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Release: February 11, 2008
Forest City Ratner Puts $58,000 Into New
York Democratic Assembly Campaign Committee "Housekeeping" Fund
First Contribution By Developer In At Least Nine Years
Campaign Finance Loophole Allows for Huge Contribution After Atlantic
Yards Approval, Before Project's Financing Agreements
New York, NYó Forest City Ratner gave
$58,420 to the Democratic
Assembly Campaign Committeeís Housekeeping account on January 7, 2008.†
The real estate development firm had not made any New York State
political contributions for at least nine years, which is as far back
as the state's campaign finance database goes. The contribution was made
through a New York State election financing loophole known as a "housekeeping"
account. It is a loophole condemned by Common Cause.
Oder first reported about it today on his Atlantic Yards Report,
noting that it was the third-largest contribution received by the Democratic
Assembly Campaign Committee (DACC) since at least July, and represents
more than ten percent of the DACCís
take for itís Housekeeping account.
Forest City Ratner CEO Bruce Ratner seems to have decided to change strategy
after having "sharply
cut back" on campaign contributions--according to a 2004 article in
Newsday--now moving beyond lobbying expenses, and back into direct
New York State political contributions.
The donation goes to the DACC, which hardly needs such "generous" help, considering that the Democrats have a strong grip on the Assembly's majority. But the $58,000 does go to the body controlled by Sheldon Silver who approved Forest City Ratnerís Atlantic Yards plan in December 2006, and who will have a lot of say over the developerís housing, bonding and other financing needs over the coming months. Forest City Ratnerís key Atlantic Yards financing† has†not been finalized, including "affordable" housing subsidies, the arena bond, and the amount of Payments in Lieu of Taxes (PILOT).
Oder reports that Common
Cause issued an August 2006 report on New York Stateís campaign finance
"Housekeeping" loophole. The Common Cause report stated:
The size of these contributions, their origin and the fact that current or hopeful elected officials are involved in soliciting them raise serious concerns about the potential for corruption or its appearance.
The second major problem is that while the theory behind our stateís soft money loophole is that these funds will be used only for party building purposes and not for candidate elections, this legal barrier does not hold up in practice.
Common Cause concluded:†
The potential it creates for corruption or its appearance means that New York State leaders must ban soft money.
Oder also reports that Ratner kin in Forest City Enterprisesí hometown of Cleveland and in Washington, DC have contributed to Governor Eliot Spitzerís 2010 campaign fund.
Just last week Mayor Bloomberg decried the infusion of real estate industry contributions into the 2009 Mayoral campaign. According to the NY Times, the Mayor was saying it appears they [the real estate industry] are trying to buy influence in the 2009 mayoral campaign. He called it a "disgrace" that the three presumed "frontrunners" are receiving equal amounts from the industry.
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