THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, October 31, 1995 TAG: 9510310295
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SERIES: ELECTION '95
SOURCE: BY TERRI WILLIAMS, STAFF WRITER
DATELINE: SUFFOLK LENGTH: Medium: 89 lines
Republican Del. Robert E. Nelms of the 76th District is running unopposed this year, but his campaign office is paying monthly rent to a family-owned corporation that owns the building housing Nelms' legislative office and the corporation.
Like other legislators, Nelms also collects $500 a month from the General Assembly for uses that include office space.
There is no telephone listing for the campaign office, Virginians for Robert Nelms, or for the Nelms Corporation, which are identified on signs outside the 109 Clay St. building as tenants. There is a phone listing for the Republican legislator's office there.
Campaign contribution and expenditure reports by Virginians for Robert Nelms, from April to October 1995, show rental payments of $400 a month to Nelms Corp. for office space in July and August and $500 in September and October.
``The Nelms Corp. owns the building and pays the mortgage and taxes, and Virginians for Robert Nelms is one of the tenants,'' Nelms said.
Virginians for Robert Nelms paid the Nelms Corp. $165.71 for utilities and reimbursed Nelms $602.58 for office supplies.
He and State Sen. Frederick M. Quayle of Chesapeake, who is opposed in his bid to be re-elected to the 13th Senate District, were identified in a computer search of records as at least two Hampton Roads legislators who use campaign money to pay for office space.
Democratic Del. William K. Barlow of Smithfield, who is seeking re-election to his 64th District seat, houses his constituent and campaign office within his Smithfield law office. But he said he keeps separate phone lines.
``I don't have an arrangement'' like Nelms', he said. ``I don't use campaign money to pay my rent.''
Bruce Meadows, director of the State Board of Elections, said it's perfectly legal for unopposed candidates to raise as much money as they can to fund other candidates. They can't use campaign money for private purposes, and Nelms said Virginians for Nelms money is being used for campaign purposes only.
His reports include gifts of $250 for Jay Katzen for Delegate and $250 for Glen Weatherholtz for Delegate.
The Nelms expense reports illustrate how blurred the line separating campaign finance from private use can be when an incumbent houses his campaign office within his corporate office.
For example, Nelms documents show he spent $771 on an event for Jerry Flowers, the Republican candidate opposing incumbent Sen. Richard J. Holland of the 15th District. The expenses included $300 for Nelms' wife as fund-raising coordinator, but that money was returned to the campaign.
Deed records show that the Nelms Corp. bought the office building in June for $70,000. Nelms and his father, Frank B. Nelms, are co-directors of the corporation. Signs on the office building indicate that it is occupied by the Nelms Corp., Nelms' 76th District constituent office and a management and architecture service.
The Nelms Corp. in turn rents campaign office space to Virginians for Robert Nelms, a committee that this year has been raising money for other Republican candidates such as Suffolk Clerk of Courts candidate Gene T. Strickland.
Nelms, an environmentalist who has served two terms in the General Assembly, declined requests by The Virginian-Pilot for an interview inside his office. He asked that questions be faxed, which was done last week.
Among the questions:
What do you use your $500 monthly allotment for? Who controls the funds held by Virginians for Robert Nelms? Where is the campaign office? What is the rent of the office?
The only response, in a faxed letter to the Pilot, was:
``My campaign office is located at 109 Clay St. We have had numerous volunteers working in the office this year, as well as campaign meetings. It is most satisfying to see the support I have received from throughout the 76th House District . . .''
He wrote, ``Let me remind you that all campaign funds are thoroughly reported to the State Board of Elections.''
Many delegates representing small districts also use their corporate offices to house their campaigns, said Common Cause Director Julie Lapham. But Lapham said most incumbents use separate record keeping and telephone lines to keep conflict-of-interest questions at a minimum.
Meadows, the state elections board director, said there appeared to be no impropriety.
``The way I understand it is that he pays for the campaign office through his corporation. Many businessmen do that. You can use campaign money for your campaign office, but you can't subsidize your business.''
KEYWORDS: CAMPAING FINANCE CANDIDATES by CNB