SoHo Politics

The SoHo Power Structure

2011-11-11T15:49:00.007-05:00

“Politics is the skilled use of blunt objects.”
-- Lester Pearson

The levels of political power in SoHo, for the uninitiated, rest with elected politicians. Margaret Chin is the City Council member – having unseated Alan Gerson. And, in the Western section of SoHo, Speaker Quinn is the designated City Council representative covering the area from Thompson Street to the Hudson River as well as Hell's Kitchen. SoHo's boundaries arguably run as far West as Hudson Street, depending upon whose view you rely upon.
Gerson was ousted partly over his support for Bloomberg’s third term and partly because he thumbed his nose at Sean Sweeney – then, the President of Downtown Independent Democrats. Alan was a nice guy, a much used phrase that connotes friendliness but not political acumen.

Chin was elected over Gerson and competitor Pete Gleason, drawing heavy support from Chinatown. She was known as a housing activist and a Communist (in a former life), which only added to her persona as a supporter of the people. Lots of energy and drive characterizes her political approach to most things, but her bona fides as a strong SoHo supporter are giving way to the main concern of activists in SoHo – provincialism. The strong support of housing issues in SoHo and local issues such as the SoHo BID, leave a question mark about her fealty. Hopefully, that will change. However, rumors have surfaced, that Quinn will support a redistricting that takes SoHo away from Chin's Council seat.

Daniel Squadron, the State Senator, has been a pleasant surprise. He has done a great deal of work on housing issues and has been supportive of SoHo issues. The only criticism of Squadron is that trying to have a conversation with him, after having defeated Marty Connor – is like sitting down with a moving cyclone. In a previous conversation, we discussed Traffic danger, Housing, Billboards and Art preservation in SoHo. Those issues should be revisited. In addition, Quinn’s last legislation, which sanctions abuse and harassment against landlords – is inadequate and unenforceable. Squadron has a better understanding.

Quinn is a force to be reckoned with and despite the fact that she supported the DSNY garage she still has traction in SoHo. While she is often criticized for the Trump SoHo debacle, however, she did force Bayrock/Sapir, the developer, to accept a Restrictive Declaration -- which restricted continuous occupancy to 29 days in a row and only 120 days max per year. This effectively made it a hotel, not a condo. Few people will invest millions in an apartment that they cannot truly live in. And, successful lawsuits have resulted from buyers/tenants who realized that if you cannot live there and that if the developer was misinforming you about the number of sales -- you may want out. If Quinn becomes truly disentangled from Bloomberg, the fact that the Staten Island politicians are saying not unpleasant things about her – could pave the way for a more community-minded Mayor. A Democrat in office, for a change would be welcomed. Both Bloomberg and Giuliani won because of Staten Island support. This may neutralize the threat of success from Ray Kelly, the presumed Republican candidate for Mayor.

But, the real political power rests with the Downtown Independent Democrats. While only a few political clubs have maintained their presence, it is one of the exceptions to the generally waning power of clubs in Manhattan.
The hierarchy that really decides who runs for office – and who wins – rests with a few people. The President of the club is Jeanne Wilcke, Paul Newell is a District Leader, Adam Silvera is Vice President, Jim Stratton is also Vice President and Sean Sweeney is Treasurer. While they have several other elected leaders, some are newly elected.

The political decisions, candidate selection and interviews are primarily handled by Wilcke, Newell, Silvera, Stratton and Sweeney. Wilcke is the public face and leader of the club (keeping the troops in line), Silvera’s expertise is in judicial selection, Stratton is the political guru,
Newell is a strategist and Sweeney is in charge of the smoke-filled back room. Together they manage D.I.D.
As JFK once said, “Politics is the only game for adults.” And,apparently, they play well together.

SoHo Politics - Musings

2011-11-05T14:45:00.006-04:00

"Don't be afraid to see what you see."
-- Ronald Reagan

The professional pundits are already busy picking the next horse for Mayor. Among the favorites (at least in terms of frequency of media mention) are Christine Quinn, Bill Thompson, Bill DeBlasio, Ray Kelly and in the back of the pack, Scott Stringer. And, here's my reasoning, since it's anything BUT scientific, prescient, or even that reliable.

Quinn is always in the news, like her or not. The phrase, "I don't care what you say about me, as long as you say something and spell my name right" comes to mind. She seems to have alienated a portion of SoHo on issues like the DSNY garage, Trump SoHo (Quinn actually forced the developer to accept occupancy restrictions), -- and apparently Slushgate has either been dropped or is going nowhere.
CityTime, which clearly is a major scandal, appears to have been contained by Bloomberg. Bill Thompson, isn't all that much in the news, but he ran last time and the desertion of fellow Democrats still stings -- since he clearly would have defeated Bloomberg. Bill DeBlasio has been running since the day he was elected as Public Advocate. He's a nice guy, very tall, and seems truly progressive. He has traction.

Ray Kelly is a Republican, has become the face of Bloomberg, and apparently has a higher security clearance than Obama. While the NYPD scandals and treatment of Occupy Wall Street seem a little less heavy handed than they were, his communication skills leave something to be desired. What New Yorkers do not want is a Police State nor a mini-Homeland Security Department in Manhattan. Not even all of the Police want that - just the overtime. That may be tolerable for other boroughs or surrounding counties, but Manhattan is a little different. The ability to fire a missle to down hostile aircraft in Manhattan is not a consoling thought. Keep in mind that the outlying boroughs like Staten Island have consistently picked our Mayor with Fire and Police family populations. Both Guiliani and Bloomberg took office thanks to the Molinari's.

Lastly, Scott Stringer, has been running since his first election as Borough President. His Rabbi is Jerry Nadler but his press coverage has waned. His original "Affordable Housing" push was welcomed in the community but seems to have gone nowhere recently.

To call these comments a scientific evaluation would be ludicrous. But, the funny thing about politics is, the more you discuss a candidate, the higher his/her visibility.

Which brings us to the Governor's race. The Governor's race?

Yes.

Cuomo is doing well, publicity-wise. He's even gotten decent grades from Ed Koch and Henry Stern. Two people who REALLY knows their politics. And, they're too old to worry about whether the politicians dislike their views.

But, what's next?
First, with the help of Suffolk D.A. Thomas Spots (via the roasting of former legislator George Guldi), Cuomo's major future opponent, Steve Levy (Suffolk CE), has been neutralized. Levy was a major competitor for the Governor spot but agreed to step down after a pay-to-play allegation in which he turned over $4.1 million to the D.A. and dropped out. His former roommate and wedding guest, Ethan Ellner, a title closer, was ostensibly trading campaign contributions for title work.

That leaves us with the following scenario. Cuomo wants to be President and may actually get there via the V.P. route in the election after this. Probably not on the coming election but on the following ticket -- perhaps with Biden. Or, he might try it on his own.
So, who would then take the Governor's slot?
Okay, so this is a long-shot but the most visible, and seemingly-aggressive, and effective State politician is Schneiderman.

His stance on continuing the investigations of the banks over the mortgage mess has put him at the head of the class. Having listened to his politics at a political lunch was instructive. Pragmatism, combined with political acumen is his forte. At this early stage of the game, he gets high marks. When Cuomo is termed out, Eric Schneidermen looks eminently electable. If he succeeds in dismantling the settlement talks that former HPD Commissioner Shawn Donovan is pushing for Obama, and pursues real investigations that yield prosecutions and benefits for victims of foreclosures -- he will be at the head of the class.

Not to mention the fact that Schneiderman had, and still does have a formidable internet presence. A key to success.

The District Attorney Dilemma?

2011-07-05T19:22:00.008-04:00

You can't build a reputation on what you are going to do.
Henry Ford
-- 1863 - 1947

With the media second-guessing Cy Vance, Jr. over a very high profile prosecution, the question becomes what is not known, as opposed to what IS known about the case. No one doubts that there was some form of sexual contact, but it becomes murky beyond that. The fact that the current statistics on rape in New York are frightening -- up by 62%, -- may be the subtext to this case, however. It’s the kind of crime and numbers that are very disturbing to women as well as men in a civilized society. D.A.’s are pressured by such alarming statistics.

What was essentially a slap on the wrist, in the recent case involving two police officers accused of rape, may have become the backdrop for potential criticism of the D.A. – despite the fact that Vance’s office vigorously prosecuted the case. But, what is more likely, is that the speeding to indictment of DSK, a powerful international politician, may have backfired. Strauss-Kahn, as head of the IMF and previously, perhaps, in line to run for President of France, is not a man without resources -- despite his obvious lapses of judgment. And, if there is an undercurrent to this matter, the speed of indictment, as against the rising numbers of sexual crimes in our city, helped create a public rush to judgment. The publicity, the media, loves a good Greek Tragedy – a man of high station brought low by hubris. And, schadenfreude, is not just a “disease” known to journalists and the paparazzi.
But, unlike other D.A.’s, Vance does support the original American theory of Justice – that one is presumed innocent until proven guilty. It’s just that the media makes that concept unwieldy. In New York there are many media voices, but, in suburbs like the Hamptons, it speaks with one voice – a fearful one where the D.A. controls every utterance – or else.

Meanwhile, after leaving Riker’s Island, Strauss-Kahn hired one of the best criminal lawyers in the country and some of the best investigators on the planet. And, he also hired a prestigious “consulting” firm of former Intelligence officers to work on the case. You don’t want former U.S. Attorneys, Secret Service Special Agents, retired CIA, and FBI investigative specialists on your ass if you have anything to hide. And, apparently, the victim did. Spooks are smart and dispassionate about their business. When they are in private practice -- you don’t want to go there. As occurred in the recent retaliatory strike against Bin Laden, a “dish served cold” is an appropriate phrase that comes to mind.

But, what needs to be remembered here is that Cy Vance, Jr. ran for office as a Progressive. And during an interview we had several years ago in SoHo, what was clear about him is that he had purpose and was on a mission to open up the D.A.’s office, modernize it, and bring it to the people in the community. He has been doing that. Bob Morgenthau supported Vance and he was the clear choice over Leslie Crocker-Snyder, a Conservative take-no-prisoners, former Judge.

During an interview of former D.A. Bob Morgenthau, known as “the Boss” he spoke of the heritage of the Hogan office and his groundbreaking DNA indictments in absentia – which preserved the statute of limitations on rape. In his nineties, though, he had had enough and wanted Vance to take his place.
Richard Aborn, who has done a tremendous job as head of the Citizen’s Crime Commission was also in the running, but had a less cohesive campaign organization. He was, nevertheless, an impressive Progressive candidate as well as an attractive candidate for the office. In our interview he was clearly a powerful presence.

If the Manhattan D.A. made mistakes, the Hobson’s choice here may have been in deciding to not allow Strauss-Kahn to leave the country as opposed to speedily presenting the case for indictment as justification. While there was a fear that he would flee, he was an internationally known politician. He is not Roman Polanski. The vision of the Port Authority Police, whose most difficult work is patrolling the Holland Tunnel entrance for “terrorists,” dragging the President of the IMF off of a plane – is more akin to a Leslie Nielsen movie – than high-stakes law enforcement.

Cy Vance is a District Attorney who is ethical and effective. His office may have erred on the side of caution and had the good grace to face the music personally. The Media is not always kind. But, in Manhattan, at least, it is not owned. Freedom of the Press is alive and well – unlike Suffolk County where it is owned and operated by the District Attorney.

Cy Vance will heal from this, at worst, sin of omission and we should be grateful to have a District Attorney who deals in Justice, not in retaliation and intimidation to do his job.

Selling Out SoHo

2011-01-11T13:28:00.004-05:00

First, came the printing factories, warehouses and commercial loft buildings. Before it was “SoHo” it was really just a place where you could pick up cartons of commercial paper arrange to store goods, or get floor tickets printed and bound for use on the Stock Exchange. Then, after World War ll, use of large spaces for painting began to transform the lofts into ad hoc living spaces. “Fixture fee” was the financial term used for evaluating what to pay an artist for his improved space. Of course, what arrived after the arts assault and cultural infiltration that followed the post-Warhol era was the immense real estate development wave. That real estate tsunami was accompanied by a new commercial phase that included the retail expansion of Bloomingdale's, Chanel, and numerous Hotels. The "Manufacturing" zoning has continued to permit completely inappropriate development. Although many original artists have remained and are coop or condo owners there is still the bohemian air about SoHo and remnants of the original street art still can be found— even though they receive no protection from the City.

The perspective held by the political structure downtown, however, diverges from the reality of SoHo as a community. Individual politicians have some sense of the residents but the Community Board fails in that regard. There are only are a very few members from SoHo on Community Board #2 and its needs are often overlooked in favor of a more populated, more recognized group of an older Greenwich Village community. This is nothing new. However, recently there has been some gnashing of teeth over the handling of the SoHo BID. Spearheaded by a real estate group, Newmark, along with Thor Equities, Aurora Capital, and other landlords such as PEP Realty and supported by Uptown social interests like Mary Balaban, it is represented by hired consultant Barbara Cohen who are pressing for a Business Improvement District. The $700,000 budget, to be collected from businesses, commercial interests and coop and condo boards, is intended to clean streets and upgrade tourist-friendly activities. The area is focused on Broadway from Houston to Canal streets. Like the bike enthusiasts who destroyed SoHo's streets who live outside of Manhattan, this is another example of monied philosophy telling us what we should want.

Residents are against the BID and many really don't see why SoHo needs streets and sidewalks maintained by a private group with special interests when we have a City Agency charged with cleaning our streets and maintaining our neighborhoods. As far as enticing more tourists, that's really a stretch. The bottom line is that this really is a real estate and socially-inspired project, you know, those kind of potentially smarmy arrangements that have deep tentacles, promises of campaign contributions and, dare we say, actual cash being proffered? As more tourists are lured to SoHo, bringing more buses, trucks and autos, air quality is further degraded -- overburdening our very limited parking -- and making it less of a community and more of a shopping excursion destination. In fact, Broadway is safer for buses. Only one lane is left for trucks and passenger vehicles. Who does this BID benefit? Certainly, not the residents of SoHo. The efforts of the Community Board clearly show that nothing is returned to the residents. It took nearly 10 years of asking the Board to support bringing back the Bob Bolles sculptures implanted in the asphalt in the early days of SoHo -- unceremoniously ripped out by the Parks Department. Nothing was ever done by Community Board #2. Only when a major developer arrives on the scene and money is spread around, do they take an interest. Isn't that suspicious? Artists showing their works on the street in SoHo are routinely arrested and guerilla art has, for years, been allowed to deteriorate.

When the mom and pop stores have to close up due to higher rents, when artists have had to leave SoHo due to the exorbitant rental escalation costs and lack of dedicated space, when politicians fail to be supportive in the attack against rent stabilized tenants, the answer is simple: political will is nowhere to be found. Only lip service remains. Real Estate interests and Commercial landlords are behind this BID. Not residents.

The Community Board has failed to hear the residents of SoHo in the past. In this instance, through a convoluted number of hastily called meetings and misinformation, the residents had almost no say in the adoption of the BID. The first Community Board meeting, for which there was virtually no notice, only a few residents appeared at Zoning Committee and spoke clearly about their objection. The follow-up Full Board meeting where residents turned out in force, there was overwhelming opposition from the community. Instead of being summarily rejected, however, it was "tabled" through an artful amendment introduced by former Board Chair Brad Hoylman. The Chair of Zoning committee, David Reck, apparently felt obligated to support the BID at the Community Board despite the clear and overwhelming opposition. His handling of this is a clear example of the Stockholm Effect in government service. He has developed close ties to developers and real interests and is often antagonistic to residents and their views appearing in front of his committee.

Following that evening a the Full Board, meetings with no notice and no little participation were held, finally ending up in front of Amanda Burden and numerous commissioners at the Department of City Planning, the next step in this process of "arranged" approval. The Chair of Community Board 2, Jo Hamilton spoke with only two representatives of SoHo present due to the lack of notice. Hamilton, despite the overwhelming rejection of the Board she represents, spoke in favor of the BID and Burden knowingly readily accepted her position -- and, of course, the BID was approved. Brad Hoylman, former Chair of Community Board #2 also inadvertently supported the BID by craftily keeping it alive despite serious community objections. Since the BID was clearly rejected by the Board, "tabling" the issue at the Full Board simply kept it alive for Hamilton to later support on her own as Chair. Hoylman, himself, is an executive at a powerful non-profit real estate advocacy group whose founder is David Rockefeller. We have not heard from any of these quarters in protecting tenants or SoHo. Interestingly, Hoylman had planned to run for Christine Quinn's City Council seat (in an area which encompasses the western portion of SoHo) but was sidetracked by the candidacy of popular candidates Yetta Kurland and Andrew Berman -- and the term-limits fiasco which kept Quinn in her position and Bloomberg in office.

Either SoHo needs a Community Board which clearly represent its interests -- or members from SoHo should resign from the Community Board as a result of this contemptuous treatment. While this cannot be clearly considered corruption, it has the odor of deal made all along the chain of command. Borough President Scott Stringer, who professes to be concerned with affordable housing -- and who ultimately approves the membership of all Community Boards -- needs to address this longstanding issue. City Planning is a creature of Bloomberg and should be dismantled.

Are We Represented?

2010-12-22T19:26:00.003-05:00

The word 'politics' is derived from the word 'poly', meaning 'many', and the word 'ticks', meaning 'blood sucking parasites'.
Larry Hardiman

From the Community Board on up, if you live in SoHo (or other parts of Downtown), there comes a point when you have to ask whether you really have any political representatives. Of course, this seems like a ridiculous question. We have Assemblymembers, City Councilmembers, State Senators, Borough President, Mayor, and a few Congressional officeholders – a group of people who run things for us. Right?

If they actually represent us, ask yourself this question:
When was the last time you spoke to any of them or was able to get anyone on the phone to ask for something to be taken care of?

Like, the billboards in SoHo, erected by the biggest media companies that contribute heavily to campaigns. Companies such as ClearChannel and VanWagner,

Like the assault on affordable housing -- ignored by HPD, Department of Buildings, Mayor’s Office, Borough President’s Office, and the City Council. Lip-service and press releases abound. But, how many tenants have these politicians helped? Margaret Chin, recently elected to the City Council for her support of Housing activism, has recently been unresponsive on this issue.

Like the knock-off trade on Canal Street (hand-bags, watches) run by Asian gangs and sold on the sidewalks by Nigerian shills with impunity – and which criminalize our streets.

The Community Board is a political club, which has little contact with residents, except for a few issues that threaten Greenwich Village and owes complete fealty to the Borough President – who has complete control over who is appointed. It bears no resemblance to democracy.

The City Council is owned and operated at the whim of the Mayor-King who has the fealty of The Speaker, Christine Quinn.
The existence of Trump SoHo speaks for their commitment to any Downtown resident. We were all sold out. Only Tony Avella, among a few others, had the courage to demonstrate before the construction crews arrived on that hated project.

From State Senator to Assembly member, from Mayor to City Councilmember, we have representatives who cannot even commit to saving guerrilla art in SoHo, tearing down the billboards, or making the job of crossing the streets safer.
The only business taken seriously is campaign donations and maintaining their jobs.

Is there a Tea Party in the audience?

The Big Lie(s)

2010-09-17T15:57:00.008-04:00

The future ain't what it used to be.
-- Yogi Berra

According to the media, we are somewhere between a slow recovery and a double-dip in this Great Recession. Virtually no one knows whether we face a slow grinding malaise or a possible drop that brings us to the gates of Hades. Or, Depression 2.0.
But, despite the attempts at maintaining a positive point of view, it is clear that what is good for Wall Street is no longer necessarily good for Main Street. The bursting of the real estate bubble, predicated upon the CDO’s and multi-levels of mortgage-backed tranches, which were clearly securitized bombs, is yet to play out in the economy. With 11 million homes worth less than the mortgage liens against them, several million houses already in foreclosure with another 2 million expected this year, the combined prospects of higher unemployment and a further dropping of home values, provides grim prospects for many homeowners.
Moving used to be an option when jobs were scarce. Now, moving to a new location in order to secure a job, means abandoning an underwater home – followed by default and damaged credit – followed by loss of an investment and financial ruin.

Some of the widely held beliefs about our economy have been challenged by this ongoing debacle. The buy and hold crowd on Wall Street is thinning, for one thing. Those who bought and held in the late nineties are poorer, not richer. Using the home as an investment, is another challenged concept. Prices clearly do not always rise and your house is no longer a reliable or viable ATM machine.
Another cherished concept is the belief that the government, while a bloated entity, protects you. The clear movement of executives from investment banks to government positions – and the focusing on everyone BUT the banks as the cause of this crisis – seals that deal. Even though the CEO’s from Lehman, Bear, Merrill and Goldman were buying insurance (credit-default swaps) against the toxic mortgages, which they knew would default, neither they nor their front men in the mortgage lending business took any heat. That is a story that needs be told. We might learn more about who was behind the grassy knoll first.
But, what is clear is that it is easier to prosecute homeowners for mistakes made in the mortgage process than it is to take down the perpetrators of the biggest fraud in this country’s history.

Meanwhile, expect more bond defaults at the Village, Town, County and State levels and a paring back of pensions that have already been hit by unsustainable withdrawals, losses and underfunding. The wall that we will ultimately hit is still years off and real recovery is not expected until somewhere between 2016 and 2020. Until then, small business in America will continue to dwindle in numbers. With the ability to prey on “Mom & Pop” operations by Code Enforcement inspectors, Federal and State tax agencies, Worker’s Comp inspectors, Sales Tax collectors and Health Department workers – looking to justify their own continued employment – small businesses are on the way out. This, despite the fact that it is responsible for 65% of employment in this country.

This is a downward spiral, which will contribute to deflation of assets – from businesses to real estate – and there is a failure to understand and act by our leaders. The Stimulus packages were a failure and one interesting fact belies the lack of expertise. Obama has spent more of what we don’t have in a year and a half -- than everything spent by all of the previous presidents in our entire country’s history.

This does not bode well for our future considering where we are now.

Read it and Weep

2010-06-16T18:59:00.008-04:00

If at first you don't succeed, failure may be your style.
-- Quentin Crisp

What is amazing about the BP leak, assuming that the rock formation above the pool of oil beneath is intact and not also leaking from numerous locations, is the fact that little has been said about one aspect of how this happened.
The Cheney connection (Halliburton) to the oil business runs deep, as does the Bush family cash.
As the wildlife die, along with the ecosystems that are about to turn the Gulf into the new Dead Sea, remember that the $600,000 system which is required in Europe – but was excused here by that dynamic duo of legal crime – is the acoustic shutoff system for the blowout preventer.
Avoiding that price tag was a much-appreciated gift from Cheney and is directly attributed to his allowing rigs drilled in the U.S. to save that expense. Voila, environmental disaster.
As one commenter on Marketplace.com said:

"I practiced law before federal energy agencies for over 25 years... here is what happened.. George W. Bush appointed hand-picked oil and natural gas friendly and environmentally unfriendly cronies to the commissions/agencies (FERC/DOT/MMS, etc.) so that the oil and natural gas industry could do whatever it wanted to do.. I actually saw it happen... it used to be that the agencies were tough and required compliance - there were regular rate cases to make sure the big monopolistic pipelines weren't overcharging the public, investigations to make sure the pipes weren't violating safety and environmental regulations, etc. etc. Then, after W put his cronies in place, everything changed... no rate cases (allowing the big pipes to overrecover cost of service by hundreds and hundreds of millions of dollars from regular consumers like you and me); no checks on pipeline safety and environmental reports (which would uncover fraud); investigations into tariff violations blocked by commissioners (while the pipe presidents bragged about their "Commissioner Shields"); lawyers that tried to ensure management complied with rules fired; etc.,etc.... All of this was triggered by the oil and gas industry executives' desire to rob bigger and bigger bonuses from shareholders... remember those earning incentive clauses in their contracts!! Say what you will - -the truth is the truth..."

It has been estimated that this Gulf disaster is the equivalent of one Exxon Valdez spill, per week.

And, wait until Hurricane season!
Florida may be the tar ball capital of the world if, as is predicted, the plume (which stretches for 30 miles, 400 feet thick and several miles wide) continues to grow by upwards of 80,000 barrels of oil per day.
That’s nearly 3.5 million gallons of oil, per day. All headed towards Florida and wrapping around both coasts and on its way to the Carolinas. The Hamptons may be able to set fire to the waves next 4th of July.
And, there may be "fire sales" for beachfront property in Southampton if the plume makes a sharp left unexpectedly.

And, Palm Beach anyone? Madoff got out of town just in time.

Now, with Albany underwater by $10-15B, California desperate for $40B, Florida hinting that this BP thing will cost them $60B in lost tourism – Municipal Bonds about to tank (Warren Buffet) -- the Eurozone in disaster mode – and the Stock Market starting to resemble 1932 when the big drop occurred -- did anyone read Depression 2.0?

Villages and Counties are going to RAISE taxes. All of this while their bonds are in danger of defaulting. And, the Feds are going to print more money to give to States to keep them alive. Meanwhile, we continue to lose jobs and small businesses are being hounded out of existence by State workers trying to hold onto their jobs by taking in money in by any means necessary (fines, taxes, assessments, code violation fees) before they lose their jobs and their pensions are cut.

The piece de resistance was Governor Paterson’s decision to borrow money from the State pension – in order to pay the current obligations for THE PENSION. In New York, the only state that has this, taxpayers must guarantee the pension of civil service workers! While many states are rolling back pensions and obligations, New York simply borrows from Peter to pay Paul to pay Mary.

Makes you wonder when Alice will smash the mirror once getting through to the other side. It seems saner there.

Chapter 9

2010-06-07T10:39:00.007-04:00

Spare no expense to save money on this one.

-- Samuel Goldwyn (1882 - 1974)
Coming to a bookstore near you?
No, actually, it’s a Bankruptcy Code for Villages, Towns and other Municipal entities that allows for reorganization because they cannot pay their debts. And, if Warren Buffett is right, it’s just around the corner for many local governments. Only $14 Billion has defaulted thus far, but the cost of Credit Default Swap insurance is rising rapidly on these bonds.

It’s a version of Russian Roulette that begets the question: do we bite the bullet now and reign in our expenses and employment structure, or do we throw caution to the wind and hope that Washington will bail us out? The other, more popular option for many local governments, to raise taxes, would create a new housing downdraft and the much-feared'double-dip.' The results of increased property taxes during the tail end of this Great Recession could easily force us into Depression 2.0, which some economists believe will hit this Fall. Housing and employment are shaky and even the now expired tax credit has had limited effects. The mid-range properties (condos in Manhattan and second homes in the Hamptons costing from $750,000 to $1.5 million) are not helped by $8,000.
No one wants to tighten their belt. And, that includes the local governments who would rather pass on the bill for keeping municipal employees at work and continues local building projects.

Watch for the vacant chair once the music stops.

Depression 2.0

2010-05-25T20:58:00.007-04:00

The future will be better tomorrow.
-- Dan Quayle (1947 - )

Those of you who are buying into the recovery underway may want to re-think your plans. As has been mentioned here numerous times, there will be no recovery. We have been heading into a prolonged period of hyperdeflation, deflation or depression, depending upon whether it is you or your neighbor who is suffering the most.
A perfect example of the spin that has been spun was the announcement by GM part 2, that the automaker has paid back its TARP loans after reporting better sales. What was left out of that announcement was the fact that the payback was coming from another TARP account. That same game is played on Canal Street corners with shells and peas.

The economic corruption, often created by political corruption, is now so pervasive that some do not worry about a “Black Swan.” It is a White Swan for some economists. Meaning, that all of the signs were obvious for the dot.com bust as well as the 2008 Lehman disaster, and that the big Kahuna is already on the horizon for all to see.

We have the U.S. debt cost approaching 93% of GDP, an expiring $8,000 home-buying credit, the only mortgages being written by Fanny Mae (which is on life-support and in conservatorship) super-welfare in the name of extended-extended unemployment, and numerous States that are bleeding money. California is actually in worse shape than Greece with New Jersey and New York not far behind (New York’s projected deficit is $15 Billion for next year). If Wall Street is really a prognosticator of the future 6-12 months out, it sees an oncoming train in the tunnel.

New York City is about to experience severe budget cuts. The Town of Southampton is still relatively clueless and has done nothing to reign in the bloated employee roster. While the Police have always been sacrosanct as regards budget cuts in the Hamptons, if that same methodology continues, there will be plenty of cops and no teachers. The U.S. itself is in serious trouble. One of the few states that depend upon taxpayers to support civil service pensions that are not fully funded, New York, will soon come to terms with an impossible situation. It’s like the Social Security System, which is broken – except New York can’t print money and the problem is not many years away but immediate.
While everyone has gotten used to looking to real estate and its associated taxes to cover the shortfalls, that particular party is over. Property values are still dropping as fast as they can increase the tax rate and homeowners with good credit are starting to walk away from insupportable values that are underwater. Fully 14% of all properties in this country are either in default or foreclosure.
As one reader-observer wrote:

“The govt. bailing out lenders, wall street, banks, car companies, insurance companies and paying bond holders 100% on the dollar while throwing it on top of the taxpayers back was the greatest heist of wealth in the history of the world.

consult a lawyer first. Non Recourse vs. Recourse is important too. You will be able to save some money before you leave. Rent in the same area for 1/2 of what you pay for a mortgage.

Get a secured credit card, keep inquiries low, open a small dollar car loan, pay off on time...build your credit back up. you will be able to get that loan in 2 years, Fannie in 4 or less.

Don't let them fool you, there is no shame. Corporations do it all the time. Morgan Stanley just walked away from 1.3 billion loan....The shame comes from rewarding failure and horrible regulation antics of the SEC, FCC, FED, Treasury, Congress etc....”

This brings us to some causes and few solutions. Goldman Sachs, the Grinch of Wall Street, is indicative of the actual greed that still takes $100 million a day out of the market in profits. They do this by virtue of “frontrunning” – essentially, by “seeing” an order coming in and both buying and then selling the trade to the incoming buyer at a profit in a nanosecond – with high-speed computers that are physically closer to the exchange computers. Mayor Motz of Quogue got 8 years in Federal prison for what Goldman Sachs does thousands of times a day.
This is a company that is one of many Wall Street vultures, like JPMorgan Chase, which has essentially destabilized countries (like Greece). Across this country, Villages, Towns, Counties and States have been devastated by the accounting maneuvers and credit default swaps associated with pension funds and financial instruments used to shore up bloated budgets. The same is true for their “expertise” which was exported around the world. The Eurozone is now experiencing this and is heading into a downward spiral of debt via stimulus plans and printing money just as the U.S. has done.

It will not work.

Stimulus plans are predicated upon creating money out of nothing. No new assets are created which serve as the basis for money that is printed. And, the “full faith and credit” of the U.S. government is rapidly fading. We have phony money, which is inflationary, chasing ballooning deficits – because we want to continue on as before. That must end – and it will – badly.

So far, $1.3 Trillion has been removed from available credit – used by small business and individuals – to continue to operate. Another $1.3 Trillion may soon vanish. And, if the banking reform is on track as planned, credit card companies will no longer be permitted to charge rate for credit cards and personal loans based upon where their main office is (the main reason why Citibank moved to South Dakota, for example). If banks can only charge the rates permitted by each individual state, instead of the rate permitted by the state where they are located, they will stop lending in states that have low interest-rate ceilings. If that happens, available credit will be further reduced.

All of this matters because small businesses are in big trouble. And, small business employs 65% of the workers in this country – employment that enables them to pay mortgages and buy goods.

Simultaneously, with the Libor rate rising (which some mortgages are tied to) due to the cost of credit, many interest-only Alt-A loans reset this year and in 2011 and 2012.

Put all of this together.

Rising debt loads, contraction of small business, reductions in employment, reductions in credit-lines, rising “strategic” defaults on mortgages, mortgage resets, “welfare” mortgages through Fannie Mae and Freddie Mac that are subsidized toxic assets from bankrupt entities, and bread lines of “extended” unemployment – and the collapse of Wall Street.
We are in a brief moment of illusory improvement because it is springtime and seasonal employment as well as spending has blinded us.

So, when do the Villages, Towns, States and Countries get the REALLY good news? Starting now -- and coming to a budget office near you by November. That’s when Depression 2.0 will visit.

The Flash Crash

2010-05-13T23:14:00.004-04:00

Buy on the rumor; sell on the news.
-- Wall Street Proverb

So here’s the deal.

Flash trades basically are handled by “bots” or computerized systems at close to the speed of light.
Buy or sell orders are handled in nanoseconds. In fact, orders are received and transacted faster if the physical location of the computer-generated trade is closer to the servers that exist for the Exchange – wherever that facility is actually located.
If the brokerage house/investment bank is closer to the Exchange, it’s possible to execute a trade faster than a local office of, say, Merrill Lynch, whose office could be in Iowa. The electronic time lag gives the edge to the broker near the Exchange.

Goldman Sachs is known to have been making its money by having its systems closest to the action. Fully 70% of all trading is now flash trading. Goldman is said to account for nearly 48% of these trades and 35% of all trades. Flash trades enable the fastest “gun in the East” to get ahead of other orders and with a few million trades a day, makeing its money by executing in and out before its rivals. Investors who have stop loss orders are sold out and combined losses of hundreds of billions of dollars are estimated. Goldman makes money. In fact, Goldman regularly has $100 million days.

