News: POLITICO New York Playbook: Ex-speaker wades into Penn Station plan

Monday, April 18, 2022

POLITICO New York Playbook: Ex-speaker wades into Penn Station plan

Apr 18, 2022

By Erin Durkin, Anna Gronewold and Deanna Garcia

Once, former City Council Speaker Corey Johnson was a candidate swearing off real estate money and condemning a Cuomo-era plan for new towers around Penn Station to help fund upgrades to the rundown transit hub. The proposal, he had said, "must be stopped."

Now, Johnson is advising one of the city's most prominent real estate firms as it pushes a new iteration of the Penn Station proposal. Johnson, who started the lobbying firm Cojo Strategies after leaving office, has been counseling Vornado, our Janaki Chadha reports. The latest plan would provide tax breaks to Vornado in exchange for the firm financing upgrades to much-maligned Penn Station, and envisions up to nine new skyscrapers around the transit hub — the biggest development project in city history, if it happens.

Johnson's new career as a lobbyist first gained notoriety when he helped push Mayor Eric Adams, on behalf of the Nets, to make a special exception to the city's Covid-19 vaccine mandate for athletes like Kyrie Irving. Adams first denied, but then admitted, being lobbied by Johnson on the matter.

On the Penn Station project, the former speaker argues that public meetings over the last few years have resulted in more local input into the plan. He's now "supporting a project that will create thousands of prevailing wage jobs, add significant public realm improvements throughout the surrounding district and transform the nation's busiest train station into a modern commuter hub for the people." (He's not registered to lobby for Vornado, but can still offer advice in a consulting role.)

Others see the shift less charitably. "It definitely seems like an about-face," New York Communities for Change executive director Jonathan Westin said. "The real estate industry and specifically Vornado are responsible for a lot of speculation that's occurred across the city to jack up rents and raise prices, so it definitely seems like a kind of 180 by Corey."

IT'S MONDAY. 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? Speaking at the opening of Pier 57 Rooftop.

WHERE'S ERIC? Making an education announcement with former Mayor Mike Bloomberg, meeting with the president of Tanzania, and speaking at the Hudson River Park Trust ribbon-cutting of Pier 57.

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What City Hall's reading

"Health commissioner: NYC may move to 'medium' COVID alert level in 'next few days,'" by NY1's Maya Rajamani: "New York City is expected to move to a 'medium' COVID-19 alert level within the next week as its case count continues to rise, the city's health commissioner said Friday. In an interview with NY1 on Friday afternoon, Dr. Ashwin Vasan said cases in the five boroughs were 'rising steadily.' 'In the next few days, likely by early next week, we're going to be entering a new level of risk, moving from a low-risk environment to a medium-risk environment on the basis of cases,' he said. The city is currently at a 'low' COVID-19 alert level, meaning there is 'lower community spread,' but the New York State Department of Health on Wednesday said it had recently identified two "highly contagious" omicron subvariants that were fueling cases."

— Most Broadway theaters are dropping vaccine mandates after April 30, but will continue to require masks.

Mayor Eric Adams won't commit to releasing his tax returns, breaching decades of custom, by POLITICO's Sally Goldenberg and Amanda Eisenberg: Mayor Eric Adams would not commit Friday to making his tax returns public, breaking decades of custom with past mayors and executives throughout the country who willingly disclose their filings. President Joe Biden, Vice President Kamala Harris and New York Gov. Kathy Hochul were all expected to release their tax returns Friday. "I will comply with whatever rules are in place, you know we do our disclosure also. I think that's sometime in May," Adams said at a press briefing, likely referring to a financial disclosure to the city's Conflicts of Interest Board. "Whatever rules are in place to ensure transparency for those who are in public office, I am going to comply 100 percent." The city conflicts board requires local elected officials, candidates and policy makers to submit a complete picture of their income, assets and liabilities but does not require disclosure of their tax returns. When a reporter asked Adams if he could get a firm commitment to release the filing the mayor responded, "No, you can't."

" Adams, Sewell insist NYC subways are safe after rampage as mayor downplays crime surge," by New York Post's Sam Raskin: "Mayor Eric Adams on Sunday tried to assure the public that the subways are safe after last week's rampage — while arguing other big cities have crime and Gotham isn't nearly as dangerous as it used to be. Adams and his police commish, Keechant Sewell, appeared on TV touting transit safety just five days after a madman opened fire on a Brooklyn train, wounding 29 people. Their claims also came as NYPD statistics show major felonies have soared in the city's transit system so far this year, while recent overall crime in the Big Apple continues to increase. During a morning appearance on MSNBC, Adams called subway safety 'crucial' while peddling his previously announced initiatives aimed at reducing crime underground."

— "After bullets flew, NYC subway workers kept their cool," by The Associated Press' Michelle L. Price

— Five people who provided information in the hunt for the suspect will split a $50,000 reward.

— Adams recounted his response to the shooting while in isolation: "I immediately started putting on my jacket and almost heading out the door. And then I said, Oh, shucks,'" Adams said. "I've got COVID."

