Tuesday, October 29, 2024

DCAS under fire

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By Joe Anuta, Nick Reisman, Emily Ngo and Jeff Coltin

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With Timmy Facciola

Louis Molina addresses reporters at a press briefing.

Department of Citywide Administrative Services Commissioner Louis Molina is a longtime ally of the mayor. | Ed Reed/Mayoral Photography Office

WE FOLLOW THE LOU: Department of Citywide Administrative Services Commissioner Louis Molina will be in the hot seat today, as the City Council grills him over his agency’s leasing practices.

The Council hearing will pit friends against foe: Mayor Eric Adams’ nemesis Lincoln Restler, a Brooklyn Democrat chairing the hearing, plans to make life uncomfortable for Molina, a close Adams ally.

At issue is the role of Jesse Hamilton, whom Adams placed in charge of the city’s sprawling real estate empire at DCAS. Hamilton has since pursued deals now on the radar of law enforcement officials and reporters alike — and Restler plans to dig into it all.

“DCAS is facing serious and troubling corruption allegations,” Restler told Playbook. “I hope we’ll get the answers New Yorkers deserve about how its $1 billion leasing portfolio is being managed and how the agency is going to root out corruption.”

The lawmaker, who leads the body’s Committee on Governmental Operations, has already sent DCAS two letters asking how Hamilton is able to effectively do his job after having his phone seized by Manhattan DA Alvin Bragg.

Bragg, who is looking into irregularities in city leases with private landlords, also yoinked the electronic device of the mayor’s chief adviser and a private real estate broker who works with Hamilton on those very deals. Agents from the DA’s office met the trio earlier this month at JFK Airport, upon their return from a trip to Japan with other city officials and a lobbyist that has been described as a run-of-the-mill vacation.

Restler has also inquired about a lease DCAS is facilitating between the Department for the Aging and a private landlord.

As POLITICO reported last week, Hamilton overruled an official bidding process that had initially awarded that lease to the owner of an office building across the street from City Hall, instead steering it to 14 Wall St. The neoclassical building is owned by billionaire real estate investor, onetime fertilizer magnate and longtime Adams patron Alex Rovt.

A DCAS spokesperson said 14 Wall St. was the preferred site for the Aging Department and met the needs of the city. And Molina praised the division that struck the proposed deal ahead of today’s hearing.

“DCAS’ real estate team are experts in their field, and our leasing practices, particularly our negotiation tools, have always been an important part of our process as we work to secure the best value for taxpayers,” he said in a statement.

Molina will be fielding questions about that deal alongside one of his top deputies, Shameka Overton, whose role overseeing Hamilton at the department’s real estate services division is likely to come up.

Shortly after taking over the department, Molina replaced the former executive deputy commissioner of asset and property management with Overton, who had worked for years in a separate division of the sprawling agency unrelated to property transactions.

“We now have a chain of command who collectively has zero experience in real estate,” Restler said.

The lawmaker plans on inquiring about that setup, which a former top DCAS official told Playbook put the city at risk of botching deals and wasting taxpayer dollars while potentially leaving the door open for corruption.

“It’s hugely problematic,” the former official said. “Bringing in someone who has no skill set and expecting them to make smart, financially responsible choices is ridiculous.”

A DCAS spokesperson said Molina tapped Hamilton’s former boss, Laura Ringelheim, for a role elsewhere in the agency as part of an effort to streamline operations and draw upon her extensive knowledge.

Hamilton, whom POLITICO spotted at an unrelated event Monday night, pledged to attend Restler’s hearing. — Joe Anuta

HAPPY TUESDAY. There’s seven days until Election Day. Got news? Send it our way: Jeff Coltin , Emily Ngo and Nick Reisman.

 

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WHERE’S KATHY? In New York City.

WHERE’S ERIC? Hosting his weekly off-topic press conference and then delivering remarks at the “United in Grief Committed to Peace in the Middle East” Interfaith Vigil.

