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Staffer Sentenced in Slush Fund Scandal
March 19th, 2010

Asquith Reid, the former chief of staff of former Councilmember Kendall Stewart, was sentenced to three years probation today for embezzling the City Council’s discretionary funds, according to the U.S. Attorney’s office in the Southern District of New York.

Reid was the first person affiliated with the council to be charged in the growing council slush fund scandal. Reid pleaded guilty to one count of conspiracy to commit mail fraud and one count of witness tampering in June 2009 — charges that could have come with decades in prison.

As part of his sentence, he will have to spend nine months in a halfway house, will pay restitution and forfeit any income he made from the crime, according to the U.S. attorney’s office.

Stewart, Reid’s former boss, lost his seat in the council last fall. Many suspect a large part of his loss had to do with this scandal.

By Courtney Gross on March 19, 2010, 3:31 pm
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Commission's First Meeting -- With Cheesecake
March 19th, 2010

They were welcomed to the City Charter review process by about 60 attendees and a power point presentation from the city’s Law Department that included old political cartoons of the days of Tammany Hall.

They were welcomed to Brooklyn with cheesecake from Junior’s — courtesy of Brooklyn Borough President Marty Markowitz.

Last night, 15 members of the newly minted City Charter Revision Commission sat on a crowded dais in the New York City College of Technology for its first meeting. They introduced themselves, and the chair, CUNY Chancellor Matthew Goldstein, set out a potential timeline for their work, which could end up bringing proposals before the voters this November.

Calling the timeline “aggressive,” Goldstein promised to hold extensive hearings in all five boroughs.

“We are a group of [15] individuals,” Goldstein said. “Omniscient, no. But thoughtful, yes.”

When considering any charter change, Goldstein suggested the board consider three principles: whether the change would improve government transparency and accountability, would it make government more efficient and effective and would it make civic life more participatory.

“We ensure everyone’s input is taken into consideration,” said Goldstein. “We will be as transparent as possible.”
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By Courtney Gross on March 19, 2010, 12:30 pm
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Charter Debate Heats Up
March 19th, 2010

Things got contentious this morning between State Sen. Bill Perkins and “Morning Joe” host, Joe Scarborough, when the subject of charter schools in Harlem came up.

Perkins has become one of the most outspoken critics of charter schools in the city.

Watch below.

Visit msnbc.com for breaking news, world news, and news about the economy

By Courtney Gross on March 19, 2010, 10:25 am
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Liu Convenes Task Force on Public Benefits (update)
March 19th, 2010

In an effort to make sure the public receives benefits when the city gives out public subsides, Comptroller John Liu convened the first meeting of a task force this morning that will look into reforming the process of economic development.

Liu announced the task force in February, saying in a press release at the time: “It is simply common sense to have clear standards that ensure benefits for the public when private developers receive benefits from the public.”

Initially charged with looking at community benefit agreements, the task force has expanded its scope to all deals that receive public subsidies, according to Sharon Lee, the comptroller’s spokesperson. They will report back to the comptroller in six months with recommendations, she said.

Over the years, community benefits agreements, which are unregulated, have become standard practice for development deals. The agreements are struck between community groups and stakeholders and developers, often quelling community opposition and ensuring a development moves forward. They are outside of the land use process.

Since the City Council defeated Kingsbridge last year, some officials have questioned the use of public subsidies and are promising to scrutinize projects that receive public benefits.

UPDATE: Here are the co-chairs of the task force:

JOHN “JACK” AHERN President of the New York City Central Labor Council (AFL-CIO)
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By Courtney Gross on March 19, 2010, 10:00 am
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A Regional Market at South Street Seaport
March 18th, 2010

seaport

Photo (cc) 2006 David Reeves

Is the New York City Economic Development Corp. open to Council Speaker Christine Quinn’s proposal to create a regional market at the South Street Seaport?

Corporation President Seth W. Pinsky thinks so.

“We definitely agree that a regional market is a good use for the South Street Seaport,” Pinsky said this afternoon at a City Council budget hearing.

The corporation and seaport owner, General Growth Properties, had been working on a redevelopment plan for the downtown shopping area for several years. That plan included a specialty food market.

But when Properties filed for bankruptcy in April of 2009 — predominantly an effect of the real estate bust — the redevelopment proposal was abruptly put on hold.