Essentially, flash trades permits Goldman to see an order and choose its execution by inside information that is due to the faster (closer) proximity to the source of the information. The Flash Crash exposed this system.

Mayor Motz of Quogue was prosecuted for this. Only, in his case it was called “Frontrunning.” Either Motz is innocent or Goldman is guilty. You can’t have it both ways. The only difference was speed.

There you have it, folks.

Political Notes 5.7.10

2010-05-07T16:27:00.003-04:00

Democracy becomes a government of bullies tempered by editors.
-- Ralph Waldo Emerson (1803 - 1882)

As the economy “improves,” the volatility in financial markets as well as the quality of life continues to deteriorate. The anomaly is not really inexplicable. What is missing is accurate reporting about what is going on. The government is desperate to have us believe that everything is on the mend. Despite the fact that “they are rioting in Africa,” or rather, in Greece, all is well. Except, that all is not well.

The fact is that the VIX, the market volatility index, is spiking and Wall Street had a wild ride on Thursday – down nearly 1000 points intraday.

The dismay sown by the Communists in Greece has risen to the level of a few fatalities. So, while a loan package via the IMF and Germany has been extended, the rest of the PIGS will soon arrive with their collective hands out. That’s when the fun will begin in the Eurozone – and that’s when it will start to really get interesting here in America.

We have Goldman Sachs, an investment bank that took TARP money because it was “too big to fail” unlike Lehman -- which had a hand in bringing down Greece through its “creative accounting” and credit-default swaps. GS is now arguably facing a criminal investigation – which the populace has been calling for, for years. The Eurozone is facing collective bankruptcy or at default on its Sovereign debt and the U.S. is facing the possibility of a double-dip recession. The current improvement in employment numbers may, in fact, be the predicted temporary rise in spring fever/seasonal employment for Small Business. Schiller, the Yale economic guru, has predicted a huge coming increase in foreclosures brought on by Alt-A and Prime loans which will reset this year and have a chilling effect going forward. The fact that nearly one third of all homes in America are worth less that the mortgage is important. Those that bought homes with the $8,000 tax credit have been told that the value of their homes dropped before the ink was dry on the loan documents.
As a backdrop to all of this, local economies from States to Counties, to Cities, to Villages have become the antagonists towards the one source of energy that can help solve the crisis – Small Businesses in America.

With fully 65% of all jobs emanating from this source, it has become the target instead of the savior for every civil service agency from the IRS, to the NY State Tax Department, the NYC Traffic Enforcement Bureau, and the Worker’s Compensation people, ending with Code Enforcement personnel, which initiate fines. The list of antagonists to the energy and drive needed by Small Business owners is growing as the deficits caused by the Wall Street/Banks/Mortgage Broker fiasco plays out.

The credit default swaps and phony mortgage products that were signed off on by unsuspecting borrowers – fueling the CDO’s and SIV’s that were sold off to pension funds, small banks, Countries, Cities, States, Counties and Villages across the country – are now spawning legions of civil service employees looking to make up the losses while creating a justification for them to keep their own jobs. Soon government will have no subjects to collect from and Hannibal Lector will be in charge of the feast.

This is being played out with the same tactics used by the King.

Threaten and tax the people -- who are the victims. Why? It’s easier than going after the banks. It’s cheaper. And, because we can.

But, why are we killing Small Business? It is the real Goose that laid the Golden Egg in America. This is the conundrum which begs a political answer in this country -- if we are to succeed.

Let the Games Begin

2010-04-26T21:17:00.002-04:00

Money is better than poverty, if only for financial reasons.
-- Woody Allen (1935- )

The St. Vincent’s saga has been a long and unpleasant one. One of the most essential institutions in the Downtown neighborhood and certainly the most necessary medical facility -- has been this hospital and emergency room. It would be hard to find a family that has not relied on the top flight Emergency Room and what some have called the best-kept medical secret in New York.

Whether the doctors, nurses, attendants, ambulance personnel and other hospital employees will manage to weather this storm, is yet another story. But, from the AIDS epidemic, to the SARS scare, to the 9-11 disaster, the hospital and its staff has always been there for the community. My only complaint involved the parking. Other than that, they saved my son’s life. Literally.

Lenox Hill, another important Manhattan hospital, is also reportedly in financial trouble. Upper East Side friends have reported long Emergency Room waits, only to spend hours on a gurney in the hallway waiting for attention. The large area of Manhattan without St. Vincent’s leads you away from where you live or where your doctors are affiliated.

Where do you bring your kid in the middle of the night with a 105-degree temperature when an ice bath won’t do it? Where do you take a cab to when the headache pain is so intense that you fear an aneurism? To a new hospital with no doctor you know or who knows you?
At a kid’s party last week one of the 5 year-olds hurt his arm and not knowing where to go we had to drive in rush hour traffic to N.Y.U on 33rd Street. The Downtown mom did not know where to take him. Suppose it were a life-threatening condition?

Forget the Rudin deal, forget the politicians (who also sometimes need a hospital in a hurry), and forget the community organizations that have taken both sides of the fierce opposition to St. Vincent’s development -- in order to save the hospital services.

This is a deal that will only be saved by financial realities.

So, the well-place rumor is that Mount Sinai is ready to do the deal and is in the wings behind curtain #1, pending resolution of the $700 million of St. Vincent’s in debt -- which the new potential suitors will not assume. Shortly, they may not have to, and will take over the hospital operation.

Let’s hope so.

A New Era

2010-04-23T08:03:00.002-04:00

It’s never just a game when you’re winning.
-- George Carlin

The election on Thursday evening at the Downtown Independent Democrats ushered in a new era for residents of lower Manhattan. One of Manhattan's most powerful political clubs, which had been headed by Sean Sweeney, brought in some new leadership. After an informative speech by Assembly Speaker Sheldon Silver, the voting took place. What was striking, was the sense of camaraderie among the members – a stark contrast to the previous elections, which had been marred by, attempts to pack the club and dislodge the leadership.

Marc Ameruso challenged winner Jeanne Wilcke for the Presidency, but the other officers were largely unopposed.
However, while there was a sense of excitement, there was no rancor or divisiveness. The days of the Julie Menin and David Reck challenges to power appear to be over. He now has his own club with former District Leader Linda Belfer and Bill Love.

Sweeney remains as Treasurer and spent most of the evening photographing luminaries. He had to borrow a camera because his own needed help. Having a Scotsman watching even his own money is probably a good sign.

Just Desserts or Black Swan?

2010-04-21T08:34:00.007-04:00

Men stumble over the truth from time to time, but most pick themselves up and hurry off as if nothing happened.
-- Sir Winston Churchill (1874 - 1965)

Trying to read between the tealeaves in this regenerating economy is no easy task. While the numbers appear to show that business is improving in certain sectors, employment has again dropped along with optimism and foreclosures have again surged in March.

Improvements in certain real estate in some sections of the country have been noted. Condos in Manhattan have reportedly increased in both sales price and numbers of transactions. There is a market in Manhattan for higher-end apartments (above $3 million) and for Hamptons’ summer homes in higher price brackets (above $2 million) as well as very low priced housing (under $350,000). Most of these transactions follow a simple logic: FNMA mortgages are readily available up to $417,000 and for those happy souls with cash – the lack of mortgages is not a stumbling block. Discounts of 15 to 20 percent all across the board are common.

Meanwhile the foreclosure numbers keep rising and more product comes on to the market. This ensures that home values will not appreciate to the top of the market (2006) until the year 2020 in many locations. Fully 25% of all homes are worth less than the mortgage on it.

Businesses, on the other hand, are suffering. Unfortunately, small businesses employ more than 60 percent of the labor force. If loans are not available, most small businesses have few options: continue to operate at a loss, or fire a few people. When there are no people left to fire, the businesses must close.
Even the touted success that GM has paid back its government loans turns out to be like the shell game played on Canal Street.

The hangover, of course, is that unpaid bills and taxes follow everyone around and it doesn’t matter that there is no business. With no financing, many small companies and their employees are enmeshed in a death spiral. The banks have seen to severe bankruptcy restrictions to prevent a sane exit from Dante’s new Inferno.
Even Hollywood is suffering.
The government has attempted to deal with these issues in a variety of unsuccessful ways. Mortgage modifications are an acknowledged disaster, extended unemployment benefits has become the New Welfare, and rather than soften the crushing debt load for small businesses and individuals, 16,000 new IRS agents have been hired to tighten the noose.

Goldman Sachs, that paragon of American Capitalism philosophy, was finally charged with civil fraud for working its magic

After working diligently, sometimes hand-in-hand with JP Morgan Chase, to destabilize Villages, Counties and Countries with their credit-default swap derivatives – then perversely betting that their toxic handiwork would fail – they get a slap on the wrist from the SEC. Considering the degree of devastation caused by knowingly shopping their degraded bonds like Johnny Appleseed, while shorting them since they expected them to plummet, nothing short of scores of indictments are in order. But, that will not likely happen.

Here are some questions to be asked and answered:

Were the banks complicit in creating mortgage products that they knew would implode at some point

before they saturated the market through complicit mortgage brokers who created any and all documents to push them through – as recently came to light at Washington Mutual?

Were they designed to self-destruct from day one? And, were the securitized mortgage bonds created after harvesting the deadly mortgages back from brokers and then sold off – WHILE purchasing credit default swaps so that they could sit and wait for the bombs to go off?

Were homeowners and real estate investors duped by the fine print into accepting mortgages and easy money that were doomed to fail no matter they did?

Will the Goldman investigation spread to all of the other banks like JPMorgan, Morgan Stanley, Bank of America, Wells Fargo, Deutche Bank and a few that were decimated, like Bear Sterns, Lehman, Merrill Lynch and Washington Mutual? Given the fact that companies like Countrywide, Ameriquest, Long Beach Mortgage and thousands of other independent mortgage brokers were peddling dynamite – will an extensive investigation find out that all of this was planned and carefully executed since at least 2005?

Given the fact that no borrower ever had the time to read an entire mortgage document at a closing, was this the industry’s dirty little secret about duping the public?
Will this pass because the government has no stomach for it, or will Europe force our hand with its own investigations into the matter.

Then, there is the other dangling shoe in Europe -- which is the Greek financial fiasco. Of course, this too was partly constructed
by Goldman's "creative accounting." How many more of these fiscal time-bombs are buried within sovereign debt structures across Europe?

Either of these problems is capable of morphing into a Black Swan

America’s Future

2010-03-23T16:42:00.004-04:00

If you’re going through Hell, keep going.
-- Winston Churchill

The recent past and not too distant future in America presents a set of challenges unknown to most generations that did not experience the Great Depression. For all practical purposes, the economic meltdown, which came to head with the failure of Lehman Brothers in 2008, was a defining moment in our history. At the same moment in time, the failure of Bear Sterns and Lehman were nearly joined by A.I.G., Morgan Stanley and Goldman Sachs, as well. Only after hastily arranged “marriages” for Merrill Lynch, Countrywide, and a number of smaller investment firms, were the majors saved by Federal loan guarantees (JPMorgan acquisition of Bear), actual loans (A.I.G.), and essentially unlimited money via the Fed discount window – was the system propped up.

As a result of bailing out the banks with TARP money, taking over Fannie Mae and Freddie Mac via a conservatorship, and giving huge loans to certain “too big to fail” entities, we now have some stability. But, it is a stability that comes with a high price.

That price is looming inflation from printing trillions of dollars, deficits that are thrown forward for nearly a decade and, ultimately, both higher taxes and a severely reduced standard of living. We either had to take the hit all at once with a worldwide Depression, or, slowly, and painfully, as a wasting away of a life of plenty. There is no mystery about it. We have been taking the money from one pocket and putting it in the other, rather than generating and producing like other countries. The derivatives market, all $700 Trillion of it, has assured us of this dubious future.
For at least the next decade, expect higher taxes; lower entitlement programs like social security and Medicare, a higher chronic unemployment, and a dollar that buys less. No retirement may become the price that we all pay for the excesses of Wall Street and the manipulations of the credit markets. We may not have accurately predicted a “double-dip” for the third quarter of this year but all of the non-governmental feedback is that many Americans are suffering, and will continue to suffer, as if we are indeed in the midst of The Great Depression II.

President Mike?

2010-02-23T21:05:00.003-05:00

New York now leads the world's great cities in the number of people around whom you shouldn't make a sudden move.
-- David Letterman (1947 - )

A funny thing happened on the way to Housing Court. A few people who have been very unhappy with Hi-rise Mike, who has been blamed for the over-development of Downtown, have made a slight turn to the right. Apparently, the Mayor has recently made a few moves that even the die-hard left of center Liberals have had to applaud. The most recent of these has been his stance on supporting affordable housing. In the wake of the Stuyvesant Town Court of Appeals ruling and drying up of investment capital for real estate projects, Bloomberg appears to have gotten some religion . Of course, you can always second-guess his motives – but, in this current economic Armageddon, which has erroneously been called The Great Recession, it pays to be thankful for the Ends, not dwelling on the Means.

Considering the fact that Downtown has about had it with delays on rebuilding at the 9/11 site, the Mayor’s assertive comments are welcomed.

As the Pragmatist philosopher William James might say, “What is the cash value of believing in” Bloomberg’s candidacy. The answer is – maybe, fairly high.
So, let’s assume that Bloomberg is obsessively micro-managing his White House aspirations with a good spin from his pr doctors. No politician alive is immune from wanting to reach higher office. That’s true of Stringer wanting to be Senator, Quinn for wanting to be Mayor, Squadron for possibly seeking national office, and Obama… well, wanting to stay where he is; Which is becoming less and less likely as we pussyfoot through the quagmire of Wars and Depression. It may be a time for a change. But, perhaps one that is weighed, deliberate, and cautious.

Even his detractors credit Bloomberg with having high-quality management skills, especially financial acumen. And, even if there is a sizeable contingent of New Yorkers who would have preferred he had moved on – obstinacy and grandiosity (if that’s what it is) are not necessarily negative traits for a President. But, the ability to do an about-face on important social issues, not defense or security, is a valuable trait that he has kept hidden. Our economic condition, however, is a disaster and needs to be changed.

The sensitivity (or practicality) to changing social winds and, perhaps, some sense of what New York and its dysfunctional State government needs from Washington – is a positive sign for New York City as well as Long Island. Bloomberg may have that.
With the assistance of Frank McKay, the still evolving “whiz kid” (not such a kid) from the Independence Party on Long Island as one of his political gurus, is also a promising sign that he’s mindful of the landscape. It goes a long way towards carrying this state and overcoming any Jewish or Billionaire provincialism.

Only money, as he found out in the recent election for Mayor, is not going to do the trick. The ever-so-subtle shift in hubris after his recent close election, however, may have done the trick. He is appearing neither week, nor grandiose.
A combination of smart political moves and sensitivity to voter issues may yet lift Bloomberg onto the national scene this time around.

Sign This!

2010-02-11T13:06:00.010-05:00

The truth is more important than the facts.
-- Frank Lloyd Wright

Apparently, the company doing the construction on the small parcel bordering Thompson/Watts/Broome streets is not even sure who ordered the job done. But SoHo is now the proud recipient of yet another useless structure whose only reason for existence – is to sport another “wrap-around” billboard. In fact, the race to create this 40-foot high tubular steel Lego set has pitched media companies against each other. The existing VanWagner sign, which has aided the media mess that is turning SoHo into a mini-Times Square, is apparently going to be partially blocked by the new addition. At least there’s some justice in this unfortunate event.

Where once there was art, we now have Times Square in SoHo. Big media money has clearly taken over the political process.

The Community Board is nowhere to be seen or heard from in this matter, despite the fact that its entire force was rallied to arrange the removal of one in Greenwich Village. It’s just another example of the political neglect that has severed SoHo from any meaningful support.

Representing SoHo

2010-01-10T21:36:00.006-05:00

Ninety percent of the politicians give the other ten percent a bad reputation.
-- Henry Kissinger (1923 - )

The recent election, which replaced Alan Gerson with Margaret Chin, comes on the heels of State Senator Squadron’s success in replacing the decades-long incumbency of predecessor Marty Connor. Both Squadron and Chin received strong support from SoHo.
Squadron is now the Social Services Committee Chair in the Senate. While they are all democrats, there are differences even among democrats. Squadron appears to be on a fast track bringing him to statewide and possibly nationwide attention – in part, no doubt, owing to his close relationship with Chuck Schumer. Margaret Chin is a community activist and her City Council membership is too new to evaluate. Both are responsive new leaders.

Community Board #2 is, of course, another matter. For many years it was known as the Greenwich Village board despite the fact that, in theory, it also represents SoHo, Hudson Square, Chinatown and part of Little Italy and the East Village. Its members are appointed by the Borough President and various City Council members. It is certainly not an apolitical entity and is subject to very little scrutiny by the residents of its communities. Yet, it is supposed to be the entry-level forum for local democracy. The current Chair of Community Board #2 is Jo Hamilton.

What we do know is the fact that Marty Connor and Alan Gerson along with some members of the Community Board, which had ignored their base in SoHo -- were removed or were "fired."

From a SoHo perspective, then, the time has come to re-state some issues, which have not been resolved. It is important that we, once again, make those in political power aware of them.

Billboards and Art.

While there has been a recent uproar about a building on 12th street in Greenwich Village (Equinox Fitness Center) that has billboards plastered around its exterior, the decades-long effort to eliminate the unsightly signs in SoHo has been completely ignored. It’s no surprise that the Community Board, whose members are nominated and supported by elected politicians (who receive campaign contributions from the media companies which erect billboards), has dragged its feet.

Speaker Vallone of the City Council pushed through legislation, which called for fines up to $25,000 for illegal billboards and severely restricted them. Of course, the Department of Buildings is a neutered agency and there is no enforcement unit to exercise the mandate – even if there was a will to do so. Which it does not have, courtesy of the Mayor.

SoHo is an area that has thrived due to the history of art. An intelligent media person, a creative Department of Buildings Department manager or a community-minded bureaucrat in the Bloomberg administration – could propose the use of billboards to promote art or even display art.
Protection of the remnants of original community art has always been a dream of many “old-timers” in SoHo.
Attempts to have “Sunflower Park”, the location of the guerilla art sculptures which were unceremoniously ripped out of the asphalt at Broome Street and West Broadway after 40 years, renamed as Bob Bolles Park – has been ignored at all levels from the Community Board to the elected politicians. The art brought condo developments and upscale stores but nothing for its residents that made its place on the international map.
But, artistic minds like don’t exist in City government. Easier to bludgeon the residents into submission with beer ads or scantily clad, anexoric models on 50 feet high murals (as exist on Houston Street) – in open contravention of the laws, good sense or family values.

Another looming fight, which has been played out numerous times at the Community Board, is the issue of liquor licenses. Currently, the Moondance Diner location is the focus of repeated attempts to bypass the community on the issue of commentary and review – a problem that we are all to familiar with in SoHo (Trump SoHo is a good example).
There is also the larger issue of rampant development allowed by virtue of the fact that SoHo is still considered an M-1, manufacturing district – allowing hotels to be built without any review. Entreaties to place a moratorium on hotels or “hotel-condos” have fallen on deaf ears.

The fact that the liquor license committee chaired by Ray Lee and the Zoning committee chaired by David Reck, both of whom appear to suffer from the Stockholm syndrome, allow applicants to hold the community hostage to their whims. More community-minded professionals, such as Doris Diether, for example, (who formerly chaired Zoning) has been relegated to a back seat because she does not cater to developers' agendas. If the community is against a project, she finds a way to make their voices heard.
After years of complaints, which ultimately resulted in a few Town Hall hearings – we are back to square one with the same leadership issues and the same deaf ears at Community Board #2.

In essence, SoHo has no power over its own future. Special interests control our fate.

We call on our elected officials and Community Board #2 to celebrate art, change the way the media companies have changed our community for the debasing worst, and use some common sense in the treatment of SoHo – if they wish to remain.

SoHo Real Estate

2009-12-16T18:16:00.030-05:00

Patriotism is often an arbitrary veneration of real estate above principles.
-- George Jean Nathan (1882 - 1958)

The pace of construction has slowed Downtown. The new projects that are moving forward are primarily hotels. In part, this is due to the fact that little community review is needed when building as-of-right structures in a manufacturing zone. The Trump SoHo project is nearly completed and both the Tunnel Garage and Moondance Diner sites are in final stages of construction.

Tunnel Garage Condo

Moondance Hotel

The condo project at 350 West Broadway is also nearly completed.

Rumors abound as to the success of any of these projects due to the dearth of financing for construction. In the case of Trump SoHo, 350 West Broadway and the Tunnel Garage condo development – the truth about sales is hard to come by. The fact that there is a vacant lot for rent at 100 Varick Street where an eight story rental building had been approved – followed by rumors of yet another hotel – tells the story of commercial real estate and development.

For tenants, the Stuyvesant Town decision at the Court of Appeals is the big story. Tishman-Speyer gambled and lost. Why any company would believe that thousands of rent-stabilized tenants could be forced out of their homes is a serious misunderstanding of a city that is built on landlord-tenant litigation.
Essentially, those landlords who benefitted from J-51 tax abatements are now precluded from using the luxury decontrol option to force stabilized tenants from their homes.
This was a ploy used by many aggressive operators to force tenants out of their homes.
In one case, two real estate newcomers who are also dentists at a Varick Street location in SoHo (actually Hudson Square) have been using this method for many years. Among the many other dubious methods to harass stabilized tenants out of their homes luxury decontrol has been the choice of these characters – with the willing cooperation afforded by DHCR and Department of Buildings. These denuded agencies allow illegally operated buildings to use the courts in furthering landlord plans. The Mayor has intentionally weakened both of these agencies in order to evict legal tenants and further development in Manhattan.
Recent laws regarding harassment and abuse are seldom enforced requiring huge legal fees to be paid by tenants. The $5,000 fines for such behavior enacted by the City Council is not only a joke, but is rarely imposed. In reality, tenant protection is a figment of the City Council’s imagination, in spite of the laudable efforts by Speaker Quinn. If you, as a tenant, pay legal fees and cannot pay rent at the same time – you lose one way or the other.

The Court of Appeals ruling, however, recently eliminated luxury decontrol in any building that was afforded J-51 tax relief for the landlord. Further, current market rate tenants who live in apartments, which formerly were stabilized – and were previously converted to market rate – may now be restored to stabilization. This is true regardless of whether the current market rate tenant occupied the apartment at the time it was converted from a stabilized status. In addition, any rent paid which was higher than what was once the registered stabilized rent – can be retrieved from the landlord (with treble damages) by the tenant.

Political Lessons

2009-12-02T11:38:00.030-05:00

Times have changed. It's not like the Old Days, when we can do anything we want. A refusal is not the act of a friend. If Don Corleone had all the judges, and the politicians in New York, then he must share them, or let us others use them. He must let us draw the water from the well. Certainly he can present a bill for such services; after all... we are not Communists.
-- Don Barzini (The Godfather)

With Goldman Sachs bankers reportedly applying for gun permits to protect themselves from an enraged populace, its not surprising that there is some anger associated with playing the game of politics. As JFK once said, “Politics is the only game for adults.”
The game has evolved into a stage from which to pontificate upon “The Truth,” whatever that is. The trial of Joe Bruno, former leader of the State Senate, for example, shows us that retribution is usually is the order of the day – a tragic-comedy replete with rumors of rogue State Police units, political payoffs and favors.

But, what about the game within the game? What about the casino of supporting a politician in hopes of currying favor at some future time? And, what about the obverse of asking for support in order to get elected in the first place?
It’s like the Emperor’s New Clothes. Few will talk about it on record and those who do, give a stock answer that “You should support and vote for the best candidate, period. That is its own reward. Expect nothing in return. The best person winning, your candidate is the success you should want – and nothing more.”

Okay, that sounds good. It has a good ring to it.

And, in fact, sometimes the success of a particular candidate really is so important that it’s close to the truth.
Downtown, the success of Margaret Chin as City Council Member, and the unexpected victory by Cy Vance as D.A. were two notable examples of people who were critical to a progressive agenda for SoHo and sister communities – as well as Manhattan, in general.

Bloomberg is still a cipher to some – because his skills have been overshadowed by a seemingly dictatorial manner of governing that were only re-emphasized by the term-limits fiasco. However, he is an intelligent and able administrator, who seems more in tune with Aeschylus than Downtown residents. Trump SoHo, the DSNY garage on Spring Street, the overdevelopment, the neutering of the Department of Buildings (no landlord scrutiny and no tenant support), the dangerous and over-the-top bike lanes in SoHo and the failure to reign-in billboard proliferation – are just a few examples of resident dissatisfaction with his Imperial style.
There is no doubt that his friendship will further empower Frank McKay, noted political genius of the Hamptons who heads the Independence Party. That friendship will now be a lot closer – since Thompson clearly would have won the election without McKay’s support, in spite of the $120 million Bloomberg spent.

For others who ran, for those who did not pay enough attention to their base of support, it was a bleak lesson. Alan Gerson, thought of as a “nice guy” (he actually is) counted on Greenwich Village voters but burned his bridges with the Downtown Independent Democrats (SoHo’s powerful political club) -- and was turned out of office. Rumors have it that Gerson angered the President of D.I.D., Sean Sweeney and other important members, by claiming that he no longer needed the club’s support. He was warned by Sweeney that such a point of view would cost him the next election. Despite being an incumbent and having broad community support, as a result of his rejection of D.I.D., Gerson lost his bid for re-election. Activists were so antagonistic towards Gerson that they went so far as to create a website with the slogan ABG – anyone but Gerson. The lesson should not be lost on others.
But, as Monty Python’s famous line goes: 'No one ever expects the Spanish Inquisition.' Once elected, many politicians have brushed off their former supporters. It is a familiar gripe.

The recent defection by David Reck, Bill Love and Linda Belfer in a bid to form a new political club, followed on he heels of the Gerson loss.

Described by Sweeney as the Downtown United Democrats (DUDS), the success of this, as yet unnamed group, has completed the regeneration of D.I.D. After having foiled an attempted coup by Reck and Community Board #1 Chair Julie Menin to take over the club, the exit of members who opposed Sweeney will now be complete. He described it as excising a malignant tumor without having to operate.
With 200 members, D.I.D. is now poised to become THE downtown political club. The transitional period is underway and new leadership will be reinforcing its image. Jeanne Wilcke, Adam Sivera, Jim Stratton and Pete Gleason will be joining Sweeney.

Jeanne Wilcke

Adam Silvera

Pete Gleason

Sean Sweeney

In this game, politicians need to pay more attention to the desires of leaders who DO speak for the community. Those who work tirelessly for the benefit of others -- as well as themselves -- must now start making the needs of the community much clearer – and holding candidates accountable for their promises AFTER they are elected.

Thus far, that has been conveniently forgotten.

Rumors

2009-11-13T11:39:00.015-05:00

In politics, an absurdity is not a handicap.
-- Napoleon Bonaparte (1769 - 1821)

Apparently, District Leader David Reck and Linda Belfer along with Bill Love have circulated a memo stating that they intend to form a new political club downtown. Politicians take note. The memo, written ostensibly by Bill Love, states:

“Our new club will have instant credibility with elected officials and other political leaders for several reasons, not the least of which will be the caliber of the people involved, such as you.”

The real reason for this foray is a certain degree of animosity between Reck and D.I.D. President Sean Sweeney, which has evolved over the last couple of years. Neither are low-key individuals and both have supporters as well as detractors among politicians and residents.
The boiling point seems to have been reached during an alleged attempt to pack the club by Reck associates last year – in order to remove Sweeney as President. It was believed that Julie Menin, Chair of Community Board 1, supported this move.

Starting a political club is not all that difficult. It just takes an enormous amount of time, energy and money. Unless, of course, the effort is being bankrolled by others. Maintaining a level of respect, developing a history and managing to be taken seriously by political candidates are the hard part. The notion of “instant credibility,” is a dubious one.
Of course, there is some question as to the validity of political clubs, in general. But, that’s another issue.
Reck is smart and works hard – especially, at petitioning.

Anger management is his Achilles Heel.

No doubt, this decision is due to frustration over Sweeney’s near-impenetrable Presidency at D.I.D. But, strong leaders manage political structures with sometimes-controversial personalities. That applies as much to Sweeney as it does to Reck.
This will play out in one of two ways, however:
D.I.D. might be weakened by a Reck and Belfer departure or, D.I.D. will become stronger as the people who are dissatisfied leave. Betting favors the latter.

It was today reported that Trump SoHo has entered foreclosure. This could not be confirmed but a Community Board member was reported to be the source of this rumor. SoHo Alliance Executive Director, Sean Sweeney who leads a group suing over the project was not aware of this rumor and could not confirm it. So, no dancing in the streets at this point, folks, since it is difficult to tell whether this is wishful thinking for residents of SoHo, or, is indeed a fact.

SoHo Election Views

2009-11-02T13:12:00.008-05:00

Voter early and vote often.
-- Al Capone

In SoHo the general election boils down to only the race for Mayor. Chin (City Council 1st District) won the primary, as did Cy Vance (D.A.) and Quinn (City Council 3rd District). In Manhattan, a completely Democratic town, the Primary winner takes the brass ring. The only Republican, in form and function, was Leslie Crocker Snyder for D.A. She lost to Vance who won handily.

Yetta Kurland challenged Christine Quinn for her City Council seat and did surprisingly well since Quinn, the Speaker, came away with only 52% of the vote. Her political acumen may lead her to work more closely with the community but only time will tell. On the horizon for that slot is Kurland, if she runs again, Brad Hoylman (former Chair of Community Board 2) and Andrew Berman of the Greenwich Village Society for Historical Preservation. The latter has impeccable bona fides.

Margaret Chin will have a lot on her plate since, by all accounts, Alan Gerson was less than a tiger in his City Council position for eight years who, seen in the Village recently, was less than friendly. The tricky problems of vendors who line Canal Street with valises full of fake designer wares, ill-conceived bike lanes on Grand Street and other Village thoroughfares, the assault and harassment on tenants’ rights and trampling of communities by developers – will all be challenging issues facing the new City Council member.

Cy Vance, as the new Manhattan D.A. promises to be a breath of fresh air – taking over from the retiring District Attorney. He promises to build upon the long and successful reign, which was the innovative and progressive career of Bob Morgenthau. While he has the knowledge and compassion of a defense attorney, Vance also has the acumen of a prosecutor whose role it is to protect the citizenry from violent crime.

The Mayoral race between Mike Bloomberg and Bill Thompson is much simpler than it seems for most people. It boils down to the simple matter of whether voters want a benevolent or benign father figure telling them what to do and think – and can buy that role – or, whether voters, as adults are electing their political leaders. The term limits fiasco was foisted upon the public and Thompson has continuously pointed out that the Emperor has no clothes. There is no other issue.

Eye of the Storm

2009-10-19T18:16:00.007-04:00

The surest sign that intelligent life exists elsewhere in the universe is that none of it has tried to contact us.
-- Bill Watterson (1958 - )

While the economy is improving according to our dear leaders, ominous signs have appeared to contradict the theory that the worst is over. The only indicators that support improvement are the stock market
and the broad effects of stimulus packages and propped-up consumer spending like the “cash for clunkers” program and tax credit for home buyers. Those programs and the real state of the economy are merely smoke and mirrors. It’s like taking money out of one pocket (taxpayers) and putting it in another (consumers) to show improved economic activity.
Who are we kidding?

As one person commented on a financial site:

When they talk about recovery, they do not mean you me or the average taxpayer. We are only required to pay taxes and suffer in silence.
Recovery is meant for Wall Street, the banksters and their bonuses.
That is what is meant by recovery.

There are a few major components that point to where we are and where we are going. Credit is contracting rapidly and banks lend to each other, or well-connected parties, after borrowing from the Fed. Wall Street has improved its balance sheets (on paper) and has survived with government money and the “carry trade.” Thus, with borrowed money to conduct business – $16 Billion is available at Goldman Sachs – for bonuses.
Banks and Wall Street have also survived the mortgage crisis by selling the toxic paper they needed to pump out for huge fees, to the government, and consequently applying for more Federal money when their balance sheet gets dicey.

One commenter writes about the situation like this:

“Bloomberg reporting that Crooked Timmie's shop, and Give-away Ben's shop, are populated by "advisors" that made millions and millions and millions of dollars from Goldman Sucks, Bank of Criminals, JP Morgan, etc. etc... Obama, just like Bush, and Crooked Timmie, just like Paulson, and Give-away Ben, are working as hard as they can to benefit their buddies on wall street... If they had taken those trillions and given it to main street, the recession would have been over long ago, along with the cancerous vipers on wall street... But the rich take care of the rich... the rest of us can ‘go pound sand’.”

Underlying all of this is massive unemployment. As credit evaporates, companies file for bankruptcy, commercial real estate collapses and people are fired, deflation sets in. Downsized companies need fewer supplies, fewer workers and smaller rental spaces. It is entropy in action.

All of this sets the stage for futile attempts to stop this process but only manages to put a finger in the dike. Even if there is a temporary halt to the process, hyperinflation will set in and create an even bigger bubble than the supposed subprime mortgage fiasco.

