Thursday, March 3, 2022

POLITICO New York Playbook: The Adams aide who consulted for oligarchs

Presented by New Yorkers for Responsible Gaming: Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
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By Erin Durkin, Anna Gronewold and Deanna Garcia

Presented by New Yorkers for Responsible Gaming

Russian oligarchs have an old pal in New York City Hall, it turns out. Mayor Eric Adams' commissioner of international affairs, Ed Mermelstein, made his living as a legal and real estate consultant for the sort of Russian billionaires who have been thrust into the spotlight — and heard calls for the U.S. government to seize their luxury New York properties — since the invasion of Ukraine, our Julia Marsh and Joe Anuta report.

Mermelstein got the gig as the chief liaison between the city and the United Nations and diplomatic corps after working as a foreign investment attorney and high-end real estate consultant — and donating a combined $7,100 to Adams' mayoral campaign and transition.

The commissioner once touted Manhattan real estate as a solid long-term investment for the oligarch set. "Oligarchs and their socialite wives are quick to purchase pricey pads, looking not to just fill that vanity void, but ... as an investment opportunity too," he wrote in a 2017 op-ed. He told the Epoch Times that his oil-rich clients from Russia and Ukraine were turning to real estate to diversify their investments. He also served as a director for a foundation run by Russian billionaire Viktor Vekselberg, before Vekselberg had his assets frozen by the Treasury Department some years ago.

The Adams administration isn't exactly setting foreign policy, but New York has come under some scrutiny since the invasion due to its popularity with Russian billionaires. Manhattan Borough President Mark Levine has been calling for the feds to seize high-end apartments owned by Vladimir Putin's associates.

Adams hasn't joined those calls, though he has clearly condemned Russia's actions. The mayor's office issued a lengthy statement defending his international affairs commissioner, saying Mermelstein "has had no business dealings with Russians or anyone else since becoming commissioner" and would support federal efforts to seize oligarch real estate "where appropriate."

IT'S THURSDAY. Got tips, suggestions or thoughts? Let us know ... By email: EDurkin@politico.com and agronewold@politico.com, or on Twitter: @erinmdurkin and @annagronewold

WHERE'S KATHY? Out on the campaign trail in Queens rallying with members of the Amalgamated Transit Union.

WHERE'S ERIC? Making a climate announcement, speaking at a J.P. Morgan announcement, and meeting LGBTQ leaders at City Hall.

ABOVE THE FOLD — "Jan. 6 committee says Trump violated multiple laws in effort to overturn election ," by POLITICO's Kyle Cheney and Nicholas Wu: The Jan. 6 select committee says its evidence has shown that then-President Donald Trump and his campaign tried to illegally obstruct Congress' counting of electoral votes and "engaged in a criminal conspiracy to defraud the United States." In a major release of its findings, filed in federal court late Wednesday, the committee suggested that its evidence supported findings that Trump himself violated multiple laws by attempting to prevent Congress from certifying his defeat.

A message from New Yorkers for Responsible Gaming:

It's time to expand gaming in downstate New York. In less than a year, expansion of existing gaming facilities would create thousands of family sustaining union jobs, generate billions in revenue for education in New York, and help drive economic growth and a jobs recovery in the hospitality industry. Expanding gaming downstate can bring hospitality jobs back sooner in the communities we need them most. Find out how: www.NYforResponsibleGaming.org

 
What City Hall's reading

City Council grills Adams administration over proposed budget cuts to municipal services, by POLITICO's Sally Goldenberg: The City Council, operating under new leadership this year, underscored areas of disagreement with Mayor Eric Adams as the legislators grilled his administration during the first budget hearing of their respective tenures. In a two-plus-hour session that lacked the overt hostility of many past budget hearings during former Mayor Bill de Blasio's tenure, the lawmakers second-guessed the wisdom of cutting city services at a time of economic uncertainty, while questioning what some consider bloated spending plans for the NYPD and Department of Correction. Kicking off months of budget hearings, Wednesday's virtual event set a tone of polite disagreement between a new mayor who has prioritized crime reduction and a politically-divergent body intended to serve as a check on him.

