Brooklyn Bridge Supporters Call for Department of Investigations Inquiry into Impropriety and Possible Corruption Over Dock Street Development

Emails Revealed Before City Council via Freedom of Information Law Demonstrate Possible Collusion between School Construction Authority (SCA) & Developer Two Trees on School Proposed for Condo Tower by Brooklyn Bridge $400,000 in Lobbying & Campaign Contributions by Developer to Elected Officials with Decision Making Powers Emerge in New York Times Developer Condemned for Not Renewing Lease of Existing School for Disabled While Campaigning for “Modest” Middle School to “Sell” Condo Plan

New York, NY, June 1, 2009 – On the heels of stunning testimony given last week at a New York City Council Public Hearing regarding the questionable dealings between The School Construction Authority (SCA) and Brooklyn developer Two Trees Management and a revealing story on campaign contributions and lobbying by the developer to key elected officials and decision-makers revealed in the The New York Times, The DUMBO Neighborhood Alliance and its supporters are demanding for a Department of Investigation to open an inquiry into possible impropriety, corruption and criminality around the controversial 18-story Brooklyn Bridge side-condo known as Dock Street.

Speculation has mounted regarding the integrity of a proposed 43,000 square-foot middle school which is to be part of the Two Trees’ 18-story residential development, due to emails and testimony that was introduced at a New York City Council Public Hearing on May 21. Many believe the school is being used as a “red herring” to manipulate the City Council into supporting Dock Street, which has given birth to a firestorm of criticism from local and national historic and preservation groups as well as thousands of Brooklynites. As information continues to surface more questions are being asked. Today, the DNA has sent an official letter to both the Department of Investigations to inspect these revelations, in light of recent disturbing developments. A copy can be found at www.dumbo-dna.org

During the testimony of SCA counsel Ross Holden, Councilman Eric Gioia of Queens brought up the FOIL (Freedom of Information Law) request made by Andrew Stengel, a member of Brooklyn’s Community Board #2 and it’s Land Use Committee, released by Councilman David Yassky. Emails produced by FOIL cast serious doubt on SCA’s commitment to research alternative school sites and its fulfillment of its fiduciary duty to serve the greater public interest.

The following is one of the internal emails from the SCA to developer Two Trees that was put into public record:

“David Yassky referred this guy to me because he has property in Brooklyn on Water Street between Bridge and Jay…Now I know that if we don’t do the Walenta’s project that we don’t really want to do anything else over there, but I think we have to follow up on this just so we can say that the Walenta’s project is such a good deal.”

When Mr. Holden refused to reveal the identity of the SCA staffer who drafted the email, he was faced with stern criticism from several City Council members who reminded him that the staffer was a “public official” whose identity was his duty to reveal. Further “government “transparency” was being threatened which “reinforces the public’s worst fears about government and its business dealings.” Holden did claim that his office “prepared our alternative-site analyses as we would anywhere else,” and that “there are emails where the SCA took issue with Two Trees that were not yet produced.” The SCA counsel then promised to produce the full file of correspondence immediately. In a press conference this past Saturday, May 30th, at the Dock Street site, Councilman Gioia made it clear that his office has yet to receive supporting documents form the SCA, further exacerbating concerns of DNA, our neighbors and good government groups. And according to a posting by FOIL initiator Andrew Stengel on the blog, dumbonyc.com, both the SCA and the Department of Education have yet to fully comply with his original FOIL requests, flagrantly disregarding the law. Full details:

Furthermore, SCA has continually made the claim of a cost savings at Dock Street because a “core and shell” is being provided by the developer. But, when questioned at the City Council hearing, Holden could not calculate or state any fact regarding the claimed savings or the tax benefits the developer would enjoy from the project.

“We applaud any effort to bring transparency and accountability to a project which is, without a doubt, being fueled by impropriety and unethical behavior at the least and potential criminal corruption at the worst,” says Gus Sheha, DNA’s President. “We are not alone in our desire to urge the Department of Investigations to promptly and aggressive pursue this matter, wherever it may lead, including the highest levels of city government. We trust the City Council and Mayor Bloomberg will put the brakes on this project and fully investigate the SCA, DOE, Two Trees Management, its principals, attorneys and lobbyists. The undue influence of a private developer over city agencies constitutes a serious breach of the public trust and a lack of fiduciary responsibility of a city agency towards the taxpayers of New York City.

Lobbying, Campaign Contribution & the Fast-Tracking of Dock Street

It has also recently surfaced via The New York Times that developer Two Trees has spent approximately $400,000 lobbying elected officials in City Council and other important government agencies. The Two City Council members yielding the most power over the development, Land Use Committee Chairwoman Melinda R. Katz and Council Speaker Christine C. Quinn, have received at least $74,250 in campaign donations from the developer according to The New York Times article, perhaps coloring their objectivity on the proposed structure. According to The New York Times, “Katz, who is running for city comptroller, has received major financial support from the real estate industry, whose interests she oversees on the Land Use Committee… And Mr. Walentas and his father, David (the principals of Two Trees) were on the finance committee for a Kate fund-raiser in June.”

“Altruistic” Developer Condemned for Displacing School for Disabled While Campaign for Another

Two Trees maintains that opposition to Dock Street lies with a select few whose views would be diminished by the development, a motive that shouldn’t outweigh the inherent need for a school. However, The New York Times revealed in February that Two Trees would in fact be pulling the plug on the very thing they’re lobbying the public for – a school. The League Treatment Center, which currently rents space from Two Tress Management, is a school for over 200 children with severe learning disabilities and autism. The school is located one block from the proposed Dock Street development and has been there for 19 years. Recently, the school has been told by Two Trees Management to vacate so that their space can be converted into more high-end luxury residences. In a desperate plea to save the school, Hannah Achtenberg Kinn begs: “This is one school, 100 percent full, and it doesn’t need construction; it’s all here. All were asking is, let us stay and pay market rent.” As of now her prayers have gone unanswered. Full text of the New York Times feature is here

More than 25,000 individual citizens have voiced their objection via petitions, letters, postcards, emails and phone calls to governing bodies including the Department of City Planning, Mayor Bloomberg and the City Council.

To save the Brooklyn Bridge--whether or not you live in New York City--contact New York City Council Speaker Christine Quinn: (212) 788-7210 / cquinn@council.nyc.gov and Mayor Bloomberg by calling 311 or faxing (212) 312-0700. If you live in New York City, please contact your local member of City Council and say NO to Dock Street. Find your representative here

For more information on the efforts being made to save The Brooklyn Bridge, please visit: www.dumbo-dna.org or www.savethebrooklynbridge.org