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.
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Reader Reactions
We’ve always known where this paper is coming from. This is irresponsible and downright disgusting. Of course there is more to the story, and the truth is finally out.
Go to http://augustafreepress.com/2008/06/06/the-rest-of-the-story/
This is great! Now will the paper look into who is behind the business dealings of the new majority? Really, this is a low class move and serves no purpose other than an blatant attempt to smear the outgoing city manager. Now we know where this paper will be coming from in the future!
valley gal, in your story, you tell us what you’re trying to string together as falsehoods. in the news story, they simply put the facts out there for others to string together. that is what journalism is supposed to be. putting facts out there and letting us decide how they should fit together. yes, it is a problem when certain facts are omitted in order to sway opinion in one way or another (as dowdy and smith did in their “speeches” the other night) but it doesn’t seem to be the case here.
it is an interesting fact that walker and hausrauth are connected in financial matters. it’s irrelevant, however. walker resigned. he was smart to do so. it was respectful to let him know that he should resign. (you can come to your own conclusion about the fact that he was informed that his contract would not be renewed… but that’s my take on it)
smith’s husband’s salary and job security is determined by city council. that’s a fact. each of us has a right to decide if that’s a conflict of interest or not, but ultimately it’s the law that matters. well, i suppose even that is an opinion…. and because of that, it is important to know who is in bed with whom and who butters whose bread.. it’s interesting how we choose our sides, isn’t it?
Rumor has it that there have been drugs found at Waynesboro High School. The News Virginian recently moved their offices from downtown Waynesboro up to a building across the corner from the high school. So, clearly, who else could be responsible for selling those drugs other than The News Virginian? Members of the News Virginian staff have also been spotted coming and going from airports in Weyers Cave and Charlottesville. What do you find at airports? Airplanes! What did terrorist use in the 9/11 attacks? AIRPLANES!!! Clearly, the entire staff of the News Virginian should be rounded up and taken to Guantanamo Bay for questioning!
Stringing together a series of non-sequiturs and pretending they form a story is just bad journalism. You would think that with all the real conflicts of interest involving members of city council, the NV would be chasing after real stories rather than slinging mud (ill-considered mud at that) at a city employee over an unrelated personal matter instead of something involving his conduct IN the job.
By the way, you forgot to mention that Bill Hausrath was the first president of Waynesboro Downtown Development, Inc. I wonder if you’ll run an article tomorrow blaming him for the decline in downtown business?
Speaking of conflicts of interest, I keep hearing that immediate family members of todays city council have been investing in property in downtown Wayb for the past decade. If true, this would appear to be a conflict of interest; at least requiring a member to recuse himself/herself of votes concerning downtown renovations and WTA.
So the News Virginian has stooped to the Atwater et al form of character assination by declaring improprieties in the headline and then playing Pilate by reporting that the ethical charges are unwarrented in the body of the article.
The article and the accompanying editorial makes much of a $1M property owned by 12 people. It does appear to be a very large investment per person when you do the math. However the reporter and editor do not seem to be bothered by the reality of the situation, only by misleading the perceptions of the reader. Not very ethical journalism to my mind.
If the paper is going in this direction in its investigative reporting and editorials, let it also turn the investigative light on the relationship among Lucente, Williams, Hatfield, Allen, and a few other prominent businessmen and political players.
why does it not surprise me the Lori Smith sees no conflict of interest?!
When Walker is the one choosing what to cut from the budget and what not to cut, certainly there is a conflict.
Are we going to get the “full list” of names? If Frank or Tim’s names had been on this list the outcry sure would be different than it is with Doug’s name there.
This sure smells rotten to me, especially with the Theatre having gotten money and having been promised more! While the experts say it’s ethical the appearance to the public sure says different. I’m sure if this had come out earlier many would questioned him remaining as our city manager.
Wow! What other connections will come to light? Will this shuffling of cards never end and the straight hand be dealt with which the city can play? Business development will always put money into someone’s hands, but the citizens are entitled to know whose hands, in advance. So an ethics expert says there is noting unethical happening. The question is not one of ethics, it is one of public disclosure. If you have to ask an ethics question, it may mean you have something to hide. It reminds me of the picture I saw of the comedian W. C. Fields in a poker game, his shifty look around the table as he held his own hand close to his chest is symbolic of what appears to be here disclosed.
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