What we are facing now is the possibility of a double-dip recession
that might turn into a Depression starting in 2010. No one knows whether that will happen, but a 50% increase in the stock market within 6 months should clue everyone in to the erratic nature of our economic situation. Simultaneously, millions are unemployed (with more on the way), foreclosures are increasing (the so-called “prime” loans), home prices continue to drop, companies file for bankruptcy at an accelerated rate and credit evaporates precipitously.

When 20% of all homeowners who DO pay their mortgage and face possible job loss – and who currently owe more than they are worth (and values are still declining) – the prognosis for stabilization is 5 to 10 years away.
A lot can happen in a decade and much of it is pretty.

If the stock market has another major decline as many are predicting and housing continues to drop in value – coinciding with another modest increase in the price of oil to $100 or $125 per barrel – ALL bets are off.

The People have Spoken

2009-09-24T13:25:00.003-04:00

When the eagles are silent, the parrots begin to jabber.
--Sir Winston Churchill

Last Tuesday’s Primary was an eye-opener for many of us Downtown.
The most watched contests were the CD1, CD3 City Council races and, more important the run for District Attorney.

Margaret Chin, an activist who has supported tenants in their confrontations with landlords and developers, won the CD1 seat handily.
She defeated incumbent Alan Gerson overwhelmingly. While she was not as involved in the heated controversies, as was candidate Pete Gleason, it’s clear that Gerson was damaged by the perception that his campaign had started to lose control. The loss of matching funds, the delays in being listed on the ballot and the overhang from his unpopular support of term-limit extension, were fatal to Gerson’s re-election.
While there was increasing rancor over the perception by many activists that Alan had ignored their community needs, the handling of his campaign was really the nail in his political coffin.
As always, Alan is a “nice guy.” We wish him well.
Pete Gleason always was a stand-up guy in the community. He fought hard and has supported the community as a fireman, police officer and attorney.
We look forward to his next move. For the moment his plans involve a return to his legal practice.

The CD3 race was a tough one for many. Quinn has baggage but is seen as a strong citywide City Council Speaker. Her mistakes lie with how her Downtown district constituents view her efforts for them. There are political moves afoot, however, to remove her Speakership.

Kurland fought a good fight and her challenge to Quinn was a closer call than one would have been expected. The message here is that even a strong Speaker may want to consider community outreach that is perceived as a genuine attempt to mend fences.
Especially, if Quinn plans to run for Mayor. The support of Bloomberg over Thompson (which she has alluded to by her refusal to commit), in light of the negative view of the term-limits fiasco that caused many Council members their seats, is clearly a mistake. Gerson can vouch for that.

Many clubs and Downtown activists supported Richard Aborn for D.A. He is seen as a progressive who wanted to make real changes in the criminal justice system.
Leslie Crocker-Snyder was perceived as a conservative, and despite the fact that she reached out to women (calling on her ostensible strong support) and heavily criticized Vance; it was not good enough to seal the deal. She clearly had the advantage going into the race – especially, on the heels of a better than 40% share of the vote against Morgenthau from 4 years ago.
As Vance pulled up in the polls, the strident content of her message started to scare a few people. Not just the criminals.
Vance will be a breath of fresh air, especially in his desire to build on Morgenthau’s successes and focus on the major problem of recidivism.

Cy Vance’s campaign was handled very well. His momentum grew slowly and his message of change did not criticize Morgenthau but alluded to the fact that he wanted to further expand certain efforts. Of course, it did not hurt that “Morgy” heavily supported him. Or, that the Kennedys endorsed him. Even Gloria Steinem helped get out the vote.

Gradually, the well-placed media blitz garnered endorsements from the NY Times, Daily News and NY Post. Even downtown’s prescient niche publication, The SoHo Journal, featured his images and interview with a Warhol-styled cover reproduction – the magazine’s first cover featuring a politician.

Ultimately, Vance’s easy manner, firm stance on crime and innovative ideas, seeped into the voter’s consciousness and took hold. He was elected in a landslide.

Where the Buck Stops

2009-09-14T14:14:00.006-04:00

When you come to a fork in the road, take it.
-- Yogi Berra (1925 - )

We have reached the point of no return on the final round of Downtown politics. For a Democratic town, the Primary is THE election. The most relevant for us are the District 1 and District 3 City Council (the two affecting SoHo) and Manhattan District Attorney races.

Essentially, the City Council races are the Gerson/Gleason/Chin contest (CD1), the Quinn/Kurland face-off (CD3) and the Manhattan District Attorney Vance, Aborn, Snyder contest.

Calling any of these races is next to impossible.

Quinn has suffered from some serious mudslinging and rancor from community activists over the DSNY garage, the Trump SoHo behemoth and disaffection from her support of the term-limits rollback. Support of tenants, as a bedrock of her community support has been tepid since she is perceived as someone who has failed to really target the landlord games that still permit stabilized tenants to be evicted using the “lawsuit ploy” and does not at all protect market rate tenants from gouging once their one or two year lease expires. Tenants who complain do not get a lease renewal.
However, Quinn is an able politician who knows how to navigate in a dangerous environment. Despite the accusations regarding “Slushgate” it is a fantasy to suppose that Council funds (or those in any other elected office) are not part of the risk-reward system that politics is about. Running a campaign, not to mention living your life, under possible indictment takes a strong, dedicated person. Toughness counts for something, even if you don’t agree with the person who is running.
Kurland, on the other hand, is untested but has gained substantial support from community activists who want a clean sweep. Her bona fides seem to stem from gay rights and a willingness to confront issues important to the community. Her support has substantially grown in recent weeks and those who have written her off initially are now thinking twice.

The Gerson, Gleason, Chin contest is another race that is impossible to call.
While Gerson is the incumbent, his growing unpopularity has only been upstaged by a badly managed campaign. To have lost matching funds and a place on the ballot for a time shows a massive lack of competence – at least about running a contested election. Gerson, by his decisions, seems to have been massively unprepared for a challenge. Not without basis contenders, such as Pete Gleason, have pointed out that this alone shows that Gerson is not qualified to run again. Most of the verbal fisticuffs have occurred between Gerson and Gleason (who backed away from challenging Alan in the last election) and that has not been lost on the minds of voters in the Village, SoHo and Tribeca. Gleason has confronted the incumbent and there is no question that he has damaged Gerson, whose prior popularity has been based up being known as “a nice guy.”

Margaret Chin really is a “wild” card. While having been criticized as somewhat provincial due to her base in Chinatown, her housing activist background is clearly her community-based “ticket-to-ride.” Chin’s often touted 6000 vote base may, in fact, carry her over the top.
But, this race could go in any direction.

The Power race, of course, is the District Attorney race.
Aborn has been the early favorite Downtown. He is seen as a strong, progressive politician who is attractive and falls on the right side of liberal ideals for what we want in Justice.
Snyder is seen by many who support the “woman” card as a guaranteed winner. She has backed off from her previous position, which seemed to support the death penalty and according to her campaign mentor, Jim McManus, is a tough judge who will win the election. According to him, she got the hard cases from Morgenthau and will be a tough, but fair, D.A.
Cy Vance has been the object of a few jabs by Snyder and his campaign surged within the last several months. His progressive agenda is similar to Aborn’s and is popular Downtown.
The fact that the New York Times, New York Post and Daily News have endorsed him has been something of a surprise.

This race cannot be called, either.

Vote in the Primary on September 15th!

Election Logic

2009-08-10T21:45:00.001-04:00

Politics is applesauce.
Will Rogers

You almost need to be a lawyer to figure out what’s going on with the District 1 City Council race. As near as we can figure out the major issue regarding Alan Gerson’s spot on the ballot is that Board of Elections submissions -- which involve the lists of signatures needed in order to be placed on the ballot – are a big deal. There really can’t be any wiggle room. All of the information has to be in a specific form, the “cover sheet” has to be correct, and the verifications, which attest to the correctness of the signature submissions, must conform and be signed off by one person. When details go astray, so goes the logic, many more sub Rosa problems may lie beneath. Almost no one thinks that Alan Gerson has supplied false documents.

The dilemma, which the Gerson campaign currently is dealing with, is the fact that a series of errors – not seemingly egregious to the layman – has placed his submission of signatures in jeopardy. The courts are likely to rule in Gerson’s favor due to the fact that he is an incumbent and, popular or not, the mistakes do not appear to be critical. The whole process was sloppy and it was compounded by mistake after mistake.

Both Margaret Chin and Pete Gleason have understandably made an issue of the sloppiness – which, if you are trying to make a political point – underscores a certain inattention to detail at the very least.
Pete Gleason has come out swinging on this issue because he himself has been held up to a high standard of professionalism and this issue has proven his issue with Gerson’s candidacy. His criticism of Gerson has, among other things, pointed to a lack of detail, clarity, interest consistency and follow through – in representing District 1.

That’s political speak for Gerson having let down SoHo.

City Council Heat

2009-07-29T16:15:00.006-04:00

In politics, absurdity is not a handicap.
-- Napoleon Bonaparte (1769 - 1821)

The City Council races for Downtown continue to heat up. Christine Quinn appears to be on track to be re-elected in her district while Alan Gerson is having his problems. Among the contestants in District 1 are incumbent Alan Gerson, Pete Gleason and Margaret Chin. While speculation has the contest in a three-way tie, Gerson is losing ground in the Village, SoHo and Tribeca to Gleason and in Chinatown to Chin.
It’s difficult to make a prediction but the latest technical difficulty on Gerson’s part is the fact that the Board of Election has removed him from the ballot for the upcoming Primary due to questionable signatures. It is likely that these are just technical problems that will be overcome but it indicates, if nothing else, a certain lack of attention to details.

Gleason lost no time in making comments on the situation.

Political Reflections

2009-07-07T21:55:00.030-04:00

Don't ask me nothin' about nothin', I just might tell you the truth.
-- Bob Dylan, "Outlaw Blues," 1965

The races which are generating the most heat are City Council districts one and three, District Attorney, and Mayor.
Tony Avella and Bill Thompson are both running against the proverbial 1000 lb. gorilla – Michael ($20 Billion) Bloomberg.

While there is a lot to say, term-limits and cash, carry most of the weight in terms of who wins. Avella has come out on the right side of many community issues and has manned the barricades with activists. Thompson has waged a tireless and consistent campaign to make a difference between a city government that takes residents for granted and a populist style of governing. An upset victory is NOT impossible.

The District Attorney race has Leslie Crocker Snyder on one side of the fence – a conservative who previously supported the death sentence but who now rejects it. She is running based upon her experience as a judge. Running against her is Cyrus Vance, Jr. and Richard Aborn, a liberal and a progressive candidate.

While this race is over a very powerful position, thus far it has not generated the kind of enthusiasm one would have expected. They may soon change, however.

Jim McManus, recently split with Carlos Manzano on ideological grounds, heavily supports Snyder – to the chagrin of Bob Morgenthau, the current D.A. Morgenthau is believed to support Vance and is miffed about McManus’s endorsement. But, politics is both practical and ideological. Remember, McManus supported Suozzi over Spitzer and enjoyed the last laugh when he abdicated.
Aborn has gotten the support of downtown’s D.I.D., which came out strongly in favor of his candidacy – twice the vote earned by either Snyder or Vance. Yet, Vance has recently begun to make his voice heard in a barrage of press releases.

The City Council races are a study in pure political gamesmanship. A great deal of animosity still follows Chris Quinn around over what is perceived as her rejection of the community – over such issues as the term-limits debacle, Trump SoHo and the Sanitation Garage. While she is a superb politician, the danger is that she may be viewed as narcissistically self-involved rather than the shrewd operative whose expertise inures to the interests of the community. A little better PR and a few overtures in a less defensive way would, without doubt, give her the race. Right now, Yetta Kurland is pulling up strongly behind her and has a vociferous following.

McManus supports Quinn partly because he handed her the Speakership, and partly because he thinks she will be the winner. D.I.D. chose Kurland – but originally chose Quinn, only to lose to Kurland in a second vote. Kurland’s second vote support came from cross endorsements from other candidates (notably Derr) who could not win and threw their support to her.

The real danger here, for Quinn, is that losing popular support while winning most of the clubs is a tricky road to success. Kurland is seen as inexperienced while Quinn is seen as aloof within her own district.

The Gerson, Gleason, Chin race is another kind of race entirely.

The incumbent, Alan Gerson, has been seen as coasting for the last 8 years, having frittered away the opportunity to benefit from the 9-11 momentum for downtown, and having learned to rally forces only when faced with the prospect of being out of a job. Even his support of term-limits has not earned him the benefit of a Bloomberg windfall. After nearly losing his own club’s endorsement, he managed to lose the D.I.D. endorsement to Pete Gleason, a former firefighter, police officer and attorney.
Between pushing and shoving, charges of an absentee performance, numerous ploys that allegedly involved stacking D.I.D. and rumors of helping to arrange shills to split the primary vote – Gerson’s re-election attempt is generating more heat than anyone expected.
As of this point, Margaret Chin (who has been suspiciously thwarted in getting media coverage in lower Manhattan weeklies) claims to already have several thousand votes and is already over the top with regard to qualifying for matching funds. With an expected turnout of less than 15,000 voters, a woman with strong community support and growing non-Asian interest is potentially formidable.
Pete Gleason has pulled up strongly and generated new support in the Village, SoHo and Tribeca, which formerly went to Gerson. Interesting letters have been popping up like crossed swords in the campaign controversy over qualifications and background – ergo suitability for this job. The Downtown Express published a missive from Mr. Love (scroll to bottom of link page), a Gerson supporter and Jeanne Wilcke as well as others, have answered it.

We’re in for a hot summer!

The Changing of the Guard

2009-07-02T00:45:00.003-04:00

If we don't change direction soon, we'll end up where we're going.
-- Professor Irwin Corey (1914 - )

Last month Community Board #2 held an election for its new leadership. Brad Hoylman relinquished his post as Chair of the Board and mostly new leadership has taken over. Actually, a few existing members of the Board simply move over a seat and increase their visibility as well as their stature. There were no floor fights and the slate was elected without a negative murmur. It’s a far cry from some of the contentious, dirty tricks, anonymous-letter, days of the past at CB2. While it’s probably a good thing, it does take just a little of the excitement out of community politics. But, so be it.
The slate is as follows:

Jo Hamilton - Chair

Bo Riccobono - First Vice-chair

Sheelah Feinberg - Second Vice-chair

Susan Kent - Secretary

Elaine Young - Assistant Secretary

Amanda Kahn Fried – Treasurer

All are qualified and well-intentioned members of the community and will no doubt do an excellent job. At one point, Jo Hamilton had stated that she was committed to carrying on the work that Hoylman had been doing. Nothing she has said recently has indicated anything different in her attitude.
To the extent that Community Boards are relevant to the wishes and needs of the community’s residents – and, not simply a political reward for knowing the right people – we can hope that CB2 moves in the direction of greater cooperation with Boards #1, #3 and #4 on a number of issues – not the least of which is greater protection from pollution, removal of unwanted billboards, protection from traffic in our crosswalks, better control over Con Ed and maintenance repairs during evening hours, and a more assertive stance to protect tenants from landlord harassment. Not only do rent controlled and stabilized tenants suffer – but, market-rate tenants suffer a great deal as well. When you have a two-year lease and pay high rent and yet you cannot complain about such things as lack of heat or mold growing in your bedroom, the fear of not having your lease renewed is a serious problem. The silent tenant is often an abused tenant. And, abuse of tenants is a growing problem in New York City.

The Community Boards need to recognize that there are problems that they need to solve by working together.

The Upset

2009-06-02T22:45:00.020-04:00

If you’re going through Hell, keep going.
--Winston Churchill

In a stunning upset endorsement vote, D.I.D. chose Pete Gleason for the 1st Council District candidate Tuesday night.
In a vote that initially gave Gleason the endorsement by only 2 votes, after a recount he clearly won by 64-52. This places him in a position to seriously challenge Alan Gerson’s bid for a third City Council term despite numerous speakers touting his record. Apparently, that support for Gerson fell on deaf ears.

And, there was a subtext to two other races which were initiated against two of D.I.D.’s popular District Leaders, Adam Silvera and Jean Grillo. Both were easily re-elected despite attempts at club stacking and political threats. While David Reck was also re-elected, he received a very high number of "No-endorsement" votes, despite the fact that he had no opponent.

The other contentious races had Yetta Kurland seriously challenging Speaker Chris Quinn. Quinn lost in a second vote for the City Council seat, bolstered by 11th hour maneuvers by Derr and Fouratt who spoke during the re-vote from the floor. Since Quinn actually won the vote but wanted a greater clarification of support, the real question is why Fouratt (who essentially did no campaigning according to Sweeney) received 10 votes -- and why both he and Derr threw their votes to Kurland in tendem so expeditiously. So, while Quinn actually won the endorsement vote, the re-vote (which Quinn pressed for) was changed by multiple last minute endorsements for Kurland. There have been rumors that this was engineered and augmented through the use of palm cards and a previous strategy by anti-Quinn forces. Hey, that's politics! Kurland is now the D.I.D. candidate. However, Quinn did garner the outright endorsement of the Stonewall Democratic Club.

Cy Vance with 17 votes and Leslie Crocker Snyder with 18 votes were both heavily outvoted by Richard Aborn for District Attorney. While Vance has had some campaign mis-steps, the Snyder results were surprising to some in view of her strong showing in the last general election when she ran against Morgenthau. While Vance consented to be interviewed in the SoHo Journal, Snyder declined the invitation citing legal complications. Aborn has not yet responded to a request.

The Hot Seat

2009-05-20T11:32:00.004-04:00

I do not care to belong to a club that accepts people like me as members.
-- Groucho Marx (1890 - 1977)

The major candidates have been making the rounds downtown and of the offices that are up for grabs, only the District one City Council seat is hot and about to get much hotter.
Alan Gerson is running again since term-limits were extended, allowing Bloomberg to again run for Mayor. More than a few people had difficulty trying to figure out why Mike did not simply hold another referendum considering the fact that he really had the support of many New Yorkers.

The politics of the decision to take the City Council route to approve his third term run may never be fully understood – given the fact that his very well paid campaign staff had to have known that this method of succeeding opened a chasm between the Mayor and the people, perhaps unnecessarily.
The real damage, however, was done to politicians who were supporters of the Bloomberg plan and which also benefited themselves. The Mayor will survive very well, thank you. That’s not necessarily true for those who supported the plan in the City Council against the wishes of many in the community.

This brings us to the City Council seat race, which Gerson currently holds. The main challengers to Gerson are Pete Gleason and Margaret Chin. Chin is an activist whose greatest support comes from the Chinatown community and Gleason’s strength is stronger with unions, firefighters, police as well as growing sections of Greenwich Village and SoHo.
What is significant is that Gerson only narrowly won the support of VRDC, his own Democratic Club on a second ballot. For a challenger, Gleason clearly has turned the tables on Gerson and the upcoming D.I.D. vote may be a significant indicator of which direction this race may go.
Chin needs to break out of the perception of provincialism and Gleason needs to raise a lot more cash. If these things occur, it may become a wide-open 3-way Council race.

Imagine

2009-05-06T21:24:00.002-04:00

If I'd written all the truth I knew for the past ten years, about 600 people - including me - would be rotting in prison cells from Rio to Seattle today. Absolute truth is a very rare and dangerous commodity in the context of professional journalism.
-- Hunter S. Thompson

The people shall not be deprived or abridged of their right to speak, to write, or to publish their sentiments; and the freedom of the press, as one of the great bulwarks of liberty, shall be inviolable.
-- James Madison

Imagine that you are a journalist in a country where the ruling party and its government does not tolerate criticism or a difference of opinion. Or, were you to voice opposition to the government, you would be killed or destroyed – using any means possible. That the focus of the government attacks may be couched in some other mainstream, popular vehicle, permitting vast media resources (including PR and phony leaks) to create an adverse frenzy is merely part of a strategy. Think about reporters waiting for you at every turn, walking around your apartment and offices, asking accusatory questions based upon innuendos and lies to sell tabloids and gain viewers. Almost any excuse can be used by a government to make you, yes you, a criminal to be pursued.
What is widely viewed as legitimate business practices, can, with a twist of focus by a government official, become an illegality.

In Russia, several journalists and human rights advocates have been the focus of convenient, high profile murders that were never solved. Court cases pointed accusatory fingers but juries have acquitted them – as arranged. In Iran, North Korea and other countries, similar actions have caused journalists following important issues to be tried and imprisoned simply for investigating and writing.

For a journalist in America, with financial devastation facing many publications, prospects for the continuation of Free Speech and Freedom of the Press is in severe jeopardy. Even the New York Times is in serious trouble and may be sold within a year. Only bloggers, themselves journalists, have a real handle on many issues and continue to carry the torch for truth, even if biased at times.
A journalist or blogger now must often choose between writing the truth, conveying a sense of the real subtext in his or her political environment or community, and being able to live one’s life unmolested. There is a heavy price to pay for speaking out.

Who will uncover truth in our society if these trends continue and more and more media slip into the mist of history? How will we continue as a Democracy if the forces of the State are allowed to destroy people using whatever means at their disposal?

Imagine that you had a point of view that you were afraid to voice in America. Will we now crucify and destroy those who disagree with us? Is this the new journalistic reality? Is this our future?

If we lose our liberties, there is no end to the slide into totalitarianism and terror.

The Flap

2009-04-03T10:39:00.002-04:00

Politics is applesauce.
-- Will Rogers (1879 - 1935)

With the contentious races for several political offices, it’s no surprise that even the clubs are giving off some heat.

We are a long way from decisions on who D.I.D. is supporting but the McManus Westside Democratic Club is already out there. The problem is, there’s a little controversy over the press release sent out by Bernie Cohen, Jim McManus’s longtime friend.

The press release supports Leslie Crocker Snyder, John Liu and Eric Gioia. According to Cohen, Jim McManus knew about the press release – according to McManus, he didn’t.

When he was reached by phone, Jim stated that he is supporting Snyder but has not made a decision on either Liu or Gioia. “Bernie says I authorized the press release and I say I didn’t” was his response.

With every move that the political people make and then figuring out the percentages gained or lost with each chess piece moving about the board, these little tidbits matter.

Packing the Club

2009-03-22T16:46:00.021-04:00

Injustice anywhere is a threat to justice everywhere.

-- Martin Luther King Jr. (1929 - 1968), Letter from Birmingham Jail, April 16, 1963

A time-honored method of controlling a political club is known as “packing” or “stacking” the club. Simply described, either a candidate or nominee operating for a vested interest brings new members into the fold at a moment in time so that at the next vote they will be qualified to make the right choice.

While political clubs have lost their luster, there are still arguments in favor of an organization that expresses the wishes of a community or territory – sometimes pulling broader influence with it.

Downtown Independent Democrats" has developed out of SoHo and has carried the reputation of being truly independent along with it. SoHo itself has evolved from artists who ventured into a gothic jungle of warehouses and printing factories from places like Greenwich Village to escape the status quo. Leaders like Kathryn Freed, Jim Stratton and Sean Sweeney gave D.I.D. a special flavor.
As a result of D.I.D. successes, it is one of the few political clubs that aspirants really care about for endorsements. Scott Stringer, for example, managed to win his race for Borough President of Manhattan due, in part, to the vote in SoHo – and the support of D.I.D. The support of a truly independent club actually does still garner votes.

So, at various times, several political candidates have attempted to pack the club with their supporters in order to control the vote for officers. This past Fall, Julie Menin reportedly attempted a coup (which she denies) – followed most recently by Alan Gerson’s efforts. Gerson was actually supported by D.I.D. in the past but has fallen into disfavor with many rank and file club members. He is rumored to be packing the club so that his upcoming race will gain the support of the club once again. A number of current D.I.D. members who, due to Gerson’s fealty to Bloomberg on term-limits (he supported them) and his dubious record in SoHo, belong to the ABG club – “Anyone But Gerson.” While Menin is no longer believed to be trying to pack D.I.D., as Gerson has continued, Gleason is also reportedly trying to even the score by placing some of his people on the roster.

Gleason has suddenly started to get a serious second look as someone who will respond to the needs of SoHo residents.

There is nothing immoral or illegal about trying to take over a political club but there are certain rules of conduct that have always been followed NOT in the tradition of Tammany Hall. With quality performance in office, a club normally welcomes the enlargement of its membership base from an elected official. Not so, in this case.

The Prosecution Rests

In a recent interview we spoke with Cy Vance, Jr., the frontrunner in the race for Manhattan District Attorney.

It was like a blast of fresh air in a discussion that touched upon his plans for improvements in our criminal justice system. Bob Morgenthau, who is retiring this year, has provided us with a sense of fairness in Manhattan and clearly Vance seeks to improve upon that legacy. The full interview will be published in the April SoHo Journal in addition to next week’s blog. Stay tuned Rangers.

The Elephant in the Room

2009-03-08T18:51:00.015-04:00

The truth is rarely pure and never simple.
-- Oscar Wilde (1854 - 1900)

While everyone is busy trying to point the finger at what happened to cause not only our economy, but also the world’s economy, to implode – consider this?
The total value of the U.S. stock market is under $15 Trillion, the total value of all real estate in this country is under $25 Trillion, and our total GDP stands at about $14 Trillion. The value of the entire world’s stock markets currently stands at under $50 Trillion.

But, what most people do not know is that it is nearly impossible to correctly value the number of derivatives , which are outstanding. These “bets” or contracts that hedge credit obligations – which include bonds, mortgage securities and corporate debts, including credit default swaps – amount to about $700 Trillion. Or, nearly three quarters of a quadrillion dollars. Others believe the amount is larger.

This Wall Street phenomenon is the real story in our economy. It is one problem that years ago Warren Buffet warned us all about and it is one which he recently mentioned when he said he hoped to be out of any derivative positions in “a few years.” Good luck.
So, as most consumers and many banks look askance at the muddled real estate market as well as the non-existent credit markets (insofar as ability to borrow), all are missing the boat as to the source and degree of the problem. We have an inconceivable amount of money (or, rather, the fantasy of such an amount of money actually existing) floating about in the Ether as mutually balanced obligations -- that will never be able to be paid in the event of default. Those defaults are now happening. And, as the defaults wind down deflation (reduction in value) accompanies the entropy.

This, in fact, is what we are grappling with in this economic disaster: The prospect of economic Armageddon. The world does not contain the amount of money or physical assets to balance out both ends of these bets in the event of default. If the buyer of a derivative defaults, having purchased the insurance to cover that “bet” -- and the guarantor (counterparty) of that insurance does not have the resources to cover that defaulted debt – what is there to be done?
Those are the questions being asked about AIG, Citigroup, Bank of America, Lehman Brothers, Bear Sterns, Merrill Lynch and thousands of companies that are defaulting on debts covered by derivative contracts. All $700 Trillion of them.

The Elephant in the room is restless and wants to eat.
And, until he does, there will be no new loans, no expansion of credit for the economy, no new jobs, no food, and certainly no housing. That means the end of the Hamptons economy and a severely diminished Manhattan economy. Expansion and building as we know it is done. A sign of these times is one new phenomenon: vacant lots in Manhattan with "For Rent" signs on them. There is no money to build.

Mortgages imploded due to the phony securities that Wall Street created in order to collect fees and create securities that NEVER had the value ascribed to them. In fact, the subprime situation was only a pimple on the elephant's tail. And, now all of us are paying that price.
It was the derivatives market that spawned the disaster we are now entering. As Thomas Kostigan of Marketwatch reports,

“It isn't the housing market devaluation, or the sub-prime mortgage market defaults that have us in real trouble. Those are nice fakes to sway attention away from the place where greed truly flourished -- trading phony instruments to the tune of $700 trillion.”

Interesting notes: Poland’s mortgage market was mostly written in Swiss francs. Nearly 60% of all mortgages are pegged to the value of the polish currency to the Swiss franc.
The polish currency, the zloty, has dropped nearly 50% in relation to the franc. One can only imagine what lies ahead in that situation.

UBS is just the tip of the iceberg with regard to the Swiss banking crisis – spawned by the IRS insistence that all 52,000 foreign (mostly American) accounts be divulged so that taxes and, no doubt, prosecutions, can begin for not paying taxes on these numbered accounts.
It is likely that Swiss banking, the country’s main industry, could be destroyed by this American move. No account secrecy, no deposits.

Downtown Currents

2009-03-01T22:28:00.006-05:00

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.
-- Plato (427 BC - 347 BC)

Bob Morgenthau finally withdrew from the election process this week after decades of public service as Manhattan’s District Attorney. For years there had been speculation that Catherine Abate was the heir apparent and was waiting in the wings until “The Boss,” as his staff knows him, stepped aside.
Instead, as the rumors swirled, Abate was sidelined as the likely candidate to oppose Leslie Crocker Snyder in the upcoming Democratic Primary election.
While Downtown, in many cases, is considered a lock for the Jewish female vote, one of the reasons why Alan Gerson, again running for District 1 City Council seat, may still have an edge. Sophie can be heard in the background whenever Alan is on the phone.
Snyder was previously a law and order candidate who supported the death penalty but she took that off the table. Her 40% of the vote showing in the last election gives her substantial credibility.
But, countering Snyder’s move is a possible run by Dan Castleman, Morgenthau’s right hand man in the prosecutor’s office – as well as a serious challenge by Cyrus Vance, Jr.
Vance not only has name recognition but also presents a serious challenge to divvying up the Jewish vote. His father and his family stood out in fighting for the rights of Israel at a crucial point in history.

Little has been heard from Maria Derr lately, former Board #2 Chair, who is running against Chris Quinn in her bid to retain her seat in the City Council race. But, Yetta Kurland, a proponent of gay rights is another contestant in this race and may do relatively well and has some buzz.
However, it is unlikely that Quinn faces a serious challenge. Those who have criticized her (including this writer), recognize her immense political skills. A powerful Speaker who seeks to improve her ties with the community is more to be desired than a novice with a wish list. And, Quinn and her staff have been moving in the direction of building new bridges.

Little has changed in the Gerson/Menin/Gleason/Chin saga for City Council. We should expect sparks sometime this summer as the jockeying heats up.
A few rumors and tidbits have flown about.
Menin’s new blog apparently publishes on Huffington Post and the site apparently has rejected negative comments.

Gleason appeared on network television to dispel the belief that his 9-11 board game is a flight to insanity – rather that the point was to create publicity for the tragedy. Of course, those of us downtown well know that while the disaster may not have been avoidable -- many firefighters and police were unnecessarily exposed to danger and untimely death due to inadequate communications.
Anecdotal reports of dysfunctional transmitters and garbled transmissions are well documented and the anger harbored by those who know the truth about the treatment during and after the disaster are legend.

In Memoriam: Albert Edward Neale 1917-2009. Andy Neale’s 92 year
old father passed this week after a short but severe illness. As Andy describes him, he was “ a reserved man of fierce intellect, a wonderful husband, a decorated war veteran, a compassionate human being and a liberal to the end who thought Obama was the greatest thing to have happened to the USA.”

Notes from Downtown

2009-02-09T22:16:00.001-05:00

In politics, absurdity is not a handicap.
-- Napoleon Bonaparte (1769 - 1821)

The District 3 City Council seat has been a source of intense scrutiny. From the pre-Term Limits speculation about candidates, which had Brad Hoylman running against Andrew Berman and Maria Derr tagging along, we now have Christine Quinn back in the mix with Derr still tagging along. Various stragglers are in tow but its mainly Quinn.

Quinn brings the Speakership, tough attitudes and experience – as well as animosity from voters over issues like Trump SoHo, the DSNY garage in Hudson Square and the Term-Limits deal.

What strikes many as difficult to understand, is why Bloomberg thought it necessary to push another term on us at all costs when he was riding a wave of popularity that seemed to make it unnecessary. The operative word, here, of course, is “seemed.” Maybe Staten Island is wavering.

Quinn supported Bloomberg and, of course, was backed up by enough Council members with their hands out to make term-limits work.

It STILL does not mean that we are not better off with Bloomberg. It only means that it was done in a “Big Brother” fashion. There’s never a good taste in your mouth after having a rusty pipe rammed down your throat. But, despite all of the Harvard boys around, it’s possible that he did not think that holding another referendum was a chance he wanted to take. But, why doesn’t he now just hold the referendum since he’s holding all of the cards? We all know how to drink the Kool-aide with grace.

But, the damage to Quinn was temporary, just as the damage over the Slushgate imbroglio seems to have passed. Or, not.

Even an indictment doesn’t make you a bad person. It only means that you matter and that you have political enemies. Welcome to the real world.

The difference between having a controversial Speaker/Council Member as opposed to one who is incompetent, of course, matters greatly.

Quinn’s main opponent is Maria Derr, former Board #2 Chair and heir-apparent to the Passannate name (Bill Passanante of Greenwich Village), who preceded Deborah Glick in the Assembly.

Derr, a candidate who has bounced from club to club in search of a political position to run for, settled upon Quinn’s seat after the idea of running against Deborah Glick seemed like folly. Glick is well-respected and, while sometimes paranoid about being challenged, has little to worry about. Few candidates can hold a candle to Deborah’s genuine community bona fides.
Derr has traded on the Passanante name, close related to Carmine DeSapio, only recently. Prior to that, her uncle was rarely mentioned.

