| | | | |  | | By Erin Durkin, Anna Gronewold and Julian Shen-Berro | Presented by Con Edison | New York has earmarked $200 million for an ambitious push to turn hotel rooms into affordable housing — but hasn't created a single apartment. Despite high hopes earlier in the Covid-19 pandemic, our Janaki Chadha reports that the program is now looking like a total bust. It seemed like such a good idea at the time, at the height of the pandemic, when hotel rooms were sitting empty. And other places have actually pulled it off: California has created 12,500 homes over the last two years out of former hotel rooms. Why not here? In part, it's due to the political influence of the powerful Hotel Trades Council. Add in a slow-moving bureaucracy, and the window to make it happen may have closed. New York City Mayor Eric Adams was bullish on the hotel conversion idea on the campaign trail, calling it a "once-in-generation opportunity" and vowing to turn 25,000 hotel rooms into much-needed apartments. But rules of a program established by the state say that hotel owners who employ unionized staff must get HTC's approval to sell, which is unlikely to ever happen. That essentially limits the program to non-union hotels, which are more likely to be smaller and setup in more remote locations. The state has received just four proposals from developers in New York City for conversions, and one outside the city. Even those are at the earliest stages of a long review process. And now tourism is roaring back, making it less likely that hotel owners will want to sell. This month, hotel rooms are 81.2 percent occupied — up from 39.1 percent at the same time in 2020, according to research firm STR, and only slightly below the 87.3 percent rate seen pre-pandemic in 2019. "There was this really amazing opportunity for the city to purchase hotels at a very steep discount," said Brenda Rosen, president of the housing provider Breaking Ground. "But now with the return of tourism, and people coming back to work and people traveling back into the city for conferences and other things, that opportunity is not nearly as great. I'd argue that it's basically slipped away." 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? In Erie County, New York City and Washington, D.C. WHERE'S ERIC? Speaking at the Concordia Annual Summit, making a technology announcement, speaking at a ribbon cutting for Monday.com's North American headquarters, meeting with the Mayor of Bristol Marvin Rees, attending an event for the Clinton Global Initiative, and speaking at the 10th anniversary celebration of the NYC Hospitality Alliance.
| | A message from Con Edison: Con Edison is building a clean energy grid that meets every New Yorker's electrification needs. This includes developing "clean energy hubs" to connect up to 6,000 megawatts of offshore wind. Vital to that effort is a plan to replace three old fossil fuel plants with the Brooklyn Clean Energy Hub, a $1 billion facility connecting massive amounts of offshore wind to our grid and providing clean energy—for generations to come. See Our Energy Future | | | |  | What City Hall's reading | | New York City considers legal action against Texas over migrant buses, by POLITICO's Erin Durkin: New York City is eyeing legal action to stop Texas Gov. Greg Abbott from sending more buses full of asylum seekers to the city, Mayor Eric Adams said Sunday. As at least six more buses from Texas arrived in the city Sunday morning, Adams also floated the idea of using cruise ships to house migrants who have been entering city homeless shelters by the thousands. "Our legal team is looking at legal challenges we could do with Texas," Adams said in an appearance on CBS 2. "We believe there are some options we have, because when you involuntarily place someone on a bus, we believe that actually skates the law. … We're not leaving any stones unturned to make sure that New Yorkers are [not] being treated in an unfair way." — Outside of the buses sent by Texas, many migrants are choosing to travel to New York City on their own. — " Eric Adams Considers Housing Migrants on Cruise Ships," by The New York Times' Emma G. Fitzsimmons: "The mayor's chief of staff, Frank Carone, has spoken with leaders of Norwegian Cruise Line, a major cruise ship company, to discuss the possibility of housing asylum seekers on one of its ships, according