QUOTE OF THE DAY: “Apology is not wanted. We don’t want an apology. We will cast our opinions at the polls on Nov. 5 against President Trump.” — Rep. Adriano Espaillat at an East Harlem news conference to condemn the disparaging of Puerto Ricans and Latinos at former President Donald Trump’s Madison Square Garden rally

ABOVE THE FOLD

Rep. Hakeem Jeffries points at the crowd.

House Minority Leader Hakeem Jeffries, Lt. Gov. Antonio Delgado, state Sen. Leah Webb and others will canvass voters with candidate Josh Riley in Binghamton and Ithaca. | Charles Rex Arbogast/AP

FIRST IN PLAYBOOK: House Speaker Mike Johnson (R-La.) and House Minority Leader Hakeem Jeffries (R-N.Y.) will be in the same upstate New York district Friday to campaign with rivals Rep. Marc Molinaro and Josh Riley, with Jeffries helping to host two rallies for Riley with elected officials and musical artists, Playbook has learned.

Molinaro and Riley are facing off in one of the country’s most competitive House races — a bitter rematch that will help decide whether Johnson or Jeffries is speaker next year. And they’ll both have party leadership helping them make their closing arguments.

Jeffries, Lt. Gov. Antonio Delgado, state Sen. Leah Webb and others will canvass voters with Riley in Binghamton and then Ithaca, where Natalie Merchant and other musical guests will join.

Johnson and Molinaro are hosting a “Pasta & Politics” event in Leeds the same evening, where tickets range from $25 to $3,300, according to an invite posted publicly.

Molinaro, a freshman Republican in a fight for his political survival, preemptively hit Jeffries in a Monday press release as “an open border activist and antisemite apologist,” when in fact Jeffries backed the Senate’s bipartisan border deal and President Joe Biden’s restricting of asylum claims. As a pro-Israel Democrat, Jeffries has the backing of AIPAC.

Meanwhile, Riley is set to release his final TV ad of the cycle today, a more positive and hopeful spot titled “Future” and featuring his family, Playbook has learned.

The race between Molinaro and Riley has been contentious and expensive. The rivals have clashed over border security and abortion. And their fundraising has been supplemented by record spending by the Democrat-aligned House Majority PAC and Republicans’ Congressional Leadership Fund, POLITICO has reported. — Emily Ngo

KEEPING UP WITH THE DELEGATION

Antonio Delgado speaks at a Democratic watch party.

Lt. Gov Antonio Delgado is working with Democrats to try to flip five House districts in New York. | Seth Wenig/AP

FIRST IN PLAYBOOK: A super PAC started by Delgado is targeting young voters in three key House races.

The group, Voice for NY, has put $230,000 behind ads on Long Island and in the Hudson Valley and central New York with the goal of boosting Democrats Laura Gillen, Josh Riley and John Mannion.

The 15-second spots, warning viewers “our futures are on the line this election,” are airing on multiple platforms.

The ads point to abortion rights, climate change and protections for voters at stake.

Democrats are trying to flip five House districts in New York that are held by first-term Republicans in order to resume control of the narrowly divided chamber.

Those spots dovetail with a push by Delgado in battleground seats to register young voters and appearances at voter turnout rallies in swing districts.

That effort also coincides with former President Donald Trump’s campaign to engage younger male voters — many of whom are considered less likely to turn out on Election Day.

Delgado’s efforts are easy to miss as his boss, Gov. Kathy Hochul, has led the broader statewide effort for Democrats to win back the House seats.

Still, Delgado for the last year has been trying to find ways of aiding Democrats.

Playbook first reported on Delgado’s desire to play a role in the House races — a position that could raise his statewide profile in a job that is otherwise overlooked in Albany.

He’s donated money to swing seat Democratic candidates and has traveled to battleground Pennsylvania to campaign for Vice President Kamala Harris.

