J.K. Dineen
San Francisco Examiner
Tuesday, April 1, 2003
Mayoral candidates Angela Alioto and Gavin Newsom celebrated baseball's opening day with some political hardball of their own Monday, with Alioto accusing Newsom of "playing fast and loose" with state ethics laws and Newsom's campaign calling her tactics "political terrorism." In a press conference at her family law office, Alioto circulated copies of her stock and mortgage portfolios and called on Newsom, the frontrunner in the mayoral race, to disclose every detail of his complex business interests, which include partnerships in more than 20 real estate, restaurant and retail businesses.
"He thinks he's going to be mayor of San Francisco and not tell us who he owes his career to?" asked Alioto. "Not without a fight he's not."
As evidence of Newsom's alleged ethical transgression, Alioto pointed to a series of newspaper articles suggesting Newsom got a sweetheart deal on a $1 million loan from oil heir Gordon Getty, a family friend who has invested in nearly all of Newsom's business ventures. The loan -- a five-year fixed loan locked in at 5.12 percent -- is significantly lower than Newsom would have received from a commercial lender, Alioto said.
The Newsom campaign contends the mortgage was the lowest interest rate allowable before federal gift taxes would have kicked in. It was calculated using the Applicable Federal Rates table, campaign officials said.
Joining Alioto at her event Monday was attorney Neil Eisenberg, an Alioto campaign advisor. Eisenberg said Newsom has a "pattern of non-disclosure" and said any lawyer reviewing his financial disclosure forms would conclude that he was "playing fast and loose with the rules."
"This is just the tip of the iceberg," said Eisenberg, arguing that every investor involved with Newsom should be disclosed.
Alioto's financial records show she has $916,000 in stocks and mutual funds and has a balance of $505,000 on her mortgage at 2606 Pacific Avenue.
Newsom campaign manager Eric Jaye dismissed Alioto's accusations as a desperate attack by a candidate who is way behind in the polls.
"The only thing new I could see in today's sordid episode is she is showing that she is going to run a thoroughly negative campaign," said Jaye. "It's the act of a political terrorist. She is trying to blow herself up and Gavin Newsom alongside her."
Jaye accused Alioto of recycling an exhaustive Chronicle investigation which he said uncovered a minor error.
"The Chronicle spent four months looking into every aspect of Gavin's life and they found a few boxes were checked wrong on forms and a couple of assets were over-disclosed," said Jaye. "They were minor errors but fair enough, and he took responsibility."
Alioto also questioned Newsom's frequent appearances on KTVU with morning host Ross McGowan, who is an investor in one of Newsom's restaurants. Newsom appeared on the station 84 times, including nine times between September and Election Day last fall, when his controversial measure Care Not Cash was passed by voters.
Eisenberg said the appearances amounted to $500,000 in free political advertising, a claim the Newsom campaign called "beyond reprehensible."
"If she wants to take on Newsom, fine, but leave Ross McGowan and Channel 2 out of it," Jaye said. "We simply won't drag him into this."
Jaye said Newsom is eager to discuss a number of plans he has put forth on panhandling, an earned income tax-credit, and technology that will help cops fight crime.
"Gavin Newsom has nothing to hide, his record is clear and has been vetted," said Jaye. "He is focused on concrete plans to reform The City."
Alioto, who was fined $2,500 in 1991 for failing to report personal loans of $49,800 to her campaign, said she intends to keep hitting Newsom on financial questions.
"We will have many press conferences on these documents," said Alioto, pointing to Newsom's financial disclosure forms. "These documents will take a long time to figure out."