By Guy Page
Vermont State Treasurer Mike Pieciak’s re-election campaign is defending the treasurer’s handling of a multimillion-dollar housing investment after two developers connected to the project subsequently contributed a combined $8,000 to Pieciak’s political campaign.
The questions involve an $8.4 million investment through the Treasurer’s Office’s 10% For Vermont program for the “Ride Your Bike” housing project in Burlington. Hula leaders and Ride Your Bike project founders Russ Scully and Rob Lair each contributed $4,000 to Pieciak’s campaign in June, according to campaign finance filings. Hula is a venture capital firm located in the Lakeside neighborhood and is a cheerleader for the housing project set to be built nearby.
The planned two-building development would feature 205 apartments.
The contributions came several months after the loan was approved in February through the treasurer’s 10% for Vermont program, which uses the state’s cash deposits to make secure loans to critical state priorities such as housing, climate action and social equity. WAMC’s Pat Bradley reports that since 2023 the 10% in VT program has invested “over $100 million in housing, economic development, and municipal flood recovery.”
The Ride Your Bike loan and subsequent political contributions raise questions about whether the developers’ history as Pieciak donors — or the possibility of future contributions — played any role in the decision.
Pieciak was asked by VDC Thursday morning whether any preference was given to the project because of past or anticipated campaign contributions, whether there was any “pay to play” element involved, and whether he considered the appearance of a potential conflict sufficient reason to return the contributions.
Campaign Manager Jack Pitblado, responding on behalf of Pieciak, said applications to the Invest in Vermont program are evaluated solely on their merits and go through several layers of review.
“After a public Request For Proposal period, professional staff within the Treasurer’s Office thoroughly review and vet applications with the assistance of an independent housing underwriter,” he said. “Staff then makes recommendations to the Local Investment Advisory Committee, a body created by statute, which reviews and approves them again.”
Pitblado said every loan awarded during Pieciak’s tenure has gone through that process.
The Treasurer’s Office also emphasized that the Ride Your Bike loan was not made directly to Scully and Lair or their development company. Instead, the state lends the money to a financial institution acting as an intermediary.
“These intermediaries assume the project’s risk by guaranteeing repayment to the state while also conducting their own independent underwriting and due diligence to ensure the project’s viability,” Pieciak’s representative said.
The office said those safeguards provide “multiple independent evaluations” intended to ensure that projects are judged on their merits.
“The Treasurer is proud of how his office has expanded the Invest in Vermont program to support 1,700 housing units while building a transparent and low-risk lending process to ensure the program’s integrity and protect the State’s investments,” Pitblado said.
Pitblado did not directly address VDC’s question whether Pieciak would return the $8,000 in contributions from Scully and Lair out of concern for the appearance of a potential conflict.