Tuesday, July 19, 2022

POLITICO New York Playbook: Penn Station deal draws debate

Presented by Rise Light & Power: Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
Jul 19, 2022 View in browser
 
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By Erin Durkin, Anna Gronewold and Georgia Rosenberg

Presented by Rise Light & Power

FILE - Commuters walk through the West End Concourse to access the Long Island Rail Road and Penn Station in New York on Thursday, June 15, 2017. A funding agreement has been reached for the multibillion-dollar redevelopment of New York's aging Penn Station, the country's busiest rail hub. Gov. Kathy Hochul and Mayor Eric Adams announced the details on Monday, July 18, 2022.

FILE - Commuters walk through the West End Concourse to access the Long Island Rail Road and Penn Station in New York on Thursday, June 15, 2017. A funding agreement has been reached for the multibillion-dollar redevelopment of New York's aging Penn Station, the country's busiest rail hub. Gov. Kathy Hochul and Mayor Eric Adams announced the details on Monday, July 18, 2022. (AP Photo/Frank Franklin II, File) | Frank Franklin II/ AP Photo/

Love it or hate it, the plan to overhaul widely-reviled Penn Station is one step closer to reality. Gov. Kathy Hochul and Mayor Eric Adams struck a landmark agreement on how to pay for the project, which will include the rehabilitation of North America's busiest rail hub and the construction of several office and residential towers in the surrounding area.

The particulars of the financial deal includes that the state will sell development rights for the new skyscrapers to private developers, who will owe payments in lieu of taxes rather than traditional city property taxes. That money would pay for public space and transit improvements, but only 12.5 percent of the cost of a rebuilding and expansion of Penn Station itself. Lots of federal and state money will be needed to round out the deal.

There's plenty of opposition to the plan, with good government groups and local politicians objecting because it would primarily benefit one developer, Vornado, which owns much of the land around Penn Station. The firm's CEO Steve Roth has given generously to both Hochul and her predecessor Andrew Cuomo, who came up with an earlier version of the plan. Eminent domain could be used to seize properties around the station. The other elephant in the room: How wise an investment is it to build a bunch of massive new Manhattan office towers when it looks like remote work is here to stay and much of the city's existing office space is sitting mostly empty?

On the other hand, just about everyone agrees Penn Station is terrible and needs a facelift, and the state argues this is the best way to do it. Next up, the Empire State Development Corporation and Public Authorities Control Board must vote on the deal. And the state is preparing to apply for funding from the Biden administration's federal infrastructure package, which set aside roughly $30 billion in competitive grants that could go toward rail projects.

IT'S TUESDAY. 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? In New York City making an announcement with Lt. Gov. Antonio Delgado, the New York City District Council of Carpenters and the North Atlantic States Regional Council of Carpenters.

WHERE'S ERIC? Speaking at an AARP virtual town hall, making a social services related announcement and attending a Mayors Against Illegal Guns dinner.

 

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What City Hall's reading

Council progressives apologize for OK'ing school budget cuts as lawsuit looms, by POLITICO's Madina Touré: Members of the City Council's Progressive Caucus apologized Monday for approving public school budget cuts they did not understand, as a group of parents and teachers filed a lawsuit to block the cuts and toss the budget the Council passed last month. The Council members and advocates rallied on the steps of Tweed Courthouse in Lower Manhattan, the Department of Education's headquarters, Monday morning to push the city to restore the funding. Council Member Shahana Hanif, the caucus' co-chair, said she is "deeply regretful" she voted for the budget — which was passed three weeks early over the protestations from a breakaway group of caucus stalwarts who later claimed Council Speaker Adrienne Adams punished them for their insolence.

"Debate Over Monkeypox Messaging Divides N.Y.C. Health Department," by the New York Times' Joseph Goldstein : "The spread of monkeypox has ignited a debate within the New York City Health Department over whether the agency should encourage gay men to reduce their number of sexual partners during this summer's outbreak. Inside the department, officials are battling over public messaging as the number of monkeypox cases has nearly tripled in the last week, nearly all of them among men who have sex with men. A few epidemiologists say the city should be encouraging gay men to temporarily change their sexual behavior while the disease spreads, while other officials argue that approach would stigmatize gay men and would backfire."

