Controversial Boon For D.C. Neighborhood

(CBS)  Barracks Row is a neighborhood right around the corner from the U.S. Capitol.

With trendy art shops and sidewalk cafes, "business is booming." But this successful commercial district is about to get an infusion of your tax dollars, CBS News correspondent Sharyl Attkisson reports.

Rep. Jerry Lewis, R-Calif., has earmarked $500,000 tax dollars for unspecific upgrades — possibly a giant decorative arch, kiosks for merchants and concrete stools.

"And the return on the federal investment is difficult to measure, but it's truly immeasurable in my mind's eye," Lewis said.

Members of Congress usually get earmarks for pet projects back in their districts ... it helps them get re-elected. But Lewis is from California. So why is he being so generous with your tax dollars for a venture in Washington 2,600 miles away?

Tim Phillips, who tracks federal earmarks, thinks he knows the answer.

"What makes this one interesting is the congressman's wife, who is also his chief of staff, owns a million-dollar home just four blocks from the earmark that he is getting," said Phillips, who works for Americans for Prosperity. "Just four blocks away."

Tax records show Mrs. Lewis owns a three-bedroom home valued at $943,000.

And the half million dollars isn't the only pot of public money Barracks Row has gotten.

Since 2004, Lewis has earmarked $2.75 million of your tax dollars to the venture.

With all that money to revitalize, property values have been soaring. That is why Phillips takes issue with the disclosure statement Lewis filed.

"Neither I nor my spouse has any financial interest in this project," he said in a statement.

"Almost any employer in America would see this kind of clear conflict of interest and they'd say, 'pal, you're outta here,'" Phillips said.

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Watch more of Attkisson's reporting on this earmark.

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But CBS News has found another link between Lewis and Barracks Row: Tip Tipton, property owner and director of the redevelopment project. It turns out he's a top Washington lobbyist, and a longtime Lewis friend and donor.

He says Congressman Lewis only has the national interest at heart.

"It's important that the area surrounding the Capitol look like an area that the United States citizens would be proud to show their neighbors and friends," Tipton, who is no the Barracks Row Board of Directors, said.

Lewis wouldn't talk to us but in a statement said it's "ridiculous" to suggest he supports Barracks Row for any reason other than to help residents and visitors in a once-shabby area.

Hardly shabby now, it'll soon get its latest injection of federal funds thanks to Lewis, which goes to show that if you want taxpayers to upgrade a neighborhood where most of them couldn't afford to buy, it just might help to have connections.

[mcdonaj3]

How dumb does Rep. Lewis believe the voter is? Of all of the places he could have chosen to waste the taxpayer's money he just happened to pick one in a area where his wife just happens to own property. Are we to believe this is just a coincidence. If Rep. Lewis really wanted to provide assistance to a Washington D.C. neighborhood and really wanted to avoid any appearance of a conflict of interest, why did he not find someone else to make the earmark? This is just another example of the arrogance of our elected officials.

[fredhetz]

Politicians do these sorts of things because the public doesn't make themselves heard. Get busy, folks.

[keithle1]

Don't lump politicans in with civil servants. There are a lot of honest Federal employees.
Without the press, god knows how much more
hanky panky would go on & never see the light
of day. Made his wife his chief of staff...isn't that cozy. Saw something on TV about this. Fat cats getting fatter.

[starleo146]

Earmarks and lobbyist the two evils of government and I do not see one on any side republican or democrat willing to give either of them up It is what elects them everytime.

[whatithink-2009]

While people cry about poor people and welfare, the real thieves are given a blank check to steal.

[middleman8]

I do believe it would be easier to "find a needle in a haystack" than find one honest person in the united states government.

[bennyblack1]

You see, people, this is what I'm talking about. Tax dollars are being spent to revitalize an already rich man's properties. If I had done something like that, I'd have been taken to jail.

Here is another perfect example of tax dollars that could have gone to enhance worthwhile causes. Like, sending people into inner cities and building adult education centers. Investing in job training programs for the poor, disadvantaged, and criminals that have been rehabilitated. Programs that teach against prejudice and hate crimes, and what I mean by hate crimes, is that when a white man is struggling to make it, the black man shouldn't be stealing from him to keep him from it. When a white man genuinely tries to help people and black folks spurn him by stealing from his boss, so that he wouldn't be able to, that is a hate crime. When a drug prostitute is about to change her mind, some d.a.m.n. PIMP beats the hell out of her to scare her back into it. Then people like me have to pay for it, now I have to be a sacrificial lamb for someone else's misdeeds. People should be sent into cities to teach people how to be decent to one another. Not to steal, lie, and hate each other.

Wake up, you crazy congressmen. Wake up!

[edwincdale]

If Katie C. would put on more stories like this and less stories about cute little kids with cancer she would get more respect.