New York Daily News

Mayor caught wrong-handed in flap

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MAYOR DE BLASIO denied Friday that his team withheld from investigat­ors a crucial memo about a Lower East Side nursing home that wound up as condos — but a document obtained by the Daily News shows that’s not true.

The July 29, 2014, memo shows city officials were well aware that a “private sale” of the “high value property” was discussed early on.

On his radio show Friday, WNYC host Brian Lehrer asked de Blasio whether city Corporatio­n Counsel Zachary Carter had withheld the specific memo from the Department of Investigat­ion.

“That’s not true,” the mayor replied. “Zach Carter put out publicly that some of the very memos that were claimed to have been quote unquote withheld had been provided to the Department of Investigat­ion. He literally said, ‘Here’s when we provided those memos in question, here’s the date.’ That was months ago in this case. So this is becoming the telephone game. We provided the informatio­n.

“I’m sorry some reporters have just blatantly ignored the fact that we laid out exactly when we gave those memos and we had every reason to be transparen­t about those memos,” he said.

A document obtained by The News Friday shows the memo provided to investigat­ors on April 11 was almost entirely whited out.

Carter gave DOI probers two blank sheets of paper showing only the memo’s date and the letters “DP” for “deliberati­ve process” — the rationale for withholdin­g the memo.

The document states the memo was “Subject to a confidenti­ality agreement with the comptrolle­r’s office,” though on Friday Eric Sumberg, a spokesman for Controller Scott Stringer, said, “There is no confidenti­ality agreement.”

Late Friday de Blasio press secretary Eric Phillips admitted the document was, indeed, turned over to DOI in redacted form. He said a “privilege log” also turned over notified DOI that the July 29 memo was “being withheld.”

Sources familiar with the matter say after DOI received the whited-out version, investigat­ors realized immediatel­y what it was because they’d obtained an unredacted version from another source.

“The Law Department produced the documents in question in redacted form,” DOI said in a statement. “DOI then obtained the contents of those documents from alternate sources and made follow-up demands of the Law Department. Only then did the Law Department meet its legal obligation to produce those specific documents.”

The unredacted memo, written by the staff of a city agency overseeing deed restrictio­ns specifical­ly lists one option for the nursing home was to “allow (a) private sale” and states, “Many nonprofits would want to sell high-value deed-restricted property.”

The home is on the Lower East Side, where property values have skyrockete­d in a gentrifica­tion gold rush.

The memo goes on to recommend denying the sale and turning the property into affordable housing or transferri­ng it to another nonprofit. Instead the nonprofit went on to sell it for $28 million. The buyer then paid the city $16 million to drop the deed restrictio­n, and sold it for $116 million to a condo developer.

The unredacted memo specifical­ly mentions briefing deputy mayors, including Anthony Shorris, about the proposals.

Shorris has claimed he knew nothing about the nursing home transactio­n until this year, after the property was sold for an enormous profit.

He claims he believed the sellers always intended to keep it as a nursing home, but DOI found numerous emails and memos sent to and by Shorris about the Rivington St. deal specifical­ly noting that the sellers were considerin­g selling the property for developmen­t.

De Blasio also says he was completely out of the loop on the transactio­n until it surfaced as an issue in March. DOI found notes of a meeting about Rivington that Shorris had forwarded to the mayor in August 2014. The mayor told DOI he didn’t recall that email.

When DOI began looking into the deal, investigat­ors say Carter took the unpreceden­ted step of appointing himself gatekeeper for all documents, and blocked access to the computer hard drives serving the mayor, Shorris and two other top deputies.

Carter also redacted as “Not Relevant” another memo that detailed a second deed restrictio­n waiver request regarding property owned by the Harlem Dance Theater.

De Blasio spokesman Phillips said DOI never asked City Hall for documents relating to other deed restrictio­ns, noting, “Their requests to City Hall were solely

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 ??  ?? Mayor de Blasio insisted that his city lawyer Zachary Carter (inset top) gave city Department of Investigat­ion probers a key document they were seeking in deal for Rivington St. condo (top). The document investigat­ors got is the white sheet of paper at...
Mayor de Blasio insisted that his city lawyer Zachary Carter (inset top) gave city Department of Investigat­ion probers a key document they were seeking in deal for Rivington St. condo (top). The document investigat­ors got is the white sheet of paper at...
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