And most notably this year, Delgado became the first statewide Democrat to call on President Joe Biden to end his campaign — an announcement that rankled prominent officials. — Nick Reisman

More from Congress:

Democrats are going all in on efforts to flip NY-04, funneling big names and money into the Long Island locale. (The Hill)

Rep. Pat Ryan and Alison Esposito have both claimed “freedom” as a guiding principle, but for the rivals, the word has taken on very different connotations. (Times Union)

The public teacher vs. the home-schooler: Where John Mannion and Rep. Brandon Williams split on education. (Post-Standard)

CITY HALL: THE LATEST

New York City Council Speaker Adrienne Adams speaks at press conference outside City Hall on a new state bill that would establish democracy and transparency protections for charter revision commissions.

At least one of the complaints came from political gadfly and conservative radio host Frank Morano, who sent his letter to Department of Investigation asking to investigate “the blatant violation of law.” | Emil Cohen/NYC Council Media Unit

SUGGESTING A REVISION: The city Department of Investigation confirmed it’s examining the City Council’s mailers criticizing the ballot proposals, which raised alarms for potentially spending government money on “electioneering,” Playbook previously reported.

“DOI has received and is reviewing allegations related to this matter,” spokesperson Diane Struzzi said in a statement.

The mailing strongly argues against the proposals arising from Mayor Adams’ charter revision commission. The council uses the same language on its website, and government staffers have shared suggested social media posts criticizing the proposals.

At least one of the complaints came from political gadfly and conservative radio host Frank Morano, who shared his letter to DOI asking to investigate “the blatant violation of law.”

But council spokesperson Mandela Jones said that City Council Speaker Adrienne Adams’ office “sought and has followed the guidance” of the Conflicts of Interest Board, “and it instructed us that it is ‘appropriate for City resources to be used in the course…of promoting one view or another about (the Charter Revision Commission ballot proposals 2- 6)’ because they are matters of city policy, similar to legislation or rulemaking.”

“This ethics guidance contradicts insinuation that there is some violation by the Council, which we find irresponsible to spread,” Jones added.

Government reform advocacy group Citizens Union also supports voting no on questions 2 to 6, but doesn’t like how the council is promoting it. “It goes against the spirit of the law,” said Public Policy Director Ben Weinberg, “and if there is a technical loophole that allows this, it should be closed.” — Jeff Coltin

FIRST IN PLAYBOOK: The City Council Progressive Caucus and other elected officials are sending a letter to the mayor and the “future commissioner of the NYPD” — whoever that may be — demanding that federal investigations and leadership changes at the department “do not impede accountability for the 2019 NYPD killing of Allan Feliz.”

Lt. Jonathan Rivera shot and killed Feliz during a traffic stop in the Bronx five years ago. His Civilian Complaint Review Board trial is finally scheduled to start Nov. 12. — Jeff Coltin

More from the city:

The Adams administration is opposing a council bill that would require some affordable housing developers who receive city financing to pay workers $40 per hour in wages and benefits. (POLITICO Pro)

NYPD Chief of Patrol John Chell received criticism after appearing on a conservative news channel in full uniform at Donald J. Trump’s Madison Square Garden rally. ( New York Times)

New York City has funded flights back to Texas for 4,507 asylum-seekers after Gov. Greg Abbott spent millions of tax dollars to bus and fly migrants to the city. (KTRK Houston)

 

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NEW FROM PLANET ALBANY

Governor Kathy Hochul and Attorney General Letitia James today provided an update on nonpartisan efforts to protect voting rights and public safety across New York State during the 2024 elections. Those efforts include statewide, multi-agency resources to combat misinformation and respond to any impediments to voting. This continues the Governor’s and Attorney General’s longstanding commitment to safeguarding the voting rights of all   New Yorkers.

Gov. Kathy Hochul added the extra money to New York’s “rainy day” fund, which is intended for emergencies or to offset revenue losses. | Darren McGee/Office of Governor Kathy Hochul

CASH RULES: New York’s coffers could be up to the brim.

Hochul’s budget office this week is set to release an update to its $239 billion financial plan, which a top aide last week predicted would show smaller gaps.

An analysis from the left-leaning Fiscal Policy Institute released Monday had an even rosier assessment: New York could actually have a budget surplus as spending remains lower than expected and tax revenue stays on pace.