"Schools Chancellor Pledges to End New York City's 'Betrayal' of Students," by The New York Times' Lola Fadulu: "The New York City schools chancellor vowed Wednesday to reverse what he called the betrayal of New York City's public school students by breaking up bureaucracy, getting the city's hundreds of thousands of low-income students on a path to the middle class and promoting healthy living in schools. David C. Banks, the new chancellor of the nation's largest school system, will oversee a budget of roughly $38 billion to address the system's many challenges. Among the most pressing: City schools have lost more than 120,000 students over the past five years, a figure that Mr. Banks called 'an indictment of the work that we have done.'"

"How Brutal Beatings on Rikers Island Were Hidden From Public View," by The New York Times' Jan Ransom: "When a man was beaten on Rikers Island in December, guards at the New York City jail complex downplayed his injuries, delaying filing a report and then including only minimal information: Fractured eye socket. Swelling of the head. No hospitalization required. The reality looked much different. Hours after another detainee slammed the man, Jose Matias, 25, to the floor and kicked him in the head, Mr. Matias began having seizures. He was taken to a hospital, where doctors removed a chunk of his skull to ease swelling in his brain. He spent six weeks in a coma and, when he emerged, had to relearn how to walk and talk. It was at least the second time in four months that the Department of Correction had failed to document a serious injury to a person in custody, records and interviews show."

"Port Authority reveals possible alternatives to LaGuardia AirTrain," by amNewYork's Kevin Duggan: "More than four months after Governor Kathy Hochul hit the brakes on a proposal to build a $2.1 billion AirTrain to LaGuardia Airport, the Port Authority of New York and New Jersey released a set of alternative options late Wednesday that could connect travelers to the Queens airport via public transit. The Port Authority released 14 alternative options Wednesday, including two subway extension, five light rail routes, five bus options, ferry service, and so-called 'emerging technologies.'"

" 'I will f–king come for you': NYC TLC boss resigns after going off the rails in virtual meeting," by New York Post's Joe Marino, Priscilla DeGregory and David Meyer: "The now ex-boss of the city's Taxi and Limousine Commission allegedly went off on an expletive-laden tirade last month — warning one staffer 'I will f–king come for you' and even predicting the caught-on-camera spectacle would 'be on the New York Post in the morning.' Aloysee Heredia Jarmoszuk resigned Wednesday, mere hours after The Post inquired city officials about her Feb. 15 virtual meeting to inform some 80 employees that Deputy Commissioner Dianna Pennetti, who had been on leave, wouldn't be returning to the TLC."

" Black NYC residents hospitalized at twice the rate of whites during omicron: health study," by New York Post's Carl Campanile: "The rate of black New York City residents hospitalized during the omicron surge was more than two times higher than for white residents, a Health Department study released Wednesday found. The racial disparity in the hospitalization rate was even higher during the latest COVID-19 omicron wave than prior and more deadly outbreaks, the city Health Department analysis said. The report partly attributed the significantly higher hospital admissions for black New Yorkers to lower vaccination and booster rates."

FIRST IN PLAYBOOK: New City Council Members Lincoln Restler and Shahana Hanif have been tapped to co-chair the body's Progressive Caucus, which is poised to serve as a check on Mayor Eric Adams's more moderate brand of politics. "For too long, our city has paid lip service to progressive values but fallen short on delivering," the two Brooklyn Democrats said in a joint statement. "This caucus will be a united front to ensure the city puts the interests of working-class people before those of the rich and powerful. As a caucus, we will fight for a truly progressive agenda and be a watchdog that holds the mayor accountable to ensure we have a budget rooted in equity and care." Early signs point to disagreements between progressive lawmakers and Adams — a retired police captain — over policing and criminal justice. As he seeks to reduce the population of homeless New Yorkers sleeping in the subway, the city's approach to low-cost housing will likely become another point of contention between the two sides of City Hall. — Sally Goldenberg 

 

