Crains New York - July 9, 2012 - (Page 6)

THE Why Albany let a tax break die INSIDER Last-minute maneuvering to expand a bill irked Governor Cuomo BY ANDREW J. HAWKINS A deal to extend a popular propertytax break for co-op and condo owners in the waning days of the session in Albany fell apart when Gov. Andrew Cuomo rejected the Legislature’s attempt to tie it to several other housing programs, according to sources close to the negotiations. The linkage explains why the governor balked at allowing a quick extension of an uncontroversial tax break. On June 20, the penultimate day of the session, Assembly Democrats tried to attach to the condo/co-op abatement a separate set of measures amending the city’s J-51 tax-credit program, the 421-a tax exemption and loft-tenant laws, according to a source. But there wasn’t time for the bill to “age” for the required three days before legislators left town, and Mr. Cuomo objected to issuing a “message of necessity” waiving that transparency rule for a complicated housing bill negotiated secretly as the session ended. As a result, the $430 million condo/co-op tax break expired. by Andrew J. Hawkins and Shane Dixon Kavanaugh GOV. ANDREW CUOMO and Assembly Speaker Sheldon Silver are expected to restore a tax break for co-ops and condos, but the fate of several other real-estate programs remains unclear. ‘Backroom deal’ “It was just a backroom deal, and we didn’t want to go back on the message of necessity [pledge],” an administration source said, referring to the governor’s promise to forgo the waiting period only if absolutely necessary. But condo and co-op owners will not pay the price for Albany’s negligence. Mr. Cuomo, the Bloomberg administration and legislative leaders have a handshake agreement to extend the tax break later this year,when the Legislature returns to Albany for an as-yet-unscheduled special session. The city would then apply the tax break retroactively to July 1. Whether the more controversial issues of J-51, 421-a and loft laws will also be taken up remains to be seen. “There is no package that has been agreed on at this time,” the administration source said. Lawmakers, for their part, dispute the notion that Mr. Cuomo was surprised by the sudden inclusion of amendments to housing programs other than the condo/co-op tax break. “The question was getting a message of necessity,” said Assemblyman Vito Lopez, chairman of See TAX on Page 24 A When candidates are consultants veteran consultant of city politics predicts that the experience of Public Advocate Bill de Blasio (above) as a campaign strategist—he ran Hillary Clinton’s 2000 bid for Senate and advised Andrew Cuomo’s 2002 campaign for governor—will hurt him in the 2013 mayoral race. The reason: When candidates think they know better than their consultants, campaigns can get pulled in different directions. The source pointed to Brooklyn Councilman Lew Fidler, who has steered many candidates into office but lost his own bid for state Senate. “He thinks of himself as his own political operative, and people don’t want to deal with him. Same thing with de Blasio. He’s very difficult to talk to,” the consultant said. “You can’t be your own lawyer, you can’t be your own psychiatrist, and you can’t be your own political operative.” Mr. Fidler fell short by fewer than 20 votes after missing a chunk of the Senate campaign for health reasons. “When you’ve lost the closest election in the history of New York state, there are a lot of reasons,” the councilman said. “I am sure my pigheadedness was one.” A source close to Mr. de Blasio said, “It’s hard to see how working for Hillary Clinton and Andrew Cuomo is anything but an asset for Bill.” City Council will need to sanction a zoning change for the new version. Council members are unlikely to squash the project, but could use their newly gained leverage to ask for more community benefits. That decision will largely fall to Democrat Julissa Ferreras, who represents Willets Point. newscom New leverage for Willets Point foes Opponents of the city’s plan to redevelop Willets Point will try to take advantage of the Economic Development Corp.’s admission last week that it illegally lobbied for the project. A spokesman for a group of property owners resisting eviction said EDC’s acknowledgement means the city should rescind its 2008 plan to remake Willets, which was approved by the City Council. A lawsuit is possible, the spokesman said. But experts say it’s unlikely that EDC’s confession, made in a settlement with state Attorney General Eric Schneiderman, would be grounds for overturning the Willets decision. “I don’t see a court invalidating the approvals because of what may have been misconduct in the advocacy,” said Kenneth Fisher, a land-use attorney and former Brooklyn councilman. “I can’t think of any precedent for that.” If the legal argument fails, opponents could still play the political card. The admission of illegal lobbying could bolster their argument that the project is tainted and should be killed. Because the redevelopment planned by the Related Cos. and Sterling Equities deviates from what was approved four years ago, the Barclays backlash The resignation last week of Barclays chief Robert Diamond over a rate-rigging scandal gave critics of the Atlantic Yards project fresh ammunition. The Rev. Clinton Miller (left), head of the influential Brown Memorial Baptist Church in Clinton Hill, ripped the British bank, whose name adorns the new Brooklyn arena and nearby subway stations. “If Barclays engages in this type of banking behavior, how can they ever be a welcomed corporate partner in Brooklyn and beyond?” Rev. Miller said in an email to his followers, vowing that “demonstrations and protests against the Barclays Center and its events will continue.” Barclays did not respond to a request for comment. For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider 6 | Crain’s New York Business | July 9, 2012 newscom http://www.crainsnewyork.com/newsletters http://www.crainsnewyork.com/insider

Table of Contents for the Digital Edition of Crains New York - July 9, 2012

Crains New York - July 9, 2012
Contents
In the Markets
The Insider
Small Business
Business People
Executive Moves
Real Estate Deals
Opinion
Greg David
For the Record
Classifieds
From Around the City
New York, New York
Source Lunch
Out and About
Snaps

Crains New York - July 9, 2012