It is our opinion that Roy "Don" Peebles ("Peebles") should be prohibited from bidding on

the GSA FBI building. This recommendation includes preclusion of any and all Peebles
controlled entities, or entities in which Peebles has an interest. Peebles inclusion in the
bidding process is of no value to the General Services Administration ("GSA"), Federal
Bureau of Investigation ("FBI"), or Federal Government; this is in light of Peebles conferring
no benefits to the bidding process, no substantial development experience, and Peebles
significant risks.

This analysis makes reference to publicly available hyperlinks to supplement the group's
own internal analysis.

Peebles Fraudulent Bidding: Impossible Offers with No Factual Basis

It is apparent that Peebles is a fraudulent bidder whose proposals not only lack grounding in
reality, likely evidence a deliberate and systematic attempt to exploit unique flaws in
government real estate disposition processes. It is not just that Peebles is an incompetent
developer (there is no evidence that he has ever successfully completed a project on time or
under-budget), instead, Peebles appears to be a deliberate con-man. Peebles is a minority
developer, and as such, is sometimes favored during the disposition processes as a way to
encourage minority economic growth. There is no available evidence that Peebles has ever
met his minority hiring goals. There is no evidence Peebles has ever employed a
substantially women or minority owned firm (except brokers, many of whom have sued
Peebles), and there is no evidence that Peebles has ever contributed to the economic
growth of any minority group in any area in which he has work.

Much like the absence of a well-budgeted Peebles development project, there is nothing to
suggest that Peebles has ever developed a single affordable housing unit. Not one. We have
found at least 5 solicitations where Peebles has bid on and won development rights where
affordable housing was required. Peebles most recent foray into affordable housing at "5th

and I" (901 Fifth St. NW), Washington D.C., derived from Peebles offering over $10,000,000
more than the appraised price without a serious financial commitment. (Washington DC
Resolution

for

Disposition

at

http://lims.dccouncil.us/Download/32908/PR20-1136-

Introduction.pdf.) Of the bidders, including behemoth Trammel Cow, Peebles offer price was
the highest and Peebles agreed to construct the most affordable units. (See "Hotel in DC
hits a Snah", http://www.bizjournals.com/washington/blog/top-shelf/2016/08/sls-hotel-ind-c-hits-a-snag-but-katsuya.html)

Financially, Peebles 5th and I project seems to be structured as most Peebles projects are:
debt, tax credits, grants, and little to no equity contributed. (Despite being listed on Peebles
website as a 'Development Project', D.C. property records show that D.C. has not
transferred the property). Specifically, Peebles represented he will invest $5.4m, with
McFarlane Partners investing $27m, and strangely, The Walker Group contributing $1.35m.

The unusual equity contributions at 901 Fifth St. NW furthers our position that Peebles is
less a developer, than a middleman. Contrary to representations that Peebles will invest
$5.4m, there is a DC subsidy of $4m for the property. Peebles likely sold an interest to The
Walker Group, used Walker's $1.35m equity to secure McFarlane Partners $27m equity
investment; this corresponds exactly to a 95%/5% equity split (Peebles responsible for 5%
of the cash before debt), a highly leveraged equity position. Then, Peebles will seek a
mortgage for the property, based on an 80% mortgage and Peebles lack of creativity, this
would correspond to a $141.75m mortgage. To be clear, that means Peebles has already
sold part of a property he doesn't own, to get a loan he can't qualify for, on a city property
where he is relocating affordable tenants. How could it be more improper?... Peebles wants
to move them to a parking lot he already owns and build the affordable housing there, far
away.

(http://www.bizjournals.com/washington/breaking_ground/2015/07/heres-the-

peebles-plan-for-a-hotel-apartment-house.html). You couldn't make this up if you tried.

Somehow, with all this self-dealing, cost cutting, and taxpayer fraud, Peebles still tried to
back out on the affordable housing requirement.

Peebles Lack of Capital Resources

It seems much more likely, based on litigiousness, that Peebles' modus operandi is that of a
grafter, con man, or snake oil salesman whose poor track record ensures that no financiers
will provide funding to his projects. It appears from the record that Peebles even has
difficult obtaining firm letters of financial commitment ("Peebles' latest business partner,

Wyndham International, has backed out of its deal with the controversial black developer,
leaving no other major chain in a position to invest in and manage the hotel. ", at
http://www.hotel-online.com/News/PR2001_3rd/July01_WyndhamPeeples.html).

Thus

Peebles resorts to lies and litigation to cheat municipalities during RFPs by responding with
extraordinarily promising proposals. Then, when challenged, Peebles will pull the race card,
or pull the "political retribution" card (because he was donating heavily to a local politician),
or simply litigate and destroy the entire project. Peebles is known to be a non-developer
who will slow the project down in order to extract concessions from the government before
selling the project to another party, profiting from taxpayer losses (See "Peebles Fraud at
Brooklyn Village", https://www.scribd.com/doc/313593447/Don-Peebles-Fraud-at-BrooklynVillage).