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WHAT ALBANY'S READING

"Judge blocks NY's bid to shutter NRA, but lawsuit continues," by The Associated Press' Michael R. Sisak: "A judge has rejected an effort by New York's attorney general to put the National Rifle Association out of business, but will allow her lawsuit accusing top executives of illegally diverting tens of millions of dollars from the powerful gun advocacy organization to proceed. Manhattan Judge Joel M. Cohen said allegations of NRA officials misspending on personal trips, no-show contracts and other questionable expenditures can be addressed by other remedies, such as fines and restitution, and do not warrant the 'corporate death penalty' that Attorney General Letitia James had sought. James' lawsuit, filed in August 2020, tells 'a grim story of greed, self-dealing, and lax financial oversight' at the NRA's highest levels, but it does not allege any financial misconduct benefited the organization or harmed the public, or that the NRA is incapable of 'continuing its legitimate activities on behalf of its millions of members,' Cohen wrote in a 42-page decision."

"New Law Overhauling N.Y.'s Parole System Is Being Ignored, Lawyers Say ," by The New York Times' Troy Closson: "The law was designed to prevent people from being jailed for certain minor or technical parole violations. But lawyers for dozens of people detained in New York City say that state corrections officials have been sluggish in planning for and implementing the far-reaching changes, which went into effect this week. On Wednesday, in a filing in state Supreme Court in the Bronx, lawyers asked the state's courts to release more than 90 detainees, arguing that the corrections department had not followed the requirements of the new law and was now illegally detaining people. The law requires that a prompt hearing be held after someone is detained on a parole violation to determine whether they should be released. But the department does not plan to offer those hearings to currently incarcerated people, as the filing argues is required."

"Kathy Hochul unveils plan for 'permanent' takeout cocktails," by New York Post's Kevin Sheehan, Carl Campanile, Bernadette Hogan and Sam Raskin: "Gov. Kathy Hochul announced Wednesday she is setting in motion a process to 'permanently' allow bars and restaurants to serve to-go booze — a silver lining for New Yorkers recovering from the COVID-19 pandemic. 'We are proposing to permanently allow bars and restaurants to sell to-go drinks,' Hochul said at Therapy Wine Bar 2.0 in Brooklyn, adding that the New York State Liquor Authority will iron out details and implement 'very specific regulations" for the measure."

Bill aims to force more police discipline disclosures, by POLITICO's Erin Durkin: Amid a wave of police brutality protests in 2020, New York repealed a law known as 50-a that had long kept law enforcement disciplinary records secret. Officials said it would usher in a new era of transparency in policing. But while some records have been released, police departments have withheld a swath of others — often saying they do not have to make public documents related to unsubstantiated complaints against officers "We've seen departments cling to their own version of reality where 50-a was not actually repealed," said Michael Sisitzky, senior policy counsel at the New York Civil Liberties Union.

"As New York Students Shed Masks, Elation Mixes With Trepidation," by The New York Times' Sarah Maslin Nir: "Just before classes began on Wednesday morning, Jordan Goldberg, a fifth grader at Guggenheim Elementary School on Long Island, strode through the doors and stopped short. 'This doesn't feel normal!' he said, clutching his bare, unmasked chin. For the first time since schools reopened during the pandemic, Jordan and many other public school students across the state entered homerooms, gymnasiums and class without masks. Citing low virus caseloads and a desire to return to a sense of normalcy, Gov. Kathy Hochul lifted the state's school mask mandate starting Wednesday, leaving mask policy to local officials."

#UpstateAmerica: Oh boy, the Capital Region's first standalone Chick-fil-A is on track for April approval.

#UpstateUpdate: Saratoga's outraged ophthalmologist has dropped a bizarre mask lawsuit against his local butcher.

 

A message from New Yorkers for Responsible Gaming:

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FROM THE DELEGATION

"9/11 advocates, Jon Stewart demand Congress pass legislation to help military veterans exposed to toxins," by New York Daily News' Michael McCAuliff: "Jon Stewart and 9/11 advocate John Feal are putting the heat on Senate Majority Leader Chuck Schumer to pass a bill now working its way through the House that would help millions of veterans exposed to toxins overseas. According to the Veterans Administration, at least 3.5 million members of the armed services were exposed to burn pits in deployments during the global war on terror. Some of the open-air pits were the size of football fields and were used to incinerate everything from used medical supplies and electronics to garbage and human waste."