Now that General Growth Properties appears to be emerging from bankruptcy, Pinksy expects the project to move forward. A hearing on the developer’s exit from bankruptcy will be later this spring.
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By Courtney Gross on March 18, 2010, 3:10 pm
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Bloomberg's Film Crew
March 17th, 2010

If Mayor Michael Bloomberg decides to test the waters for a possible presidential bid in 2012 what will it cost the cash strapped city?

In an article in this week’s Village Voice, Tom Robbins looks at possible costs of the mayor’s last flirtation with the White House. Shortly after he re-election in 2005, Bloomberg began to travel widely and give speeches. “We later learned this was mostly about setting the stage for a potential run for president,” Robbins writes. “One of the interesting features of this publicity push was that — despite his own fabulous wealth — the mayor wasn’t shy about using city resources to promote his image.”

According to Robbins, “starting in February 2006, the Bloomberg administration began assigning a team of video camera operators from the city’s television station — NYC-TV — to follow and film the mayor” on trips to such places as Shanghai, Beijing, Bali, Paris, London, Mexico City, Belfast, Berlin, Jerusalem and cities across the United States. Even though, unlike their boss, the city workers flew commercial, a trip by a camera crew to say, Oklahoma, cost some $3,4000. An Asia jaunt was $16,400.

Robbins reports that he tried to get this information in a Freedom of Information request last May. The Department of Information Technology and Telecommunications did not respond until a few weeks ago — and then only after a lawyer intervened.

While the tech office has sought to portray the trip — and the filming — as business as usual, when contacted by Robbins, spokespeople for the previous three mayors seemed unfamiliar with such a practice.

By Gail Robinson on March 17, 2010, 2:27 pm
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A Call for Charter Openness
March 16th, 2010

Now, that’s preemptive.

Even before the newly minted Charter Revision Commission announced its first meeting, Public Advocate Bill de Blasio, Comptroller John Liu and 24 council members sent its members a letter calling for openness and webcasted meetings.

The first meeting of the commission will be at 5:30 p.m. Thursday at the New York City College of Technology in Brooklyn. There will be no public comment at the meeting, but it is (as will all the commission’s meetings) be open to the public.

The letter is after the jump.
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By Courtney Gross on March 16, 2010, 12:32 pm
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NYCHA Still in the Woods
March 15th, 2010

Today’s announcement of a $400 million infusion to the New York City Housing Authority will get the authority off of critical condition.
nycha

Photo (cc) DaveTheRavingWave (Dave Sanders)


But it isn’t out of the woods yet.

Testifying at a budget hearing just hours after the announcement of a federal funding boost, New York City Housing Authority Chairman John Rhea said the authority still faces a more than $100 million deficit in the current fiscal year.

“While we have made huge strides in addressing our long-term infrastructure needs and moving the authority towards financial health, ultimately reducing our section 8 and public housing operating forecasted deficit from $137 million to $103 million, we still have work to do,” said Rhea.

To close that gap, of which a large part is from the over enrollment of Section 8, the authority has four options, Rhea said, including terminating families from section 8, reducing section 8 payments or getting more funding from either the federal or local governments.

The news soured a more jovial announcement this morning from the Bloomberg administration that 21 NYCHA housing developments, originally built by the city and state after World War II, would become eligible for federal funding. Since these developments were built by the city and state, they never received federal funding, and they gradually stopped receiving city and state subsidies in the 1990s. Through a partnership with Citibank, who will own a stake in the developments, these properties will receive about $400 million in public and private money — the majority of which will go to capital improvements.
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By Courtney Gross on March 15, 2010, 5:58 pm
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With Cops Down, Kelly Promises to Keep Crime Low
March 11th, 2010

Come January 2011, the city’s police ranks will be as low as they were in the 1990s, said Councilmember Peter Vallone Jr., the chair of the council’s public safety committee, this morning.

For Vallone, that is intolerable.

“1990 was before safe streets, safe city,” said Vallone. “It was a time when the City Council realized we cannot police this city with this many police officers.”

Including academy class sizes and attrition, the police department headcount is expected to be at 34,875 in July, lowering to 34,475 in January 2011, Police Commissioner Ray Kelly testified at a preliminary budget hearing today. No unit, he added, will be held harmless.