Peebles Capital Partners: Zero Investment Interest

Pay close attention to Peebles numerous attempts to raise a real estate capital fund: he is
not financeable. Banks will not go near him. He must pay exorbitant interest rates to even
get to closing, meaning his high cost of capital puts the entire project in economic duress
from the start. See Peebles mentioned in the NYS Aqueduct RFP Investigation, where he is
described as "impotent", "unlicensable", and unable to even submit financial documents on
time. In the past, Peebles has blamed the oversight committees for discriminating against
him and asking for more financial information than for white developers, despite Peebles
being a near billionaire (I'm "held to a much different standard than white developers",
Beating Whitey II http://www.miaminewtimes.com/news/beating-whitey-ii-6347603)

For example, in Charlotte, NC, Peebles appeared before the Mecklenburg Board of County
Commissioners in order to win a recent "Brooklyn Village" RFP. HR&A, who has business
relationships with Peebles in NYC, specifically lied to the Commissions who were to make
the decision. When asked if Roy Donahue Peebles ever filed bankruptcy, HR&A deceptively
and with the intent to mislead, told the Mecklenburg BOCC that "The Peebles Corporation
has never filed for bankruptcy." (See Mecklenburg BOCC Video; June 2016). HR&A made
this representation after being tasked to advise BOCC on these issues. In fact, On January
6, 2009, Peebles personally signed a Chapter 11 bankruptcy petition to avoid foreclosure of
the Royal Palm Hotel in Miami. HR&A intentionally made specific reference to "The Peebles
Corporation" as a technicality to evade the fact that Peebles is fiscally irresponsible.

Peebles Bankruptcy, Foreclosure, Public Misrepresentations

"On January 6, 2009, the day of the scheduled foreclosure sale, counsel for R. Donahue
Peebles ("Peebles"), who has a minority equity interest in RPSI, filed on behalf of RPSI a
voluntary Chapter 11 petition in the United States Bankruptcy Court for the Southern
District of Florida, which automatically stayed the foreclosure sale. The bankruptcy petition
was dismissed as improperly filed because, among other reasons, Peebles was not the
managing member of RPSI at the time he filed the petition and, therefore, did not have the
authority to make such a filing. As of the date of this Opinion and Order, a foreclosure sale
has not yet occurred." (ROYAL PALM SENIOR INVESTORS V. CARBON CAPITAL II, INC.
(S.D.N.Y. 7-7-2009), Palm Senior Investors bankruptcy, https://casetext.com/case/royalpalm-senior-investors-v-carbon-capital-ii).

Peebles RFP responses are fabrications (https://www.scribd.com/doc/314414523/PeeblesLICH-SUNY-RFP-Submission) and lead to expensive, delayed, and catastrophic property
dispositions (See "Broward County Convention Center, Hollywood Hotel, Pacifica Quarry,
Washington DC, NYS Aqueduct, 5th and I, DC; Overtown Gateway, Miami; casino, Las
Vegas; Key West, FL; and others)(Royal Palm: "Peebles has always contended that Miami
Beach officials bear some of the responsibility for the $15.8 million in delays and
construction cost overruns that bedeviled his city-subsidized project, the Royal Palm Crowne
Plaza Resort on Collins Avenue.")

Peebles and the GSA

Peebles

cronyism

will

jeopardize

the

project

(https://www.washingtonpost.com/news/digger/wp/2014/05/09/gray-pick-of-don-peeblesfor-hotel-deal-draws-criticism/?tid=a_inl&utm_term=.2b0cb5b401af)

as

Peebles

is

conflicted due to his illegal donations to Mayor De Blasio (https://www.dnainfo.com/newyork/20160504/civic-center/de-blasio-asked-me-for-20k-it-was-hard-say-no-developersays)

and

his

upcoming

run

for

mayor

of

NYC

(http://www.foxbusiness.com/politics/2016/11/10/don-peebles-says-is-real-close-torunning-for-nyc-mayor.html). Peebles running for Mayor would completely destroy any

chance of the GSA properly proceeding with the process if Peebles has any interest in the
building. Peebles is likely under investigation for his role in the Long Island Community
Hospital debacle in New York City, his improper fundraising for De Blasio using dummy
companies, and his soliciting employment from Tawan Davis, then an employee at a
government

agency.

(NYC

Conflicts

of

Interest

Board

Advisory

Opinion,

https://www.scribd.com/doc/310880949/Tawan-Davis-COIB-Conflicts-Letter-Copy).

Peebles Lawsuits after Failed Responses

Peebles has a history of lawsuits with governments during competitive processes ("Court
Rules

Broward

County

doesn't

online.com/archive/archive-7263).

have

to

Peebles

pay
is

Peebles,

known

http://www.wvvw.hotelbad

faith

negotiator

(http://www.politico.com/states/new-york/city-hall/story/2014/05/suny-ends-lich-talkswith-peebles-000000)

and

contract

breaker

(https://commercialobserver.com/2015/09/don-peebles-hit-with-50m-suit-for-shaftingpartner-in-lower-manhattan-deal/).