But, Derr’s affiliations were what has always been suspect – in a low-level sort of way. Her connections with a group of minor power brokers on Board #2 kept her in questionable company with people whose dirty tricks were not particularly elegant. The level of mean-spirited games played by such luminaries as Alan Roskoff and Bob Rinaolo, or dearly departed Arty Strickler – while she was Board #2 Chair – were mildly shocking at the time but were, in reality, simply comical in import. Her level of sophistication apart from a heavy commitment to retaliation leaves something to be desired, even in a politician.

In fact, after insinuating herself on the McManus Midtown Democratic Club (after pulling the same stunt at VRDC), she sent out a press release with photos of herself and Jim McManus, seemingly portraying support for her candidacy for Quinn’s seat.

According to Jim McManus, who was reached for this piece, he did not even know about the flyer until after it had been mailed out.

He stated flatly that he supports Christine Quinn for City Council. He helped Quinn garner her Speakership and he firmly supports her for re-election. This City Council seat is in McManus territory and he knows politics. Period. End of story.
As a side note, for those of you who are wondering, Bob Morgenthau IS running for another term. Yes, -- and Leslie Crocker Snyder is also running. Rumors have abounded for years about Catherine Abate and more currently about Cyrus Vance, Jr. – should Bob decide not to run. Well, he’s running.

If it is worth anything, the mistake is making his age THE issue. In a personal interview, this writer found him to be completely and fully engaged, in charge of the issues, and in charge of the situation – as well as a tough politician. His prosecutors, like right-hand man, Dan Castleman, are also the kind of 1000-pound gorillas you don’t want to screw around with. Snyder has dropped her death penalty requirement as a gesture to liberals but Morgenthau is still running the show.

Frontrunners and Dark Horses

2009-02-01T11:38:00.020-05:00

The word 'politics' is derived from the word 'poly', meaning 'many', and the word 'ticks', meaning 'blood sucking parasites'.
-- Larry Hardiman

As the race for District 1 City Council seat starts to warm up there are numerous scenarios being played out in the minds of political junkies Downtown.

The big question is, besides the new lease on life for Alan Gerson, who will be running for that seat. While unopposed in the past, Gerson has a few contenders who would like to replace him. The are a lot of voters who apparently feel the same way. In addition to the race itself, there are rumors that a deal is in the works which would have Alan going out the back door before the Primary to take a position promised him by Mike for supporting the term limits win.

Julie Menin, a recent Republican, is currently a Democrat who is Chair of Board #1 and widely known as desirous of the Council seat. The ill-fated takeover of D.I.D. has abated somewhat and it reportedly earned a bit of ire from Borough President Scott Stringer, who benefited from that club’s support.
Both Menin and Gerson are friends of Bloomberg and were supportive of his term-limits putsch. She has publicly stated that she is not running against Alan and is busy developing a new life as Democratic consultant and blogger (now railing against Republicans). Since there are no term limits on Board #1, we will continue to hear about her views on lots of issues. A large cache of cash and a PR firm will ensure that.

However, some doubt the finality of her public decision and we may yet see some curious twists and Machiavellian turns. As the song says, “See you – in September.”

Pete Gleason has vowed to run against Gerson, regardless of what happens. He is considered an underdog, if not a dark horse. While he has a lot of ground to cover, he is gaining support. He is wrapping up his legal practice and will be campaigning full time starting in February.
He may also garner some unexpected main line political support because of Gerson’s position on term-limits, which was very unpopular among voters. Gleason’s strong points are a following among police, firefighters and civil service as well as disenchanted residents in SoHo and Tribeca who feel that Gerson has done nothing for eight years and then allowed High-Rise Mike another four as a sort of dictator.

Margaret Chin began her campaign at the end of last year and has gathered momentum. She has carefully assessed her chances and is expected to make a solid showing but is one of the dark horses in this race. Her identification with Chinatown is both positive and negative – a strong voter base but a knotty problem with a perceived provincialism. Almost no one looks to the “Communist” label, which was used against her in the past as negative any more - not a few find it charming and oddly nostalgic. Her experience in housing reform, community organizing and social activism are potent strengths.

Evan Lederman, a darker horse, is a newcomer also contemplating entering the fray. His bona fides include membership in the elite law firm of Cravath, Swaine and membership in Community Board #2 where he is Chair of Street Activity and Film Permits. He was also President of NYS Young Democrats. As of this writing, he confirmed considering a run but has not formally decided.

Last, but certainly not least, is the darkest horse. Irrespective of her strong points, not the least of which is a set of judicial robes and having done the job before Gerson, Kathryn Freed is not completely out of the picture. While she will not confirm her intentions – since she already gainfully employed as a Civil Court Judge – there is always the possibility that will have a change of heart. Or, perhaps, a change of direction. That’s a dark horse with a wild card.

As this heats up, we’ll watch the sparks fly.

Political Realism

2009-01-14T22:32:00.011-05:00

I believe we are on an irreversible trend toward more freedom and democracy - but that could change.
-- Dan Quayle (1947 - )

One of the problems in dealing with the current realities is that it is often not pleasant. A Hobson’s choice comes to mind. But, as we all know, not making any choice at all is giving way to a degree of pessimism that makes this blog seem positively serendipitous. Remember, though, if we can’t get what we want, we may get what we need.

There is no secret, for example, that Bloomberg, who is both arrogant and narcissistic (basic requirements for politicians) is probably qualified to lead in these parlous times. Of course, he’s not the only one. Tony Avella is an activist who inspires trust. Bill Thompson is the Comptroller for God’s sake, he knows numbers. Weiner is a hard worker.
Even Chris Quinn, who helped Bloomberg and may now regret it, seems a hell of a lot more human than he does. She’s tough, talented and real.

The fact that Hi-Rise Mike is worth only $11 Billion now instead of $20 Billion that he was approaching during the bubble, simply means that he is feeling a bit more human. But, why bother running again? Oh, right, the narcissism.
There’s also the problem that, as one insider described, “he’s a prude.”
Nightclubs are closing as a result of phoney drug busts, Disney has moved in, Dominatrices have been arrested or moved out (courtesy of Feinblatt who runs the Mayor’s Task Force) – and Sin City is now Disneyland East. Convictions are easily obtained because the money dictates, along with his underling Ray Kelly's corrupt cops, just who gets real justice. In two recent busts of NYC Dungeons, for example, the cops who “investigated” and extensively surveilled each had four sessions of roleplay on the taxpayers dime before they arrived with a battering ram and made off with $100K in cash. Apparently, to Feinblatt, the cop who receives the attention of a young lady in leather is entitled to "hazardous duty" pay scale for numerous visits.
A well-known principle of Criminal Justice, were you to ask a reputable defense lawyer, is that cops perjure themselves but judges accept anything they say in State Court. But even deep pockets do not ensure Justice when the prosecutor is holding all of the cards.

So, the money has cleaned up Manhattan and soon the Death of Fun will be our new moniker instead of Fun City. But Manhattan used to be, well, Manhattan. Now, Daffy Duck will excite the tourists from Idaho.
The real problem for all of us is that what we used to accuse the Mob and criminals of doing (lying, stealing, cheating and making a mockery of justice) – is now what prosecutors and the cops do when politicians want something accomplished quickly. They go directly from political decisions to fait accompli – no constitutionality or messy legal questions in between.
Giuliani was bad but at least he had charisma. His father was a mobster and he understood.

So Bloomberg will now be re-elected because he has managed the media situation and can afford to cram it down our throats. And, never expect to get past Ray Kelly’s dislike of bloggers for press credentials. Once on the ballot, the PR and the pressure will continue and we’ll have four more years to sanitize Manhattan. We all know that we’ve been managed.
But, let’s not allow each other to believe that this is anything more than a high-level con job. In The Grifters, it was called “the long con.”

A footnote to the Kennedy Senate matter brings us to a few salient points.
First, the fix was in once the Kennedy clan supported Obama and no doubt contributed to putting him over the top. That negotiation was clear.
Caroline may not be the most experienced candidate but, irrespective of the royal family fantasy, she wants the job, is bright and connected and is also NOT corrupt. We should appreciate the clean linear quality that is far from Joe Kennedy but not so far from Robert Kennedy. Idealism was their hallmark. While the brothers paid the price for moving off Joe’s script, and contrary to Henry Stern’s opinion, Robert was not a New Yorker and knew little about our state when he ran. It was simply an available Senate seat. It was a vehicle and he almost immediately became a national figure who did little for our state. Of course, most of us didn’t mind since he was going to replace JFK for many of us.
The notion that Bloomberg is a Kingmaker in this matter is insulting. He may be waiting in the curtains (perhaps arranging a late curtain call when Caroline moves up the ladder) but Teddy sealed the deal earlier on.

Historic Shifts

2009-01-12T11:29:00.002-05:00

It's a recession when your neighbor loses his job; it's a depression when you lose yours.
--Harry S Truman (1884 - 1972)

One of the problems with the blame game affecting the views of our contracting economy is that we fail to recognize the seismic shifts that occur among populations ranging from aging baby-boomers to new births – as well as flows of capital, business cycles and markets. The ebb and flow of capital and degrees of risk and risk-avoidance – as well as major financial cycles -- are outside of our control. Some of these sometimes generational factors are completely independent of toxic financial vehicles likes SIV’s and CDO’s and whether Bear Sterns or Lehman Brothers have taken the pipe. The shell games going on in corporate America are as much a result of the cyclical forces as they may be the cause of current pain. Even the Madoff fiasco is a symptom, not a cause. In short, nothing that the Federal government or we can do will alter what is about to happen.

We are entering a deep Recession that will become a Depression by 2011. During that segment in our history there will be a stock market rally lasting for perhaps several months, a very brief improvement in lower end real estate numbers and a resurgence of inflation – but will shortly be followed by an even more calamitous collapse.

Knowing this may or may not prevent the S.E.C. or D.A.’s office from trying to blame individuals for what is about to happen. But, it’s important to know that there is no correlation between specific events and the macro cycle we now face. The events we are about to witness are cyclical and inevitable. Those macro events currently affect the evaporation of capital, the downsizing of business and the deflation (and inflation) about to ravage the economy. The inflation, which will occur within the next year or two, will be short-lived and prepare us for the precipitous drop shortly thereafter.
Credible predictions for the local economy in Manhattan and the Hamptons see the loss of 4 to 5 million jobs, a reduction in the number of retail companies and stores through closure or bankruptcy, and a further deflation in the value of real estate. In the Hamptons, home prices will have fallen by 50% by the end of 2010. According Harry Dent author of The Great Depression Ahead, in order to arrive at values consistent with long term trends, real estate must drop between 40 and 60 percent from 2007 values in order to attain balance.

In Manhattan, where prices have just started to drop – meaning, that brokers have finally admitted that it is happening – the slide has just begun. Projects have stopped in some locations and commercial real estate will deflate at an alarming rate – which will cause bankruptcies and rents to drop precipitously. Harry Macklowe’s tribulations are a symptom of what will happen to many major developers and landlords.
Manhattan apartment rentals have already started to drop and we are only at the beginning of what will become a full-blown Depression by the end of 2010 to 2011. The reduction in services in Manhattan will be difficult to believe and the quality of life stemming from the relentless fines and fees that Bloomberg resorts to will sour any positive feelings towards his Savior image. A respite to this scenario may not occur until 2013 to 2016.

In the Hamptons, an economy that is entirely built and paid for on the backs of New Yorkers who buy summer homes and investment property, the only question is whether a Chapter 11 is in their future. In recent months, one broker described his business succinctly, “the phone doesn’t even ring.”
A broker in East Quogue reported that even the houses in the $300,000 to $500,000 range are not selling. Many McMansions have already dropped by 50% in value (if not price) – and have further to go on the downside.
There will be a modest upsurge in Hamptons real estate activity as people try to rent a summer house and pool their money to share it – as the Code Enforcement police (who will be getting pink slips along with many more of the Town of Southampton’s employees this year) try to fine and criminalize this last and only form of income.
Regardless of how Southampton Town or East Hampton Town treats this brief shot in the arm for the summer season, after the Spring “selling season” is over the slide in that economy will start in earnest. The deflation in real estate will be the new long-term trend – along with the tax base that once propped up the local economy. The brief resurgence of $200/barrel oil (which will collapse again to $30) will exacerbate local conditions that are made worse by with a corrupt political bureaucracy. The
flow of easy money in the Hamptons is gone and this will end decades of political incompetence.
Look for oppressive attempts by the local governments to squeeze money out of tourists and property owners who will abandon properties in growing numbers.

While the towns in the Hamptons might seek a political solution by reaching out to New Yorkers in order to solve the impending disaster by working together, that will not happen. Lip service was once given about hiring a Public Advocate to bring New Yorkers – who pay for the economy – into the local political process but until the vote is garnered that would not happen.

Sell all real estate if you can and buy 30-year Treasury Bonds. It will be a long and difficult ride. Even buying food (which will escalate in cost) will become an issue for many families.

Irresponsible Government

2008-12-23T22:18:00.008-05:00

It is inexcusable for scientists to torture animals; let them make their experiments on journalists and politicians.
-- Henrik Ibsen (1828 - 1906)

When agencies like the D.O.B., which has ignored calls from the community, especially SoHo, to remove offensive billboards that are illegal; when D.O.T. allows special interests who are neither residents of our community, nor interested in the will of the people; – you have a prescription for widespread discontent and political retaliation.

This past weekend was the scene of a demonstration in front of the offices of D.O.T. at 40 Worth Street. Commissioner Jeanette Sadik-Kahn, an avowed bike enthusiast, along with a Mayor who increasingly resembles a prudish Dictator (in with Disney and big developers, out with nightclubs and late night entertainment) -- together have allowed the D.O.T. to butcher the roadways in SoHo, Little Italy, Chinatown and parts of Greenwich Village. The recent rat maze created out of Grand Street in SoHo is a perfect example. The adoption of Park Row as a security zone that resembles Checkpoint Charlie in Soviet era Berlin is another compromise.

Interestingly, Margaret Chin, the organizer who worked with Sean Sweeney of the SoHo Alliance, was joined by Pete Gleason and Alan Gerson – all of whom (except Sweeney) are running for the same City Council seat now held by Gerson. Gleason had made comments on the issue and Chin has been vociferous – while Gerson met with only John Fratta of Little Italy and ignored everyone else.

Clearly, all of the politicians realized that they may be subject to the whims of the Mayor (Gerson has pandered to Bloomberg on term limits), but to throw the voters of Chinatown, SoHo, Little Italy and Greenwich Village to the dogs for green stripes and mid-street parking horrors in order to pander to extreme bikers should not be worth the risk. The communities want protection for pedestrians before they start worrying about bikers having their own highway across town. A street where residents can park overnight or legally drop off their kids is a street where bikers can be welcome. A street where pedestrians are robbed of a crosswalk, is not a place where bikers need special treatment.

Everyone is clear about the fact that Houston Street was the proper location for cross-town bike traffic – and it is still the best option.

The Political Scene

2008-12-10T11:37:00.028-05:00

Too bad the only people who know how to run the country are busy driving cabs and cutting hair.
-- George Burns (1896 - 1996)

The political future of Alan Gerson, Council Member for the SoHo area seems to be a question mark that may be answered by the contenders for his seat. Julie Menin, former Republican and current Community Board #1 Chair, Pete Gleason, attorney and former fireman, Margaret Chin, housing activist and Chinatown luminary are the major current challengers.
Gerson has been criticized for ignoring SoHo, while wasting at least 5 years on a vendor law and ignoring the billboard issue, barely recognizing the pollution and traffic problems and, most recently, pandering to the Bloomberg term-limits fiasco. He has also been silent on the butchering of SoHo streets pandered to by Community Board #2 and Transportation Alternatives -- through Bloomberg’s D.O.T. Commissioner Sadik-Kahn.

Billboard Behind Trump SoHo

Menin claims to not be running, although Jewish females have a high rate of voter turnout and success at the polls downtown. Her cunning and notoriety is due in part to lots of cash and a coterie of real estate professionals and dealmakers who benefit from her control of Board #1.
Gleason is running and takes every opportunity to point out that he is the only candidate that resembles Robin Hood, in a sea of people trying to buy political office downtown. His biggest support comes from Civil Service, Firemen and Police. Although, he has recently been soliciting the advice of activists. Persistence has paid off for many other underdogs.

Margaret Chin has yet to define her candidacy with respect to the other constituencies downtown, apart from Chinatown.

Many over recent years have coveted the U.S. Senate seat vacated by Clinton. Jerry Nadler is known to have wanted it – with Scott Stringer drooling over the opportunity to move up to Congress (Nadler is Stringer’s rabbi). With that unlikely scenario occurring, they’ll both stand pat – and term-limits has kept Stringer interested in remaining as Borough President. There are no challengers on the horizon just yet.

The Cuomo people have reportedly had dibs on the Senate seat even before the election. It remains to be seen whether the old boy (Cuomo senior) network and Cuomo family can press the right buttons. In fairness, however, while Andrew has not been described as warm and gregarious, his performance has been well received.

The Maloney people are waging a feverish campaign to make us all aware of her high-visibility and impeccable credentials – also a woman and an activist. This seems like a likely selection and is supported by savvy politicians like Adam Silvera of the D.I.D., a District Leader who seems to know where a lot of the bones are buried. Julie Nadel, a leading political activist downtown, has not yet made her opinion known.
Caroline Kennedy, the choice of many Democrats, is the darling of Obama's coterie and it will be interesting to see how Paterson plays this.

Nadel, incidentally, is being forced out of HRPT (Hudson River Park Trust) by Stringer for speaking out and it is one of those unseemly power plays directed against genuine progressives in politics. The HRPT is a closed club controlled by Bloomberg’s so-called girlfriend, Diana Taylor and it doesn’t play well with either transparency or criticism.

Eric Gioia & Julie Nadel

The Public Advocate race has had Eric Gioia of the City Council (Investigations Committee Chair) pushing hard – against at least Norman Siegel (Gottbaum is not running) – when out of nowhere Mark Green has reemerged. Green, supported in the past by some dubious characters like Allen Roskoff, who has now slipped quietly into Community Board #4 and is rumored to be working on Maria Derr’s campaign – where he ran her dirty tricks campaigns for her at Community Board #2. Green, as it has been reported, has the advantage of being well known – which is also his disadvantage.

Meanwhile, Maria Derr (former Board #2 Chair) has now adopted both the McManus Midtown Democratic Club and the welcoming arms of Jim McManus – and has emerged as a “progressive” Democrat according to the propaganda from her campaign. She had previously adopted V.R.D.C. when it suited her political needs, along with nightclub owner Bob Rinaolo. Apparently, after searching for the proper venue to assert herself and present her dubious bona fides – she has decided to challenge Christine Quinn for her City Council seat which is located in McManus’s turf. Quinn has been weakened by the Slushgate investigation and downtown residents, at least, have been critical of the D.S.N.Y garage, Trump SoHo and her support of Bloomberg’s term limits play.
Derr has joined with McManus and is attempting to associate her new “progressivism” with the Obama people in order to enlist more political juice. Clearly, the view of what is termed progressive has become a malleable concept.
Of course, claiming to benefit from supporting Obama in a completely Democratically controlled political town – is like asking a New York landlord for a thank you note for paying rent. It’s just a little too obvious.

None of the above politicians (with the exception of Margaret Chin) have yet to really have any affect on the housing crisis and landlord/developer abuse, affordable housing, elimination of illegal billboards, pollution and traffic problems in SoHo to make pedestrians safer; – and none have openly criticized wildcat City agencies like Department of Buildings or D.O.T. – which ride roughshod over our community. But, then, when have any of our politicians acted in our best interests once elected?

A Pedestrian Discussion

2008-12-02T10:44:00.021-05:00

It is said that power corrupts, but actually it's more true that power attracts the corruptible. The sane are usually attracted by other things than power.
-- David Brin (1950 - )

Recent developments in SoHo as well as Little Italy have created embarrassingly foolish designs for our streets, on Grand Street in particular. Years of complaints about preserving guerilla art and calls for turning billboards into canvasses for contemporary art have been ignored. Even pedestrian safety is ignored. For almost 10 years Councilman Alan Gerson as well as the Community Board have ignored pleas to support Bob Bolles Park.
But, bike paths? Anything they want, they can have. Almost instantaneously, it would seem.
Thanks to Commissioner Sadik-Kahn of the D.O.T. and the Greenwich Village group that controls the Community Board’s Transportation Committee. They never saw an experimental plan in SoHo that they didn’t like.
There was never any rational question about the fact that a bike lane was needed cross-town – and that Houston Street was the place to put it. But that was ignored by D.O.T. and the next easiest thing was to carve up the underrepresented community in SoHo. It was never about bike safety. It was always about power and control over SoHo.

What we have here, now, are car lanes located nearly in the middle of Grand street and minimally used dirty green paint – preventing SoHo residents from having places to stop to drop off passengers, the elderly, handicapped or their children. It's NO STOPPING, not NO STANDING. And, no overnight parking at all on the bike lane side of the street.
In the interest of bike safety, Commissioner Sadik-Kahn, the leader of what is fast becoming a bike cult (as opposed to cyclists like you and your kids), has permitted enthusiasts to carve up our neighborhoods to the detriment of cars, buses, and trucks.
What? You are supporting the rights of these polluters over the serene quiet of a bicycle? Are you mad?

Yes, SoHo is mad - mad as hell! And, so is Little Italy.

Not only mad that the buses cannot turn onto Grand Street and then back up incessantly into the crosswalks in order to make the turn;
Not only mad that Fire trucks cannot make the turn at all on to Grand street (pray there is no fire);
Not only mad that Grand street and West Broadway have been turned into another impassable crosswalk for part of the day;
Not simply mad that this is just a completely stupid design that panders to leaders of the bike lane movement (not bike riders themselves) who are starting to look like cultists seeking power – for themselves – and their deified leader Janette Sadik-Kahn;
Not at all mad that the Commissioner is looking out for biker riders safety and their children who are sometimes into tow on their way to school. (Although many of us don’t have that option with several kids going to different schools or live too far away).
And, certainly not mad that there are fewer tourists who come to SoHo and who leave their debris on our streets as they show off their new Mercedes.

But, Mad as hell that no agency, especially D.O.T. or Traffic gives a damn about the residents and pedestrians in SoHo or Little Italy -- Who have complained for years about people being killed on our streets.

Where are the bike enthusiasts who do not live in SoHo – at the Community Board, on the Traffic Committee, in City Hall, at Sadik-Kahn’s D.O.T. –- where have they been as we have tried to have our streets repaired and protected by Traffic agents to allow us to safely cross the street?

Why are crosswalks missing at our street corners? Why have our sidewalks been broken and unrepaired for decades?
Why do we only have only a handful of Traffic agents in SoHo – from Broome Street to Varick Street – watching out for our children so that we can cross the street safely? Even parents pushing carriages are ignored, to fend for themselves.

CROSSING BROOME WITH THE GREEN

Where is the enforcement in SoHo? The few police and traffic agents that do appear for a few hours a day during the week – watch as residents weave in and out of bumper-to-bumper cars that are blocking the crosswalks against the light.

The Enviro-biker friendly movement is the “next best thing” for a few leaders who have found a hook into political power and celebrity. This is a skyhook into personal status and political recognition. It is unfortunate that these people do not really care about those in the neighborhoods they cut up by supporting pedestrian safety FIRST. Where is the cry for politicians -- from people who do not live here -- to make our streets safer for our residents FIRST -- before basking in the glow of a Press conference touting their successes?
And, where are the giddy politicians who see only numbers in supporting this new group from out of town – on the issue of Pedestrian safety?

Or, is this new movement, which has gotten money to butcher our streets and inconvenience our residents, just a cynical ploy for a political party for its leaders? And, whom are they taking for a ride? Are politicians being paid off? Is this yet another, Hi-Rise Mike ploy to screw the residents Downtown?

Talk to us in SoHo about rights for bikers when we can cross the street safely. Many of us and our children are bike riders and have been for 30, 40, 50, or 60 years – but we all are pedestrians. Where were the snot-nosed kids pushing this agenda when SoHo was the cutting edge for bohemian artists?
The more dangerous the configuration of our streets, the more impossible to navigate our thoroughfares, the more self-centered vehicle drivers AND bike riders become – and the more the pedestrians suffer.
It’s beginning to look like this is just a fool’s game of power and control at our expense.

Is it that the pedestrians are, well, just not cool? We only walk.
If we were, wouldn't bike groups want to help pedestrians first – and then ask US to help THEM. Not the reverse.
But, that's not what is happening. Since the Community Board seems not be representative of SoHo, bike groups should be making contact with the people, not politicians or nominal groups.
We pedestrians and residents in SoHo apparently are not perceived to be powerful enough. We don't have a belligerent,
me-first, agenda that pushes certain politicians' buttons.

Children, senior citizens, the handicapped, pedestrians, tourists and, yes, weekend bike riders with their families - apparently don't count to those currently in office. Since members of many communities, such as SoHo and Little Italy, are offended by this treatment, politicians might do well to take notes.

The Big L – Gloom and Doom Part 3

2008-11-20T14:56:00.018-05:00

Here's what Richard Russell (Dow Theory Letters) -- one of the few market commentators with first-hand experience of the Great Depression -- has to say:

“The market is warning of a coming depression. Next year there’ll be a huge problem of unemployment, job openings will have disappeared, and every business will be going over its personal thinking in terms of who the business can do without.

“The sentiment in the country will be dark grey to jet black. Fortunes will have been wiped out. Thousands of savings plans and 401Ks will have been shattered. Americans who have never experienced true hard times will be living hard times. Confusion and fear will be rampant. How do I know all this? I’ve been here before, I know the signs.”

By now, even those among us that think economists are people who know what they’re talking about, realize this: that the genie is now out of the bottle. Few believe that the government has a handle on where this ship of state is headed, financially. Despite Wall Street and its current health, next year and quite possibly the year after, 2009 and 2010, will almost certainly be a disaster. Even if a traditional-style recovery on Wall Street were to start happening now, there is no imaginative vehicle, like CDO’s or SIV’s, that will be the “next big thing” to bail out this economy. Wall Street may recover slowly from here, but it is more likely that any rally that occurs will be a Bear Rally, to be followed by pain -- a lot more pain.

What lies ahead is not a V or a U – traditional symbols of a bounce in Wall Street that signals we are recovering. The big L is now what is predicted if we are lucky enough to avoid the big D.
This describes a long, long, slide down – followed by a very long period of flat or low economic activity accompanied by deflation. It is clearly NOT a period of recovery – it is a period of economic stagnation. Few new jobs, little housing activity and disasterous, permanent downsizing. Only afterwards, assuming that rational economic policy – worldwide – is put into place, can there be any growth.
If you doubt this, contemplate the fact that Japan was in the dumpster for 17 years before it began to recover. Contemplate the fact that real economic activity after 1929 did not occur until World War II – and that any stock purchased in 1929, which was followed by SEVEN major drops before it ended in 1932, did not regain its value until 1954.

We are now still on the slide. Housing has another year or two before it hits bottom. Many houses in the Hamptons have already dropped by 50% in value and Manhattan condos and coops are just now beginning to fall in value. Many of the sales figures that real estate companies provide are hype. Few brokers will tell the truth that activity has fallen by 30-35% and that prices are buoyed only be the averages artificially skewed by a few extremely upscale new developments which are as close to speculating in tulips, as one can imagine.
Price drops are now common. They will soon be the norm.
With 50,000 Citigroup pink slips, 10% of JPMorgan Chase employees being dropped and the combined redundancies at the Merrill/Bank of America merger, the Lehman fiasco and the disappearance of WAMU, not to mention the bank failures across the country – credit, capital and investment is fast disappearing. The recovery figures in housing are based upon limited sales – foreclosures and short sales. By the end of this year and next, several million more people will be out of work and the foreclosures may INCREASE rather than decrease as a result.
There are convincing arguments that we are, in fact, no matter what anyone does, headed into a Depression by 2011. This is based upon the cumulative begging, borrowing and stealing now going on by the Federal government – which uses printed money to solve an essential problem with our economic model. And, that is, there is a limit on how long you can pay your bills and the interest on your bills by borrowing yet more money. That process, created by massive leveraging, does end somewhere. And, since we are still leveraging our way out of this mess by printing more money, issuing more Treasury Bills, and bailing out more inefficient businesses, the end will not be pretty.

What is to be learned from this?
Nothing. This is our future.
Everyone needs to understand where we all going.
To know is to be forewarned.

Buying gold is a hedge but until grocery stores start accepting gold coins for bread, the only transactions that can be had are with Steve, the coin dealer. It is neither realistic nor practical to hoard gold. And, don’t forget, those who bought gold at $950 an ounce a few months ago, have lost $200 on that investment already.
Reducing expenses, downsizing your business, limiting unnecessary purchases and increasing your productivity are among the few things you can do personally. If you MUST attend a political fundraiser, be damned sure that he or she represents your needs and will give you real promises.

What may be helpful in knowing what is about to happen, assuming that GM, Ford and Chrysler do get a bailout or bridge-to-nowhere loans (since non are viable business models), is that voters need to keep a sharp eye on the politicians.
Forget Bush and forget Paulson – the Goldman Sachs CEO who bailed out his buddies on Wall Street first -- and then scrapped plans to buy the toxic debt which he used to convince Congress to give him the money. Paulson had resigned effective January even before he got the green light from Congress, so he’s already accomplished what he needed for his friends.

But, local politicians need to be watched like a hawk.

In the Hamptons, where a bankruptcy in the Town of Southampton is not unlikely, more local residents need to understand that the Republicans have been running things for decades. They are used to living off of the fat in the real estate game – by taking the property taxes and the transfer taxes intended for the Community Preservation Fund to run the government. Fred Thiele, former Town of Southampton Supervisor, buddy of Democratic County Chairman Rich Schaeffer and friend of racist County Executive Steve Levy – created the Preservation Fund to buy vacant land not to be developed. That fund has now been raided by Supervisors in East Hampton and Southampton in order to pay salaries and other expenses. In other words, instead of the painful decisions, they have dipped into that money improperly, if not illegally.

What does this tell you? It tells all of us that the source of funds to run the government – the money used to abuse New Yorkers, landlords, non-resident taxpaying property owners – has dried up. The entire local economy in the Hamptons is in deep, deep trouble. And still, like before, they exclude the ONLY source of money in their planning or government. Calls for a Hamptons Advocate fell on deaf ears in the past. That is unlikely to change with another administration of Republicans who only want power.
With wins by Obama, Pope and Schiavoni, the economy as well as the political landscape may change without their cooperation.

In Manhattan, there is more subtlety. But, change in Manhattan will come in the form of alternative political structures. The fact that Democrats control the agenda in a liberal or progressive city, may be challenged. As the economy tanks in Manhattan, politicians may find that they do not have guarantee of a sinecure in office.
Fundraising will change. The money will not be there.

As the budget decreases, as tax revenues dry up, and the City and private workforce decreases – and as deflation takes hold, politicians will have to work harder to retain the trust of voters. The Obama win will comfort many but change is the message – not status quo.

Notes on the Dictatorship

2008-11-14T10:16:00.005-05:00

In America you can go on the air and kid the politicians, and the politicians can go on the air and kid the people.
-- Groucho Marx (1890 - 1977)

As people dropped off their young children today at school, Officer Maresco was directing the Police Department tow-trucks to remove the cars belonging to known criminals -- parents who were located in a No Parking zone.
Five Police tow-trucks cruised around the two schools waiting for the parents to escort their children in safely – and, as they walked out of sight for this 10 minute ritual known loosely as PROTECTING CHILDREN – the tow trucks swooped in. The tickets had already been issued on the spot.

The fact that numerous meetings were held with representatives of the 6th Precinct, Community Board #2, including Brad Hoylman (before he was Chair) and Commissioner Forgione, the City agencies persist in penalizing parents in trying to protect their children. Why would they say that there is no such sign allowing children to be dropped off in the mornings – and that the “word will go out so that this does not happen” and then just continue to do it?

Of course, all of this flows from the top. Bloomberg has once again proven that Ve Must Vollow Ze Rulz.
The Nightlife industry has experience Gestapo tactics by the police, with phony arrests and set-ups to shut down clubs and bars;
Communities have been ruined with Department of Buildings and Department of Transportation actions that spit on the needs and desires of residents – and, lest we not forget –
Democracy has been suspended with the term limits fiasco.

So, now that we have severely reduced crime, the City will now go after parents and children? Do you smell a prude who has the arrogance of power and money?
Another weak link where our Dear Leader can assert his complete control over our thoughts and wishes?
Even our children’s safety is an irrelevancy.

We need better leadership than this.

Trump Safety

2008-11-13T11:30:00.002-05:00

The United States is a nation of laws: badly written and randomly enforced.
--Frank Zappa

Walking along Varick Street as you cross Spring, Trump SoHo is a reminder that safety is now the prime issue with this project, assuming that it is legal. After crane collapses and a worker’s death, you would think that nothing could go wrong. I even controlled the urge to look up at the 42 or 45 story construction, which is completely out of place in this neighborhood.
After Speaker Quinn’s hearings and lawsuits by the SoHo Alliance, what could go wrong?

