Monday, July 10, 2023

$1.4B Cuomo project tied to straw-donor scheme

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Jul 10, 2023 View in browser
 
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By Maya Kaufman, Julia Marsh, Joseph Spector and Hajah Bah

Andrew Cuomo prepares to board a helicopter

Former New York Gov. Andrew Cuomo prepares to board a helicopter in August 2021, in New York. | AP Photo/Seth Wenig

Friday's indictment of Eric Adams' supporters over an alleged straw-donor scheme mentions a New York City construction project — one that's part of former Gov. Andrew Cuomo's $1.4 billion revitalization plan for central Brooklyn.

One of the alleged ringleaders of the bundling scheme — construction contractor Shamsuddin Riza — forwarded an email to his alleged co-conspirator, former NYPD inspector Dwayne Montgomery, in July 2021 about Vital Brooklyn.

“FYI ! This is the one I want,” Riza allegedly wrote to Montgomery, who was a former colleague of Adams on the police department, according to court papers. “Please show to him before Event it will start when he’s in office."

Riza and Montgomery allegedly planned to use tens of thousands of dollars they funneled to Adams’ campaign to obtain lucrative city contracts once he was in office.

Adams was not implicated in the scheme, and there’s no evidence the duo has done any business with the administration.

The $86 million project they hoped to cash in on, Vital Brookdale in Brownsville, was a part of Cuomo's $1.4 billion revitalization plan. It includes 160 affordable and supportive homes and over 25,000 square feet of health-focused community space.

It was the first of 10 affordable housing developments to be completed under the larger Vital Brooklyn initiative.

And it’s the same project that was named in an earlier indictment of a different construction contractor as part of an alleged fraud scheme to make it appear that minority-owned and women-owned firms were building affordable housing. In reality, a minority-owned/women-owned firm was simply taking a kickback for being the face of the project while another, non-minority led business did all the work, according to the May indictment from District Attorney Alvin Bragg.

Cuomo launched Vital Brooklyn in spring 2017 to address historic inequities and disinvestment in central Brooklyn.

He wanted to reform the region’s health care infrastructure through the consolidation of Kingsbrook Jewish, Brookdale and Interfaith Medical Centers. The initiative also included hundreds of millions in state funds for affordable housing and community benefits.

IT’S MONDAY.

WHERE’S KATHY? In Erie County monitoring statewide storm developments.

WHERE’S ERIC? Making a public health and law enforcement-related announcement and appearing live on Hot 97 with DJ Funkmaster Flex.

QUOTE OF THE DAY: “He claimed massive election fraud but had no evidence of it.” — A Washington, D.C.-based bar discipline committee on why Rudy Giuliani should be disbarred over efforts to derail the 2020 presidential election.

 

JOIN 7/11 FOR A TALK ON THE FAA’S FUTURE: Congress is making moves to pass the FAA Reauthorization Act, laying the groundwork for the FAA’s long-term agenda to modernize the aviation sector to meet the challenges of today and innovate for tomorrow. Join POLITICO on July 11 to discuss what will make it into the final reauthorization bill and examine how reauthorization will reshape FAA’s priorities and authorities. REGISTER HERE.

 
 
ABOVE THE FOLD

Vehicles come to a standstill near a washed-out and flooded portion of the Palisades Parkway

Vehicles come to a standstill near a washed-out and flooded portion of the Palisades Parkway on Sunday, July 9, 2023, in Orange County, N.Y. | AP Photo/David Bauder

HEAVY RAIN IN HUDSON VALLEY: What was being deemed a “once-in-1,000 year rainfall event” crippled parts of the Hudson Valley — particularly in Rockland and Orange counties — after as much as eight inches of rain hit the region Sunday evening.

The windy roads near West Point were under water, and Gov. Kathy Hochul said roads in some parts of Orange County were impassable, warning that the next day or two would be a difficult stretch for the area.

She declared a state of emergency in the county.

Metro-North Railroad service between Croton-Harmon and Poughkeepsie was suspended “and is expected to remain unavailable at least through the day Monday,” the MTA said late Sunday.

STAFFING LEVELS: The state Department of Health is beefing up its oversight of staffing at hospitals and nursing homes across New York.

This comes two years after the creation of two new state laws meant to target understaffing in those health care facilities.

On Monday, the department plans to begin assessing compliance with a 2021 state law setting minimum staffing requirements at nursing homes across New York, officials wrote in a letter to facility administrators.

The first assessments will analyze nursing homes’ staffing levels during the second quarter of 2022. Facilities found in violation of any of the three standards — which set minimum daily average staffing hours for nurse aides, for registered or licensed practical nurses, and total — will be subject to fines of up to $2,000 per day.

