Meanwhile, Rubini tried one more move: joining forces with the only other Elmendorf bidder -- Hunt Building Corp. of El Paso. Hunt was an established builder of military housing, though the government had forced the company to pay $8 million in compensation for construction problems on an earlier project.
In early December 2000, the Air Force put aside its reservations and decided Rubini and his new partner were acceptable.
Rubini said he did not know specifically what Stevens did on the Elmendorf project. Whatever it was, "Sen. Stevens would have stepped up to assist any Alaska business," he said.
Air Force officials say they are happy with the work Rubini's firm has done at Elmendorf, and recently announced the Rubini group would get to do a second round of housing upgrades without further competition -- this phase 50% larger than the first.
Inside Track
Stevens' efforts to help Rubini with Elmendorf came just as Rubini was making a decision that transformed Stevens from a modestly successful investor into a millionaire.
In October 2000, while Rubini was enlisting the senator's help with the Air Force, the developer acquired 30 acres in midtown Anchorage that he planned to cover with gleaming office towers.
Like Elmendorf, this deal was a big step up for Rubini -- larger both in size and potential profits than his earlier ventures.
And Rubini chose to make Stevens and JLS Properties part of it. He said JLS had accrued equity in the properties it already owned and thus could help with the new financing.
Rubini could have financed the new development in many ways. He could have used the financial resources of almost any of his numerous successful holdings. Or, as he frequently did in such cases, he could have attracted an entirely new set of investors.
Why did he choose to use JLS to help with financing instead of one of the other options? It was just a decision he made, Rubini said.
Once again, the senator did not have to agree to guarantee the new venture's debts, as the other JLS partners were required to do.
The first new building to be constructed, called Centerpoint I, is a striking $35-million edifice with commanding views of snow-capped mountains. The remainder of the 30-acre parcel is being developed as Centerpoint II. Stevens is part of that project too.
Stevens has reported that his investments in JLS, Centerpoint I and Centerpoint II, all stemming from his initial $50,000 investment, are now worth between $750,000 and $1.5 million.