“Virtually every unit, every entity, is going to be affected,” Kelly said. “No unit is spared, certainly in a mega sense.”

At the beginning of the fiscal crisis, the police department was one of the City Council’s top priorities. Members fought tooth and nail to keep academy class after academy class.

This year, after several years of budget cuts, it may not be the same. With day care centers on the chopping block and fire companies set for slashing, police officers may not be the council’s number one priority in fiscal year 2011. Much of the noise coming from City Hall’s steps refers to social service cuts and the Fire Department, not necessarily New York’s finest.
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By Courtney Gross on March 11, 2010, 3:31 pm
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Liu and Simcha Visit the Council
March 4th, 2010

And they’re back.

Well, not for good.

Comptroller John Liu and Deputy Comptroller Simcha Felder visited City Hall this afternoon to deliver the comptroller’s take on the mayor’s preliminary budget.

According to his testimony, Liu said revenue forecasts for this fiscal year could be better than the mayor’s projections, but beyond that it could get a lot worse.

“I am much more pessimistic about risks to the budget next year and beyond,” Liu states in his prepared remarks. “Our economic projections show slower growth in the out years of the financial plan period, resulting in more sluggish overall revenue growth.”

According to his testimony, Liu expects tax revenues to be $127 million less than the mayor’s projections in fiscal year 2011, which starts in July, and possibly $576 million less in fiscal year 2013.

The comptroller also released a larger assessment of the mayor’s proposal available here.

By Courtney Gross on March 4, 2010, 4:30 pm
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Page at the Council
March 4th, 2010

This year’s preliminary budget might be the most preliminary proposal in recent memory, at least according to Councilmember Lewis Fidler and OMB Budget Director Mark Page, Gotham Gazette’s Courtney Gross reports from City Hall.

“We’re in a significant odd position right now in terms of the state,” Page said at the first of many preliminary budget hearings at City Hall this morning. According to Page, the city is seeing a $1.3 billion cut from the state, and until the state budget is approved, city officials won’t know how much they will have to cut back.

Given the mayhem in Albany, the timeframe for that budget approval is even hazier than usual. Officials at City Hall today did not sound confident that the state budget could be approved by the April 1 deadline. The city must pass its budget by July 1.

Until the state budget moves forward, council members appear to be making the proposed closure of 20 fire houses, the shutting of day care centers run by the Administration for Children’s Service and the reduction of children’s services case workers their top priorities.

As usual, the hearing this morning, which is heading into its third hour now, was contentious at times, particularly when the subject of day care centers was broached.

The city faces an estimated $2.6 billion budget deficit. The hearing was the first step in the negotiating process between the administration and the council on how to close that hole.

By Gail Robinson on March 4, 2010, 12:48 pm
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Bloomberg's Money Trail
March 3rd, 2010

While the eyes of most ethics watchdog remained firmly fixed n Albany — always fertile ground — a few stalwarts have spied a rather smell situation in the city.

Mayor Michael Bloomberg has always claimed that his billions of dollars are a kind of guarantee against corruption — a line many have been only to quick to swallow. But with Bloomberg you need to watch not who the mayor takes money from but who he gives it to. Witness the current controversy involving the mayor’s gifts to the Independence Party.

Up to now, the story has received scant notice form the Times and reform advocates, but Adam Lisberg and Liz Benjamin of the News and Wayne Barrett of the Voice have been on the case. Here are some highlights of what they have reported.
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By Gail Robinson on March 3, 2010, 3:14 pm
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Quinn Says Resigning is up to Paterson
March 3rd, 2010

Council Speaker Christine Quinn declined to call for Gov. David Paterson to resign this afternoon at her pre-stated press conference, saying the decision is his alone.

The speaker did say the council would be willing to help the state government in whatever way they could.

“The situation in Albany is a very distressing situation one that no one would want New York State or any other state government to be in. It is, to put it mildly, a very, very challenging situation,” Quinn said.

“It’s one that puts all of us in government, regardless of what level, in a position where we need to do everything we can to come together and make sure the people’s business continues to get done, notwithstanding what are some very, very large distractions.”

Quinn continued: “What is the next right thing to do? I am going to leave that to the governor to decide for himself.”