Well, the 5 construction and safety workers were busy looking up but said nothing as I walked along Varick under the shed protecting pedestrians. After reaching the other end at Dominic I saw a few more. Only they were telling a pedestrian NOT to walk where I had just exited. They, too, were pointing up and then said “They shouldn’t have let you through, that’s a 9 ton load coming down on the crane and if…” That was relaxing. Then, I looked up. Sure enough, a huge load was making its way down from the crane exactly over where I had been walking. My life insurance is up to date but would the 3 year old understand?

Does anyone understand? That we have a project where safety is LAST.

Don Ameche and Bob Dylan were wrong. Some things don’t change

The Mean Streets of SoHo

2008-11-12T12:42:00.035-05:00

Politics... have always been the systematic organization of hatreds.
-- Henry Brooks Adams

Has anyone noticed that Grand Street has been turned into a rat maze?
In an industrial, manufacturing zone (why Chris Quinn and Hi-Rise Mike still let developers put up hotels in SoHo with no review) we have trucks that cannot turn the corner and children than cannot cross the street. We have parents that cannot cross the street with baby carriages. We have lots of space for bikes, though. Although, there are few bikes and lots of pushcarts, and homeless carts with bottles and cans. Of course, no one can stop to drop off their children or park overnight on one side of the street – now that there is “No Stopping.” Not to mention the fact that there are now cars parked in the middle of the street with grid-work lines galore. It looks like a board game.

(GRAND STREET. CARS IN LANE NEXT TO GREEN PATH ARE PARKED)

There are other areas in the City which are extremely upset as well. It seems that in Brooklyn, 30 blocks have lost their parking on both sides of the street. Apparently, there is a Mayoral Directive that is not subject to any community review at all. Read the comment sections on StreetsBlog.

It's too bad we don’t have more artwork in SoHo instead. The billboards are still everywhere, though. None of the politicians or the Community Board did anything about that. No public or guerilla art was ever saved or supported; nor has there been any effort to give Bob Bolles park any support –- although, Alan Gerson gave a million bucks to just one Village park. And, pedestrians have been completly overlooked.

So, its the Department of Transportation, another of Bloomberg’s autonomous fiefdoms like the Building Department, which apparently decides what they want to do with minimal discussions (and great support from members of the Transportation Committee who do not allow disagreement from SoHo). D.O.T. just makes a decision without the residents and they simply implement their plans, as they did on Grand Street.

(BROADWAY BUS ISLAND IN SOHO)

No one in SoHo knew about the Broadway islands either and no one in SoHo knew about the impending destruction of Grand Street. When Commissioner Janette Sadik-Kahn, Bloomberg’s current Commissioner of D.O.T., permits press conferences to announce their plans -- it is interesting to note that Transportation Alternatives (a bike advocacy organization) often appears at photo ops -- but no one from SoHo is ever invited – even when it affects our community. One can only wonder why. Is it perhaps because we either don’t know what is happening or may not agree with it? The controversy involving the Public Theatre is an additional case in point with respect to D.O.T.

Much of the current “planning” involving SoHo dates back to the reign of D.O.T. Commissioner Iris Weinshall, Senator Schumer’s wife, when the Houston Street Reconstruction was in its planning stages. THAT was the street, which was originally to have provided a cross-Manhattan route for bikes – which in a half-assed way, Grand Street has been elected to be. Even bike enthusiasts were in favor of Houston Street with curbs to protect them.

(HOUSTON STREET)

It was rejected by D.O.T. because of a study in, are you ready for this, Idaho, which claimed that that route was unsafe. Since Houston Street was comletely reconstructed, THAT was the street which should have benefited from a rational cross-Manhattan bike lane. It would have been a win-win situation for pedestrians, vehicular traffic AND bikers. What we wound up with is a route, which has been installed without notice or truly open meetings. Those who did know and attended from SoHo were silenced early on by the Community Board #2 Transportation Committee. At the Community Board it was badly advertised and very poorly decided. Opposition was not tolerated because D.O.T. mandated that it be done. The horrendous decisions were made for a community on narrow clogged streets in SoHo – with the help of a politicized Community Board. So, what we now have is a poorly designed, chopped up street which is ruining businesses (no parking or stopping allowed anytime), and which is confusing motorists, impeding traffic and limiting the flow of trucks in an area that is already overburdened by the Holland Tunnel.

(BROOME STREET & WEST BROADAY)

But, that’s only part of the picture.

This is an example of a small group of NIMBYists running the Community Board Traffic and Transportation Committee – Chaired by Shirley Secunda and Ian Dutton who live in Greenwich Village – making poor decisions out of allegiance to the D.O.T. without permitting any serious input from SoHo. Residents would demonstrate if the Grand Street plan were ever tried in Greenwich Village.

(GREENWICH VILLAGE BIKE LANES -BLEECKER top HUDSON bottom)

This appears to be the local version of the Stockholm syndrome on that committee -- psychologically held hostage to the D.O.T.'s wishes and desires.
Board Chair Hoylman needs to revisit this decision and reverse it, if he has the guts to confront the Mayor and his flunkies.
Why? Because, the quality of life in SoHo demands it. We are a small community, not a testing ground for out-of-town
bike enthusiasts who want SoHo to be their playground. Do a bang-up job of protecting bikers on Houston Street where there is room for it and get rid of the junk and crazy stripes on Grand Street! Support for rational bike lanes have support. What has been done on Grand Street is completely unacceptable to residents.

Here’s the big problem: Everyone has ignored the plight of PEDESTRIANS - FIRST - in SoHo. That MUST be the priority.

Caregivers pushing baby carriages, elderly crossing the street, parents taking their children for a walk cannot do so without being accosted by cars, trucks, buses, and now bikes. We have new green pathways carved out of our streets, which makes an insane state of confusion – and no crosswalks for pedestrians. Residents cannot legally pull over their cars where they live to load or unload groceries or drop off children safely. In the few areas where there are crosswalks, there are no D.O.T. officers to protect them. Try to walk across the street on weekends at West Broadway and Broome Street, if you dare. No tickets are given out and pedestrians, who cross where there are D.O.T. officers, are often ignored if there is less than 4 inches between cars – even when the person has the light. On Bleecker Street and 7th Avenue South in the Village a whole team of cops ticket cars simply for not using a turn signal. There are no cops in SoHo, except the Midtown Taskforce a few hours a weekday at two intersections.
But, step on a green pathway and an irate biker will scream at you or hit you as they drive the wrong way on these paths. This is not Denmark, where street paths were planned out decades ago for the benefit of a society that supports biking -- which is NOT at the expense of pedestrian safety.
Shall we paint green paths on all Village thoroughfares, place protrusions in the middle of those streets, and park cars in the middle of the street and eliminate overnight parking in most areas? Remember, many of these streets are in landmarked areas in SoHo. And, there are only four cross streets in all of SoHo. But, we know that won’t happen. The D.O.T. Commissioner knows better to pick a fight with a Community Board that is stacked for the Village and against SoHo. We have no such support from our politicians.

We have broken or completely missing crosswalks, missing cobblestones, decaying or broken sidewalks, no protection from D.O.T. officers, and no pedestrian safety. NONE of the streets in Greenwich Village have been treated like Grand Street. None exist Uptown.

(CURRENT CONDITION OF SOHO CROSSWALKS - photo: Beat Keerl)

As a friend on the upper East Side recently said when asked about the Grand Street problem: “They wouldn’t tolerate this where I live.”
Are we, in SoHo, to be treated like guinea pigs for the D.O.T. Commissioner’s friends -- who would like to live and party in SoHo – and who would like to tell us how we should live? Are we the underrepresented neighborhood where the Community Board performs its experiments to save themselves discomforts?

We in SoHo, who provide the City with an arts heritage, put up with endless Film shoots, suffer from illegal billboards, breathe Downtown’s pollution from the Holland Tunnel, and bring money to the City coffers – get nothing in return. We get no support from Mr. Gerson, our Councilman, nothing but promises from Mr. Stringer, the Borough President, and absolutely nothing from the Speaker, Christine Quinn, who has let our community be developed mindlessly and then sold out to Bloomberg.

Remember this when you get your next fundraiser invitation.

The Hobgoblins of Inconsistency

2008-11-04T10:39:00.006-05:00

Ninety percent of the politicians give the other ten percent a bad reputation.
--Henry Kissinger (1923 - )

For a good read on the term-limits saga, Henry Stern’s continuing reportage and commentary gives you some pithy views of how the game is playing out. The latest round of political posturing seems to suggest that Speaker Quinn expects more than she is getting from Hi-Rise Mike’s staff. And, while she expects a plum appointment in his new third term for rounding up the natives to push through the Council vote, all is already not golden. Whether the Councilmembers' compliant efforts will be rewarded by another term, or whether either the Council vote will be reversed by the Justice Department (not likely), or whether voters turn out the quislings at the polls next year (likely) – remains to be seen.
What is more likely, and is being played out right now – is that having produced the required vote, many Councilmembers are feeling their oats. They are giving Quinn and Bloomberg a little stress.
While politics is a many faceted game, three-dimensional chess comes to mind. And, it should not be lost on any of us that while the media has been brainwashing everyone about Mike’s much-touted popularity, never discount a multi-leveled plan that anticipates a Love Fest when our Mayor “relents” and decides upon having another special referendum to confirm his high level of morality and support for democracy. Can’t you see the hugging and kissing in the streets as we all learn to love Big Brother – with the big fat checkbook – when we are told there will be a referendum after all?
But, don’t expect love and kisses from Downtown where the hotels are sprouting like daisies – as the City agencies ignore tenants and residents who are being sold out for the benefit of developers. Hotels, a fake 45 stories Trump condo and a 3 District Sanitation garage, to boot.
Quinn has practically signed her soul away for Mikey, Alan Gerson has sold out SoHo -- and the voters will remember. Apparently, a new blog/website devoted to Quinn’s questionable popularity has recently appeared. Can Gerson’s be far behind?

While the term-limits fiasco plays out, many of the Downtowners are figuring out what their next job will be. Whether they will run, whether they can run, whether the on-again, off-again pleasures of Mikey will change yet again.
Gerson is running for his seat again and the likely opponents will be Pete Gleason and Margaret Chin. Menin will likely not challenge Gerson. Gerson may be vulnerable despite the fact that he’s a “nice guy.”
Gleason is tenacious, close to the unions, and committed. He is known as someone who remembers his friends and hires people who, when they pick up the office phone, will be able to answer a question. Jim McManus said of those he has supported, “you can pick up the phone and get him on the line.”
Margaret Chin is still a bit of a cipher. She is well respected in the Asian community but has not yet broken out of that provincial mold in some people’s minds. She is enormously effective and has become a solid supporter of stabilized tenants. But, again, it has been limited to the Chinatown community. Her intelligence and drive is still encapsulated and she would need to be seen as breaking out of that.
Julie Menin, Chair of Board #1 has appeared on CNN and seems to have decided that her star is tied to political expertise with knowledge of national politics. With a lot of cash and a PR firm behind her, the reality of what she really knows or understands is debatable. There have been a few snickers, however, by Downtown political junkies over that. While the clamor over the aborted D.I.D. incursion has subsided it is unknown whether this permanently damaged her support – at least outside of Community Board #1. Menin’s evaluation of a run for City Council seat may have as much to do with Alan’s omnipresent Jewish mother (Sophie) as any political issue. It is widely assumed that Jewish females have a lock on downtown voters. Menin has made numerous mistakes, including taking the advice of a small coterie of Downtown activists who are about as community-minded as Genghis Khan.
So, we may or may not have another five years of Alan, based upon how loudly Sophie yells out at him from behind the phone. We all await the Vendor Law, for example, in SoHo after what could only kindly be called “minimalist” politics. Nothing else, after all, has happened for SoHo in eight years.

There are positive expectations that Daniel Squadron will give SoHo residents a much-awaited shot in the arm. With numerous problems that have long been ignored (illegal billboard proliferation, traffic management and pollution, tenants rights, antiquated zoning and overzealous development, lack of parking, liquor license oversaturation) --we look to Election Day for the conclusion of a stellar campaign. Squadron has indicated that he is an activist and will work tirelessly for SoHo. We’ll keep you posted.

Capitulation or Repudiation of Democracy

2008-10-21T20:15:00.009-04:00

The only thing I like about rich people is their money.
-- Nancy Astor (1879 - 1964)

The problem created by this election is that there is only just so much lipstick available. But, there are plenty of pigs.
Witness the precipitous drop in the market, which will now be supported in our newfound brand of socialistic capitalism (“Disaster Capitalism) – in which what goes up must only go up. If it comes down, we have to make it go up, anyway. Even if we have to buy it to make it go up – with taxpayer’s money – our money. Yours and mine. Clearly, the natives are getting restless.
So, let’s see, President Paulson bails out his buddies at Goldman Sachs after letting his enemies lose everything at Lehman, then he engineers a $700 Billion dollar bailout Band-Aid that will be operated by a buddy at Goldman and allows fully 10 percent of that taxpayer money for golden parachutes. Not bad.
And, the first $250 Billion goes to Goldman, JPMorgan and Citigroup among others on the short list.
Wouldn’t you love to be at that party when the severance checks are handed out?

The fact is that no matter what Paulson does, no one will be able to stop this runaway train. We have Lehman's credit default swaps coming due at auction – which will identify the counterparties- and we may find out who’s behind curtain number two (could it be AIG, JPMorgan Chase or Citigroup?) which may tell us who holding another bag of $100-400 Billion in derivatives.
There’s also the hedge fund disaster - a two trillion dollar problem that has seen over $200 Billion in redemptions just this last couple of weeks.
There’s the money-market problem, which has caused the bankruptcy of an HMO and is rippling through schools and hospitals that used funds like The Reserve (which just failed) to maintain their checking account cash in order to make higher interest on the float.
Lest we not forget, pension funds are tied inextricably to Wall Street performance – across our entire nation. The merger of GM and Chrysler will be another bailout connected to that problem. The guess is that another 50 to 100 Billion will be needed there as well.

Are we finally arriving at the point of capitulation in the markets or are we witnessing the bailout of more than a few Wall Street characters who are benefiting from the carnage – yet again. A few disgruntled citizens are beginning to wonder why we want to push this form of “Democracy” on any other country – as we have in Iraq, to the tune of $3 Trillion of our dollars.

So, is this a bear rally that, like 1929 will take two years to finally reach bottom – while all of these manipulations simply protect a few insiders?
Is this capitulation (the technical term for a bottom), or is Main Street finally getting the picture and planning to repudiate these phony economic leaders like Paulson who is simply protecting his friends?

Counties, Towns and Villages across this country are already starting to head for the Chapter 11 exit – because they cannot pay salaries with no credit and failing investment accounts.
Since “all politics is local,” it is time for our leaders to grapple with the direction needed in this country. A grassroots correction in course for our Republic and the system of Democracy we believe in needs to be reviewed.

We need to stand behind our principles and regenerate our faith in our form Democracy. As with the term-limits debate currently going on – the people voted in a referendum and it needs to be respected. Not bought off.
Buying a seat in the City Council, buying the Mayor’s Office, or selling out your constituency for the promise of higher office – even buying your way into a political club for future endorsements – have all contributed to what King Paulson has now given us with the Bush imprimatur. Democracy for sale.

Political Class

2008-10-15T11:48:00.004-04:00

People that are really weird can get into sensitive positions and have a tremendous impact on history.
-- Dan Quayle (1947 - )

The problem with most political writers is that many of them seem to know more about what’s going on then most of the politicians or, for that matter, nearly all of the voters. The media manipulates the effluent that dutifully seeps out from the planted PR sources and some flows down through editorial boards that get some of their orders from the publishers.
Activists, Community Board members, political junkies, political club members, and bloggers, make up most of those who are interested in what’s going on inside the Halls of Government. For want of a better nom de guerre, they comprise a Political Class.

The recent term-limits gambit playing out in the City Council and City Hall is one of those rare moments when the Political Class can stand around scratching their heads, looking at each other with a look that says, “What were they thinking?”

Here we have a Mayor who is not yet fully out of the closet, writing checks to organizations to round up support for future wars, using the golden shackles and parachutes to bind people to his every whim – which has ranged from President, Vice President, Governor and Mayor, to Charitable Organization CEO – with every flunkie in earshot ready to drop their pants at his whim – now deciding that the law has to be changed and the voters wishes can be ignored. Is this for real?
Has Christine Quinn really been struck deaf, dumb and blind – to self-destruct in public – in order to be granted an annuity in order to run for an office that would become impossible to achieve after becoming Bloomberg’s sacrificial lamb?

A friend once said, 'before we sent the boys into Iraq – they better know more than we do about what’s really going on – or, this is just a suicide run.
There’d better be WMD’s over there or this is just crazy.'

Bloomberg and Quinn better know more than we can even conceive of – and their media pals better be a lot better than what is seeping out from under the cesspool cover – or this is going to kill both of them, despite any positive work that may have been done.
Quinn rolls over and pushes through a third term for Mayor Mike just as Slushgate is (curiously) ebbing in the media, Bloomberg reverses his stance on a third term just as his second term is about to end – and all of this dirty laundry is done in public. Do they think the voters are completely stupid?

Speaking of which --- subpoenas have been floating around according to some rumors. Unconfirmed reports have been surfacing that Jimmy McManus and possibly Ray Cline among others, have gotten, or will get, papers (neither of them are targets) – and may be asked to talk about the shenanigans suspected in the Nora Anderson matter. The press has been having a field day with rumors that Anderson is not going to make it through this with her newly won job in Surrogate Court intact – due in part to Oliva – her campaign manager -- and Bernie Cohen. Election law may be the source of the problem. The D.A’s office would not comment but it is known that there’s some trouble afoot. Mr. Tingling could not be reached but one can hear the “I told you so’s” already being mouthed.

Now that Quinn has apparently shot herself in the service of a rumored Deputy Mayoral position next year if she’s forced out of the Speaker’s job – we are back to the question of whether Berman and Derr will go ahead and challenge her -- now that term limits keep her in her seat. Hoylman won’t run if Quinn runs again since they are soul mates – leaving him without a race to run after Community Board Chair, so far – as he apparently won’t run against Gerson for fear of a replay of the last time he challenged Alan. While many downtown are still waiting for Gerson to do something, anything, any credible challenger would have a chance. Pete Gleason is running. Margaret Chin is running. Menin claims that she won’t run against Alan.
Derr will absolutely run because there is no other political option for her and, despite the fact that she has no experience, if Berman does not run, almost anyone could have a shot. Quinn has damaged herself to that degree. The Council may not re-appoint her Speaker if they have their way.
But, who knows, Mike might just write them all checks. That’s the state of our democracy. Pay them off!

If voters support any of these people, the only rational response is, as Lewis Black would say, “What the fuck were they thinking?”

Walking Close to the Buildings

2008-10-07T10:16:00.009-04:00

Too bad the only people who know how to run the country are busy driving cabs and cutting hair.
-- George Burns (1896 - 1996)

During the Great Depression, there were a few rules that only those who lived through it would know about. Wall Street workers in those dark days, for example, were happy to work “Scotch” weeks – when not being paid for every week of work was accepted. It was better to have half a job than lose a whole one. There were other familiar words of advice that were not a joke.
People working on “the street” were told not to venture near the curb as they walked towards Broad Street. Looking up when crossing a street was advised.

When someone went out a window after reading the latest ticker tape, the arch of the falling body took them out to the curb, away from the sidewalk closest to the building. Those times are upon us again.

The worst period in the Depression, from a stock market point of view, actually did not arrive after the first round of major drops. A period of nearly a year elapsed after the initial calamity that brought everyone and everything to its knees.
The current scenario is playing itself out on Wall Street and Main Street – no matter whether you are a real estate investor, a shopkeeper, a member of the Town Board in the Hamptons, a City Council member in Manhattan – or, even if you managed to hold on to your Lehman Brothers job when Barclay’s picked up your ticket after the Bankruptcy.

The problem with watching the gyrations on Wall Street every day is that it has little to do with what is now in the cards for every one. No matter whether we see a capitulation, as it is called when a bottom is announced by the gurus, or whether we see a rally after all of the bad news is digested.
What ensues after that is already pre-ordained. It is starting to unfold now.

Mortgages under $500,000 are extremely difficult to obtain. What used to be called super-jumbos, million dollar plus loans which fueled the sale of Hamptons properties and Manhattan condos – are history.

The Southampton Press, for example, reported that:
‘As a sign of the worsening economy, Mr. Bishop noted that on Eastern Long Island there are at least 14 multimillion-homes being built where the owner of the home has stopped construction “because he doesn’t know what’s in his future. It’s not just about the 14 homes; it’s about all the construction workers that aren’t going to have jobs as a result.
….Families are having difficulty with the daily expenses and certainly with their housing costs as home values drop. And we know that this credit crisis that we are in the midst of cannot on its own correct. It sounds dire, but there is a risk that commerce could grind to a halt,” she said.’

Even buyers with perfect credit and huge amounts of cash find the process impossible to complete IF they can find a lender with such a product. And, yes, folks, the Europeans are leaving town in order to locate their accounts before their bank fails.

Villages and Towns, as well as Counties will struggle with budgets – and some will be forced to file for bankruptcy. That includes Southampton Town, East Hampton Town and Suffolk County. Dipping into the Community Preservation Fund (where Transfer Taxes from New Yorker home purchases went to buy open land) in order to pay local government employee salaries -- is a good indication of the severity of their financial situation. It is not a glowing picture despite the hostility demonstrated towards New Yorkers and investor-landlords.

Then, as the Hamptons properties become worth less than 50% of what they were “worth” two years ago, as credit lines evaporate, as home equity credit lines are withdrawn, as credit cards are cancelled by the lenders without notice, as car loans disappear -- forcing Ford and General Motors to be bought out –and potentially resulting in the wholesale repudiation of pensions in bankruptcy court – we may awaken to see the final Panic leg on Wall Street. That’s where the buck stops. In fact, that’s where everything stops.

When the Panic Leg finally resolves itself we will have arrived at the point where Manhattan landlords provide services in order to keep their rent-paying stabilized tenants.
It’s the point where coop and condo boards send out maintenance statements that double the fees to compensate for their deadbeat members – forcing a final round of foreclosures.
It is the point where some schools close, hospitals fail, houses and apartments are abandoned and political fundraisers are cancelled for lack of attendance and lack of money.

The Federal bailout and Paulson’s protection of his buddies at Goldman Sachs have made all of this possible. Whether Paulson leaves office in January, as he previously had indicated, he has taken care of Bush, Goldman Sachs and a few other well-placed friends.
It leaves behind the following problems which must play out before we reach that point, which have still not been addressed:

Credit default swaps which Warren Buffet, himself, divested his company of years ago – total an estimated value in excess of $800 Trillion dollars. That’s an amount approaching $1 Quadrillion dollars. If that blows up, even selling apples won’t help. And, by the way, JPMorgan Chase has several Trillion dollars worth of these little beauties lying around off of its balance sheet somewhere, ready to explode at the right moment;

The Hedge Fund implosion, which was blindsided by the SEC Short sale prohibition -- triggering redemptions that threaten that entire $2 Trillion dollar industry;

The Money Market Fund problem caused by The Reserve’s “breaking the buck” which resulted in a return of only 30-40 percent of the original cash paid out due to the failure of Lehman Brothers;

The rescue packages of General Motors, Ford and Chrysler, which will cost another $100 Billion.

And, finally, the credit card debacle is slated to hit us in 2009 as American Express and Capital One (among others) play their part in another $1 Trillion dollar disaster. Of course, that amount is predicated upon those companies having told us the truth about the severity of the problem.

This comes upon the heels of our $3 Trillion dollar military expeditions in Iraq and Afghanistan. If ever the “King needs a war” -- (Iran), it’s now.

As illegal immigrants and Latinos in the Hamptons leave town due to lack of work and the unconstitutional terrorizing of women and children in their homes -- white Americans will need to double-up and triple-up in houses in order to survive. Living situations, formerly considered illegal, that have promulgated attacks on landlords and New Yorkers, will now be permitted. Many of them will be Code Enforcement police who will not be able to afford a place to live on their own. Housing violations will suddenly seem unimportant and what was once considered overcrowding – will become the norm.

In Manhattan, real estate agents who have touted the strong condo market will be looking for jobs as the “European investor” heads for his hometown to hide his devaluing Euros under the mattress.

Political ploys like Mayor Bloomberg running for a third term along with his sycophantic supplicants on the City Council – buying himself another term in office – is only the most obvious move as everything is suspended.
Cynical plays that presume to be managed for the good of the people will become more prevalent.

Morality, ethics and fair-play will be sorely tested.

The October Surprise

2008-10-01T11:14:00.014-04:00

Sometimes the appropriate response to reality is to go insane.
-- Philip K. Dick (1928 - 1982)

Those of you who have been anticipating regime change in lower Manhattan will be happy to know that 2009 will be the year that all bets are off. Flowing from the national political scene down to the City Council and Mayoral elections, big changes are coming our way.

Due to the financial problems on Wall Street and the difficult economic conflagration that is now clearly coming, there will be disruptions that are unexpected. However, all of our needs will be met by those who care deeply about us.

First of all, George Bush is now expected to run for a third term as President and will be announcing his plans shortly.
Due to the fact that we are at war on two fronts, are seriously considering an attack on Iran, and are facing the challenge by worldwide terrorism, it stands to reason that the continuation of our policies with a President who is familiar with our current positions, should be supported in his plans to run for a third term. Bush is also dealing with the disruption in our financial markets and a worldwide credit meltdown. Since he is precluded from running for a third term, and since holding a referendum on the issue is deemed unnecessary, the Republican caucus will handle this mere detail.

Bush has also held discussions with other leaders who also concerned with our well being.

Locally, in view of those same economic concerns, a special session of the City Council will be asked to confirm suspension of term limits which will maintain the status quo for most City Council members as well as Mayor Bloomberg. The Mayor is scheduled to formally announce his plans tomorrow -- when he will advise us that only he can save us from the economic storm about to hit. No doubt, he and Bush come from the same school of Republican Saviours.
The current Council members, displaying their typical hubris, have no personally vested interest in promulgating this mid-session change of heart. Roughly two-thirds of the City Council who would ordinarily have been forced to leave office, will now remain seated.

Fortunately, it will also be unnecessary for people to vote on this issue.
And, while Ron Lauder, the activist politician who has previously championed the rights of voters in deciding such changes in the past, he has now seen fit to support this third-term cause. It wasn't o.k. for Rudy, but for Mikey, sure, why not? Clearly, Murdoch of Newscorp and Ross of the Related Companies (of Pier 40 fame and Doctoroff’s buddy) having seen the "green" light, as well as a precipitous drop in their stock, has indicated the right path for Hi-Rise Mike to follow.
Apparently, business leaders will soon convince the reconstituted Mayor and the amenable City Council, that a voter referendum on this issue will be unnecessary.

If we are all lucky enough to have our Dear Leaders think and plan for us in these difficult times, we will not have to worry our pretty little heads about what is best for us. They really don’t need us meddling with their plans.

The Politics of Depression

2008-09-22T12:56:00.018-04:00

Politics: "The conduct of public affairs for private advantage."
--Ambrose Bierce (1842 - 1914)

Our Dear Leader, Hi-Rise Mike, is still playing with us over whether he plans to step down. Rudy did the same thing, using 9-11 and our perceived ability not to be able to do without him. He is severely misinformed, or perhaps just egotistical.
While numerous media plugs discuss his supposed popularity among the voters, many Downtown have put up with one development proposal after another – including his buddy’s Condo-Hotel (Trump SoHo) – a project that has destroyed a neighborhood as well as its re-zoning. Trump is still trying to add floors, even while the project is stalled.
Fortunately, although Quinn still has Bloomberg’s job in her sights, she has managed to pass legislation that, in spirit at least, does something that harassed tenants can hang their hats on. Provided, of course, that they can afford expensive legal counsel. Slushgate has started to fade in people’s minds.

We all recently learned that Hi-Rise Mike has been meeting with others who control what we think – Murdoch of News Corp and Zuckerman of the Daily News – to float the coordination of support for this third term as Mayor. The fine print of their meetings makes note of the fact that the current candidates are not generating enthusiasm among those moguls. For those who know the field of dreams for next year’s election, that means the front-runner Bill Thompson – with a second and third tier that includes Weiner and Quinn.

The Boys from Harvard have been groping for a way to prove that Mike is our man and should remain so with as arrogant a Press crew as one can imagine. So far, that has been falling on deaf ears.
The fact that our new Mayor told us from the beginning that where he goes and what he does is none of our business – was the tell as far as arrogance was concerned -- when he was first elected. His estate in Burmuda was the probable location of a weekend away from the helm. But, hey, I’m away for the weekend, it’s none of your business where I go. Koch or Guiliani would never have done that, come to think of it, neither would Bush.
A man of the people doesn’t hide out when he doesn’t want to be bothered. This is a public job, not just public when you feel like it.

Bill Thompson, the front-runner in the Mayoral election is a smart, able politician and was duly pissed-off when Mayor Mike started this “I know better what you need than you do” routine, recently.
What Thompson did not say, and what is increasingly a possibility, is that it may be just another form of political racism -- sugar-coated so as to be tolerated by the masses of liberals being duped by the money and the media control -- which obviously includes the Bloomberg media. For him and his media buddies to assume that Thompson is not every bit as competent as he is to run this city, is suspect to say the least.

So, as we sit back and watch the Depression overtake us, ponder some of these unspoken tidbits:

Coop and condo sales ARE tanking and prices are being dropped by people who are having a hard time paying maintenance fees. It is done more stealthily, but any broker who tells the truth will verify it. Six months ago, even HPD would tell you that coop and condo boards were starting to be investigated for not maintaining buildings – individual shareholders having had to call HPD to get the board to make routine repairs in common areas.

And, now that Wall Street is imploding, expect to see a wave of defaults and foreclosures—not to mention nearly 100,000 layoffs. Lehman Brothers employees managed to be picked up by Barclay’s (for the moment) but what no one is talking about is the massive loss of assets as stocks tank or become worthless, as in the case of Lehman. At the big firms, the cash for multi-million dollar properties (condos, coops, townhouses, developments) was not always arranged with mortgages. Many were financed with loans collateralized with stock pledges. Now that some of that stock is worthless, the loans can be called on that stock. Now, there’s a prescription for joy.

And, a word about our new savior, who has unlimited powers NOT subject review by the Courts. It’s very interesting to note that Lehman was allowed to fail and Goldman Sachs survived.
Lehman did not contribute to the Long Term Capital debacle – and many consider this payback. Barclay’s was interested in part of the Lehman operation and had been offering numbers approaching $5 Billion – and rumor has it that they were told to wait. They did – and bought if for $1.3 Billion only days later.
Paulson was the CEO of Goldman Sachs.

Think there is any correlation here?

Wait til you see what kind of sweet deals are cooked up with the RTC-styled maneuver now in the works.

"Somehow Lehman Brothers gets left on the sidelines," said Daniel Golden of Akin Gump Strauss Hauer & Feld LLP, who represents clients holding about $9 billion in bonds. "We believe this was a flawed sales process. It benefits Barclays and the federal government but not the creditors of this estate.

"The economic landscape seems to have changed over the last two days," he said. "Yet the debtors and the Fed seem determined that nothing get in the way of this transaction."

Had Lehman filed for Chapter 11 a week later than it had, its fate may have been different.

"This is a tragedy - maybe we missed the RTC by a week."

If they think Lehman was a tragedy, wait until the new RTC deal, christened Baillie Mae, gets moving.

Sparks Flying

2008-07-26T22:13:00.006-04:00

Politics is just like show business. You have a hell of an opening, coast for a while, and then have a hell of a close.
-- Ronald Reagan (1911 - 2004)

Some of the current political races are becoming testier.

Pete Gleason is weighing his options for City Council in ‘09 and faces a field which currently includes Julie Menin, more remotely Kathryn Freed (inhibited we think due to financial constraints), Madeleine Wils, and Margaret Chin.
Gleason is seen as an emotional favorite to many in SoHo; Menin has the Board #1 faction and parts of Tribeca; Wils has an alternate slice of Tribeca and Board #1; and Chin has a strong field in Chinatown.
What Gleason has in popularity he lacks in cash. The reverse is true for Menin and Wils – although, slick as she is, Wils is preferred by many.
She’s smarter and knows how things work.
Chin has Chinatown but needs to reach out among others and lose the provincialism of a primarily Asian candidate.

The lay of the land has Wils as the favorite, were she to run at this point due to money and political savvy.
Gleason is seen as someone who can be trusted.

At a fundraiser held this Saturday, Bernie Cohen, former attorney and consultant for Nora Anderson’s Surrogate’s Court bid – a lucrative position – apparently took a swing at Eben Bronfman, Special Assistant to D.A. Bob Morgenthau. It connected.
Bronfman, who was holding his daughter’s hand at the time and was about to leave, caught the unexpected punch. Various obscenities accompanied the blow.
Apparently, Eben has been seen in the company of Anderson’s opponent (Milton Tingling) and he speculates that this was the reason for Cohen’s actions.
Bronfman, however, wasn’t amused that he received this “show of emotion” in front of 80 people.

