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March 2, 2007
Embattled Gargano speaks
Former development chief denies allegations that may tarnish legacy
TheRealDeal
By Jen Benepe
Now that Charles Gargano (we can't bring ourselves to call him "Ambassador," despite his preference) is no longer the head of the Empire State Development Corporation, shady dealings under his term are finally seeing the light of day. However, Gargano (by "Gargano" we mean the "Ambassador") denies everything.
Depending on the findings of the audit by the new New York State Comptroller Thomas DiNapoli, which were slated for release around the end of February, the unelected former economic czar could become part of a criminal investigation.
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If the audit goes against the agency or Gargano, it could trigger an aggressive look by new Attorney General Andrew Cuomo into past ESDC workings.
Here's the latest revelation:
Allegations that the Economic State Development Corp. paid the rent of the headquarters of agency chief Gargano's nephew, Frank Gargano -- who unsuccessfully ran for local office in Suffolk County on Long Island -- further cloud the legacy of the Albany insider's 12 years in power. The agency was ordered to repay the state more than $100,000, the cost of 18 months' rent at the offices of the Suffolk County Chamber of Commerce, where Frank Gargano had his campaign headquarters.
Here's last month's revelation:
Gargano faces further press scrutiny after a report last month in the Village Voice alleged the economic heavyweight sought a $300,000 payment and a job for his nephew Frank Gargano as a lobbyist for Sal Catucci, head of American Stevedoring, which was looking to extend its Port Authority subsidies at the Red Hook piers in 2003.
Gargano defends his record:
In his interview with The Real Deal, Gargano said the agency was responsible for developing more projects than under any other governor in state history, although both the redevelopment of Atlantic Yards in Brooklyn and the conversion of the James A. Farley Post Office on 34th Street to Moynihan Station, which would be used for commuter and long-distance train service, remain very much unfinished. Both have generated considerable controversy and sparked fierce community or interagency disputes.
The article continues by looking forward to conditions under the new administration:
One item on new Governor Eliot Spitzer's reform agenda is the overhaul of the beleaguered Economic State Development Corporation, part of an attempt to put an end to the alleged cronyism that has been stymieing economic development projects statewide.
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Among the projects stopped in their tracks since Spitzer's victory are the creation of Moynihan Station from the James A. Farley Post Office building on 34th Street, the Hudson Yards development on the West Side, portions of the redevelopment of Lower Manhattan, and possibly the Atlantic Yards Project in Brooklyn. That project's status remains unclear while federal lawsuits challenging the development are pending.
NoLandGrab: The crystal ball on Spitzer's role in Atlantic Yards is totally murky. He had his chance to put a hold on the project in December, by asking Assembly Speaker Sheldon Silver, a fellow Democrat, to withhold his vote to approve the project. If reporters and Albany insiders know that Spitzer is sincerely concerned about the project, they know something we don't.
Regarding Gargano, now that he's out, people have started talking without fear of retaliation. It makes you wonder how many other allegations will wash up on the shore in coming months.
Posted by lumi at March 2, 2007 10:51 AM