The latest staffing plans were due July 1, but the department is giving hospitals until Aug. 15 to submit plans for non-inpatient units. — Maya Kaufman

WHAT CITY HALL IS READING

Migrants directed to walk across Manhattan from Port Authority as city cuts free buses, by Gothamist’s Elizabeth Kim: “Kate Smart, a spokesperson for Adams, said on Saturday the city is redirecting bus service provided by the MTA. Instead of taking migrants from Port Authority to the Roosevelt Hotel, the agency’s buses will take migrants from the Roosevelt Hotel to their final shelter placements, Smart said.”

NYC officials encourage tranq addicts to use ‘zombie drug’ under supervision, by New York Post’s Rich Calder and Mathew Sedacca: “And the agency recommends anyone who believes their drugs contain xylazine ‘avoid’ using them, ‘especially alone or in a place where it might be dangerous to be unconscious for a long time.’"

Rudy Giuliani should be disbarred for false election fraud claims that have ‘destabalized democracy,’ panel says, by Daily News’ Muri Assunção

WHAT ALBANY'S READING

Cuomo's attorney pushes for records from his sex harassment case, by Times Union’s Brendan J. Lyons

Passport delays: Understaffing, surge in demand frustrate New Yorkers trying to travel, by Newsday’s Nicholas Spangler: “According to the State Department, almost 22 million passports were issued in fiscal year 2022, the most in history; 151 million passports were in circulation. In New York, 1.4 million passports were issued, making it one of the highest demand states in the country.”

Fire on Newark Ship Is Slowly Being Contained, Coast Guard Says, by The New York Times’ Maria Cramer: “Emergency workers had contained a fatal fire aboard a cargo ship at Port Newark, N.J., to its 11th deck and had reduced the risk that it could capsize, officials said on Sunday."

FROM THE DELEGATION

Rep. George Santos (R-N.Y.) departs Capitol Hill.

Rep. George Santos (R-N.Y.) departs Capitol Hill in Washington, Wednesday, Jan. 11, 2023. | Patrick Semansky/AP Photo

SANTOS WATCH: Zak Malamed — a Democrat hoping to win next year’s primary (if there is a primary) and ultimately unseat serial liar George Santos — raised $417,345 during the second quarter of the year, his campaign told POLITICO.

The hefty sum comes as Malamed hopes to stand out from an increasingly crowded field of fellow Democrats looking to take the seat back from Republicans.

The 29-year-old runs a national donor network focused on electing Democrats under the age of 50, an association that could come in handy now that he is raising cash for his own race.

Officials tallies for the field in NY-3 are due to the Federal Election Commission later this month, which will show how Malamed stacks up against his competitors.

“We’re off to a really strong start and working hard to unite people around our common fight — to bring fresh leadership to Congress and put an end to the Santos circus,” Malamed said in a statement. — Joe Anuta

AROUND NEW YORK

Some state lawmakers want to end legacy admissions on college campuses. (NY1)

A bomb threat forced the cancellation of the Noel Gallagher show at the Saratoga Performing Arts Center. (Times Union)

Not enough money from the state’s opioid fund is going out to programs and services. (Buffalo News)

 

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SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: POLITICO’s Sam Stein … CBS’ Shawna Thomas … MSNBC’s Kyle Griffin … White & Case’s Keir WhitsonStephonn Alcorn … WSJ’s Heather Haddon … Insider’s Catherine Boudreau Owen Karrel Tamarack Garlow Remley Flock Phil Hedayatnia Elie Jacobs Kayla M. Sanders

… (was Sunday): ABC’s Luke Barr Patrick Steel … ACLU’s Anthony Romero … NBC’s Amanda TerkelFloyd Abrams … NYT’s Amy Fiscus … AP’s Tom BeaumontDonna Imperato of BCW … CNN’s Jeff Simon Jordan Belfort ... Eli Lake ... Lori RothmanMatt Samuels 

… (was Saturday): Steve Holland of Reuters … NYT’s Lara Jakes Anna Quindlen ... Arlie Ziskend Bill HinkleJim Miklaszewski Doug BelkinChristian Sherrill

WELCOME TO THE WORLD — Daniel Reynolds, assistant director for finance at The Hartford, and Alia Reynolds on June 29 welcomed Leila Babette Reynolds, who joins big sister Vivienne. Pic

MAKING MOVES — Lauren Fritts has left WeWork after six years where she most recently was chief corporate affairs and marketing officer. She is also a Chris Christie and Fox News alum.

Real Estate

Lower Manhattan office rental market ‘suffering like no other,’ by New York Post’s Steve Cuozzo

 

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