A lobbyist sold his downtown Lansing condo to a state representative at a loss, marking the largest financial transaction of its kind in Michigan over the last 20 years, according to an investigation by Eye On Michigan.
Over the past two decades, lobbyists have spent more than $6.3 million on meals and trips for lawmakers and state officials. Eye On Michigan reviewed 17,500 records of transactions between lobbyists and legislators from 2001 to 2023.
Most of these interactions were related to meals and travel, but lobbyists are also required to report financial dealings with lawmakers to the Michigan Secretary of State.
One such transaction involved Nathan Piwowarski, a lobbyist who sold his condo to Rep. Phil Potvin, a Republican from Cadillac, at a significant loss. Piwowarski had bought the condo for $106,900 in 2003 but sold it to Potvin for $79,000 in 2011. Piwowarski reported the sale to the Secretary of State, saying it was for $78,000.
Potvin did not comment on the sale, but Piwowarski claimed it was sold for fair market value. Michigan law doesn’t require independent evaluations of such claims, unlike some other states, such as Washington, where such transactions would be investigated to ensure they weren’t part of a quid pro quo arrangement.
In Michigan, there are no rules that prevent or regulate financial transactions between lobbyists and lawmakers, and no independent review board to oversee such deals.
Piwowarski stated that although he was registered as a lobbyist, he never actually lobbied in the official sense. He had once testified before the Michigan House Judiciary Committee in 2018, but he wasn’t paid for that work, and he never lobbied Potvin’s committees.
Piwowarski explained that he and his wife bought the condo while attending graduate school at Michigan State University, and after struggling to sell it due to the recession, they rented it out. When Potvin was elected, he knew Piwowarski still owned the condo, and they sold it to him at the same price they had originally listed.
Potvin sold the condo in 2017 for $70,000.
Other lawmakers also have real estate deals with lobbyists. Nine lawmakers have rented rooms from “Capitol House LLC,” owned by lobbyist Scott Everett.
Piwowarski noted that much of the influence in Lansing is not openly disclosed and suggested that more transparency about the business dealings of legislators and their families would be beneficial. He added that until recently, he didn’t think the public was concerned about transactions like the condo sale.