Republican Rep. Matt Gaetz spent hundreds of thousands of dollars in taxpayer funds renting an office from a longtime friend and campaign donor.
Both men separately told Politico that Gaetz, who spent nearly $200,000, paid below market rent. Gaetz later said he paid “at or below market rate” for the office space in a historic building in downtown Pensacola, Florida.
House rules prohibit such arrangements. The rules say that all leases for district offices must be “at fair market value as the result of a bona fide, arms-length, marketplace transaction. The Lessor and Lessee certify that the parties are not relatives nor have had, or continue to have, a professional or legal relationship (except as a landlord and tenant).”
“Every member of Congress has relationships with their donors,” Gaetz said. “The question is whether or not those relationships are improper or illegal.”
Gaetz and Collier Merrill, a Pensacola real estate developer and restaurateur, have had a decadeslong relationship. Gaetz has attended fundraisers at Merrill’s restaurants, and Merrill has advised the lawmaker on policy matters.
Gaetz has rented office space from Merrill since he was elected to Congress in 2017.
The House’s Administrative Counsel approved the rental agreement, though Gaetz did not disclose his relationship with Merrill to the House.
Gaetz accused Politico of writing a “smear piece” about him and claimed the news organization “shills” for Republican Sen. Richard Burr, whom Gaetz criticized after it was reported Burr sold stocks at the same time he received briefings on the coronavirus pandemic. The North Carolina Republican has denied any wrongdoing and asked the Senate Ethics Committee to look into the matter.
.@politico is writing a smear piece on me as shills for the @SenatorBurr camp. (Probably in exchange for some other intel story.)
The scandalous oppo they’ve dumped:
I have an office lease at or below market rate, approved by the House, from Merrill Land Company.
— Matt Gaetz (@mattgaetz) April 16, 2020
“So I’ve been busted possibly getting a deal for taxpayers while allowing a beloved, multi-generation local community leader to donate some free food to students who excel in Art,” Gaetz tweeted Thursday.
Gaetz also said he has returned more than half a million dollars in his allotted expense money back to the Treasury.