By Courtney Gross on March 3, 2010, 2:17 pm
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Rose Gets Civil Rights
March 3rd, 2010

Rose HEADSHOT

More on the fallout from the indictment of Councilmember Larry Seabrook: Councilmember Debi Rose was selected this morning to take over his chairmanship of the Civil Rights Committee.

Seabrook stepped down as chair of the committee in February after he was charged with extortion and fraud. The committee chairmanship comes with a $10,000 stipend.

Rose is Staten Island’s first black councilmember. She was also the center of a lawsuit about the Working Families Party’s private consulting arm, which was recently settled.

By Courtney Gross on March 3, 2010, 2:02 pm
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Gowanus Named Superfund Site (Update)
March 2nd, 2010

gowanus

In a blow to the Bloomberg administration, the federal Environmental Protection Agency has named the slithering Gowanus Canal in Brooklyn a Superfund site.

The designation would require parties responsible for the canal’s pollution — which is sure to include manufacturing companies and oil refineries that have lined the canal’s shores for decades — to clean it up. This almost always involves court proceedings. That clean up of the 1.8 mile long canal, according to the Times, will likely take between 10 to 12 years.

The decision, which has been years in the making, could set aside the Bloomberg administration’s own plans to clean up the canal, which includes dredging from the Army Corp of Engineers and sewer system upgrades.

Its disappointing,” said Marc LaVorgna, a mayoral spokesperson, in an e-mailed statement. “We had an innovative and comprehensive approach that was a faster route to a Superfund-level cleanup and would have avoided the issues associated with a Superfund listing. The project will now move on a Superfund timeline, but we are going to work closely with the EPA because we share the same goal a clean canal. Local residents and businesses raised concerns about the impact of a Superfund designation on their community and we hope that the EPA will work with us to address those concerns as they move forward.

Supporters of the designation see today’s decision as a long-awaited victory.

“After 150 years of abuse and neglect the Gowanus Canal will finally get the comprehensive cleanup that the residents of the area deserve, stated Josh Verleun, Riverkeeper Attorney & Chief Investigator. The toxic legacy of coal tar, PCBs, pesticides, and other contamination of the Gowanus can only be cleaned through a comprehensive Superfund cleanup; we are gratified to see the EPA stepping up to this task.

In addition to the mayor’s alternate plan, the designation will also likely destroy development plans from Toll Brothers, who planned to build an approximately 460-unit residential development along the Carroll Gardens side of the canal. The City Council has already approved the rezoning for the project. The developer has said in the past that if the Superfund designation moved forward it would abandon the project along the canal. Toll Brothers is already reportedly eying another location in DUMBO.

The EPA will be holding a meeting Thursday in Carroll Gardens to discuss the next steps.

For more on the designation, check out these stories we ran last year — one from Toll Brothers and one from environmental group, Riverkeeper, who was supportive of the canal’s designation.

UPDATE: David Von Spreckelsen, a Toll Brothers senior vice president, told Gotham Gazette this afternoon that Toll Brothers will not be “going forward” with its project along the Gowanus now that it’s a Superfund site.

“Obviously we are very disappointed,” said Von Spreckelsen. “We had hoped that the EPA would seriously consider the mayor’s alternative plan, and obviously they didnt. At this point, we dont see the possibility of going forward.”

By Courtney Gross on March 2, 2010, 11:53 am
In category: City Hall, Environment, Gotham City, Law, Parks, Public Finance, Waterfront, nextNY | 1 Comment »

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City Announces New Press Rules
March 2nd, 2010

For all those “new media” journalists out there, the city revealed new press credential rules today — rules that are “for the online age,” officials say.

For years, the Police Department has pretty much denied a press pass to any working journalist that works online only — including reporters here at Gotham Gazette. Not having a press pass for us has restricted our access to important events integral to our coverage of city government — like the last mayoral debate. Meanwhile, reporters from more traditional newsgathering outlets — regardless of beat — were given unfettered access simply because they had press credential cards hanging around their necks.

These new rules would for the first time explicitly include online journalists as part of the city’s working press. If these rules are enacted, a reporter will now have to show six stories he or she covered within the last two years where the city restricted access.

The public comment period on the new rules starts today and continues through April 7, 2010, when the rules will have a public hearing at police headquarters in Lower Manhattan.