to someone familiar with the matter who spoke on the condition of anonymity to discuss a sensitive matter. Mr. Carone stayed on one of the company's cruise ships in Normandy, France, last month, as part of the administration's research, the person said. Mr. Adams, a Democrat, met with the company's chief executive, Frank Del Rio, on June 12 at a high-rise building on East 57th Street in Manhattan, according to the mayor's detailed schedules, which were recently released through a Freedom of Information request by The New York Times." Crime up and housing down in mixed report card for mayoral transition period, by POLITICO's Sally Goldenberg and Joe Anuta: Violent crime soared and more people were sent to jail, while housing production plummeted and student attendance hit a five-year low in a 12-month period covering the start of Mayor Eric Adams' administration and the end of his predecessor's tenure, new data Friday showed. An annual report of detailed data from every city agency revealed the trends, while also highlighting the new mayor's focus on making his administration more responsive and accessible to the city's 8.4 million residents. — Affordable housing production drops in New York City, report shows, by POLITICO's Janaki Chadha: As New York City struggles with skyrocketing rents and a ballooning homelessness crisis, city-financed affordable housing production saw a 45 percent drop over the last fiscal year — which includes the first six months of Mayor Eric Adams' term, new data on Friday showed. … The Department of Housing Preservation and Development financed the creation and preservation of 16,042 affordable homes during fiscal year 2022, a significant decline from the 29,408 homes financed during the prior fiscal year. — " Response times to NYC crimes, fires and medical emergencies soar," by New York Post's Rich Calder " NYC converting unused train tracks into QueensWay park, a blow to hopes for new subway," by New York Post's Nolan Hicks and Steven Vago: "Mayor Eric Adams announced Friday that the Big Apple will spend $35 million to help convert unused train tracks in Queens into a park — a plan critics say could prevent restoring transit service to the area. The funds will pay for the design and construction of the first phase of the estimated $150 million QueensWay project, which boosters say will transform a deserted 3.5-mile stretch of railroad into a network of green spaces and bike and pedestrian paths spanning from Rego Park to Ozone Park. 'Queens Way improves quality of life, it improves the air quality,' said Adams at a photo opportunity announcing the funding." "850 more unvaxxed NYC teachers, aides fired for not complying with mandate," by New York Post's Susan Edelman " Environmental study of congestion-pricing plans has Bronx residents asking: What's in it for us?" by Gothamist's Arya Sundaram: "Plans to reduce traffic and pollution in New York City, on the wish list of environmentalists since the early 20th century, could have the opposite effect in the Bronx, according to a long-awaited assessment of plans to toll vehicles entering Manhattan south of 60th Street. The Cross Bronx Expressway would experience more traffic — potentially upward of 700 extra trucks a day — under all of the seven scenarios of congestion pricing studied by researchers, according to a report released by the Metropolitan Transportation Authority and being shared with communities."
| | | | JOIN THURSDAY FOR A GLOBAL INSIDER INTERVIEW : From climate change to public health emergencies and a gloomy global economic outlook, the world continues to deal with overlapping crises. How do we best confront all of these issues? Join POLITICO Live on Thursday, Sept. 22 at 10:30 a.m. EDT for a virtual conversation with Global Insider author Ryan Heath, featuring World Bank President David Malpass, to explore what it will take to restore global stability and avoid a prolonged recession. REGISTER HERE. | | | | | | | WHAT ALBANY'S READING | | "Investigation of fraudulent nominating petitions moving forward," by Times Union's Brendan J. Lyons and Chris Bragg: "Investigators with the Albany County District Attorney's office and the state Board of Elections are moving forward with an investigation that's focusing on thousands of duplicate signatures that were submitted in nominating petitions in an effort to secure the