It’s a hot July.

Rumors & Politics

2008-07-16T17:43:00.028-04:00

A recent survey was said to prove that the people we Americans most admire are our politicians and doctors. I don't believe it. They are simply the people we are most afraid of. And with the most reason.
-- Author Unknown

The problem with rumors is that sometimes they’re true. Enron is a good example. Bears Sterns is another. Politically, Spitzer is as good as any you’ll ever hear and for those of you who remember Donald Manes, there’s little to be said.
In this season of danger, euphemistically known as Primary season, few want to be on record for the battles that are occurring. Whispers, anonymous letters and fourth hand accusations that are unattributed are the coin of the realm.
Since, for better or worse, Manhattan is still a one-party town, the Democrats fight it out in September. Whoever survives the Primary usually wins in November.

This year there are a number of real races among the Democrats.

Daniel Squadron, for example, is running again Democratic incumbent Marty Connor, who for 30 years has not had a serious opponent. That has changed this year. Squadron managed to garner the endorsement of Downtown’s major, but embattled, Democratic political club, D.I.D., and is clearly now in the lead for the State Senate seat. While Squadron has raised significant money (reportedly over $425,000 thus far), his real success is in making headway without the overt support of his major political rabbi, Senator Schumer. Squadron actually traveled with Schumer and they wrote a book together.
Having to make one’s own political way in spite of a tremendous political asset in order to connect with the community and inspire a sense of commitment is not an easy task. Squadron seems to have accomplished this by virtue of his energy and persistence.

Bob Morgenthau has been one of the strongest forces for political power and social responsibility in the Manhattan justice system. Legendary stories about Bob as a Federal prosecutor, his advisory meetings with Suffolk County D.A.’s like Thomas Spota and his socially correct politics do not do justice to his power. His prosecutors and assistants, including Dan Castleman and Eben Bronfman, are polite and charming but deadly, if you’re on the wrong side of the conference table.
As a supporter of women’s rights and as a force for social justice he has managed to succeed in breaking new ground with John Doe indictments -- which maintain DNA material and prosecutorial integrity – thereby protecting the ability to prosecute a rapist beyond the usual statute of limitations.
His opponent for D.A. is likely Leslie Crocker Snyder, a former judge and investment banker. She garnered 40% of the vote in the last election and is expected to run again. While a threat, the piggy bank on Wall Street may dry up this time around. She had been in favor of the death penalty but apparently has relinquished that position.
Others who wish to take over once Bob Morgenthau has retired are Catherine Abate, who has been waiting for him to step aside for years – and there is newcomer Cyrus Vance, Jr., who has stated clearly that he will not run if Bob decides to run again. Bob is running again.
Another possible wild card candidate mentioned has been Jim McManus, District Leader and head of the McManus Midtown Democratic Club.
As unusual as that may seem, remember the D.A’s office is about knowing where the bones are buried and digging them up.
Bob knows how to dig them up and Jim likely knows where some of them are buried.

The City Council race for District one will soon become more interesting. While Julie Menin, Chair of Board #1 and her forces have zeroed in on Pete Gleason, her attention may be misplaced.
Gleason is the choice of many and is clearly preferred by registered voters North of Canal Street but money may become the issue. Menin’s war chest is supported by developers and husband Bruce Menin, reportedly with a family fortune in the hundreds of millions -- a daunting reality for opponents.

Margaret Chin, however, is the candidate to watch.
She is an activist who fervently puts her energy where her mouth is. No one works as hard as she does. And, while she represents the huge Chinese voter majority Downtown, she has gained popularity with those who do not like the idea of a political seat that is bought.

Chin’s detractors have tried to find an Achilles Heel and the best they’ve been able to come up with is the fact that as a young girl she was a member of the Communist Party. Move over Hollywood.

Ballotgate is heating up.
Apparently, Community Board #1 may be ripe for an investigation over a missing ballot. A recent election for assistant secretary, an Executive Committee position has created a little monster for all involved.
The rough details apparently are that during the balloting in a race between Community activist Marc Ameruso and his opponent, Board member named Lynn-Rudder -- one vote went missing. While the election was not a close one, the missing ballot is troubling for a few different reasons. First, it was Julie Menin’s vote, the Chair of the Board. Second, it indicates that someone is toying with the election process.
Rumors have circulated indicating that the motivation for the missing ballot is related to the fact that all election results at Community Boards are open and transparent. Ergo, anyone can review the results and figure out who voted for whom. In the past, these election results often indicate to either the winning or losing candidate who your friends really are.
Since Menin verbally promised her vote to Ameruso and since Lynn-Rudder is from the Menin camp (he is not), it is logical to assume that that particular missing ballot might be an embarrassment.
Whatever your politics are, however, there is no indication of where the missing Menin ballot went after being accepted by Pat Moore, one of her supporters and head of the Nominating Committee. Moore was also Menin’s entry for the D.I.D. election, which ended with Sean Sweeney being re-elected.
Ameruso discovered it the next day when he reviewed the results at the Board office and he then reported the fact.
Interestingly, he was then accused of committing the crime that he, himself discovered and reported. A little thin, even for political logic.

If nothing else, it elucidates the depth of political intrigue going on at Board #1 – and whether this needs an investigation by an outside entity (since rumor has it that two attorneys sit on the Executive Committee and are upset over this), remains to be seen.
Stringer is a political ally of Menin and depends upon the fundraising potential but he clearly takes his connection with the Community Boards very seriously. He may have to step aside and let a completely neutral body check this out if it does not quickly get resolved.
Somebody might want to suddenly find that missing ballot before it gets too messy. Perhaps it stuck to the bottom of someone’s coffee cup.
This is being reviewed at an emergency Executive Committee meeting next Monday at 6 pm at the Board office. Stay tuned rangers.

Apparently, D.I.D. is stabilizing after the failed Menin and David Reck orchestrated Putsch – but suddenly Julie Nadel (who had been elected Treasurer) was advised that she could not have a position on the H.R.P.T. and also serve as an officer in a political club. She received the Dear Julie letter from Connie Fishman, President of the Trust, stating that this was not permitted. Nadel, graciously dropped out of the D.I.D. position and District Leader Adam Silvera took over on an interim basis.
While the matter was handled quickly and efficiently, one wonders why this particular responsiveness occurred at this moment in time. Other H.R.P.T. members have enjoyed dual roles.
Nadel, however, has been one of the only critics on the H.R.P.T. Board that covets secrecy and she has been known to speak her mind on a number of controversial issues.

Nadel was also was involved in helping to arrange a Meet & Greet for Councilmember Eric Gioia, an announced candidate for Public Advocate in ‘09 – a position that Scott Stringer has not announced he is seeking – but is known to be considering. Stringer appoints three of the H.R.P.T. Board members.
Interesting.

Elitism

2008-07-13T12:18:00.012-04:00

An honest politician is one who, when he is bought, will stay bought.
-- Simon Cameron (1799 - 1889)

Talk to any good lawyer and it’s likely that you will soon learn the difference between rational logic and legal logic.
While it makes perfect sense, for example, that someone who defrauded you out of a substantial amount of money should be instructed by the courts to refund you your loss – rules of evidence and legal precedent have a way of interfering. Even a crystal clear matter that no one, even the perpetrator, doubts as truth – can be shoved aside by the vagaries of that arcane legal logic. Political logic is far beyond even that abstruse common sense.
This also applies to the common sense with which the public devours information. It’s one of the reasons why Page Six has an avid audience. The fourth estate finds its raison d’etre at the feet of politicians’ lies.
But, more important, there are some realities that so fly so in the face of common sense, that one can simply smell the truth despite what the words say.

As the political landscape is evolving Downtown, it is clear that politics is now the domain of BIG money a/k/a Developers. And, in an attempt to insist that what we are seeing, in fact, is not what we are really seeing – we have an elitist PR logic that is being foisted upon us through the media. As this plays out, we are as W.C. Fields notes, one of the suckers that are born every minute. And, the politicians ARE there to take us every 59 seconds.

Numerous issues have erupted in this Democratic Town of ours in which the elected officials are making decisions based upon THEIR political realities and aspirations and are contrary to the wishes and desires of the community they are supposed to serve. It should not be lost upon us that big money is now needed to run a political campaign – especially, when you are term-limited and need to find that next big job.
Bloomberg, for example, with a smooth PR machine and a media company to boot, has managed to force us to believe that he’s a great Mayor. The Tell really came at the beginning when he took a vacation and refused to let anyone know where he was going -- it was none of our business. That should have tipped everyone off about where he was coming from, not where he was going.
Meanwhile, we've had major thrusts. We have had the West Side Stadium, Trump SoHo, Related’s Pier 40 plan, the Gansevoort Recycling and Garbage Depot, the DSNY garage and the raping and pillaging about to occur in the Village, Hudson Square and SoHo. We have lots of new hotels to invite even more hoards of visitors. Not ALL of the cash from the engine for New York City should be on the backs of Manhattan residents. That argument is lame and self-serving -- responsible zoning produces better income. Illegal signs produce income for the City too, but it severely reduces everyone's quality of life.
All of these issues come under the planning tutelage of the Mayor’s office, the City Council and the Community Boards.
There are public pronouncements, hearings, closed-door sessions and dialog between and among the elected officials. Not for the community, however.
But, lest we not be taken in by this – the fix is in. The money has been spread around – or promised – and the plan is in place.

Quinn wants money and support for her Mayoral run next year, Stringer has aspirations for higher office and wants the fealty of the Community Boards to keep that fundraising machine in place, Silver wants to hold on to his Speakership, Menin wants to arrive at City Council, and Mayor Mike wants to figure out what to buy with his next billion dollars – he’s currently negotiating to buy the remaining 20% of the media company back for $5 billion dollars. But, oh, that’s part of a blind trust – he has no control over a major media conglomerate and the money he doles out – now, does he?
nt, for example. Why do we now learn that part of one of our parks will be Melinda Katz, a candidate for Comptroller, in fact, makes no bones about taking as much money as she can get from developers.
But, while this process unfolds, one thing is clear – none of this has anything to do with what the voters want. It is the most insulting form of elitism.
It’s the “we know what’s best for you” form of governing.

Quinn needs to hold hearings, as to what happened with the Trump SoHo project, with the doors open. And, let all of the dirt out.
She should clearly indicate that she is not Mayor Mike’s subordinate.
The Trump SoHo travesty, for example, cries out for an investigation into how that little project got slipped through. Who were the real players?
Why have the City agencies been playing along with the Trump SoHo management to delay responses from the B.S.A. and Department of Buildings that permit the lawsuit filed by SoHo Alliance to linger? Stu Klein, the lawyer, may have a view on what that deal is about. Why should a city agency be in bed with a developer?
Yes, that’s the point – about the developers. The money is now trying to buy Manhattan – and hi-rise Mike is letting them.

Take the Parks Department, for example. Why do we now learn that part of one of our parks will be sold off to a developer for a restaurant?
Why is there a constant push to place advertising in our parks, usurp them for commercial uses, and make them testing grounds for commercial products?
Why do we find, belatedly, that the artificial turf that our children play on, can burn them if they play on it? Was the deal too good for Commissioner Benepe to resist, or was he instructed by Bloomberg to sign on the dotted line. How much development pressure is Mayor Mike placing on Benepe and why do the rumors tell us that Benepe is afraid to talk to anyone?
At 165 degrees, allowing a child to walk on the “grass” and burn their feet is criminal. Even if you’re afraid you’ll be fired and lose those golden shackles, allowing children to be burned is really not cool.

We also have to face the fact that the Community Boards are now under attack by the Mayor, who wants to strip what little power they have – by eliminating their input on matters that would interfere with development.
Stinger utilizes the Boards to further his political agenda by exerting his influence directly and indirectly – so as to make Board members aware that they serve at his pleasure. This is not conducive to community democracy. When you have people who, ostensibly, represent the wishes of the community in which they serve – and who are afraid to lose their membership or position in the community if they contradict or disagree with the power structure – you have nothing but palavering.
There is a real question, of course, as to whether the Community Boards represent the community at all. Elitism runs deep.

We need to move away from politicians and elected leaders who believe they know what is best for us and will do anything to achieve that result. Or, even direr, we need to expose the elitism which seeks to use money to
buy political office and then give us what they want us to have.

Fortunately, the economy will slow development pressure, lose Wall Street jobs and drop real estate values in Manhattan will have an effect upon these forces. We must do the rest.
Structural reform of the Community Boards is necessary, for example.
They no longer represent the people in our communities and are fast becoming political parties, which are mechanisms that propel people into political office.

A grassroots re-organization of the democratic process is now needed. A parallel universe is needed. Otherwise, like Alice we will continue to view democracy through the lookinglass.

Dealing in Garbage

2008-07-03T11:45:00.021-04:00

Politicians are like diapers. They both need changing regularly and for the same reason.
-- Unknown

As complicated as politics can become, the smell was not simply coming from the Gansevoort Pier. The only accurate fact was that it is the location where the Department of Sanitation parks its trucks and operates a salt pile for those nostalgic years before global warming.
The settlement made a few years ago with Friends of Hudson River Park under the tutelage of Al Butzel called for DSNY to be off the pier by 2012 even though it has been stymied by community opposition and a lack of responsible planning. The UPS site on Spring Street where a 14 story garage and fuel depot has become the convenient, if not flawed solution – even when a location at block 675 in Board 4 was readily available. And, instead of it being a two district garage, it was enlarged so that it would be a three district garage. So much for logic.

But, what really wafted out from between the decaying compost was the decision by Shelly Silver to suddenly push through a change in the Hudson River Park Act in order to accommodate unseen forces with virtually no prior warning to the community. His closest allies, among them Deborah Glick and Dick Gottfried, were put in a difficult situation publicly after having fought the Gansevoort Recyling plan. What appears to have been a victory for anti- NIMBYism, however, is not sufficient for downtown to appreciate the role of our elected officials in this little morality play. The electeds downtown pandered to their own political aspirations and need for campaign funds. In other words, it was not simply their fear of the convenient cry of "racism" that forced this issue. It was worse than that. This is a deal that sells out the community.

Hi-rise Mike, Quinn, Stringer and Gerson all supported this plan because it was easy. Lots of money for campaigns, lots of ego (for the the Mayor and his Harvard Boys), all cooperating to send Silver a magic bullet. Vote for this, or else. This time it worked. The use of the racism card, which has worked for Lola, a downtown bar which the community did not want, is now followed by a development that is anathema to a community where pollution is the new commuter and tourist attraction.

As politics have changed downtown, where the power bases have begun to transform from political clubhouse to Community Boards -- and from independent political parties to developers with public relation firms – it’s the media perception of a politician that counts, not the voter’s opinion. It’s no longer a matter of appealing to the community. Reality doesn’t seem to count for very much – at least that seems to be the case if you are a politician.

Many activists who are also community board members, for example, now find themselves inquiring as to whether the Borough President approves of his or her point of view before being seen in public. Community Board Chairs or Committee Chairs now worry about whether their political point of view is in synch with the Borough President and whether they will be dumped even before their two year term is up if they disagree with the party line.

Council Members concern themselves with whether the Speaker agrees with their point of view on issues. They still worry about the pork barrel even though there is a Federal prosecutor watching them dig out the meat.
And, Speaker Quinn has to be worried about whether she will get financial support from the Mayor in return for her support or lack therof. Those $500,000 donation checks to non-profit organizations buy a lot of footwork no matter who later is empowered to call in for the chips.

Formerly powerful political clubs look to the Chair of the Community Boards as well as the Borough President, to assess who the rank and file should support – since many of the clubs have members on the Boards.
At a recent fundraiser for Eric Gioia who running for Public Advocate, an old veteran of the political wars, Ray Cline, showed up. In spite of his canny knowledge of downtown politics, a supporter of Maria Derr for City Council, he appears to not fear any powerful politician. His coming out for Gioia was noticed.

So, there is no surprise that Shelly Silver, who was instrumental in killing Bloomberg’s pet Congestion Pricing, the West Side Stadium, the sub rosa Related Pier 40 plan, and who was threatened with a very expensive campaign for his own re-election which Bloomberg vowed to fund – had to deliver --something. This appears to be it. There was even the threat that the old sexual harassment issue involving one of Silver's staffers from years ago was going to be dragged up again.
Whether Bloomberg can find a new job for himself, money is not his problem. It does, however, seem to be everyone else’s problem.
While no one will ever know just exactly how the deal was done, just locating the air fresheners in the room can tell you where the smell was coming from.

Then there’s the matter of compliant behavior on the part of everyone else.

Quinn has wanted Bloomberg’s support for a long time. She, too, needs the money for her mayoral campaign. And, Slushgate, receding somewhat, still leaves her with the need for the many contacts that can raise the necessary funds for a successful race. With the angst over the Feds subsiding and the media interest waning, large amounts of cash are still necessary to keep her in the running. There’s Weiner, Thompson and Republican John Catsimatidis out there to deal with. And, with a Gristede’s fortune, he has no cash problems and no negative press yet. And, lest we no forget, the Molinari's in Staten Island have decided who our last two mayors have been. They like Republicans.
So, Quinn’s support of Gansevoort is no surprise, despite pronouncements that Downtown should take its fair share of garbage – in spite of the fact that it was supposed to be a park. Glick is in a tough position since she is close to Silver. She has strongly come out against this plan. Arthur Schwartz, Chair of CB2 Waterfront Committee, who has young children, has again voiced his opposition. While he has a controversial political past, he apparently is not afraid of anyone and thinks the plan is a sell-out.

As far as racism is concerned, calling downtown liberals anti-African-American is not only phony but insulting. Will this be the new way to get things?
Unfortunatley, the simple charge begets the old indefensible logical form as in "when did you stop beating your wife?"
If you are against this, you are a racist? Will this be the new Jewish guilt that makes activists work and voters choose on the basis of the horrors of the past?
Do we now choose between being able to breathe or being called racists?
Shall we all lie down and let the garbage trucks roll over us and our children so that we are loved for our proven racial neutrality?
Thanks, guys. Maybe it IS time for a real Republican. Not a born-again Julie Menin who has apparently switched parties to run for City Council and not Hi-rise Mike who also did the switcheroo a few years back and wants to be Vice President, President, Governor, Mayor again, or, whatever else strikes his fancy this week and is now "Independent."
Just get out the checkbook and screw what the people want.

Then there's Stringer’s tacit and stated support of the garbage solution on Gansevoort which is based upon his desire to keep all options open and run in step with the money. His alliance with the Mayor and his close affiliation with Julie Menin who seeks to take the City Council seat currently held by Alan Gerson as well as control of D.I.D., the downtown political club, -- is a friendship with the Bruce Menin developer money. Rumors abound over Stringer’s desire to run for Public Advocate, remain where he is – or possibly take the position of his closest political ally, Congressman Jerry Nadler, once Jerry finds a more powerful slot (like Senator). The hope is that Hilary will move on and give Jerry his shot.

What also has rankled some activists who recently felt safe in opening their mouths – since the Community Boards have become the new center of political “power” – is that Stringer failed to hold a convocation of Boards in order to arrive at a community concensus solution on the waste situation, rather than just adhere to the Bloomberg message. Properly done, this would have ameliorated the racial undercurrents that make this NIMBYism so pernicious. So, instead of using his mandate in calling upon the Manhattan Boards to address this issue and try to work at a better solution – as well as other issues like affordable housing – he allowed his political agenda to be the guiding principle. Make nice with Uptown politicians, like powerful Inez Dickens, Denny Farrell, Charlie Rangel and Bill Thompson, and ignore Downtown.

It is clear that Community Board members should not also be members of a political party. The obligation should be solely to the residents whom they are supposed to represent. Political leaders should not be permitted to sit on the Board. The possibility for a commingling of obligations – either by the Boards becoming de facto political parties for the support of the Borough President – or, for the Boards to become elaborate, de facto, fundraising political machines – is a bad precedent. It is an invitation to an inbred cycle which leaves out the interests of the community.

With the politicization of the Community Boards, with the attempts at buying the votes and fealty of residents downtown with developer money and political fortunes – P.R. companies will soon be telling us how popular our elected officials are. Not asking us. The media-fed misconception of how popular Hi-Rise Mike is, for example, when many activists can't wait for him to go, speaks to the managed publicity.
And, recently, a multi-page spread appeared in the N.Y. Post describing the works of Board #1 Chair Julie Menin. Amazingly, this spontaneous interest in her work is timed to augment both the D.I.D. putsch and a City Council run.

Forget all the hard work in winning a park for us and our children.
Forget that we will be forced to breathe even more diesel fumes in a community with the highest rates of disease from particulates.
And, forget the fact that our elected officials should be working for us, not for themselves and their next elected office.

We have a bevy of “popular” elected officials.

According to whom?

Are the PR firms that now dictate policy in Washington, going to tell us who we should support downtown?

Political Maneuvering

2008-06-14T09:38:00.005-04:00

In America you can go on the air and kid the politicians, and the politicians can go on the air and kid the people.
--Groucho Marx (1890 - 1977)

While Tom Duane keeps his media department spinning out updates on his career in a well-organized campaign, he is perched to enjoy some real power if the Dems finally take over the Senate. Though he has not lost any weight recently that does not seem to affect his popularity downtown. He's still one of the few politicians who gets a round of applause when he appears, before he speaks. It’s also hard to tell whether the former rancor between him and Senator Connor, the former Minority Leader of the Senate, is still aglow. Connor felt betrayed by Duane, who bolted during some crucial votes which would have allowed Connor to retain that post. It's hard to tell where that particular hatchet is buried.

Connor has also been recently upstaged by Daniel Squadron, a young, former aide to Chuck Schumer who traveled with the Senator for nearly two years and co-authored a book with him. Recently, a private fundraiser was held in SoHo for Squadron and, understandably, Connor is not happy that D.I.D. also voted to endorse Squadron for the re-election that he had planned on winning -- especially, since the potential control of the Senate makes everyone anxious over having real purse-strings available to them. While Squadron was not available for comment, the event no doubt went well since Schumer was hosting it.
Connor's re-election bid is in doubt now, considering the fact that in his last re-election bid with Ken Diamondstone opposing him, the contest was closer than expected. He had D.I.D. support in that race.

The Glickster, as Assembly Member Deborah Glick is affectionately known, appears to be running for re-election with no opposition. The rumor had been floated that Maria Derr would seek to unseat her in her uncle’s former seat (William Passannante), but now that Derr has been making the rounds for a run against Brad Hoylman and Andrew Berman for Christine Quinn’s City Council seat next year – that is no longer a problem. If Derr loses in that race, she may be back for a challenge later. For now, Glick is unopposed and appreciated in the Village.

Bob Morgenthau is kicking off his campaign for District Attorney next week and while he both older AND wiser, he remains a formidable adversary. His nemesis, Leslie Crocker Snyder, is expected to challenge him again so it should be an interesting contest. Unilike other D.A.'s, Morgenthau has organized a well-oiled team of prosecutors and has an impeccable record. Snyder will have an uphill battle trying to unseat someone who has been cognizant of civil rights as well as the safety of the community.

Brad Hoylman, someone who had been suspected of having no sense of humor has apparently shed his cape and appears to be quite personable lately. Some on Community Board #2, (where he is Chairman), actually have been amused by some of his comments. Out from under his Vice Chair, sub Rosa, persona, under previous Chair Maria Derr, we have someone who may present a real challenge to Andrew Berman in the City Council race next year. Hoylman's close relationship with Quinn may be helpful and Tom Duane is also known as a buddy.
Recently, he was sighted having lunch with John Sutter of the Villager and Hoylman appeared to be leaving in good spirits. Wonder if Lincoln Anderson would have some comments on that? Hoylman also gets points for meeting with Jim McManus and Carlos Manzano – two important political people who control the West Side. Derr has done the same. It should also not be lost on everyone that McManus snubbed Eliot Spitzer when he was running for Governor – and that did not play out well for Spitzer.
McManus is a close friend of Paterson, Rangel, Dickens and the powerful Uptown crowd.

Apparently, Scott Stringer can’t make up his mind about whether he wants 4 more years as BP or wants to throw his hat in the ring for Public Advocate.
While some feel that if he does not run next year for Public Advocate, he will face a vacuum when the second 4-year term as BP expires. Hyperactive politicians fear inactivity and being out of the public eye – and, therein lays the nervousness. While not making an announcement to run, he has been busy making his supplicants on the Community Boards aware that they work for him and not to stray. His connection to Julie Menin of Community Board #1 goes beyond City Council (for her race against Pete Gleason next year) and enters the realm of Big Money for campaigns. Bruce Menin has the cash.
City Councilmember Eric Gioia, meanwhile, has announced that he is in it and intends to win it. His campaign is starting in earnest and he has a well-oiled media organization. His forays downtown appear to be under way and we can expect to hear a great deal about his plans in the near future. It’s likely that he will be deflected from the Community Boards, however, while Stringer decides whether he will challenge Gioia.

We hear that some changes are planned for Community Board #2.
There is speculation that a few members who have recently been dropped from the Board may shortly be invited to join again.
Don’t be surprised if Phil Mouquinho, for example, Hudson Square activist and owner of P.J. Charlton’s soon re-appears on the Board.
It’s not only important what you do in politics; it’s just as important what you Don’t do. He has been a prolific and successful fundraiser – and has produced quite well in support of the DSNY Steering Committee.
Unlike some minor political activists who would benefit from an anger-management course, Phil is a friendly guy who always has a smile and handshake ready, even for political opponents. And, after being the good neighbor on the block for 50 years, he knows his politics.
With close friend Maria Derr, former Chair of Community Board #2, running for City Council as well, Phil is in good company.
Who knows, maybe Bob Rinaolo, former Chair of the Community Board #2 Business Committee and owner of The Garage and Senor Swankey’s – may decide that Florida is not enough to satisfy his needs.

The Mayor’s race is at a minor lull right now since Bloomberg’s media machine has him seeking a third term, running for Vice President, running for Governor, and finally, operating some sort of philanthropical entity. While he decides what he plans to do, not that we have anything to say about it, Quinn is wading through Slushgate.
Some downtown people say she is politically dead – others claim that she is tough enough to withstand the stiff breeze blowing over from the former Staten Island landfill, where all recent Mayors have drawn their support. Bill Thompson seems to have avoided any fallout from that particular dung heap and is poised to present the biggest challenge to a field that is otherwise limited to Weiner and Avella.

As Don Ameche said, Thing’s Change.

Political Notes

2008-06-05T22:21:00.010-04:00

It is inexcusable for scientists to torture animals; let them make their experiments on journalists and politicians.
--Henrik Ibsen (1828 - 1906)

The recent attempted coup at D.I.D., SoHo’s reform Democratic Party club, was finally resolved at Wednesday evening’s meeting. With the Meninites in high gear, led by David Reck, Julie Menin, Ian Dutton and Pat Morris, a subdued vote was cast without much in the way of histrionics. Although there were a few personal attacks that sought to cast current President Sean Sweeney in a negative light, for the most part the fully packed meeting was conducted civilly.
Of course, the vote cast, tells a different story. Sweeney was re-elected President by a large margin and both Jim Stratton and Marc Ameruso were elected as Vice Presidents while Julie Nadel garnered the vote for Treasurer. The fact that this slate won in its entirety was in itself a strong indication that whatever shortcomings may have been highlighted, the membership was not happy about the blitzkrieg attempt to take over the club. Whether D.I.D. members were more resentful that Julie Menin may have been intending to use the club for a Council race springboard, or were offended by a process whereby dissension with Sweeney’s Presidency was handled so rudely – is difficult to tell.
Sweeney has indicated that it has been difficult to handle the full time job of running the club and would welcome help in doing so.
Now, it appears, he has that help. Rumors of some serious further changes are now rife. Stay tuned.

With Quinn seeming to be gaining her footing once again, despite the Slushgate problems – many of which she inherited from Vallone and Miller – most people downtown are taking a wait and see approach to her impending mayoral bid. She and Duane, who is very popular, are aware of the need to be seen and heard by the residents. Duane actually receives applause before he speaks at many community meetings. Quinn is popular but has not made the attempt at being perceived as personable and warm. Politics aside, this could be her undoing. Bloomberg is not exactly Mr. Warmth, but those
With Quinn seeming to be gaining her footing once again, despite the $500,000 checks sent to various constituencies go a long way towards endearing one. Even the office staff of Harvard boys can be overlooked with that kind of gravy being spilled.

Those who see the train coming know that in addition to the rising star of Bill Thompson, Charley Rangel and, not the least of personas, Mr. Obama – we have Inez Dickens and Denny Farrell coming our way to a City Council near you.
The future seems to include Farrell resigning as County Leader and running for City Council, Dickens ascending to the Speaker’s post after Quinn and a Mr. Wright becoming County Leader.
Black leadership will be a breath of fresh air and flush out the racists, if there are any left.
While Bloomberg has stepped up his attacks on Paterson, looking for a spot he can grab since his White House initiatives have fallen on deaf ears – he might consider dropping that particular route to immortality. Challenging term-limits would even irritate his friends and give credence to the feeling that he adjusts his politics longings to the tune of ‘what’s available today?’ He also should not expect any help from downtown, where he has allowed development projects to be pushed through like Trump SoHo and the D.S.N.Y. garage in Hudson Square; allowed film crews to use us a back lot for Hollywood; and, sat back as our buildings have been festooned with billboards. Harvard Square and SoHo appear to have different political agendas.

Upsetting

2008-06-02T20:49:00.012-04:00

Never believe anything until it has been officially denied
--Claud Cockburn

Last week at Downtown Independent Democrats, the new guy on the block became a contender for the Senate seat currently held by Martin Connor.
In a close race, by a margin of five votes, a former staffer for Chuck Schumer, Daniel Squadron, succeeded in gaining the endorsement from a club that is itself in flux. Connor had been endorsed by this club for many prior years, including during his last run against Ken Diamondstone.
Several of those who were asked their opinion as to why Squadron’s challenge appears to be gaining momentum had less to do with Connor and his nearly 40 years in office and more to do with campaigning style. His eagerness in seeking out community activists seems to have helped Squadron learn about what the current frustrations are and gain support. The connection to Schumer is a double-edged sword since some are not enamored with his former boss and Squadron does not seem to want to be elected based upon that association.

The D.I.D. saga continues with the two slates about to bring the attempted coup by the Julie Menin contingent – among those including Ian Dutton and David Reck of Community Board #2 – to the floor for a vote this Wednesday (June 4th). While Sean Sweeney faces Dutton for the Presidency, additional new candidates including Marc Ameruso for Vice President and Julie Nadel for Treasurer are supporting the Sweeney slate. Change is in the air, regardless of who wins the election.
The heat will rise as it always does and depending upon the results old wounds will heal or new heels will be wounded. Aside from the bad pun, the dubiousness of Club politics will either result in a broader platform under Menin’s run for City Council or set the stage for a change in the future make-up of D.I.D.

The most recent crane collapse, with a crash that actually was heard by residents downtown – loudly – is not unexpected by those who have been criticizing the Department of Buildings and the Mayor for years.
What no one seems to want to simply say is that the Department of Buildings is a corrupt city agency. It is not simply incompetence.
Not only do we have regulations for billboards and no enforcement to remove illegal signs; not only are tenants all too familiar with being ignored when making complaints over construction without permits; and, not only have D.O.B. inspectors been observed reviewing serious building violations in apartment dwellings with no effect – but, construction sites have been notoriously unsafe in several downtown communities.

The Mayor has completely ignored complaints about the Film Office and how communities have been turned into back lots. He has ignored the proliferation of illegal billboards. And, he has ignored the damage that residents have had to experience through the out of control development which seeks to morph Downtown into the vision that the “Boys from Harvard” have for SoHo and The Village. A more disconnected politician with great PR and lots of money is difficult to find.
"Self-certification,” has been the ticket for this abused process which allows architects and other company employees who are applying for permits, to fast-track their applications through the City bureaucracy. That particular idea started with Giuliani, however. And, is continued by the current Republican in sheeps clothing.

The results: huge, illegal billboards, unsafe buildings, and rampant landlord abuse. Lots of media including in taxis & video billboards - can you say Bloomberg?

When the Mayor said the situation was “unacceptable,” the response by downtown residents has been – “Are you kidding?”
How many construction workers have to die, how many billboards have to be plastered over Downtown, how many film shoots that disrupt our lives have to be permitted, and how many “Inspectors” have to slap the backs of landlords before he sees the real problem – or, having known about it for a long time – will he do anything about it? Don't hold your breath.

The current field of candidates running for Quinn’s seat in the “09 City Council is becoming almost as interesting as the Menin/Gleason/Freed? run when Gerson bites the dust.
Berman is well respected as Director of the Greenwich Village Society of Historic Preservation, Hoylman is Chair of Community Board #2 and Vice President of the Partnership for New York, and Derr is heir to the Passanante name and a stint as Chair of Community Board #2. Brian Ellner has also been mentioned.
No one is giving odds yet but they’re making the rounds.
Not only have they been attending the right fundraisers and parties (checks in hand) but they have also been seeking endorsements.

