State rebids property sale after State Senator Butch Miller is outbid

Two Gainesville car dealers submitted sealed bids for state property located near both their dealerships. One dealer, David Basha, bid $125,000 more than State Senator Butch Miller’s dealership bid.

And after unsealing the bids, Steve Stancil’s State Properties Commission decided to rebid. A bid that Senator Miller’s company won by $100.

William Perry, director of Georgia Ethics Watchdogs, says it looks bad. “Everybody says where there is smoke, there is fire. This is hot,” says Perry.

Governor Deal's floor leader, Senator Miller, is  also co-owner of a car dealership. Last night, we told you how in 2010 Miller’s dealership used the Labor Department parking lot, located next to his Honda dealership, to park cars. He paid the state $1800 a month to rent the lot. But, he stopped paying after two months. Did he keep using the lot without making payments to the state?

Senator Miller, refused to talk with us, but insisted in an email to me – “to his knowledge” his company did not approve parking on state property "when we did not have a rental agreement."

But Google Earth maps, show cars parked on the state property in 2012, 2013, and 2014.  In one picture, you can see Senator Miller’s car tags.

And, in 2014, Labor Commissioner Mark Butler says one of his employees found the lot was full of Senator Miller's dealership cars. Commissioner Butler's staff even sent the Senator a cease and desist letter.

I asked if that was a good thing for the taxpayers. Butler responded, “No, I'd have to say, it’s kind of one of those things we probably should have been notified of.”

Senator Miller signed a new rental agreement with the state in 2014 now paying only $1000 a month. A year later, the state decided to sell the property.

Two car dealer owners bid: Senator Miller's company and David Basha, owner of Carriage Auto group.

When the bids were unsealed, Sen Miller's company bid $600,000 for the state's property. But his competitor David Basha bid $725,000. David Basha's apparent winning offer was $160,000 above the minimum price set by the state.

“If there is a minimum and someone is well above the minimum,” says watchdog Perry, “it seems like that contract should be accepted.”

But, it wasn't.  State Property Commission director Steve Stancil also refused to talk with us.  His spokesperson wrote me saying they rebid "to maximize the sale" by seeking a best and final offer - which the law allows.

Both men knew what the other bid.  On, the sealed rebid, Mr. Basha kept his offer at $725,000. Senator Miller's company increased its offer $725,100. This meant, Senator Miller’s company now owned the land. The state maximized its sale by $100.

In an email to me Senator Miller wrote: "We followed the process outlined - not only to the letter, but the spirit of the process."

William Perry sees it differently: “The worst part is how it looks. It is difficult to prove corruption. But, every angle of this does not smell good. It's not something you expect in an engagement between a state agency and a State Senator.”