Peebles Disclosure Violations

Peebles

has

made

numerous

disclosure

violations

in

prior

RFP

responses

(https://www.scribd.com/doc/313137163/Don-Peebles-LICH-DisclosureMisrepresentations), frequently breaks promises for affordable housing ("D.C. Mayor Bowser
to

Don

Peebles:

Give

me

my

affordable

housing",

https://www.washingtonpost.com/news/digger/wp/2016/08/26/d-c-mayor-bowser-to-donpeebles-give-me-my-affordable-housing/?utm_term=.a97b35a7fe79), breaks promises to

create

minority

businesses

("Peebles

Sells

Royal

Palm

for

Record

$127.5m",

http://www.businesswire.com/news/home/20041206005667/en/Peebles-Sells-Royal-PalmRecord-127.5-Million), sets unrealistic and unobtainable minority participation

goals

(consistently 30-40%), and reneges on purchase prices, room counts, taxes, grants, and
financing

requirements

(http://tribecatrib.com/content/broken-promises-claimed-condo-

conversion-landmark-building,

https://www.scribd.com/document/314917922/463-2003-

RDA-Reso), usually opting for environmental problems where Peebles negotiates the
purchase

agreement

to

specifically

carve

out

such

https://www.scribd.com/document/314917817/165-1999-LTC;

provision

(Royal

Broward

Palm,
County

Commissions meeting minutes from Peebles' negotiations; Royal Palm environmental

lawsuits: "bad sand").

Virtually every PR article or element of Peebles' media presence is a fiction. Although billed
as a large minority developer, 60% of Peebles company consists of his wife and young son;
the other 40% consists of white guys poached from the New York Economic Corporation
(See Peebles Corporation website, "Leadership"). Peebles media boast billions of dollars of
development, but a simple fact check and rudimentary arithmetic shows these are lies.
Peebles claims to be the "largest minority developer" and shown to be knowingly fraudulent,

as Peebles attorneys wrote in defense to a lawsuit, "Peebles is CONSIDERED to be one of

the largest minority developers". Peebles and his lawyers literally qualified their own
misrepresentations.

Most importantly, he is an unqualified developer. Peebles cannot get financing for

construction projects, so he must use others names in proposals, promise what he cannot
deliver, renegotiate, then flip the project after it has become more valuable than it was
when he won rights to it. This can cause long delays and project death. In a rising market,
Peebles can make money every time by just stalling. If the market reverses, Peebles will
pull out, leaving the project destroyed, the government offeror without any development,
and will likely sue to recoup losses ("Peebles appeal denied", http://articles.sunsentinel.com/2005-06-11/news/0506100716_1_peebles-wyndham-hotels-commissioners).

Peebles Misrepresentation of Business Acumen

Peebles uses others name to further his own poor business reputation ("The bid originally
called for the building to be developed as part of the Kimpton Hotel & Restaurant Group,
which operates the Monaco and Palomar hotels here. But Kimpton spokeswoman Kristin
Huxta Bradley said the company never formalized an agreement with Peebles for the
property

and

has

no

connection

to

the

proposal.",

http://www.philly.com/philly/business/20160715_Kenney_goes_to_bat_for_Florida_develop
er_after_feds_reject_Family_Court_historic_rehab.html) Moreover, Peebles website, press
statements, and proposals are extremely liberal with platitudes: mentioned above 901 Fifth
St. NW is listed as a "Current Development", despite D.C. government not yet selling it. This
pattern is repeated by Peebles in his online "Portfolio": The Viola Boston appears stalled,
Overtown Gateway Miami voided its agreement with Peebles and took possession of the
property for later developer, 1801 Vine Street Philadelphia failed to close when Peebles did
not meet the extended deadline for a National Park Service tax credit Thus, 40% (PA, FL: 2
of 5) of Peebles listed "Projects in Development" are certainly dead, 20% are extremely
questionable (MA: 1 of 5), one is apparently unable to offer the price, terms, or affordable
units promised and Mayor Browser isn't allowing Peebles to slide (DC: 1 of 5). The final
property, 108 Leonard, was unequivocally sold to El Ad Group; Peebles sold 100% of the
development rights and merely retained a 35% optional interest, which he oddly exercised
immediately. Additionally, Peebles press involvement at 108 Leonard exhibits an unusually
strong desire by Peebles for him appear to be the leading development partner. This is most
likely due to Peebles desire to appear to be capable of a significant undertaking without

being subject to the execution risk. Peebles has received refunds of all equity he has
committed to 108 Leonard and currently has no net money at risk.

Likewise, Peebles "Signature Projects" completely misrepresent the ownership structure,

development partners, and legal nature of Peebles involvement. While too numerous for the
purposes of this memorandum, Peebles developments are fairly underwhelming. Essentially,
Peebles major accomplishment was building a condo on Miami Beach which was slated to be
a minority owned hotel and a beacon for African-American progress in Florida. Peebles sold
it within 2 years after long delays, budget problems, and political fallout.

Also, politically, Peebles appears to be a death sentence for any person who supports his
projects. As a Junior Analyst said, "Peebles is poison."

Thank you for asking us to provide this report.