One major political power, Jim McManus of the Midtown Democratic Club, whose district encompasses Quinn’s Council seat, has already been contacted by both Hoylman and Derr – Berman, apparently, has yet to call.
Among the theories being bandied about by local political junkies is that Hoylman and Berman eat up each other’s constituencies and Derr takes the seat by default.
So much for theories.
Jim McManus and that club’s President, Carlos Manzano, who is a major Bloomberg EDC Executive in Latin Media, are both playing their cards close to the vest on any endorsement which would carry a great deal of weight in this election.
Since McManus owns a funeral home, there’s apparently a limit on what one can offer him in terms of new business incentives.

Note: Be sure to visit www.sohojournal.com to view the police sketch of the SoHo rapist – and keep your eyes peeled for the perpetrator. And, a thanks to the prompt, late-night notification by Grey Elam of the Speaker’s Office in getting this information out quickly to the community.

A Matter of Opinion

2008-05-17T23:03:00.007-04:00

The truth is rarely pure and never simple.
--Oscar Wilde (1854 - 1900)

Reading Richard Johnson as his “insights” spill over onto the lives of politicians and supplicants who cringe in fear that his column will focus on their lives, reminds us all of the frailties of anyone who enters public life.
It’s bad enough being fried for misdeeds, it’s worse when someone is baked for simply being in the same room with a potential target.

Take the vagaries of simply being rich.

Donald Trump, of all people, claims that he was recently burned on a real estate deal in Israel no less. He loaned his name out for a 25 percent take on a real estate deal.
Apparently Crescent Heights Diamond took a few pages from the “Art of the Deal” by The Donald and he was signed up as the pedigree for a condo complex in Ramat Gan, Israel – his percentage was to ensure that the project had a certain panache and would sell well. But the developers flipped the project, along with Trump’s name and made a quick $40 million and moved on. The Donald is suing.
What makes this a delectable item for gossipmongers Downtown is the fact that Bruce Menin is one of the partner-developers.
Menin, husband of Julie Menin of Community Board #1, who aspires to the City Council when Alan Gerson is term-limited out next year, apparently has been doing deals with Trump.
While doing deals with Donald Trump is no sin, it certainly is relevant that there is an ongoing relationship, whether it is good or bad.
Trump SoHo is, and was, a symbolic rejection of the Downtown community. It was proposed against the objections of the community, Bloomberg, the City Council and the City agencies rammed it down the throats of the downtown community – and all of the electeds ran for the exits when the demonstrations and threats of lawsuits became obvious.
The Department of Buildings, the B.S.A and everyone in the Mayor’s Office, including Mikey himself, abandoned the community as this obscenity, Trump SoHo Hotel-Condo, despoiled Hudson Square and SoHo with its outsized 45 story end run around our zoning laws. Even with Peter Moore’s sale of air rights next door, had the development been condos only, no more than 20 stories could have been approved. As a hotel it would not have made financial sense. The jury is still out on whether there is financing in this market if the units are not purchased entirely by Europeans.
While the City Council and Speaker Quinn’s office acted quickly to place a Stop Work order on the project after accidents and a death occurred – the actions were too little and too late. The building continues this week.

What is important about this regurgitation of already stated facts is that Julie Menin distanced herself from any connection between Bruce and Donald. Bruce sold the land and it has been clearly explained that there is no connection between him and the project under construction. Considering the unpopularity of a building that is so objectionable to residents, it turns out to be good for Julie Menin’s City Council run. However, the continuing connection with Trump, as described this week in Page Six, certainly leaves everyone with a little bit of a hangover. Where does one involvement really end and any new one really begin?
Pete Gleason, the only announced candidate opposing Menin’s unannounced City Council candidacy, has been asking these questions for some time. This little factual leak leaves us with more questions than answers. Given that Menin has been accused of trying to take over the Downtown Independent Democrats, two people have declared that they will not vote for Menin: Pete and the Donald. That she was a Republican until a couple of years ago and switched sides for practical political matters after contributing to George Pataki's coffers, is another matter. These facts, however, are unsettling to SoHo residents who are experiencing some political aggression .

This week, in addition to important testimony given at the City Council, an important meeting took place among members of the Steering Committee, the group of community leaders who are objecting to the 14-story D.S.N.Y. garage proposed for Hudson Square. Apparently, they were treated to an impromptu and unsolicited opinion by D.I.D. District Leader David Reck, who is also President of the Friends of Hudson Square and leader of the “Charette,” envisioning a plan for that area’s future development.
As one of the leaders of the community, Chair of Community Board #2’s Zoning Committee and someone who helped organize this important group which has been working hard to suggest alternate sites for the garage to be built at Spring and Greenwich Streets, Reck stunned the members of the committee. He is rumored to have implied that some sort of deal had been, or would be made, with Sanitation in spite of the group's efforts. Sources who have reported about that meeting state that Reck also made comments implying that Steering Committee funds had been misused and that the Chair of Board #2, the Borough President’s Office, Speaker Quinn’s Office and the Mayor’s Office were all supporting a deal and that there was no point in continuing their effort. That the funds in question, which reportedly were released through Reck’s Friends of Hudson Square account left the group mystified. One member was described as ready to throw a punch.
Brad Hoylman of Board #2 and the Speaker’s Office were reached and claimed to have no knowledge of any deal over the D.S.N.Y. garage.

While there were members who confessed that they were confused by this sudden turn of events, Steering Committee members voiced their resolve in continuing their united efforts despite what appeared to be a philosophical defection.
It is difficult to tell what the motivation was for such an outburst by Reck.

Although it is always comforting (and often irrelevant) to be allied with winning politicians, to either be a sub Rosa or aboveboard emissary of the elected officials does not endear one to activists in the Downtown community. On the other hand, this could also have simply been a spontaneous effort to not be too optimistic about eventual success.
While the Chair of Community Board #2, Brad Hoylman, Speaker Chris Quinn, the Borough President Scott Stringer and the Mayor’s Office may have, in fact, been working together with D.S.N.Y. to make a deal in direct antipathy to the community (as politicians have been known to do) it is just as possible that this is all just pure speculation. Of course, to think that D.S.N.Y would push ahead with their plans in opposition to the Mayor’s wishes is, of course, absurd.

While Stringer has the power to drop anyone from the Community Board who even appears to be criticizing him, he has not shown himself to be insensitive to the community’s wishes. Right now he appears to be weighing a run for Public Advocate or four more years as Borough President. Several community activists have warned him not to waste his efforts on Public Advocate. It is a 2nd in command office after the Mayor, in name only. For most, it has been a dead end job.

Stringer, however, has been aligned in press reports with Julie Menin in her bid for City Council. Reck supports Menin and has previously supported Stringer, but no politician should deduce that it doesn’t matter if the community is unhappy. Money may buy alliances but does not necessarily win elections.
More important than money, especially in this case, is the fact that Downtown residents have a long memory and are willing to fight even if losing the battle seems guaranteed.

That is true with respect to Trump SoHo and with the D.S.N.Y garage – two projects that absolutely make the community crazy with anger. These projects for SoHo and Hudson Square are akin to the St.Vincent’s development in the Village. They are radioactive.
Any politician directly allied with either of them or is perceived as pushing them is shooting themselves in the head -- and will pay a political price now or later.
Brad Hoylman is smart enough to know that, Scott Stringer is smart enough to know that, and Speaker Quinn is smart enough to know that. The Mayor’s office is only smart to downplay the agenda because of their perceived arrogance of power.

SoHo Impolitic

2008-05-08T14:37:00.005-04:00

I do not care to belong to a club that accepts people like me as members.
--Groucho Marx (1890 - 1977)

You can observe a lot just by watching.
--Yogi Berra (1925 - )

Some of the rumors heard recently in SoHo, which are titillating to readers, are merely the confabulations of political junkies.

But, reality has consigned some of these tidbits to file 13.

Like the Police horse that galloped down Avenue of the Americas – unmounted – running the wrong way in traffic – with two officers running after it. They were too late to stop the horse from colliding with a van, which stunned the horse and destroyed one side of the van. The driver wasn’t too happy either. The horse continued on in traffic towards Canal Street with the two cops running after him. Imagine, if you will, sitting in traffic with a 2000 lb. animal heading towards you.
They don’t talk about that in the Police Blotter.

There also may be a few darker horses running the wrong way at D.I.D. as well. Of course, as J.F.K. said, “Politics is the only game for adults.”
The rancor continues at the Downtown Independent Democrats, where a recent meeting had the members of opposing camps sitting at opposite ends of the table at this most recent post-“coup” get-together. The emotional level was described as controlled hostility. The meeting was held at Phil Mouquinho’s bar on Charlton Street. Phil is a supporter of David Reck’s Hudson Square “Charrette” which also is related to the Steering Committee fighting the D.S.N.Y. 14 story garage and fueling depot. Reck is also a Menin supporter.
Whether this was “neutral” territory, considering the fact that most previous D.I.D. meetings had been held at Sweeney’s loft, is a question.
Handshakes offered in greeting were refused. That was the level of simmering animosity for those who are not able to play the game and remain civil.

Some resolution to the attempted but now delayed coup by the newly-formed “Meninites” is expected at the election in June – at which, it is rumored, Ian Dutton, the bike path guru, will be opposing Sean Sweeney for the Presidency. His candidacy replaces the sudden interest, and now, disinterest, by Pat Moore.
While cooler minds sit back and take a philosophical view of these Machiavellian proceedings, some of the old-timers are not pleased that a covert attempt at regime change took place at all.

While political clubs try to call a winner in the next City Council seat next year, Alan Gerson remains above the fray.
Whether Kathryn Freed bolts from chambers and make a run for her old job, the remaining known players are Julie Menin and Pete Gleason.
There is little question that Freed would win the election if she ran. But, in the event she does not, thus far only Gleason and Menin are considered contenders.
Menin has public recognition, created Wall Street Rising, is Chair of Community Board #1, and husband Bruce, who is a developer with big money. Her scorecard at Community Board #1 and modus operandi in the D.I.D. coup will impact on her political future downtown.
Gleason is persistent and likely would not run if Freed were a candidate but clearly relishes a contest with Menin.
His strength is not big money but has a strong base with firefighters, police, and unions.

The Quinn “Slushgate” situation clearly will affect her chances at a Mayoral bid. And, as far as a run for Comptroller is concerned, which had been bandied about, there might be a few looks askance at that idea – given the nature of the U.S. Attorney and Department of Investigation inquiries into financial improprieties at the City Council. Pork is highly fattening, and, some say addicting. It certainly is the coin of political deals and survival.
In Quinn’s defense, however, not nearly enough press has dwelled upon the fact that the slush funds apparently date to Speaker Vallone and Miller. And, the controversy about $600/hr. lawyers being paid out of government coffers – especially if the charges turn out to be “criminal” – is an absurdity.
The Federal government has unlimited deep pockets. For elected officials to have to pay for their own legal defense is tantamount to the prospect of caving in at every charge leveled by the U.S. Attorney.
Quinn has assured everyone that she is not a “Target.”
But, the truth is, no one ever knows whether they are targets in a broad “let’s see what we can find” kind of inquiry.
But, as Jim McManus, of the Midtown Democratic Club has said about Quinn’s predicament, “she’s got some problems right now, but she’ll survive. She’s tough.”

Postscript: Ray Kelly appears to be leading the pack of Mayoral candidates, even though he has repeatedly denied that he is either interested or planning to run. Those who know how to read tealeaves and follow breadcrumbs are repeating the same mantra on the path to Gracie Mansion. The only question is which party he will run with.

The Putsch

2008-04-23T13:47:00.009-04:00

In politics you must always keep running with the pack. The moment that you falter and they sense that you are injured, the rest will turn on you like wolves.
-- R. A. Butler (1902 - 1982)

While the consensus among politicians is that most political clubs are not all that relevant any longer, you would never know that by the seriousness of the apparent attempted coup at the Downtown Independent Democrats last week. Was Reform really on everyone’s mind?

With a suddenness that belies some serious planning, it was revealed that a few D.I.D. members claimed to be less than thrilled with Sean Sweeney as President and through the powerbase of Julie Menin, Chair of Community Board #1, there was a sudden attempt to install her nominee into the club hierarchy. Prior to this there had not been either a move like this or a contested election in 25 years. Of course, this could have also, ostensibly, paved the way for Menin to take over the club in the service of supporting her presumed City Council candidacy -- Alan Gerson’s current slot as Council Member which expires next year. He’s term-limited.

Several people spoke both for and against Sweeney, someone who has been a fixture of the Downtown political scene for well over a decade and someone who was (and is) closely associated with Kathryn Freed, former Council Member. Freed, who was term-limited out, ran and won as Civil Court Judge and Alan Gerson now holds her old seat.
Sweeney is, and was, a hard worker whose idiosyncratic methods both endeared him to and aggravated political junkies both in and out of the club.
His leadership at D.I.D. and the SoHo Alliance has been both a positive and negative lightning rod for accolades as well as criticism, depending upon one’s political views.

Menin’s attempted coup has created instability and doubt among those in SoHo since it currently is the only club with the fealty of SoHo artists and residents – people who are not from Greenwich Village or from Tribeca where Menin holds court as Chair of Community Board #1. The SoHo people are a specific breed of independent and are not always sympathetic to the Machiavellian “destroy-your-enemy” brand of politics. This putsch could succeed and yet alienate many members who view crafty political moves as successful power plays but poor prognosticators of political trust.
David Reck, a District Leader at D.I.D., wielded a degree of power in this melee and is rumored to have directed a number of critical and personal remarks in a speech about Sweeney’s Presidency. One member described Reck as having had "smoke coming out of his ears." Reck is Chair of Zoning and Housing at Community Board #2, is very involved with Hudson Square issues and is a supporter of Julie Menin.

The attempted coup, if it was one, using methods such as stacking the club and forcing the issue of leadership change with blitzkrieg speed and secrecy may succeed -- but the real issue is whether SoHo would follow. Or, would D.I.D. psychically and physically move to Tribeca leaving SoHo without a political center?
There is also the issue of whether Menin’s candidacy, ostensibly supported by Boro President Scott Stringer as the Downtown Express seems to believe, is an embrace of D.I.D. members and Community Board members like David Reck – or, is a repudiation of Sean Sweeney, whose hard work helped Stringer win the election. There is no soft landing in politics, for anyone.

What is unknown is whether this kind of nastiness is likely to aggravate Kathryn Freed enough to drop her judicial robes and get into the City Council race next year. There is no question that Freed would win that race. But, while Menin is not expected to go hungry anytime soon, Freed’s motivation has to consider the financial realities. Therein lies the rub.

One unknown factor, of course, is Pete Gleason who is persistent and motivated. He wants the Gerson seat next year but, as yet, is not believed to be a real threat to Menin. However, that could change.

The archaic system is now being tested and the relevancy of belonging to a club, which occasionally picks judges, endorses politicians running for office, and ostensibly supports its members in the community -- has passed, for the most part. Candidates go through the motions when they audition at club meetings because they don’t want to risk being accused of a slight --and club members and officers don’t want to let go of the appearance of control over their political environment. There is still this dated infrastructure but it has a questionable effect on local voters. It is an illusion among activists seeking to remain relevant.
However, most aspiring and already elected politicians well know that that game is winding down. It’s more of a tradition than a political necessity. It’s polite, but not essential to political success.

We no longer live in the era of Tammany Hall when jobs and political favors were doled out by the Clubs and where members of the community were protected.

Indigestion Pricing

2008-04-04T14:06:00.005-04:00

Politics is the art of preventing people from taking part in affairs that properly concern them.
-- Paul Valery

I don’t want any yes-man around me. I want everybody to tell me
the truth even if it costs them their jobs.
-- Samuel Goldwyn

While many politicians see the Mayor’s “Congestion Pricing” plan as inevitable, given the need to reduce pollution in Manhattan, there are dissenters who simply don’t want it.
It’s not rejected by some because they are the friends of AAA or because they love lung cancer.

It’s not a bad idea in theory; it’s just that its raison d’etre is a political idea for the most part. It’s not for our health; it’s for our budget. Shelly Silver is right in having resisted passing it in Albany. He lives Downtown too.

If Mayor Bloomberg, formerly a Republican and now an Independent, really wanted to quickly start the process of reducing pollution, especially in lower Manhattan – a quick phone call to the Molinari camp in Staten Island would get the ball rolling. They got him elected.
Nearly 15 years ago Guy, and then Susan effectively increased the pollution levels in lower Manhattan by multiples with a deal to eliminate two-way tolls on the Verazzano Bridge. Instead of traffic backing up on the Staten Island Expressway – far from residential properties – traffic overwhelmed downtown. Traffic from New Jersey and Staten Island stream into lower Manhattan free and leave via the Holland Tunnel, also free.
Trucks, buses, passenger cars and tractor-trailers – all blowing particulate heavy smoke into apartments and homes not 20 feet from the roadbed.

Why is it that this little matter cannot be reversed – by politicians in Staten Island -- who carried the mayoral election for both Rudy and then Mike?
Why is it that Mike doesn’t pick up the phone and make a deal to reverse that toll first? Before pressuring those in Manhattan to buy his plan?

It’s because it is not politically expedient.

So, as the reports in The Sun currently indicate, Mayor Mike is taking the matter “personally” and reportedly may try to help fund a challenge to Shelly Silver if he does not help push through Congestion Pricing.
Why the attempt at political coercion?

The M.T.A. is counting on the money for numerous deficiencies in its budget, the company that installs cameras (the method of enforcement for the plan and more Big Brother mentality) is drooling over the contract, and Mayor Mike wants a success before he leaves office. Real Estate tax income is also dropping and alternate sources of City income are needed.
Sales prices and sales volume for coops and condos are falling and the numbers of layoffs from financial markets will make tax receipts slimmer. Budget deficits of $6, $9 and $12 Billion over the next several years have been predicted.
And, of course, Obama may want to see some successes after the West Side Stadium and Pier 40 fiascos that Doctoroff handled before moving on to the golden shackles of Bloomberg media. The possible V.P. designation has been given some credence. It’s a sidelong way into the Presidency, which he has always wanted.

If Bloomberg is to be taken seriously about wanting to clear our air, the political move made FIRST, would show that he is serious about reducing the cancer, emphysema and asthma that has been killing people downtown. Not to mention the fact that police presence is a virtually non-existent and irate drivers racing to New Jersey have actually attacked pedestrians for having the gall to want to use a crosswalk with their baby carriages.
At worst, the number of passenger cars owned by those in lower Manhattan, who don’t drive every day, is a joke by comparison to the hundreds of thousands of free trips enjoyed by out of state vehicles befouling our air.
Unless, of course, this is just a PR campaign to show Bloomberg accomplished SOMETHING before leaving office.

It is unfortunate that the City Council rolled over and gave him what he wanted without weighing in on this issue. Quinn, who wants to be Mayor with Bloomberg’s help and access to his personal fortune of $14 Billion, pushed the plan through the City Council for him.
Of course, it remains to be seen how the U.S. Attorney’s investigation into the phony slush fund organizations, which Quinn and the Mayor now both have to deal with, will affect their credibility. She has blamed the oversight on her staff members who didn’t listen to her. Is that possible? While she may not be accused of being charismatic, it is hard to believe that any staff member (or even a City Council member for that matter) would not do what she told them to do. She’s tough.
Quinn denies using any of the money for political favors and Bloomberg denies knowing anything at all, even though he signed the budget where these funds were listed. Do you smell cover-up?

With a sharp tongue and irreverent wit, former Parks Commissioner, City Council member and current political blogger Henry Stern will no doubt comment on this moral quagmire – much as he did throughout the demise of Eliot Spitzer. You don’t want to piss off Henry Stern. He knows where those bones are buried.
As a side note, Stern’s review of Congestion Pricing is worth reading.

Apparently, Downtown gives us all a bad example of how a representative Democracy is supposed to work. Residents have most been told how it will be – not asked how they would like it to be. While there were a few meetings about this plan, it was a PR gambit from the beginning – replete with television ads. How many ads have been screened making a point of the Verazzano toll affect on health Downtown?
Councilman Alan Gerson was heavily lobbied in the Council to produce the Downtown vote and activists were consulted – but the decision was already made. Gerson has admitted that his vote was heavily lobbied for since it affected Downtown the most.
It is just a dog and pony show. Everyone knew the fix was in and Quinn wanted it done. The real question is why?

Shelly Silver, while criticized for holding the reigns of power close to his vest, should stand tough and reject this pig with lipstick for what it really is – a carefully cultivated con job. Money for the M.T.A. and a win for Mayor Mike. Nothing for Downtown.

Unless, of course, the Verazzano toll suddenly got reversed without requiring the mandatory “act of Congress” to vacate it. No one said the Molinaris were stupid. Now, that would show that Bloomberg really wants to clean up our air, wouldn’t it?

A non-issue has poked its ugly head into Downtown politics. Apparently, Andy Neale, of Community Board #1, has had some personal problems.
Unlike the rest of us, of course?
What was different about this piece, describing his relationship with his wife and goes into great detail about their problems, is that it apparently warranted a “news” article in the Downtown Express – one of the publications owned by John Sutter of The Villager.

If the new editorial policy of this chain of mini-newspapers is now intending to clear all of the skeletons out of everyone’s closets -- belonging to those people on the Community Boards, it is strongly suggested that that policy be reviewed for its wisdom – or, appropriateness. To work for nothing in furtherance of the community we live in is sufficient reason to leave personal lives out of the limelight.

A Failure to Communicate

2008-03-10T22:32:00.008-04:00

Selfishness is not living as one wishes to live, it is asking others to live as one wishes to live.
-- Oscar Wilde (1854-1900)

The best minds are not in government. If any were, business would hire them away.
-- Ronald Reagan (1911-2004)

When Paul Newman had his little disagreement with the Sheriff in Cool Hand Luke, the lack of communication was due to his status as prisoner who failed to do what he was told, the way he was told to do it. When you have a gun to your head, when you are subject to the whims of your controllers, you do what you are told.

Theoretically, that is not supposed to apply to the City telling SoHo and its residents what to do and how to do it.

Let’s take, for example, the fascination that the D.O.T. has with Prince Street.
Residents of Prince Street in particular, and of SoHo in general suffer from some of the most ambitious ideas that people from everywhere else seem to have for this arts community. We, in SoHo are being told what we should do with our community.

First, there were the warehouses and printing companies.
Then, there were the artists and bohemians. Painters, performance artists, guerrilla sculptors, dancers, photographers and a few “mentally forward” thinkers. Alone, living their lives in peace. Privacy, creativity and intense philosophies of existence were part of this identity.
After that came the pioneers who paid fixture fees and expanded loft spaces for counter-culture living. The Loft Law, sponsored by Kathryn Freed, followed.
Of course, what came afterwards were street vendors, real estate developers and the swells from everywhere else that wanted part of the action. The problem is, the swells and those with a “vision” have not taken the time to understand what the residents of SoHo want. They want what they want or what they think SoHo should want. On our turf.

Ergo, we have a failure to communicate – and a disinterest on the part of those who have a “vision” to truly understand what SoHo is really about.
The spirit of SoHo is about its gothic architecture, NOT mainstream culture, NOT the Mall mentality, and certainly NOT about Street Fairs. It is about the celebration of individuality. All those who have descended upon SoHo, including tourists, vendors and film companies – are not here because they have been invited. They are here because they have wanted to share a slice of what SoHo was – and hopefully will continue to have.

The D.O.T. has a new fascination with SoHo augmented by the personal desires of a Mr. Schaller.

After having pushed the bike lanes through against the wishes of SoHo residents (due to safety concerns for the bikers and residents on a very narrow Prince Street) – having ignored the problem of street vendors who sell anything BUT art – thereby nullifying any reason for being on the SoHo streets --except for the fact that there are a lot of pedestrians to sell to and these people need a job ---

D.O.T. has now decided that SoHo needs a Mall on Prince Street.

It is building upon a situation that SoHo has had to tolerate. Not a condition that is either wanted or appreciated by residents. Acceptance of an unfortunate reality cannot and should not be interpreted to mean that it is desired.

Why does SoHo need a Mall on a street that is very difficult to pass – due to vendors and an ill-advised bike lane (which should have been on Houston with barriers to protect Cyclists)?
Emergency vehicles, Fire Department vehicles, police, you know, all of those vehicles that need access TO PROTECT RESIDENTS – have a difficult time as it is, trying to negotiate a street that has been unnecessarily encumbered by vendors -- in order to service its residents.

The answers to this little morality play, in which people NOT from SoHo wish to dictate what we do with our neighborhood, lies somewhere between Bruce Schaller who was a paid consultant to D.O.T. and who now works for D.O.T. and Margaret Forgione, the Commissioner.
The monster in all of this is typically Sean Sweeney of the SoHo Alliance. Sweeney and the Alliance has had the temerity to object to the fact that neither the vendors nor the tourists who will theoretically be accommodated by this weekly Mall experience, are not for the benefit of SoHo residents.

As a result, several groups whose vision for SoHo is seen from afar have attacked him and the organization. Certainly not from within SoHo.

Commissioner Forgione has claimed that Henry Buhl of the SoHo Partnership was contacted and favors the plan.
While Buhl has done much for homeless people who need to straighten out their lives, he, himself, would no doubt agree that he does not speak for many SoHo residents. His people clean the streets of SoHo but while it is a non-profit organization, he's running a business. His memory of the Forgione contacts belies a bit of a possible PR hustle. More to the tune of, "sure, I like a party too."
Ian Dutton, a member of Community Board #2, is also a member of the organization who advocates for bike lanes as well as this new Mall. He is a proponent of this plan and supports an organization which has attacked those who disagree with the Mall (Dutton is allied and associated with Streetsblog and the StreetRenaissance organization). Where does one's agenda end and concern for the community's wishes begin?
While the SoHo Alliance does not speak for all SoHo residents, its membership is a strong cross-section of both old and new SoHo residents. It comes as close as you can get to being a voice of the people who live in SoHo. And, both Sweeney and the Alliance pre-dates all of this "we know what's best for SoHo" bullshit.

A Mall is not what residents want in SoHo. Bike lanes have been implemented and are now part of SoHo. It’s a leap of faith to reach from your bike to embrace vendors who are strongly objected to by most residents, to a mall which deprives SoHo residents of THEIR lanes to drop off groceries, the inability to pick up THEIR children in their vehicles, receive THEIR deliveries, or walk out of THEIR apartments onto a SoHo street without entering a Coney Island atmosphere.

But, then again, whose neighborhood is this anyway?

What do you say Margaret – Bruce – do we have a failure to communicate?
Or, are you just going to continue tell us what to do with OUR neighborhood -- from where you live?

Standing for Something

2008-02-24T09:25:00.004-05:00

Eagles may soar, but weasels don't get sucked into jet engines.
-- John Benfield

All power is a trust; that we are accountable for its exercise; that from the people, and for the people all springs, and all must exist.
-- Benjamin Disraeli

Since the worker fell to his death at Trump SoHo, there has been a lot of public gnashing of teeth trying to figure out how to deal with a few of the issues created by The Donald’s latest “five-percenter” deal. As most people in the industry know, his main gig aside from T.V. host and Learning Annex professor, is selling the family jewels for 5% of any deal that anyone will bring to his organization. It’s hard to assess what this says about those who buy into this familial game, but the combination of limos, models, shiny glass and huge structures apparently appeal to enough people that developers are able to bankroll the smoke-and-mirrors. About the only credible aspect of Trump’s projects are the “investors” that place a deposit (like a bet), expecting to flip the deal for a profit, quickly.
The moniker “Trump SoHo” was as calculated a lie, as was the intended use.

That has been the play on most of his projects. In this case, the hotel rooms above the 20th floor should get a good view – and, let’s face it, expecting Bloomberg’s Special Enforcement unit to seek and destroy by busting “owner-tenants” for staying in their apartments past the time agreed upon in the restrictive declaration is a joke.
It’s not the Hamptons, where Code Enforcement conducts illegal raids with the permission and support of the Republican Party on immigrants for not having batteries in their smoke detectors. In the Hamptons they criminalize landlords for renting to people they would rather see camping in the woods with their legal, American children.
But, there will be no enforcement downtown if Ivanka stays a few weeks longer before her flight to Vail, wink-wink, nod-nod.
These are condo apartments. Trump’s developers, with the cooperation of our very own elected officials, figured out how to build a 45 story high condo project, compliments of Mayor Mike’s office, and got around the community variance process.
Don’t let anyone bullshit you about that particular fact! Remember the media banter that went on between Mikey and The Donald during the period when this project was being mulled over by activists. They couldn’t stop joking with each other.

Why else would anyone want to build a 45 story building on Varick Street with a view of the Holland Tunnel? Unless, of course, it was merely a financing vehicle to flip and run. The demand for hotels in a gothic Manufacturing zone is so high right now that we should all wonder whether to expect a permanent mass influx from Staten Island and New Jersey. It’s not because of demand for the luxury of Varick Street.

Of course, the real reason why so many hotels are being built in this area has nothing to do with need. As a law enforcement junkie once confided, “If they build that new jail, the criminals will come.”
The reason is much simpler. It is because they can.
While that seems simplistic and non-sensical, the fact that hotels can be built as of right in a manufacturing zone without any approval from the community – in light of the fact that we need more affordable housing and SCHOOLS – is absurd and contrary to public policy. So much for the people we put in office!

The community opposed the Trump SoHo project for a full year before they broke ground. There were a few meetings at the Community Board and there were several meetings, both public and behind closed doors, with the elected officials. Ultimately, due to the fact that no one heeded the many warnings by such community leaders like Andrew Berman of GVSHP and David Reck of Friends of Hudson Square, there was no action that could be taken to stop the project. Of course, that is no action short of litigation, could be taken – because our Dear Leader, Michael Bloomberg and his right hand man Dan Doctoroff were too busy trying to sell off Manhattan to as many developers as possible.
Giuliani, one suspects, would have buried the project with litigation had he disagreed with it. Time was always the enemy of this project. Had it been delayed, it would have been killed. The legal challenges continue as the first hearing of the legal challenge against the city’s approval of the Trump SoHo 'Condo-Hotel' takes place this Wednesday, February 27th at 10 am.

Where we are now folks is that the loophole permitting hotels or condo-hotels has not been closed and there are several more hotels either in varying stages of completion or about to start construction in an area which could have had schools or community-supported housing.

We need to institute a requirement for licensing which permits a hotel or hotel-condo to be built in a manufacturing zone. The as-of-right rule must be “trumped” by the appropriateness of the proliferation of unnecessary development. City Planning will not oversee this, City Hall will not take any action – but the City Council should do so immediately. The message should be transmitted by neighborhood associations, Community Boards and City Council Members that action must be taken. And, taken NOW.
Waiting until downtown, specifically the South Village and Hudson Square, to be rezoned so that new construction is contextual, is a pipe dream. That has been promised by the elected officials and nothing has been done to move that forward.

Let us see which elected officials have the character to work for the interest of the residents – or, which will pander to the interests of developers who fill campaign coffers.

At each Community Board Zoning Committee meeting, developers explain patiently that if they do not get the variance they want, they will build a hotel as an as-of-right permitted project. One that community will have no say or control over.
It is time to stop that form of threat as well.

A second issue, which the Trump building brought to the surface, involves the competency of the Department of Buildings.
Arguably, the Trump death was one of the unfortunate realities of major construction. The fact that the building was constructed in great haste could easily be written off to the efficiency of Bovis Lend-Lease.
Proving that the developer/builder used shoddy workmanship or cut corners related to safety will be virtually impossible. The fact that the site was shut down for a month, to be sure, caused some increase in acid-reflux.

For those who looked on, however, what stands out in the SoHo/Hudson Square area is the number of building projects that seem to be poorly reviewed by the Department of Buildings.
This is an agency operated by Commissioner Lancaster. An unresponsive Bloomberg flunky who started her reign by ignoring the rules and regulations regarding the Billboards in lower Manhattan and operated a dog an pony show with community hearings to “take testimony.” There was never any intention to either impede or reverse the construction of the hugely inappropriate signs plastered over our buildings.
In fact, the “hearings” were disproportionately populated by sign construction workers and executives from VanWagner. A well-known downtown activist, Doris Diether, pointed out that there were so few community people at the meeting because they hadn’t been notified.

When subsequent “action” on these illegal signs was supposedly about to begin – which, by the way, never began – VanWagner was chosen as the company who would remove or cover them up.

This is the enforcement, with a media Mayor, by a media Mayor appointee, to improve the quality of life of residents downtown?

So, it should come as no surprise that the Peter Vallone law, which codified fines against media companies of up to $25,000 per day for illegal signs, is neither enforced nor ever mentioned any longer.

Of more concern is the frequency of unstable construction sites.
Why construction permits have been issued at the corner of Wooster and Grand – with a vacant site next to a collapsing building – remains as a testament to incompetent bureaucracy. Why was the construction site planning at 350 West Broadway not better managed – the adjoining building began to move by about a foot and a half before a huge structural support was built to prevent further shift.
And, why is there no response when the Department of Buildings is repeatedly called by residents advising them of illegal construction being done by landlords?

Borough President Stringer has apparently gotten wind of some of these issues and advises his constituents that he will be asking some questions.