"For Monkeypox Patients, Excruciating Symptoms and a Struggle for Care," by the New York Times' Sharon Otterman: "Although he was covered with lesions, it took four hours of phone calls, and then five hours in a Harlem emergency room, for Gabriel Morales to be tested for the monkeypox virus earlier this month. And that was just the beginning of his wait. Mr. Morales was sent home and told the Department of Health would call with his results in less than a week. The call never came. He spent the next eight days alone in his apartment in what he described as excruciating pain, trying to find someone to prescribe him pain medication and a hard-to-access antiviral drug."

"They Donated to the Brooklyn Democratic Machine. Now They Want to Be Judges," by The City's George Joseph and Yoav Gonen : "Aaron Maslow has given a lot to the Brooklyn Democratic Party machine. He's spent hours binding petition volumes to get candidates supported by the establishment onto the ballot. He's sat through interminable Zoom meetings to fight progressives demanding rules changes. He's poured more than $30,000 of his own money into paying for mailers and donating to campaign accounts to help establishment-allied leaders, especially his wife. Now, he's seeking a return on investment. Last month, Maslow resigned from his post as a secretary for the Brooklyn Democratic Party and announced his candidacy for a seat on Brooklyn's Supreme Court, which handles serious felonies and high-dollar civil claims."

 

HAVE QUESTIONS ABOUT ROE BEING OVERTURNED? JOIN WOMEN RULE ON 7/21: Now that the Supreme Court has overturned Roe v. Wade , abortion policy is in the hands of the states and, ultimately, voters. Join POLITICO national political correspondent Elena Schneider for a Women Rule "ask me anything" conversation featuring a panel of reporters from our politics and health care teams who will answer your questions about how the court's decision could play out in different states, its impact on the midterms and what it means for reproductive rights in the U.S. going forward. SUBMIT YOUR QUESTIONS AND REGISTER HERE.

 
 
WHAT ALBANY'S READING

Kathy Hochul speaks during her primary election night party in New York.

New York Gov. Kathy Hochul speaks during her primary election night party on June 28, 2022, in New York. | Mary Altaffer/AP Photo

"Carpenters union plans to spend $1M to help Hochul, Democrats," by Times Union's Chris Bragg: "A labor union representing 15,000 New York carpenters is planning to spend approximately $1 million to try and influence the outcome of November's general election — with the bulk of that money going to help Democratic Gov. Kathy Hochul. For the North Atlantic States Regional Council of Carpenters — which represents all union carpenters in New York outside New York City — heavy outside spending to help candidates is a new venture, according to the political consultant running the effort. While the union has historically been politically active during election season, 'given what's at stake this fall for the working class, they decided on a more robust voter contact and education effort,' said Neal Kwatra, a longtime labor strategist and the founder of the New York City-based political consulting firm Metropolitan Public Strategies, which is managing the carpenters' expenditure campaign.'"

"NY gubernatorial nominee Lee Zeldin wants to fire Manhattan D.A. Alvin Bragg. It's not that easy. " by WNYC's Brigid Bergin: "'One thing is clear: the governor may have the authority to initiate removal proceedings but can't do it unilaterally without due process,' Goldfeder said. The governor's authority to initiate the dismissal proceedings is derived from Section 13 of the state constitution and Section 34 of the Public Officers Law. The law also applies to elected sheriffs and county clerks, in addition to district attorneys. According to the state constitution: 'The governor may remove any elective sheriff, county clerk, district attorney or register within the term for which he or she shall have been elected; but before so doing the governor shall give to such officer a copy of the charges against him or her and an opportunity of being heard in his or her defense.'

"Taken together, the laws indicate that the governor would need to provide written notice to the official, conduct an investigation and hold a hearing at least eight days after the official notice has been provided. The person facing removal would also have an opportunity to be heard in his or her self-defense. A spokesperson for Zeldin's campaign did not respond to a Gothamist inquiry about what charges Bragg would face."

"Here's the $93K proof Andrew Cuomo tried to make a political comeback," by New York Post's Carl Campanile: "Disgraced ex-Gov. Andrew Cuomo paid a veteran pollster $93,000 as he weighed a political comeback — potentially a challenge of Gov. Kathy Hochul — this year, a new filing reveals. Cuomo tapped the firm Expedition Strategies to test the waters, with a payment of $93,211 recorded on May 31… State Democratic Party chairman Jay Jacobs said, 'I don't think you poll unless you're looking to run in a future election. If he polled in the governor's race, it showed Kathy Hochul was strong and one would be dissuaded from running.'"

