through commercial real estate he owns in New York City.