Finally, despite the messages from the Community Board, the residents, the elected officials and perhaps even members of her own Trust Board, Diana Taylor still appears to want Related to develop Pier 40.
The new date for a decision on whether to pick a developer from the contestants at hand, pass on all of them and do nothing, or strike a more conciliatory tone with the Partnership – is March 27th.

What concerns some people downtown is the fact that the Trust Board has apparently hired a PR firm, the Marino Organization, to get somebody’s message out there. The question really is: Who’s message is the Trust trying to get out there?
It is a confusing piece of information that was not really offered by the Trust itself.
First, we have the fact that any budget item of $100,000 and over must be approved by the Trust Board. The Marino budget is rumored to be slightly less than that number. Curious. So, no open approval is needed.

Then there is the fact that shortly after that decision to have an outside source handle PR (when there is a staff person who does that job) – lo and behold an item appears in the New York Times and is in eloquent support of – bet you can’t guess?

While the Times is dealing with the McCain matter, the editorial support of a project that is universally hated by the community of downtown New York – is reason enough to question whether Howell Raines is back at the editorial helm, or whether, since no reporter would touch it – that some mysterious PR company got it placed. Nah, couldn’t be!

Well, we do know that none other the Related CEO recently attended meetings with community people. When they start to mingle with the “little people” as Helmsley liked to call us, you know they’re having trouble cramming it down our throats.

Rumors or Realities?

2008-02-10T23:22:00.001-05:00

When you come to a fork in the road, take it.
--Yogi Berra

The minute you settle for less than you deserve, you get even less
than you settled for.
--Maureen Dowd

So far we have a few uncommitted candidates for next year’s fireworks.
The Presidential election doesn’t garner all that much interest among political professionals simply because the candidates are rarely seen on ground level without a motorcade or the Secret Service. Even Chuckie is above visiting his former teammates downtown. While Nadler tries to cut a deal with the Molinari forces in Staten Island, SoHo is still gasping for air as a result of the Verrazano one-way toll. Congestion pricing would almost be unnecessary if the free round-trip from New Jersey and out the Holland Tunnel were done away with.

The theories for ‘09 are that Scott Stringer and Eric Gioia will run for Public Advocate. Stringer has the problem of being out of synch for another meaningful office to occupy if he remains for a second term as Borough President and ergo a lateral move to that “Assistant” Mayor office. Gioia is Chair of the City Council Investigations Committee and is an ambitious young politician. Both of them have a great deal of energy and would certainly be more visible than Betsy Gottbaum. Mark Green, someone who knew how to lose an election, was actually a responsive Public Advocate if you had ever tried out his office when he occupied that seat.

Thus far the known Mayoral candidates are Bill Thompson, Chris Quinn and Anthony Weiner – with Brian Ellner, Adolfo Carrion and Tony Avella as possible contenders. So far, for those interested in vetting the candidates based upon responsiveness (one of the ways that some activists assess supporting a candidate) Thompson has an office that returns calls and is responsive to inquiries. Sometimes, the back office is a better indication of a candidate’s future than all of the media hype.

Bloomberg had seemed to be backing off from his presidential thrust, and then it burgeoned again, according to recent national-scene news commentators. Whether Hillary is now positioning herself well and Mr. Bill has been wagging his tongue less vituperatively its hard to tell. The fact that she has ditched her campaign manager begs at least one question. But Obama is still clearly in the running. With Nader threatening to enter the mix again, there may be just so many bargaining chips out there to land a slot in the new Democratic administration. But, with a wide-open convention, Bloomberg could still find himself in a bargaining position.
Don’t count McCain out, though. There are Democrats who find neither of their candidates very attractive. And, McCain's got a little of that Harry Truman thing going for him.
Obama benefited by the Kennedy endorsements and the likening to JFK – but that only works if you haven’t read “The Dark Side of Camelot.”

Arthur Schwartz, an Obama fan, is still trying to get the message across to Diana Taylor that the Pier 40 Partnership. is the way to go. The resistance is strong from the HRPT – and the question is whether it is purely based upon the financial figures or whether the pressure from Related is just that strong politically. Let’s face it, if Related manages to pull this out of the bag – in spite of the clear message from residents and voters Downtown that it is NOT wanted, we might as well all move to Peoria. Or, start manning the barricades, as the students did in Paris during the 1960’s. There’s a point where elected AND appointed officials need to get the picture that they work for us, not themselves. No matter who you break croissants with every morning.

Tenants at One Bank Street have fallen into a small abyss that is reminiscent of the Trump SoHo project. That is, rules and regulations, zoning and legal interpretations, lawyers and lobbyists – not to mention failure of political will – are coming home to roost and are about to try to kill Manhattan’s affordable housing stock.

Not that Senator Tom Duane hasn’t fought the good fight in this instance. It appears that even Duane has been shocked by the neutering of the agencies responsible for monitoring the regulated housing stock in Manhattan.
What is unfolding around us, is a lack of political will at the City Hall level – leaving our Assembly, Senate and City Council elected officials scrambling for a way to enforce a policy decision that is very clear. Stop screwing with regulated housing and that enormous voting base.

Apparently Lucky Bhalla, the owner of One Bank Street has decided to evict all of the tenants of that building in order to turn it into a hotel.
One of the problems is that this property is still subject to a J-51 tax abatement, which is a legal deal made by property owners and was a cooperative effort to create and maintain affordable housing in Manhattan.
Now that Bhalla is trying to double-dip, the enforcement agencies, that have been intentionally weakened by Pataki, are backing away from the community’s call to stop the evictions while this legal quagmire is negotiated. Both DHCR and HPD are refusing to stop the evictions of tenants in this building while the legal process weighs the conflicting arguments involving the J-51 agreements.
The fallout from this is startling. We have one million apartments in Manhattan potentially affected by this and a real estate industry that would be nothing short of ecstatic over the dismantling of rent control and stabilization.

Trump SoHo was a mistake. And, by the loss of life and poor construction, it is an embarrassment for Downtown. That, on top of the fact that the project is completely inappropriate and of questionable legality.
City Council held hearings that took testimony with regard to the claims that Bayrock ignored safety concerns in its rush to complete this 45-story “condo-hotel” tower. But, what has emerged from this fiasco is the fact that the Department of Buildings is an agency that is politically managed, badly staffed, ignorant of its mission and possibly corrupt as well.
From personal experience, many residents report that D.O.B. representatives and inspectors are completely ineffectual to the point of exasperation. Instead of protecting tenants, there are reports of brief, chummy meetings with landlords and supers – that end with no actions against gross violations of the building codes.
A look around Downtown at the proliferation of illegal billboards will tell us the story. How many of these huge signs have been removed by what Lancaster had initially held hearings about?
We were all duped into believing that the crews from VanWagner, ClearChannel and North Shore Neon Sign, were a thing of the past. Just walk by the neo-Time Square look at West Broadway and Broome Street in SoHo if you believe that the Department of Buildings took any action.

If Bloomberg had any real interest in grassroots support, instead of the same kind of media-hyped “we like Mike” he would start removing the billboards from the acknowledged center of the Art world.

But, don’t hold your breath. As Helmsley put it, we’re only “the little people.”

In Memoriam

2008-02-03T22:54:00.000-05:00

Great artists are often “discovered” after they have left us. It has been true of the Masters and is true among those 20th Century painters that we have come to love and respect.

While Adrienne Goldberg may not yet have arrived at that Pantheon of artistic luminaries of this new century, she was a talented and innovative painter whose work was a pleasure to experience. She was also loved and respected by those who knew her well.

She left us last week and both her husband Larry, a lawyer and an important member of the Downtown political community, as well as her daughter Alexis, will cherish the memories of a wonderful, warm, loving wife and mother whom they respected and loved.

So that we may all appreciate what we have lost, take the time to enjoy her art.
Her art was special, as she was special.

May she rest in peace.

The Party Line

2008-01-31T23:40:00.000-05:00

It is by the goodness of God that in our country we have those three unspeakably precious things: freedom of speech, freedom of conscience, and the prudence never to practice either of them.
-- Mark Twain (1835 - 1910)

The January 31st deadline for a decision on the Pier 40 RFP has come and gone and a new deadline is set for March 31st.
Presumably, the parties will be softened up a bit more and will become more “reasonable.” The implication by the Trust Board in sotto voce by its new “Dear Leader” was that the parties would work together at some common table and play nice.
A letter by Speaker Quinn broke her silence on the issue at last, a day before the Trust meeting and apparently the daydream of thousands of angry lower Manhattan parents and their kids storming the pier to protect the ball fields was too much for Related to overcome -- even with its deep pockets and political juice. Even Bloomberg knows when to hang back, at least for the moment.

But, the fact that there was no decision, rather than a bad decision (Related), being supported by the Trust – is not all positive. While there is the money issue still undecided in this market where liquidity is drying up faster than you can say, “credit default swap” -- the one glaring problem that has not been resolved is the length of the lease. From the beginning, Related has been unable to conform to the 30-year requirement. Deborah Glick, fast becoming Downtown’s Hero, has stated that she would not permit any change in the HRP Act in order to accommodate the 50 years needed by that developer.

So, why is another two months necessary when the Trust could simply have made a decision to work with the Pier 40 Partnership. -- since that is what the community wants?
Why, instead of trying to act like a judge settling a case does Taylor want all of the parties to sit down and make a deal?
Is it to keep Related in the mix?
Are those instructions from the Mayor?

This brings up the issue of Bloomberg’s minions. There is a sense of robots, or, like the Stepford Wives in drag closing ranks and acting as one monolithic entity – the Bloomberg Administration – which is starting to aggravate even those who admire the Mayor. Clearly, not every Trust Board member signs on to the same deal. But, the pressure is on.
As one downtown observer commented, “I asked a Commissioner about an issue that required a decision and he would only talk to me as if I were a reporter and it was off the record. He acted as if he were afraid to have it known that he had an opinion before it was cleared first with City Hall. What the Hell is that all about?”

The speculation is that it’s not so much that they are afraid of Bloomberg but that they fear that the promise of a fat paycheck after this government job is over – would evaporate if the party line were not observed. Not to mention the possibility of a job in D.C. if Bloomberg buys his way into the new administration.
Sounds less like a variation on the old “golden shackles” -- and more like the “golden coffin.” Talk out of synch and you may wind up working at McDonald’s – in Detroit.
Doctoroff is already signed up if you’re paying attention. His new deal is now at Bloomberg Media.

Its not good when you have City employees acting like they belong to a secret society instead of people that are supposedly responsive to the community they are paid to serve.

Political Overtones

2008-01-28T23:30:00.000-05:00

Politics is not a bad profession. If you succeed there are many rewards, if you disgrace yourself you can always write a book.
--- Ronald Reagan (1911 - 2004)

Pier 40 remains the hot topic for SoHo, Hudson Square, Greenwich Village and Tribeca. For Greenwich Village, Pier 40 is only second in importance to the St.Vincent’s controversy in which the Rudins are threatening to change the landscape of this landmarked area by demolishing part of the hospital and building condos.

This week is a crucial point in the long and winding road for the development of Pier 40. The 14-acre parcel, which recently had a $5 million dollar ball field renovation but needs major structural repairs, is on the last leg of its second set of RFP’s in four years.
The previous process, which gave us three plans to choose from, ended with no developer being chosen. The current two RFP’s – Related and Camp Group – are joined by a veritable spontaneous entry by the Pier 40 Partnership.

Related wants to build a destination pier that is described by Andrew Berman of GVSHP as “Vegas-on-the-Hudson” while Camp Group wants to keep the ball fields as its focus but would add a $1000 per week private camp. These two RFP’s were submitted two years ago and have wended their way through many variations and changes, not to mention a long and sometimes tedious review by everyone; – including the Community Boards, the Advisory to the Trust, Public hearings and comments by the elected officials.
After all of this, the Pier 40 Partnership, a ‘Johnny-come-lately’ group of local residents, seems to be the choice of the community. While their proposal is less formal and was not part of the original process (“Velly Irregular”), it has the support of the community, the Advisory, the Community Boards and the elected officials. It is based upon a plan to establish a non-profit conservancy. Merrill Lynch, in the news lately for chasing cash around the world, would come up with the bonds to support the project. What’s a few hundred Mil when you’re chasing Billions?
Whether the plan has the support of the Hudson River Park Trust is another matter.

Diana Taylor, informally known as Bloomberg’s main squeeze, and a competent public servant on her own is known to prefer the Related proposal. It was also previously Doctoroff’s preference, although from the Villager articles he seems to have gotten religion. Clearly, Related was Bloomberg’s preference. And, until very recently, it seemed to have the tacit support of Speaker Quinn – one of the elected officials who seems to be on the fence.
But, the fact that thousands of residents, school leaders, activists, and now elected officials are no longer waffling – but standing solidly behind the Pier 40 Partnership with financial warts ad all – you can almost smell the Trust’s newfound indecision. The
demonstration of support this past Sunday at Pier 40 may have been the icing on the cake.

A decision on the part of Taylor and the Trust Board now in favor of Related would be a mild form of political suicide for all involved. And, while it is typical of the Trust Board to vote in lock step, with the exception of one or two dissenters, the screaming would only end in legal gridlock if Taylor were to not listen to the not-so-distant drums. It could even affect Bloomberg’s “Kingmaker” ploy in his persistent attempt to foist himself onto the presidential scene. Even Rudy has learned that you cannot spin yourself silly in Manhattan and expect everyone to buy the fairy tale. There IS a limit to what you can make people believe, even with $14 Billion. A few more attempts like the WestSide Stadium, Congestion Pricing, Gansevoort Recycling/Transfer Station, the DSNY Fuel Depots in Hudson Square – and a Pier 40 fiasco and he’ll need more than cash to buy national influence.

What should make the decision easier for Taylor and the Trust Board is the fact that Related’s financing problem was faulty out of the box. This was one of Arthur Schwartz’s (CB2 Waterfront Chair) most relevant and pointed questions put directly to the Related point man at a recent hearing.
The Act limits the length of the lease to 30 years, and therefore limits a developer’s financing options to a 30-year payout. As recently as last week, the Trust’s filing deadline for financial information, this hurdle had not been overcome. To accommodate Related, the Act would require a legislative change and Deborah Glick – a powerful member of the Assembly – has indicated that she would not permit that to happen.
So, between the two RFP’s, Related and Camp Group and among those two and the Pier 40 Partnership – there is really no contest.
None has the financing fully locked up. All have viable plans. Only one has the full support of everyone outside the Trust. And, that is the Pier 40 Partnership.

What will the Trust do at the January 31st hearing? What should the Trust do at this hearing? Given the current financial meltdown in world markets, without convincing plans and financial certainty – no one has a clear answer.
It has been suggest that Taylor and the Board will choose Related. If that were to happen, there would be much gnashing of teeth. And, then the lawsuits would follow.
Some suggest that the only solution that is satisfactory at this point is to table the decision until the Pier 40 Partnership establishes its Bona Fides and provides a solid plan for the financing and the conservancy.

What’s The Motivation?

2007-12-30T12:30:00.000-05:00

Laws are spider webs through which the big flies pass and the little ones get caught.

Behind every great fortune there is a crime.
-- Honoré de Balzac (1799 - 1850)

When the Stella Adler Theatre Studio was located on the upper West Side during the 60’s, she had a reputation for getting to the bottom line with aspiring actors. Few got in the door without an interview that involved a soul-searching stare and a penetrating glare into the heart and mind of every thespian that passed through those portals. The heart of method acting, sort of an instant psychoanalysis, begged one crucial question: What’s my motivation?
What followed was the actor’s raison d’etre – his or her drive to acquire the persona, which they were to become – at least for that one role.

We have a series of actors on our Downtown stage too, known as the politicians and activists that are playing out their own theatrical spectacle, which we all hope will result in a rational social fabric. Perhaps the most important thread in that fabric, however, is crucial to the design of our city. Kevin Lynch, in his Theory of Good City Form offers the dimensions of a city’s performance: vitality, sense, fitness, access and control – and to that he also adds efficiency and justice. The vital city fulfills the needs of its inhabitants, who understand its form and function. A good city is one, which is arranged so that its citizens have a say in the management of the spaces in which they work and reside. City Planning, as a function, therefore relies on the legal tool of Zoning to put that plan into effect.

Take Downtown, or more specifically Hudson Square, SoHo and Tribeca. Tribeca appears to be somewhat rational. Lots of condo development with areas of commercial building, City government surrounded by the courts, and parks for the children. While it’s hard to understand how Wall Street, long the center of world finance and banking has remained dilapidated and archaic (especially in the Nassau/Ann/Fulton areas) as it has in certain areas, the rationality of its direction is understandable.

SoHo has expanded almost monolithically along the lines of residential development. Home to some of the highest prices per square footage in Manhattan, its zoning as manufacturing has only driven the cost of a residential variance skywards. But, the variances are almost always approved.
As you move further west, the mood gets a little dicier.

As you approach the border of SoHo and Hudson Square, things start to break down. Interspersed between condos on Avenue of the Americas and new hotels on Watts Street and Spring Street, there are Manufacturing facilities, commercial buildings still owned and operated by Trinity Church and a number of hotels, hotel-condos, condos, possible institutional structures and a few new residential developments – all on the books or in planning stages.
In other words, there appears to be no agency at the helm to modify or correct out of control development.

The results of this lack of planning, vested in our agency called City Planning, is playing out just as it appears – it’s the Wild West of Manhattan.

The take on the Bloomberg Administration, throughout the tenure of the now retired Dan Doctoroff, was and has been a benign and paternalistic attitude, which basically has come across, as “We know what’s best for you.”
This has played out through Doctoroff’s apparently neglectful method of pushing through what he felt was best.
With Bloomberg now sitting on $14 Billion in cash and harboring Presidential ambitions, one could understand how that degree of arrogance could exist – as the boys from Harvard run the ship. The fact that Doctoroff was unpopular, even among Bloomberg’s people, makes his appointment to Bloomberg media’s top post makes you wonder what information should not be shown the light of day.

As a result of the benign neglect of City Hall, Trump SoHo has set the stage for a completely out of scale building that perverts the meek zoning which currently does exist in Hudson Square. The City Council has run for cover and Bloomberg joked with The Donald about having Billions – and the concept of contextual zoning is buried.
There are several hotels either just completed or nearing completion in this area as well as a Department of Sanitation project -- a 14-story garage on Greenwich and Spring. The latter has prompted The Steering Committee, a group of individuals from the Hudson Square area, aided by Michael Kramer; a publicity operative who consults with this group as well as with St. John’s to seek alternative sites. St. John’s can go either way – commercial (hotel) or condo – but they just want to know which way. In this instance, the condo owners across from the site are not at all happy with the zoning mix, which is arguably going to happen. The Charrette which this group has devised, with much fanfare, is precisely what City Planning has failed to do – they have proposed a zoning plan.

So, Western SoHo zoning is adrift as is Hudson Square. What is being done about it? Very little.

Christine Quinn has discussed a request that City Planning re-zone this area. City Planning’s response is that there is no plan to do so.

Meanwhile companies like Bayrock erect buildings like Trump SoHo – and activist organizations organize to sue – which our revered leader Mr. Bloomberg has allowed to happen. Rather than take the lead and review the credentials of the players in that development and the effect it will have on an area whose zoning is adrift, he jokes about it.
Donald Trump is a 5 per center (his part of that deal) and has little to do with its construction other than his name.
A Mr. Sater, a friend of Trump’s, is rumored to be either a partner or owner of Bayrock, and is a convicted criminal – whose association with Trump SoHo would make the condo plan illegal.
And, we have the elected officials sitting on their hands throughout this entire ruination of a potential jewel in Manhattan – a Manufacturing zone which could be developed as a rational plan that includes residential, institutional, commercial cooperation – augmented by parks and open space.

Political trends.

Eric Goia is an effective young member of the City Council who appears to be headed for a shot at the Public Advocate spot next time around. He has the look of a younger, more energetic, and more personable Andrew Cuomo. He’s persistent and intelligent. While we are happy Cuomo is where he is – reaching his staff during the campaign was impossible. Not so, Eric Goia.

The City Council race for District #1 where Alan Gerson will have been for eight years is still in the distance but as of this point it seems to primarily be sought by Pete Gleason, Madeleine Wils and Julie Menin. Wils may have the edge but Menin (whose detractors have grown) has the money – although Wils has access to deep pockets as well. A rumor that Kathryn Freed may return has been denied but should strike fear in the hearts of all who hear it – that plan to run for that spot. Pete Gleason and also McWater (of CB3) have been quiet as of late.

A rumor has circulated that Alan Gerson will be going on to NYU after leaving his City Council spot in ’09 – as he is term-limited.

The City Council spot that Quinn will leave in ’09 is being sought after by Brad Hoylman, current Chair of Community Board #2 and Vice President/General Counsel of PFNYC (Partnership for New York City), a business group created by David Rockefeller which merged with the New York Chamber of Commerce in 2002. Henry Kravis had charge of its investment fund. Hoylman is also President of GLID, a Democratic Club that is hooked in to many of the gay (and straight) politicians. It should not be lost on anyone downtown that there would be BIG money, in theory at least, supporting Hoylman’s run for Quinn’s seat.

While Hoylman will likely have the support of Quinn, Tom Duane and possibly Deborah Glick, he will have at least one formidable opponent in Andrew Berman, Executive Director of GVSHP, a very visible non-profit organization that has supported many Downtown initiatives involving housing and zoning. Hoylman is also making his presence known in the community but the strong business connections (PFNYC) does pose a question mark with reference to his frame of reference.

Floaters have also been mentioned – such as Maria Derr, former Board #2 Chair – who is know to also have an interest in Glick’s Assembly seat but may be thinking of a lesser starting out point.
She recently sold a development parcel on Seventh Avenue and with her Passanante background seems unlikely to be hurting for money.

Since Arthur Schwartz is known to have spent something in the neighborhood of $80,000 to challenge Larry Moss for State Committee – and won – we can only imagine the amounts being contemplated for a City Council race. Obviously, running for City Council is not based upon the salary being offered.

The money and the power in politics – comes in other, less direct ways.
But, it does arrive at some point.
Ask Chuck Schumer about the big money donations known to have found a way into his campaign fund arriving via a Nursing Home guru – which is also embarrassing Tom Spota – current D.A. of Suffolk County.

A Christmas story – Schmucks ‘R Us

2007-12-24T23:41:00.001-05:00

Failure is unimportant. It takes courage to make a fool of yourself.
-- Charlie Chaplin (1889 - 1977)

Christmas shopping was much more interesting this year.

To instill some sense of responsibility in our children it is sometimes necessary to teach the young ones a lesson. Instead of using a toy for an hour and discarding it, this year we provided an interesting twist.

The racing car actually stopped working an hour after buying it at the toy store. There was no lack of interest in using it – it was just defective. So, instead of putting it in the closet and taking the loss, we drove to the store to replace it.
Granted, it was a week later before we managed to get there, but everyone was feeling proud that we were not just going to accept it and forget about it in the pile of other unused or broken toys. It was a remote-control car that was actually fun to play with. And, we were going to turn over a new leaf.

The fact that the sales receipt was missing, of course, made it much more interesting. But, hey, it’s almost Christmas! Surely, a famous chain of stores catering to children would be accommodating.

Dan, the manager who had no last name – since it’s Corporate Policy not to give out last names (giving you that warm, personal feeling) – looked at the remote control race car which was packed neatly in its original box and with a completely straight face asked for the receipt. There was none.
It was at that moment that we ceased to exist as humans.

Well, then, Dan explained, he could not help us. He walked away.
Expecting this, but not happy about it, we called out again to him and reasoned that the identification from the optical scan on the box, the identification of the exact date it was purchased, and the information about the amount that was paid – should be enough for him to at least be able to check his records and identify this sale. Was it not?

“Sorry” he said. “If you don’t have a receipt, I can’t help you.
“We have no records of cash sales. We only have records of credit card sales.” There is no record of cash. I was incredulous. This was now a learning experience.

“Do you mean that even though you charge sales tax and you collect cash, you have absolutely no record of this transaction? How is that possible?”
He looked directly at us, with an emotionless face that one could see he may have put on a thousand times.
Whoa, we thought. How many defective toys sold for cash could that generate income for? How many customers who pay cash have been down this road before?

This was really getting interesting. We have a batched out tape with – maybe, hopefully, some sales tax – that cannot be located or identified – for a toy that may or may not work – and no way to recover your money or get a replacement. There was no sign over the register that said, “We keep no record of cash transactions” or “Hold on to your receipt since cash transactions don’t exist.” Even better, “Sales Tax is reported only on credit card transactions.” And, I like the one that would say, “Please advise clerk if you’re going to pay cash. Her college fund is dwindling.”

“So, does that mean that we have to sue you to get money back or a replacement??” We thought, well even in Riverhead Small Claims court it would have to cost more than the toy just to get in front of a judge. But, he already had his answer: “You can do whatever you have to do,” said Dan and he walked away. He was well trained in “Corporate Policy.”

“Well, how do we speak to management about this,” we said – and he came back and pointed to two white phones (Khrushchev preferred red for hot lines. Hopefully, those had worked.)
One phone did not work and the other had a weird Verizon recording telling us that the number the manager had actually dialed for us, which was for “Corporate” was a non-working number. Apparently, “Corporate” phone lines were not often used.
Things were starting to get a little frustrating. Not unexpectedly, of course.
This was corporate America at its best.

“Riverhead Police” came the answer on the line.
The officer was actually helpful and said he would come right over – and then, he did. In less than 10 minutes. It was like we were on a movie set. People on the Customer Service line were starting to look at us like we were Alien Humbugs. Voices were raised, blood pressure was bubbling, faces got flushed, and there were uncomfortable stares. Some actually smiled sympathetically as if they had been there, done that, and had gotten the same results. What in the world were we doing, expecting to get satisfaction from minimum-wage workers who had been trained in “Corporate Policy.”

Except, that I was pissed. We had paid good money – in real U.S. Dollars – even if they are nearly worthless compared to the Euro now – and we had gotten bad merchandise. The value of those dollars had not depreciated THAT much in one week. The store probably had no idea that the toy was defective – but they DID know that the toy came from their store. They admitted that in front of the Riverhead Police Officer. I was eager to operate the racing car and show them how it stopped working. The battery was even charged, ready to demonstrate.

By the time the police arrived, everybody was staring at us and many were hoping that the offending ex-customers would be taken out of the store in cuffs for asserting their rights – or, at least the rights that one reads about in political novellas describing America’s freedoms.
It just wasn’t right. You pay cash, they know you bought something at their store and then they refused to acknowledge that they took your money.
And, they were condescending about it as well. Bet you that they would find a video of the transaction if I had lifted a $50 from the till, or tickled the clerk.

The “Store Manager” finally arrived and he told the police that the store had been threatened with a State Sales Tax audit for claiming that they had no record of transaction and that they had a “Corporate Policy.” After all, how did they know whether we really bought the truck?

At that point I was reminded of Jamie Lee Curtis in “A Fish Called Wanda.”
In her scene with Kevin Kline, Curtis is being attacked by Kline’s character – a second story man dressed in black – for calling him stupid – apparently a phrase he had heard before and was very sensitive about.
Curtis says to him: “Oh, I’m sorry. Calling you stupid would be an insult to stupid people.”

I thought, yes, this store manager is right. We could have been lying.
We could have tracked the purchase of people that bought that toy – followed them home and watched to see that it didn’t work and purloined the broken toy – all the while taking note of the day that it was purchased, or even better, stole the receipt for cash. Then, we waited a week and made a lot of noise about the fact that we paid cash, pointed out that the store could check the optical scanner information on the toy – and then called the Police over.
Or, we could have bought it Downtown on Canal Street from an Asian gang for $5 and had it completely re-packaged, and THEN drove to Riverhead to make $39.95 for our troubles. All the while planning to obtain the help of the Riverhead Police.
The possibilities were endless.

The absurdity of the situation was starting to dawn on Mr. Store Manager and he finally said, “Well if I had been asked nicely whether I would make an exception to ‘Corporate Policy’ I might have considered giving store credit.”

Without genuflecting, in my best supplicant’s voice, I repeated his words verbatim back to him. He was obviously thrilled by the lengths that I would go to in order to obtain satisfaction.
The Police Officer was satisfied and we were satisfied. Mr. Toy Store Manager was, well, resigned to making an adjustment to “Corporate Policy.”

Somehow, it seemed, it shouldn’t be so difficult to deal with a giant corporation whose real customers are just kids.

Downtown Dilemma

2007-12-19T00:50:00.000-05:00

Doubt is not a pleasant condition, but certainty is absurd.
Voltaire (1694 - 1778)

Making decisions on the waterfront are just as difficult now as it was for Brando’s character in On the Waterfront. And, the old ILA was notorious but today is a group of Teamsters who are trying to keep passenger ships in Manhattan as well as save their livelihoods on Pier 92.
Lucky Luciano was the man that ONI (Office of Naval Intelligence) finally made a deal with when they needed an anti-sabotage ring on the piers. In return, Luciano got a better deal than Dannemora.

Some of those thorny decisions still plague residents who are trying to keep Pier 40 away from the developers. The newest threat if Pier 40 were not to be developed as “Vegas-on-the-Hudson” by Related comes partly from the frustration among Hudson Square residents with the Department of Sanitation’s plan to build in a few locations. A fourteen story garage at Spring and Greenwich Streets has generated a major amount of heat with residents in that location and the “Steering Committee,” as they are known has developed plans for Hudson Square and proposed several alternative sites.
At the same time, the Gansevoort Recycling plan, which includes a transfer station that Bloomberg and Doctoroff were pushing, may get some new attention in Albany at the beginning of next year.
The problem with the recycling plan and the DSNY building is the following dilemma. As a result of the settled lawsuit brought by the Friends of Hudson River Park several years ago, DSNY has to be off the Gansevoort Pier by 2012 and was supposed to move to the UPS site – on Greenwich and Spring. If they cannot move off Gansevoort they violate the terms of the settlement or they move to where the Steering Committee doesn’t want them to move.

This is how the idea of Pier 40 as a quasi-garage for garbage trucks came to pass recently. The problem with that solution is that a tremendous amount of community opposition is expected – since the Trust just spent $5 million for ball fields and the consensus is that the pier should be a park, not a substitute garage for sanitation trucks. It’s bad enough that Downtown is inundated with diesel smoke, the kids don’t need to breathe it while they’re playing soccer or baseball.
A major part of any solution needs to involve Pier 76, where there is room for lots of parking and is not directly part of a residential neighborhood.
Turning Hudson Square into a parking garage for DSNY makes as little sense as turning Pier 40 into a garbage truck facility.
Hudson Square, SoHo, the West Village may have some manufacturing zones – which need to be changed – but the trend towards residential use is undeniable. It should not be forced into an ugly bastardization of this potential future by encouraging numerous hotels, hotel-condos and DSNY facilities.

As Doctoroff moves off into the sunset in January – rumored to have been awarded the keep-your-mouth shut post as head of Bloomberg media – we look beyond the horizon. Perhaps he’ll hook up with Karl Rove and write a book on “Development Strategies for a neighborhood without zoning” or make a deal with Trump to build a 75 story Disney tower in the Hudson River Park.

The head of HPD (Housing Preservation and Development), Mr. Sean Donovan, has moved on.
HPD, a city agency, DHCR, a state agency and our very own Buildings Department, are among the major agencies involved with housing in Manhattan. Landlord abuse of tenants has risen to a crisis level and Deborah Glick (Assembly), Christine Quinn (City Council), as well as Scott Stringer (Borough President) have been active in different ways to address this issue.
Stringer has pushed for more affordable housing, Glick has been pushing for controls on “phony demolition” and landlord abuse and Quinn has recently introduced legislation to curb harassment of controlled and stabilized tenants.
In addition,Brad Hoylman, Chair of Community Board #2, has weighed in on these issues and is planning to hold hearings at the beginning of 2008.

As the Trump Godzilla (Trump SoHo) project reaches for the last few floors of its 45-story height, the stories have unfolded about the developer himself.
As a hard money lender (higher interest, shorter terms, and not a bank) described him, Trump is known in the trade as a Five Per center. He puts his name on a deal and the money guys and developers come in and do the “The Real Deal.” Trump doesn’t have any money in the project, he basically skims off the top for lending a moniker that, god help us, connotes “something” that people have been taught to want. Americans deserve what they get. With a Five Percenter who has to run a T.V. career to help promote his carnival barker antics, the Forbes article that placed his net worth at $150 million seems closer to the truth.
And, in this case, the “stories” are a little dicier than usual. Apparently, one of the major players in the Bayrock company who handled the development with money rumored to have come from Dubai, is a character know as Sater.
Trump, who normally has a good memory, does not remember rubbing elbows with someone who was the focus of a recent New York Times piece. Sater is currently known as Satter and apparently has been around the corner a few times – from the Soviet Union to Brighton Beach – via the Central Intelligence Agency and Wall Street – stopping off long enough to be accused of laundering some money. He currently identifies himself as real estate executive and does business with The Donald.

The whole project has smarmy written all over it – and it would be interesting to see how it would all play out if the “condo” part of hotel-condo were rendered illegal. The SoHo Alliance is betting that will happen.