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June 2, 2009
Crain's MTA Double Bill
Gov’s panel makes infrastructure push
Not everyone thinks that more public-private partnerships are New York State's ticket out of dire financial straits, and here's a reason why:
Gene Russianoff, senior lawyer for the Straphangers Campaign, praised the report’s emphasis on transit-oriented development, but noted it could be dangerous for the state to rely on the private sector during tough times. The privatization of Midway Airport in Chicago went up in smoke last month when private investors were unable to obtain financing. And the MTA was counting on about $1 billion in revenue from the sale of land at Atlantic Yards and Hudson Yards that has not yet come in because of the faltering economy.
Partners sue MTA chairman over building deal
No, this item doesn't apply directly to Atlantic Yards or other land grabs, but jiminy crickets, could we maybe get an MTA Board Chairman who's not a double-dealing real estate titan?
H. Dale Hemmerdinger, the chairman of the Metropolitan Transportation Authority and a major real estate figure in New York City, was sued Monday by partners in one of his buildings. They allege he illegally drained $2.2 million from funds set aside to run the property in order to create a crisis and buy them out.
The lawsuit, filed in New York State Supreme Court, claims that Mr. Hemmerdinger and his son, Damon, put unqualified general partners on the board which controlled 555 Fifth Ave., creating an artificial majority. It also says those partners hired companies run by the Hemmerdinger family to manage, lease and construct various projects in the building but failed to arrange a mortgage or other credit line for the building. Plaintiffs in the suit include two half-brothers of Mr. Hemmerdinger, whose term as MTA chairman ends this week.
Posted by eric at June 2, 2009 12:58 PM