"Mayor Adams wants cannabis on NYCHA rooftops. The feds aren't on board," by Gothamist's Jon Campbell: "Mayor Eric Adams' vision of erecting cannabis greenhouses on top of New York City's public housing buildings has run into a significant obstacle: The federal government. At an April 9 panel discussion in Albany, Adams said his team was exploring whether the city could allow cannabis cultivation on the rooftops of New York City Housing Authority (NYCHA) facilities. The idea, he said, would be to employ NYCHA residents to staff and oversee the greenhouses as the state continues to roll out its recreational marijuana program for adults. Marijuana, however, remains illegal on the federal level, including in federally subsidized public housing, which essentially hamstrings Adams' goal. NYCHA is deeply intertwined with the U.S. Department of Housing and Urban Development (HUD), which provides more than half the authority's revenues through subsidies."

Teachers union members unite to challenge longtime incumbent president. Can they beat him? by POLITICO's Madina Touré: On a recent April afternoon, a group of roughly 60 retired municipal workers marched from City Hall Park to the United Federation of Teachers headquarters in lower Manhattan alongside a billboard-toting truck screening a slideshow targeting longtime UFT President Michael Mulgrew. One slide featured a photo of Mulgrew — noting he's running for reelection — followed by another slide stating, "What Has He Done for RETIREES? Negotiated Away Their Health Benefits." Some of the protesters donned masks resembling the UFT leader with the slogan "WHERE'S MULGREW?" to call out the union head for canceling a "meet and greet" in Queens earlier this month after retirees organized to protest the new Medicare Advantage Plus plan.

WHAT ALBANY'S READING

"N.Y. Governor Hochul and Husband Paid Almost $300,000 in Taxes," by Bloomberg's Laura Nahmias: "New York Governor Kathy Hochul and her husband reported $912,179 in income in 2021 and paid $295,001 in federal and state income taxes, according to their annual return released on Friday. She and her husband Bill, a former U.S. Attorney for the Northern District of New York who now works as general counsel at hospitality company Delaware North, paid an effective federal tax rate of 28.8% and an effective New York state tax rate of 6.84%. Kathy Hochul's total income of $230,123 reflects her salaries as lieutenant governor and as governor, a job she assumed in August 2021 after Andrew Cuomo resigned amid accusations of sexual harassment. Her husband earned $547,434 from his position at Delaware North, along with $3,250 from teaching at the University of Buffalo Law School. The Hochuls also received almost $150,000 in pensions, annuities, capital gains and other unearned income."

— "New York's tax revenue grew more than expected after increasing taxes on wealthier people," by Spectrum's Nick Reisman

MANSION EGG ROLL RETURNS — After a three-year hiatus, the Executive Mansion hosted an Easter event on Saturday. Guests noshed on a menu that included hot dogs and Tater Tots as Gov. Kathy Hochul refereed an egg roll, awarded stuffed animals to the children who found the largest plastic eggs, and posed for photos with guests and the Easter Bunny . No word yet on whether the bunny — who, unlike some people, has never been accused of soliciting campaign contributions in exchange for the gifts they have delivered to children — is in the running to be the next lieutenant governor.

The gathering was the largest event at the mansion since Hochul took office last summer and offered some hints at the decor changes that have been made. There's now a Ping-Pong room near the pool, and there are fewer pieces of unusable antique furniture on display. The prime spot above the fireplace in the parlor that has been filled by a portrait of FDR in the past (and in one very recent administration, a portrait of Mario Cuomo) now contains a drawing of Eleanor Roosevelt. — POLITICO's Bill Mahoney

OPINION: " Kathy Hochul Is Standing on a Very High Glass Cliff," by The New York Times' Jessica Bennett: "Another man, another scandal, another day in New York politics. As she finds herself dealing with yet more misconduct, two questions for Ms. Hochul stand out: Can she prove to voters that the old boys' club was not a necessary ingredient of how state government functioned, but rather an impediment to it? Can she convince the rest of Albany that she has real power, not just the kind to be tolerated until the next man comes along?"

" Public Foots Most of the $1.4 Billion for a Stadium. Buffalo Fans Cheer," by The New York Times' Jesse McKinley: "Just like the Buffalo Bills themselves, who famously lost four straight Super Bowls, there is no question that the team's new $1.4 billion stadium proposal has its doubters. The stadium, to be built across the street from the Bills' current home in this Buffalo suburb, is expected to receive the most generous outlay of public funds for a pro football facility ever, an extension of a decades-long trend in which local and state governments pay big money to keep or lure for-profit, and privately held, sports franchises."

" Gov. Kathy Hochul says she won't shut down NY as COVID cases spike," by New York Post's Sam Raskin: "Gov. Kathy Hochul said in a new interview that New York would never again be crippled by the COVID-19 pandemic, promising, 'I'm not going to shut it down again, you can count on that.' The Democratic Party nominee for governor vowed to not reimpose COVID-related restrictions that ground the state to a halt — as the Big Apple faces an uptick in cases."

