Retreat connects Walker, Hausrath

Set against the Blue Ridge Mountains is a 220-acre retreat featuring a lake, rolling hills and a half-dozen cabins owned by some of the region’s most prominent figures, including lame-duck City Manager Doug Walker and real estate agent and political power broker Bill Hausrath.
Both are among 12 people who, under the auspices of a limited liability corporation known as the Lofton Lake Partnership, own a stake in the sprawling $1 million property near Greenville.
An ethics expert says Walker’s part in the partnership raises no ethical concerns principally because the property is located outside city limits. The arrangement links Walker with one of the city’s most active political players in Hausrath, the chairman of the controversial Wayne Theatre Alliance.
Hausrath lobbied for and received last year $300,000 in city money for the Wayne. That happened roughly three years after Walker bought his stake in Lofton Lake, according to Hausrath.
The conservative council bloc led by Frank Lucente staunchly opposed city money for the Wayne. An opposing council faction aligned with Hausrath backed the move. That group included Councilwoman Lorie Smith, for whom Hausrath served as campaign manager during her successful bid to oust Reo Hatfield in 2006.
Smith said both Hausrath and Walker exhibit “high degrees of integrity” and said that anyone in public service has heightened senses of awareness regarding inproperiety and conflicts of interest “that we try to avoid at all costs.”
“Doug Walker has never – in my experience in working with him – implied his personal dealings or interests in the work that he performs for city council,” Smith said. “He has a clear understanding of his role and the expectations.”
Citing philosophical differences, Lucente’s group last week gave Walker the option of resigning or being fired after the new majority takes over July 1. He chose to resign effective June 30.
Hausrath said his relationship with Walker has been strictly business and that the city manager was careful to ensure as much. Walker examined the Lofton Lake deal “very carefully” before buying his stake, Hausrath said.
“I do the best I can with anybody on any level,” Hausrath said. “Hopefully that’s not a conflict of interest on any level.”
Walker, Lucente and Williams declined to comment on Lofton Lake.
Robert Wechsler, director of research with City Ethics, a nonprofit municipal ethics research group based in Jacksonville, Fla., said Walker did nothing wrong.
“It is good that the property is not in Waynesboro,” Wechsler said. “Entering into a land deal with a city Realtor would generally require that the city manager recuse himself with respect to any matter in which the Realtor is involved, but that does not appear to be a problem here.”
Similarly, Hausrath’s political activism does not in itself pose a conflict for Walker, Wechsler said. But the arrangement could skew perceptions, he said.
“The fact that the Realtor has made campaign contributions to council candidates does not create a conflict of interest for the city manager,” Wechsler said. “If the city manager were heavily involved and therefore identified with someone who was a major player in city politics, that could be a problem, at least in terms of a perception of partiality or impropriety.”
Spotsylvania County Supervisor Benjamin Pitts, who worked previously with Walker when he served as assistant county administrator there, said Walker served the county well.
“I think in the position he was in, he exhibited high integrity,” Pitts said. “I think he was honest. I don’t think he tried to do anything behind the scenes. To my knowledge, he worked very well with the county administrator at the time, Kimball Payne.”
Other members of the Lofton Lake Parternship include Mike Herndon, Tinker Moyer, John Lawrence, Harold Cook, Sarah Leech, Dan Lyons, Bill Eckman and Joe Thompson, Hausrath said. He said he could not recall other names tied to the partnership.
Hausrath said Lofton Lake’s partners approved Walker’s entry into the group. Ten other people were seeking to become a part of the partnership, Hausrath said.
Hausrath said he has owned the property for about 20 years. He said he received no compensation for his part in bringing Walker into the group.
State records list Hausrath as Lofton Lake’s registered agent.