Tuesday, August 10, 2010

MBPO accepts donations from Vornado and other REIT's.

The NY Observer reported that Scott Stringer (currently Manhattan Borough President) in his bid for the Mayor’s office has amassed a sum of $655,163 in campaign contributions.  From that, $195,000 came from Vornado, and other Real Estate Companies Executives, their families, and related organizations.  As you know, Vornado currently has a ULURP application, on file with (now) the City Council.

"To name a few donors who maxed out: CB Richard Ellis top broker Steve Siegel; RFR Holdings' Aby Rosen and Michael Fuchs; and Sherwood Equities' Jeff Katz." reports Elliot Brown of the NY Observer.

There is a law that dictates the campaign limits by which numerous developers that have projects on file with the city, cannot give more than the limited amount to candidates of $400.  Vornado's Steve Roth, who is in the process of a rezoning of the Hotel Penn, (who also received approval from the MBPO), gave $1,000 to Mr. Stringer on July 2 of this year.  Mr. Roth was able to do this due to a provision in the law that does not require subsidiary LLCs to list the owners of their parent companies.  Because the Hotel Penn is listed as "401 Hotel REIT, LLC", Mr. Roth was able to use this provision to his favor to "donate" more than the allowed amount by normal regulations.  A Vornado spokesman said the donation was a "mistake", and Mr. Stringer's campaign claimed the contribution had been "refunded".

It’s amazing how the politicians of NYC, can be bought so inexpensively.