MAKING MOVES (BACK TO COMMS IN THE CAPITOL): Gary Ginsburg, a previous deputy communications director for the state Senate, will start as the Albany-based deputy communications director for the Office of the Attorney General on Thursday. Ginsburg — an alum of Shelly Silver, Gov. David Paterson and Gov. Andrew Cuomo offices — has been director of Senate Services for the past 18 months. In his free time, he's been president of Temple Israel of Albany, served on his synagogue board, on the Jewish Federation of Northeastern New York's Board of Directors and more recently the Albany County Planning Board. — Anna Gronewold

FIRST IN PLAYBOOK — The United Federation of Teachers, Council of School Supervisors and Administrators and New York State Nurses Association are endorsing state Sen. Gustavo Rivera, who is up against a primary challenger backed by the Bronx Democratic party after redistricting scrambled district lines in the area. The political arms of the New York Immigration Coalition and Make the Road New York are also backing Rivera. The Bronx state senator is running against Miguelina Camilo, an attorney who is supported by the borough party machine, in the August primary. "I am very proud of my long record of supporting the working people of New York," Rivera said. — Erin Durkin

#UpstateAmerica: A Lake Placid compound with a treehouse, tennis court, basketball court, underground shooting range and snow sledding toboggan hill is now up for grabs for a cool $31 million.

 

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FROM THE DELEGATION

"Carolyn Maloney Uses Personal Fortune in Primary Against Jerrold Nadler," by the New York Times' Nicholas Fandos: "Representative Carolyn Maloney of New York holds a commanding financial advantage over her crosstown Democratic primary opponent, Representative Jerrold Nadler, thanks to a familiar benefactor: herself. She personally lent her campaign $900,000, according to new filings released late Friday. The loan, combined with another $600,000 or so in outside donations in the second quarter, gives Ms. Maloney $2 million in the bank to spend on a final blitz before the Aug. 23 primary, a closely watched and highly abbreviated contest between two long-serving House committee leaders."

"11 days in the life of Rep. Chris Jacobs: from gun enthusiast to skeptic," by Buffalo News' Jerry Zremski and Robert McCarthy: "Eleven days before a racist gunman rampaged through a Buffalo supermarket on May 14, Rep. Chris Jacobs joined a group of Second Amendment advocates in rural West Falls to film an ad for his re-election campaign. The hunters and gun rights backers he consistently supported as a Second Amendment champion volunteered their help that morning, and the Republican congressman from Orchard Park even sported a shotgun for a crew filming for television this fall. The ad will never run. After 10 Black Buffalonians were killed in the Jefferson Avenue Tops Markets, Jacobs began to see the world differently. According to many of those who know him best, as well as the congressman himself, the tragedy affected him in a profound way – enough for him to reject his past alliance with the National Rifle Association and its absolute rejection of gun control measures, and ultimately, to end his political career."

"De Blasio Scores Campaign Cash from Subjects of His Ethics Probes — While Rival Rivera Scoops Up Ex-Supporters ," by The City's Greg B. Smith: "In his bid to win a seat in Congress, former Mayor Bill de Blasio has turned to a familiar cast of deep-pocketed donors — including several whose prior contributions surfaced in the pay-to-play corruption allegations that dogged him throughout his time at City Hall. He's also hit up a clique of insiders he'd awarded plum political appointments or top-level jobs at City Hall, although many have jumped ship and are now supporting his rivals in the Congressional District 10 race."

FIRST IN PLAYBOOK: Sen. Ed Markey (D-Mass.) endorsed Rep. Mondaire Jones for the open congressional seat that stretches from Lower Manhattan to Brooklyn. "We need Mondaire Jones because he is the leader that this time demands," Markey said in a video to be released Tuesday featuring the pair talking against a leafy backdrop. In the spot, Markey speaks approvingly of Jones' work on the environment and healthcare and says the freshman lawmaker is leading the effort to expand the U.S. Supreme Court. The nod is the second from a sitting senator after Jones gained the backing of Sen. Cory Booker (D.-N.J.) earlier this month. Jones, who currently represents parts of Westchester and Rockland counties, opted to run for the seat in the Aug. 23 primary after redistricting upended the congressional landscape. He recently moved to Carroll Gardens. — Joe Anuta

