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_____ Top stories _____ • Police prepare to serve fines with after-hour drinks • Fox Run yields little in first round • Grads send unemployment up • Bauer's land deal unseemly • Bauer calls state's price for land 'not fair'

COLUMBIA -- Lt. Gov. Andre Bauer, who last year received $130,000 from the state for a tenth of an acre and a storage building needed for a road project, on Friday described the price as "inexpensive" and urged residents approached by the government not to accept its first offer.

Bauer also told reporters he made an error in not reporting the transaction on forms required by the State Ethics Commission.

The Greenville News reported Wednesday that the Department of Transportation first offered Bauer $62,762 to $63,682 for two buildings and the land it needed for a Lexington County road project.

That amount later increased to $130,000 following a meeting between a department official, Bauer, state Sen. Yancey McGill of Williamsburg County and a member of the transportation commission, John "Moot" Truluck of Florence County, records show.

Bauer, who bought the land in 1996 for $52,000, has said he thought his land was worth $250,000, describing the department's offers as "not fair." He said that any citizen can call their state senator or highway commissioner to request help if they are negotiating with the government.

"Nobody ever forced the highway department to do anything," he said. He blamed a political opponent Friday for "pushing" the story about the land sale, which took place last summer.

"This transaction happened over a year and a half ago and no question was ever raised at that time," he said. "But now that I have an announced opponent it has magically come up. And it has been pushed. It's unfortunate that somebody would push stories like this and make people think that more is going on here than really was."

Wesley Donehue, campaign manager for Mike Campbell, Bauer's Republican opponent in next year's race for lieutenant governor, said the campaign has informed Bauer's office that it had no role.

"Instead of blaming other people," he said, "the lieutenant governor needs to work a little harder keeping his name and face off the front page of the newspaper."

The transportation department is widening Highway 60 from Irmo to the Lake Murray Dam from two lanes to four. Bauer's two parcels are among 113 along the road.

Bauer said Friday 16 have opted to go to court with the department rather than take what they were offered.

Bauer also said had he not been an elected official, he would have gone to court as well because he felt the price the department offered was unfair. He urged others to negotiate with the agency.

"I think the real issue is that the people of South Carolina ought to be aware that they have the right to negotiate a better offer when they have their property taken," he said.

"Property is what you think it's worth and what you can sell it for. And the state is not in the business of paying you the highest amount of money. When I became lieutenant governor, I did not give up my rights as a citizen to call in experts and negotiate the best deal for myself."

He vowed never to sell property to the agency again, saying if the department wants any more of his land, he will sell it first and let the new owners worry about dealing with the agency.

Bauer didn't report the sale on his Statement of Economic Interest on file at the State Ethics Commission, according to a copy of the report. According to the form, officials are required to report the sale of any property to the state. Bauer said it was an oversight.

He also said he didn't report the $130,000 as capital gains to the IRS because he classified it as a "like kind exchange," an action which allows a taxpayer to defer taxes on the sale of property if the proceeds of one transaction are used to purchase another parcel.

Bauer said Friday he doesn't remember if he talked to the executive director of the transportation department, Elizabeth Mabry, about the agency's offer.

According to records obtained by The News under the state Freedom of Information Act, Mabry wrote Bauer on April 22, 2004, telling him that she had instructed Oscar Rucker, director of the right-of-way office, "to work directly with you to ensure that your case is given the attention needed in order to have this matter resolved."

Mabry told the newspaper the letter is a standard form letter she sends when she receives a right-of-way complaint.

Bauer had a letter Friday written to Mabry this week by the administrator for the South Carolina division of the Federal Highway Administration, stating that the transaction with Bauer appeared to follow all state and federal regulations.

Bauer said it is difficult to find comparable property in the area for as little as $250,000. Although the county appraised his land and buildings for $58,530 and the state's appraiser valued everything at $82,500, Bauer said the land and buildings are worth far more.