44 F
New York
Friday, March 29, 2024

Feds & DA Investigate DeBlasio Admin on Shady $52M Deal to Convert Library to Condos

Related Articles

-Advertisement-

Must read

Investigators are asking pointed questions to determine the precise reason why the city chose Hudson Cos. as the party to purchase the Brooklyn Public Library branch on Clinton Street in the downtown area

Federal prosecutors along with the city’s district attorney have launched a joint probe of what appears to be another case of malfeasance in the de Blasio administration. According to a report in the New York Post, law enforcement agencies got wind of the fact that a deal worth $52 million to redevelop the Brooklyn Heights library into luxury condominiums was awarded by the city to a friend of deBlasio’s who had not outbid two other interested parties.

The question remains as to why the party who bid the least was awarded the contract. Investigators are asking pointed questions to determine the precise reason why the city chose Hudson Cos. as the party to purchase the Brooklyn Public Library branch on Clinton Street in the downtown area. The company has plans to build a 36-story condo, even though the bid they submitted was $6 million less than their competitors.

Sources close to the investigation have revealed that US Attorney Preet Bharara and Manhattan DA Cyrus Vance have issued subpoenas to some of the 14 developers who made bids on the project. One of the subpoenas issued was to David Von Spreckelsen, who is the president of Toll Brothers. According to sources close to the case, they had offered $1 million more than Hudson.

The public revelation of this matter adds to the growing list of scandals that have rocked City Hall as of late. A month ago it was reported by the Post that a nursing home owner had paid the city $16 million in a quid pro quo, so to speak, to have the restrictions lifted on the deed of the edifice so it could legally be sold to real estate developers for the purpose of building luxury condos.

The Post reported that Hudson President David Kramer is “one of many people being looked at” but has not been subpoenaed, the sources said.

The report also indicated that “Kramer proposed a 30-story residential skyscraper — with 114 units of affordable housing sited two miles away. The plan included space for the library on the ground floor and $40 million of the $52 million bid to spruce up other branches. He also planned to relocate the library to a space on Remsen Street in July 2016 for the four-year construction period.”

Two competitors bid higher than Kramer and even offered to pay the library more money. Several interested parties even made proposals to build affordable housing units on the site, according to the Post report.

Brooklyn-based Second Development Services offered the library $6 million more than did Hudson and 117 affordable units. One competing bidder described the process as rigged to benefit de Blasio’s friends.

Kramer apparently was stuffing de Blasio’s campaign coffers with generous amounts of money. The Post also reported that he also made his case in meetings with Deputy Mayor Alicia Glenn in early 2014.

“Kramer was telling people at the time, ‘Whatever we need to do, we’re going to win this,’ ” said one real-estate source familiar with the bid process.

Since 2007, Kramer and his wife, (who have been friends with deBlasio for over a decade) have given $9,125 to the mayor’s political campaigns. De Blasio has since refunded $6,325 without giving an explanation on city campaign filings.

Arthur Gutfreund

balance of natureDonate

Latest article

- Advertisement -