AROUND NEW YORK

— A man accused of attacking a woman with human feces at a Bronx subway station was released without bail but immediately rearrested in connection with an antisemitic assault investigation.

— An NYPD sergeant who attacked two people while they were in police custody pleaded guilty to two misdemeanor assault charges and was sentenced to probation.

— A Broadway theater will be renamed for James Earl Jones.

—  A 21-year-old SUNY student is running for the 99th Assembly district and, if elected, would become the youngest assemblymember in state history.

— The CEO of Threes Brewing stepped down amid controversy over his comments opposing vaccine mandates.

— Disgraced trainer Bob Baffert will keep his spot in the National Museum of Racing Hall of Fame.

— Wegmans is expanding to Connecticut (but still not the Capital Region ?).

— The Ocean Parkway bike path is falling apart.

— The Nassau County executive is holding a "gun drive" for Ukraine.

— A JetBlue pilot suspected of being drunk was removed from a flight in Buffalo.

 

SUBSCRIBE TO NATIONAL SECURITY DAILY : Keep up with the latest critical developments from Ukraine and across Europe in our daily newsletter, National Security Daily. The Russian invasion of Ukraine could disrupt the established world order and result in a refugee crisis, increased cyberattacks, rising energy costs and additional disruption to global supply chains. Go inside the top national security and foreign-policymaking shops for insight on the global threats faced by the U.S. and its allies and what actions world leaders are taking to address them. Subscribe today.

 
 
SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Ira Glass George Little (5-0), celebrating in Miami … Amanda Crane Susan Zirinsky (7-0) … Mayer Brown's Andrew OlmemTim MorrisonElaina Plott Ron Chernow Nadia HannoutMary Claire Brunelli 

MEDIAWATCH — " New York Times editors are focusing on staff retention as policies about outside projects spark frustrations and exits," by Insider's Steven Perlberg

— " WNYC sought change. It got turmoil," by Columbia Journalism Review's Savannah Jacobson

— Hannah Dreier is joining NYT as an investigative reporter. She is a national enterprise reporter at WaPo. The announcement

MAKING MOVES — Alana O'Grady Lauk is now VP of comms at Verkada. She most recently was a VP at Edelman and is also an alum of FleishmanHillard and Burson-Marsteller. … Kev Cheah, Katharine Crallé, Jason Juceam, Kavi Reddy and Alex Yankus, who are all based in Brunswick Group's New York office, have been named partners at the firm. … Matt Saunders has joined the board of directors of Aether Diamonds, which creates diamonds made from atmospheric carbon. Saunders is a principal at Helena, which led a recent $18 million Series A funding round.

A message from New Yorkers for Responsible Gaming:

It's time to expand gaming in downstate New York. In less than a year, expansion of existing gaming facilities would create thousands of family sustaining union jobs, generate billions in revenue for education in New York, and help drive economic growth and a jobs recovery in the hospitality industry. New York lost thousands of hospitality jobs during the pandemic and state officials project those jobs won't be fully back until 2026. However, expanding gaming downstate can bring those hospitality jobs back sooner in the communities we need them most. Find out how: www.NYforResponsibleGaming.org

 
Real Estate

"Dilapidated Apartments, Lousy Landlords Plague NYC's Sprawling 'Scattered-Site' Supportive Housing Network," by City Limits' David Brand: Inside their old apartment building on Intervale Avenue in The Bronx, Nicole Luna and Zelda J. bonded as they battled black mold, heat outages and unsafe conditions that threatened their children's health. The two women, aided by a case manager from the organization Bailey House, urged the landlord to make repairs as the housing code violations mounted. Luna's doctor wrote letters explaining that the mold was making her daughter sick and worsening her asthma."

" MLB Lockout Batters Yankee Stadium-Area Businesses Still Reeling From the Pandemic," by The City's Claudia Irizarry Aponte : "Months of dread gave way to despair for South Bronx small businesses Tuesday night, when Major League Baseball announced that the start of the baseball season will be delayed, after failing to resolve a year-long labor dispute by management's self-imposed deadline. Players in the league have been locked out by team owners since their collective bargaining agreement expired on Dec. 2, and MLB Spring training has been postponed since Feb. 14."

 

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