GOOD NEWS ON THE ETHICS FRONT: State Comptroller Tom DiNapoli is congratulating himself and his staff after an independent review of the New York State Common Retirement Fund "commended the Comptroller and Fund staff for holding 'themselves to the highest ethical, professional and conflict of interest standards.'" The review by Kroll LLC also found good preparation "for the challenges that the [COVID-19] pandemic posed."

#UpstateAmerica: Here's everything you need to know, and some you didn't, about upstate's newest invasive species, the Asian jumping worm , which can propel itself off the ground "by vigorously thrashing around."

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FROM THE DELEGATION

"Eric Adams backs off proposed chocolate milk ban — for now," by New York Post's Bernadette Hogan and Carl Campanile: "Mayor Eric Adams is backing off his proposed ban on chocolate milk at least for now — and instead urging Congress to pass a law allowing vegetarian alternatives in select New York City schools, according to a letter obtained by The Post. Adams — who follows a mostly vegan diet and has already scheduled plant-based menus in city public schools – assured a nine-member, bipartisan group of New York's Congressional delegation that he won't push for a ban on chocolate milk, at least for now. But he said he intends to pursue a pilot program, as well as federal legislation, requiring plant-based meals."

AROUND NEW YORK

— A judge is considering a shorter sentence for former correction officers union head Norman Seabrook's corruption conviction.

— Upper East Side Assemblymember Rebecca Seawright, who was nearly kicked off the ballot in 2020 over a paperwork error, was cited again by the Board of Elections for filing faulty nominating petitions.

— Overdose deaths in the city increased by 78 percent in the first half of 2021 compared to the same period in 2019.

— A Queens principal accused of faking his school's graduation rates can never again work with city students — but will get a $1.8 million desk job, the New York Post reports.

— Kim Kardashian loves "low-key" Staten Island dates with her "genuine" beau, the king of Staten Island himself, Pete Davidson.

— A bill introduced in the City Council would require school cafeterias to post letter grades.

— The new Mayor's Office of Community Mental Health, the replacement for ThriveNYC, lacks a permanent leader.

— The son of novelist Paul Auster was charged in his baby daughter's heroin overdose death.

— A mid-April snowstorm is expected to bring heavy snow to central and northern New York.

— Upstate school districts are seeing increases in fist fights on the grounds, and superintendents don't know why or what to do.

— Syracuse's iconic Carrier Dome will be getting a new name after more than 40 years.

— A methane project at the Newtown Creek sewage treatment plant has been delayed for years.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: John Podhoretz … White House's Evan Ryan and Kelsey Donohue … Kayleigh McEnany … MSNBC's Ayman Mohyeldin … Rick Kaplan … Ryan Sager … Princeton's Ben Chang … The Atlantic's Sophie Gilbert … Erin Weibel … Doug Baker … John Bello … (was Sunday): CNN's Jim Acosta … NYT's Julie Hirschfeld Davis … WNYC's Michelle Bocanegra, a POLITICO alum … Ieva Augstums … Manhattan GOP Chair Andrea Catsimatidis … Shelly Banjo … Joshua Tucker … Valentina Cano … Steve Somers ... Nadya Belenkiy ... Angelo Roefaro ... Matt Kravitz (h/ts Jewish Insider) … NYSUT regional political organizer Zach Baum

… (was Saturday): Secretary of State Antony Blinken turned 6-0 … Goldman Sachs' John F.W. Rogers … Sally-Shannon Birkel of the U.S. Chamber … Deborah Zabarenko … Reuters' Andy Sullivan … S&P Global's Josh Goldstein … AP's Ted Anthony … NBC's Mosheh Gains … Sarah Butler … Clovis Young … David Zalaznick … Matt Saunders … Geoff Middleberg

Real Estate

"De Blasio Promised $2.2B for Public Housing to Settle a Federal Lawsuit. Tenants Are Still Waiting," by The City's Greg B. Smith: "Atlantic Terminal was one of eight high-rise developments where NYCHA planned to use some of de Blasio's promised windfall to address chronic problems with elevators. To date, work has yet to begin and the elevators remain a persistent nightmare, particularly for the seniors who live there. Over the last two years, the 31-story development has endured 134 elevator outages, records show. Last week one of the development's three lifts were out of service for 75 hours before it was restored. On Tuesday an elevator went out and was still inoperative Wednesday when a reporter for THE CITY stopped by."

"How a Lone Tenant Is Holding Up a $70 Million Condo Deal," by The New York Times' Stefanos Chen: "For 15 years, he has lived in the same apartment — a one-bedroom with an enviable private deck on the top floor of a building on the Upper West Side. So when a developer, the Naftali Group, bought the Manhattan building for $70 million last June and told tenants that they had to move, Mr. Ozsu made plans to stay. He could not be swayed with a buyout offer of $30,000, an eviction notice or even a $25 million lawsuit that Naftali recently filed against him. In April, the new landlord placed an industrial air filter outside Mr. Ozsu's door, and the blower has been droning nonstop, driving him and his 13-year-old boxer-mix, Penelope, up the wall. Still, Mr. Ozsu won't move."