 

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TRUMP'S NEW YORK

"Trump donors ran $27 million real estate and green card scam: feds," by New York Daily News' John Annese: "Two major Trump donors from Long Island ran a multimillion-dollar immigration fraud scheme, tricking foreigners into believing they'd get green cards and political access for investing in an upstate real estate project, federal prosecutors charge. Sherry Li and Lianbo (Mike) Wang — who pumped more than $600,000 into President Donald Trump's failed re-election campaign — were charged Monday in Brooklyn Federal Court. Li was photographed with Trump and First Lady Melania Trump at a 2017 fundraiser. She and Wang are accused of running the $27 million real estate scam and acting as straw donors to help foreigners skirt bans on U.S. political contributions and gain access to politicians."

AROUND NEW YORK

Lifeguards look on as beach-goers enjoy the surf at Smith Point County Park, a Long Island beach where a shark bit a lifeguard 10 days earlier, Friday, July 15, 2022, in Shirley, N.Y. Shark sightings were relatively rare in the region until recently. Experts say cleaner oceans, warmer waters and a resurgence of the bunker fish that sharks feed on are among the reasons for the growing shark population. (AP Photo/John Minchillo)

Lifeguards look on as beach-goers enjoy the surf at Smith Point County Park, a Long Island beach where a shark bit a lifeguard 10 days earlier, Friday, July 15, 2022, in Shirley, N.Y. Shark sightings were relatively rare in the region until recently. Experts say cleaner oceans, warmer waters and a resurgence of the bunker fish that sharks feed on are among the reasons for the growing shark population. (AP Photo/John Minchillo) | John Minchillo/AP Photo

— Gov. Kathy Hochul ordered more shark patrols off Long Island.

— A Parks Department worker fatally ran over a man sleeping on the Coney Island beach.

— Mayor Eric Adams called on President Biden to fix a glitch in the new federal mental health emergency hotline that blocks callers with non-New York area codes from getting city services.

— Hale and Hearty has shuttered all of its locations.

— It's going to get really hot.

— DEC head Basil Seggos said the state's green amendment is not defined enough to make policy decisions, including one about air permits for a fossil fuel plant in the Finger Lakes.

— The state bypassed consultations with the full Opioid Settlement Fund Advisory Board before allocating millions of settlement fund dollars.

 

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SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Eric Lichtblau ... NBC's Alex JohnsonKeegan Bales … WSJ's Rebecca Ballhaus Daniel Kile of Vanity Fair … Ruby Gordon of FTI Consulting … The Nation's Atossa Araxia Abrahamian Matt Speno George BanRamona Leor Shelburne

MAKING MOVES — Charlotte Levitt is joining the Citizens Budget Commission as vice president for strategy and communications. She was previously director of marketing and digital communications at the New York City Campaign Finance Board. … Varuna Bhattacharyya has joined Bryan Cave Leighton Paisner as a partner in its New York office. She most recently had a commercial real estate finance practice at King & Spalding.

Real Estate

"Pressed for Shelter Space, NYC Turns to Notorious Landlords with Ties to Mayor's Chief of Staff," by City Limits' David Brand: "With the number of families in homeless shelters on the rise, New York City officials have once again turned to a pair of notorious landlords closely aligned with Mayor Eric Adams' top aide to secure extra bed space. Brothers Stuart and Jay Podolsky—long known for profiting off of poorly-maintained housing, and who are recent clients of Adams' Chief of Staff Frank Carone—are leasing at least three of their hotels to the city for use as shelters for homeless families. The sites include the Marcel in Gramercy, which reopened to homeless families earlier this month; the Apollo in Harlem, where staff said families began staying July 2; and the Ellington in Morningside Heights, where work crews began prepping for the return of homeless residents in June after the city moved families out a year earlier."

City finishes first leg of long-delayed East Side flood protections, by POLITICO's Georgia Rosenberg and Danielle Muoio Dunn: The first section of New York City's East Side Coastal Resiliency Project, designed to offer flood protection to Manhattan's eastern waterfront as the effects of climate change worsen, has been completed, Mayor Eric Adams announced on Monday. The northern portion of the $1.45 billion storm surge protection project is located at Asser Levy Playground and includes 'resilient' play areas designed to survive flooding, 320 feet of floodwall and a new 79-foot-long, 45-ton steel floodgate.

 

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