The full release is after the jump. The rules were published in the City Record today.
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By Courtney Gross on March 2, 2010, 10:58 am
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State Must Provide Mentally Ill With Supported Housing
March 1st, 2010

A federal judge has ordered that New York State must stop sending people with mental illness to adult homes and instead being pace them in community-based supported housing. Judge Nicholas Garaufis of Federal Court in Brooklyn gave the state four years to find placement for people who want them at a minimum rate of 1,500 beds per year.

The ruling follows a lawsuit brought by Disability Advocates that the rights of the mentally ill were violated because being placed in adult homes stopped them from functioning as normal members of society.

Some adult home residents who have already made the transition to supported housing say they have the freedom they have craved for years. The New York Times reported that family members of those housed in adult homes due to mental illness have mixed feelings about the move to supported housing.

This decision confirms what adult home residents have been saying for yearsthat living in these large institutionalized homes isolates them and
marginalizes them, and frustrates any hope of recovery. Supported housing does the oppositeit keeps people in the community and supports a normal lifestyle. It is a much better alternative for people with psychiatric disabilities, says Geoff Lieberman, Executive Director of the Coalition
of Institutionalized Aged and Disabled

By David King on March 1, 2010, 10:38 pm
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Bloomberg Updates Housing Plan
February 22nd, 2010

Mayor Michael Bloomberg is injecting the city’s affordable housing plan with another $1 billion, bringing the total investment to build or preserve 165,000 units of affordable housing up to $8.5 billion.

The updated plan, which was first announced by the administration in 2002, focuses more on preservation than on the creation of affordable housing.

The update was given at the Furman Center for Real Estate and Urban Policy’s new Institute for Affordable Housing Policy this morning. The mayor’s prepared remarks are in full after the jump.

For more on the history of plan, see “Affordable Housing Not Included.”

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By Courtney Gross on February 22, 2010, 12:32 pm
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CCRB Agreement Victory for de Blasio?
February 19th, 2010

Public Advocate Bill de Blasio made reforming the city’s Civilian Complaint Review Board a pillar of his campaign last year.

His first recommendation as a candidate was to give the board, which (just like it sounds) investigates complaints of police misconduct, independent power to prosecute the cases it substantiates. Currently, whenever the board substantiates police misconduct, it hands over the case to the Police Department, which prosecutes it at its own discretion.

Reports today reveal the department and the board have agreed to a pilot program that will allow the CCRB to prosecute some of its cases. So far, it is unclear how many of these cases the board’s attorneys will be allowed to prosecute.

The move, however, did not completely satisfy the newly minted public advocate.

In response to the agreement, de Blasio released the following statement this morning:

We respect and appreciate this step as an acknowledgment of the need for change at the CCRB. But another pilot program is not enough. It is already abundantly clear that the city needs a more independent, responsive, and effective CCRB. When I was elected to office, I pledged to substantially reform the CCRB and help establish its power to conduct thorough, timely investigations and prosecute all appropriate cases. In the months ahead I will continue fighting to achieve that goal.

Citizens Union, the sister organization to Gotham Gazette’s publisher, also recommended the CCRB independently prosecute cases in a report released in 2008.

By Courtney Gross on February 19, 2010, 11:56 am
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Chairman Lauder?
February 12th, 2010

Add another name to the list of those rumored to lead the mayor’s promised charter revision commission — and this one promises to be the most controversial yet. Judy Randall of the Staten Island Advance reports that the mayor will appoint his fellow billionaire, businessman Ron Lauder to the post.

The source, who Randall did not name but described as someone who “has the administration’s ear,” explained why: “He was the architect for limiting terms but raised no objection when the mayor wanted to do away with them.”

To refresh your memory, Lauder, the person most responsible for the city having term limits, originally seemed on track to oppose Bloomberg’s bid to extend them and seek a third term. But as Adam Lisberg reported back then, “After meeting with Bloomberg in Gracie Mansion last week, [Lauder] caved. He cut a deal and agreed not to bankroll a campaign against it in exchange for a seat on a Charter commission that will turn the matter over to the voters in 2010.”

The rest, as they say is history. Or at least it was until now.

Earlier this week, two other names surfaced: Anthony Crowell, a senior counselor to the mayor, and City University Chancellor Matthew Goldstein.

By Gail Robinson on February 12, 2010, 2:55 pm
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