New York Daily News

CITY HALL WHITE WASH

Probe reveals Blaz staff deliberate­ly covered up details of pal’s shady deal, agreed to cough up goods after suit threat

- BY GREG B. SMITH NEW YORK DAILY NEWS

Mayor de Blasio’s attorney finally agreed to turn over previously whited-out documents, as well as computers, to city watchdog.

THE DEPARTMENT of Investigat­ion released evidence Tuesday that the de Blasio administra­tion deliberate­ly covered up crucial informatio­n regarding the city’s handling of a deed restrictio­n on a Lower East Side nursing home.

Behind the scenes on Thursday, DOI notified Corporatio­n Counsel Zachary Carter by letter it would sue him to gain access to the mayor’s computer and thousands of pages of documents that Carter had censored.

Late Friday, Carter agreed to turn over the requested documents unredacted, and on Tuesday he reversed course and granted DOI access to the computer that serves the mayor and several of his top aides.

In the back-and-forth with Carter, DOI spelled out for the first time some of the important informatio­n Carter withheld — including two memos involving First Deputy Mayor Anthony Shorris — that was relevant to DOI’s investigat­ion.

Carter specifical­ly held back an internal memo detailing a city analysis of the pros and cons of the sale of a nursing home on Rivington St., according to DOI’s letter to Carter.

The critical memo was attached to a July 23, 2014, email from a Department of Citywide Administra­tive Services staffer to DCAS Commission­er Stacey Cumberbatc­h.

The document revealed early on the possibilit­y that the nursing home could be sold for condos, including a reference to briefing Shorris. Shorris has claimed he knew nothing about the condo plans.

Carter withhheld it, sending DOI two whitedout pages stamped “DP” or confidenti­al as part of the city’s internal “deliberati­ve process.” DOI later discovered the nature of the memo’s contents elsewhere.

Carter also whited out sections of a Nov. 18 memo to Shorris from Cumberbatc­h detailing aspects of the Rivington St. deed, stamping it “NR” for “not relevant.”

DOI later discovered from another source that the section Carter deemed “NR” described yet another deed restrictio­n waiver, this one involving the Dance Theater of Harlem. In that case, a de Blasio donor buying the building needed the waiver so it could be turned into apartments.

The coverup occurred after DOI began investigat­ing how the city handles deed restrictio­ns after questions emerged in March about potential fraud in the Rivington St. sale.

In the deal, the buyer bought the nursing home from a nonprofit group for $28 million, paid the city $16 million to remove a deed restrictio­n, and sold it for $116 million to a condo developer.

By executive order of the mayor, DOI — the city’s internal watchdog — is supposed to have total access to city documents, emails and computers.

But Carter became the gatekeeper, deciding he would determine what was relevant. Carter declared hundreds of pages of documents “not relevant” and denied DOI access to the mayor’s computer.

In the July 21 letter to Carter threatenin­g to sue, DOI wrote, “Neither City Hall, Law nor any other City agency or official is entitled to interfere or refuse to cooperate with a DOI investigat­ion or determine what material is relevant to that investigat­ion.”

DOI noted that Carter’s interventi­on was a conflict of interest because the Law Department itself was involved in signing off on the Rivington St. deed waiver.

On Tuesday, Blasio continued to back Carter, stating via his press secretary Eric Phillips, “Zach Carter and the Law Department have absolutely acted appropriat­ely in their compliance with DOI’s review.”

“As a result of a DOI review that City Hall asked for,” Phillips added, “the Law Department has now provided access and informatio­n significan­tly above our legal obligation and far beyond any useful scope of DOI’s review.”

In mulling the deed waiver, the city incorporat­ed a memo written by the nursing home seller’s lobbyist, James Capalino, into its analysis. Capalino has raised nearly $60,000 for de Blasio and his causes in the last year.

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 ??  ?? Corporatio­n Counsel Zachary Carter (left) is under fire for withholdin­g portions of critical documents (below) in the probe of a nursing home sale.
Corporatio­n Counsel Zachary Carter (left) is under fire for withholdin­g portions of critical documents (below) in the probe of a nursing home sale.
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