Independence Party ballot line for Republican gubernatorial candidate U.S. Rep. Lee Zeldin. Zeldin's campaign was not directly involved in submitting the petitions — an effort that was handled by the state Republican Party under the direction of John F. Haggerty, Jr., a longtime GOP operative from Queens who serves in a leadership role for the state party, according to a person briefed on the work." "At Amherst church, Gov. Kathy Hochul mixes politics and religion," by Buffalo News' Charlie Specht: "She stressed her low-income childhood and her trailer park roots. She said she lives just 10 minutes from the Tops supermarket where a white supremacist gunned down 10 people on Buffalo's East Side. She even introduced her husband as 'Barack Obama's United States attorney.' At a predominantly African American church in Amherst, Gov. Kathy Hochul – campaigning for what would be her first full term as governor – on Sunday stressed her response to the Tops massacre as proof that she has delivered for the Black community and for all of Western New York." " New York state shuts down COVID-19 data tracker for schools," by Gothamist's Nsikan Akpan: "The COVID-19 Report Card, a long-running collection of public health data from schools across New York, has been taken offline. Concerned New York City parents noticed this week that the report card's webpage — schoolcovidreportcard.health.ny.gov — now redirects to the New York State Department of Health's main page on its COVID-19 response. But the pivot was made over the summer, according to Cadence Acquaviva, a spokesperson for the state health department. The agency also wouldn't rule out shuttering other COVID-19 trackers in the future." FOR HURRICANE FIONA, HOCHUL SAYS NY STANDS READY: "New York and Puerto Rico share a special bond, and I know many New Yorkers are concerned for the safety and well-being of friends and loved ones currently on the Island during Hurricane Fiona. I am praying for the people of Puerto Rico and my thoughts are also with our Puerto Rican community here in New York," the governor said in a statement Sunday. "With expected flooding, mudslides and blackouts, conditions are extremely dangerous and I urge everyone to remain safe and listen to direction from local authorities," she added. "The New York State Division of Homeland Security and Emergency Services is monitoring the storm closely and will be able to rapidly deploy assistance if requested by the federal government and Puerto Rico. New York will always stand with and support Puerto Rico." #UpstateAmerica: Some celebrities see the sights or hole up in hotel rooms while on tour; Alice Cooper runs errands. Cooper was spotted at a local Walmart shopping for Halloween decorations and getting his haircut at a State Street salon.
| | | | A message from Con Edison:   | | | | | AROUND NEW YORK | | — New York's reputation as the city that never sleeps may be in jeopardy as more spots are closing early. — Republican gubernatorial nominee Rep. Lee Zeldin called for the state parole board to be overhauled. — A new bill in the state Legislature would require NYCHA to provide residents with free food if their drinking water gets cut off. — The state is trying to streamline the immigration process for an estimated 800,000 New Yorkers who are eligible to naturalize. — "Children's Drownings Mark the End of a Mother's Descent" — The MTA named a weekend service czar to improve Saturday and Sunday travel. — "Phantom of the Opera" will close on Broadway after a 35-year run. — Unfolded strollers will be allowed on seven bus routes starting this week. — A man wielding an ax terrorized patrons at a Manhattan McDonald's. — Hell's Kitchen residents have formed a squad to kill spotted lanternflies. — An 8-year-old girl was killed and two adults seriously injured in a Queens house fire caused by a lithium battery. — NYU allowed a law student mom to bring her baby to campus, after previously barring the infant because he is too young to be vaccinated against Covid-19. — Hospital executives in New York got big(ger) bucks during the pandemic. — A retiring NYPD lieutenant had been facing discipline for 52 substantiated allegations of misconduct. — A surge in NYPD pedestrian stops has advocates concerned. — No, the new Chick-fil-A on the state Thruway in central New York won't be open on Sundays, keeping with company policy.