“If revenue simply keeps pace with inflation — that is, is flat in real terms — fiscal years 2026 and 2027 will end in surpluses with a small third-year shortfall,” the report found. “If real revenue growth matches its historical average in the decade prior to Covid, each year would end with a fiscal surplus.”

Hochul has been cautious with extra money. She’s added to New York’s “rainy day” fund, which is intended for emergencies or to offset revenue losses.

But more money can also create more problems.

The governor’s fellow Democrats in the state Legislature may press for more direct aid to schools and other programs — creating recurring expenses, even for years in which times aren’t so flush. — Nick Reisman

More from Albany:

Early voting is up 67 percent in New York compared to 2020. (POLITICO Pro)

New York lawmakers want to address the state’s high maternal mortality rate. (Times Union)

NEW YORK STATE OF MIND

State officials are warning baseball fans of ticket scams ahead of Game 3 of the World Series. (New York Post)

Attorney General Tish James is reminding stores not to sell realistic-looking toy guns. (NY1)

 

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SOCIAL DATA

Edited by Daniel Lippman

WELCOME TO THE WORLD: A week out from Election Day, Rep. Mike Lawler and his wife Doina had baby daughter Elizabeth Rose on Monday, Lawler posted on X.

MAKING MOVES: SKDK Vice President Avery Cohen is now deputy communications director for Hochul. … Zack Rosenblum is joining American Express as VP and head of U.S. government affairs. He most recently was counselor to the secretary of the Treasury and is a Chuck Schumer alum. … Mara Mellstrom is now an account manager at i360. She most recently was an SVP at Citibank and is a Doug Ducey alum and a former House chief of staff.

MEDIAWATCH — “How Tom Llamas, an NBC Anchor, Spends His Sundays: Mr. Llamas, who has been racing between hurricanes and election coverage, makes time for baseball with his children and not-so-scary movies with his wife,” by NYT’s Sarah Bahr

IN MEMORIAM: Former Assembly aide and state Board of Elections counsel Kimberly Galvin Janelle.

OUT AND ABOUT: Hochul praised Brooklyn Democratic Party Leader Rodneyse Bichotte Hermelyn as “one gutsy kickass girl” at the Brooklyn Dems’ Gala at Giando on the Water in Williamsburg Monday night. The event raised money for the party’s housekeeping account, not the elections a week away, though speakers like Jeffries called attendees to help with the “five or six winnable races” in New York for the House. Adams, a Brooklyn Dems mainstay, was conspicuously absent.

SPOTTED: Attorney General Letitia James and Comptroller Tom DiNapoli … NY Dems’ Jay Jacobs … Brookltn DA Eric Gonzalez … City Hall’s Ingrid Lewis-Martin, Jesse Hamilton, Michael Garner and Tommy Torres… Monsignor Jamie GigantielloFrank Carone, Rev. Al Cockfield, Joel Eisdorfer… state Sens. Kevin Parker, John Liu, and Jessica Ramos, who happens to be running for mayor … City Council members Farah Louis, Kalman Yeger, Selvena Brooks-Powers, Crystal Hudson, Mercedes Narcisse, Susan Zhuang, Julie Menin, Lynn Schulman … Assemblymembers Latrice Walker, Brian Cunningham, Monique Chandler-Waterman, Marcela Mitaynes and Phara Souffrant Forrest and Alex BoresRuben Diaz Jr.

HAPPY BIRTHDAY: Frank Carone … NYC Council Member Oswald FelizAvery CohenAli Velshi Robert George … Mercury’s Edu HermelynKate Bedingfield … NBC’s Laura Jarrett … MSNBC’s David Seigel … WaPo’s Dave Clarke Mara Mellstrom … WSJ’s Kate Bachelder Odell … CBS’ Avery MillerAnthony Pardal of the American Bankers Association … Yangyang ChengSamantha ZeldinRena FinkelThompson Warren(WAS MONDAY): Faye Ginsburg ... Rabbi Dovid Twersky ... Dennis Franz

Missed Monday’s New York Playbook PM? We forgive you. Read it here.

 

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