| | | | Join POLITICO Live on Tuesday, Sept. 20 to dive into how federal regulators, members of Congress, and the White House are seeking to write the rules on digital currencies, including stablecoins. The panel will also cover the tax implications of crypto, which could be an impediment to broader adoption and the geopolitical factors that the U.S. is considering as it begins to draw regulatory frameworks for crypto. REGISTER HERE. | | | | | | | SOCIAL DATA BY DANIEL LIPPMAN | | HAPPY BIRTHDAY: Smithsonian Magazine's Teddy Scheinman … Jeannie Bunton of the Consumer Bankers Association … Barry Scheck … Monica Crowley … Penguin Random House's Stuart Applebaum … Jeremy John, chief of staff to the City Council Speaker … (was Sunday): Tali Farhadian Weinstein (h/t Jennifer McPartland) … WaPo's Desmond Butler is 5-0 … Joan Walsh of The Nation … Jackie Calmes of the L.A. Times … Jason Horowitz … Adam Keiper … Cheddar's Baker Machado … Edelman's Andrew Church … Erin Madigan White … Guardian's Chris Taylor … Lyft's Benjamin Dye … Lisa Abramowicz … … (was Saturday): David Litt … Richard Wolffe of The Guardian … Bloomberg's Emily Birnbaum … Matthew Boyse … NBC's Henry Gomez ... Marin Cogan … Sergio Rodriguera … Peter J. Solomon ... Frank Hagelberg … Don Baer … Deanna Rosenberg MAKING MOVES — Ann Cheng has been named deputy director of the Mayor's Office of Policy and Planning. She was previously an assistant commissioner at the Office of Labor Relations and a deputy chief of staff to Mayor Bill de Blasio. … Dan Lemire has been promoted to be legislative assistant for Rep. Joe Morelle (D-N.Y.). He most recently was a legislative aide for Morelle. WEEKEND WEDDING — Rob Blanchard , AVP at communications consultancy Prosek Partners based in New York and an alum of Connecticut Gov. Ned Lamont, married Samantha Norton, media relations director at Proskauer Rose and an alum of Connecticut Lt. Gov. Susan Bysiewicz. The couple met while crisscrossing Connecticut during the 2018 mid-term elections on Ned Lamont's gubernatorial campaign and married lakeside at Murphy's Farm in Quechee, Vt., on Saturday.
| | A message from Con Edison: "Clean energy hubs" are just one part of the picture: Con Edison is also investing in peak demand reduction strategies, new electric substations, and local transmission initiatives like Reliable Clean City projects—a trio of electric transmission projects that will connect communities in New York City's outer boroughs to a supply of increasingly renewable electricity. Every one of these investments is a step toward preparing the grid to deliver 100 percent clean energy to all customers by 2040.
See Our Energy Future | | | | | Real Estate | | "Is New York City Finally Returning to the Office?" by The New York Times' Nicole Hong and Emma Goldberg: "This week, Mick Magsino fired up his commuting playlist with Arcade Fire and U2 as he resumed his 40-minute subway ride to work. For the first time since the pandemic started, Mr. Magsino decided that he was going to return twice a week to his office near Times Square. His company was not mandating a return, and Mr. Magsino described the Times Square area that is once again swarming with tourists as 'horrific.' But after two and a half years of working from home in Brooklyn, he said he missed the lunchtime halal carts and the camaraderie of talking sports with colleagues. 'I want a change of atmosphere,' said Mr. Magsino, who works in media sales. 'As a New Yorker, I think it's important to go back, to support local businesses and the delis and the cart guys,' he added." "City to Announce Free Internet and Cable for Thousands of NYCHA Residents," by Gotham Gazette's Samar Khurshid: "Mayor Eric Adams is expected to announce a new program on Monday to provide free high-speed internet and basic cable TV to thousands of public housing residents. The program, called Big Apple Connect, is a partnership between the New York City Office of Technology and Innovation and internet service providers that serve the New York City Housing Authority (NYCHA), which is home to more than 400,000 New Yorkers. Though the plan has yet to be made public by the mayor's office, one of the providers, Optimum, has already publicly posted details of its collaboration with the city." "Evictions slowly ramp up after COVID-19," by City & State's Tim Murphy: "Based on data from the New York City Department of Investigation, the rate of evictions that were being carried out, which has always been low compared to the total number of eviction cases filed, plunged to basically zero in 2020. But after the eviction moratorium ended on Jan. 15, evictions, although still very low, have crept up since then, from three in March-June 2020 and 10 in January-June 2021 to 718 in the first six months of this year, according to data from the NYU Furman Center." | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
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