Flushing —
Remaking the cratered world of Willets Point, Queens has been a
developer's dream since the imperious and seemingly everlasting reign of
Robert Moses. A veritable galaxy of auto repair shops in the shadow of
Citi Field, Willets Point is without sewers or paved roads, but its
land, long eyed hungrily by developers, may undergo seismic change over
the next decade. According to the glowing blueprints, a shopping mall,
affordable housing and glittering office buildings will replace the
greasy repair shops that tourists eye warily from the expressways.Actually
making this development—controversial, among other reasons, because it
will displace many property owners and immigrant laborers—a reality is
partially the job of the Parkside Group, perhaps the most dominant
political force in the borough that is not elected by anyone. Since last
May, they have represented the Queens Development Group LLC, the name
for the duo of real estate companies that have won the bid for phase one
of the Willets Point development, Sterling Equities and Related
Companies. That's one of many lobbying clients Parkside claims. Last
year alone, according to the city's lobbying database, the firm billed
$1.8 million for its work with city officials on behalf of clients.Parkside has another job, too—getting candidates for city and state
offices elected, and re-elected. Over the 2005 and 2009 municipal
election seasons, Parkside earned $3.2 million for advising candidates.
On the state level, since 2005, the firm has earned $15 million for
political consulting.
Some of Parkside's Willets Point lobbying has
been directed at the City Council, where sit some of the very people the
firm helped elect. That's because Parkside, founded more than a decade
ago, is among a handful of influential firms in New York State that
lobby elected officials while also serving as consultants for political
campaigns, a practice that is perfectly legal but raises several ethical
questions. What happens when lobbying and political jobs overlap? Will
elected officials, already subject to a barrage of lobbyists, be even
more unduly influenced if the consulting firms they employ for their
campaigns are also turning around to lobby them soon after?
The
firms that both consult and lobby turn the typical pay-to-play concerns
of government watchdogs on their head. The issue here is not who's
giving money to a campaign, but who's receiving candidates' money—in
exchange for valuable help. Consultants are, according to political
observers, vital components of any operation: They are in many instances
the quarterbacks of campaigns, plotting get-out-the-vote efforts,
crafting media strategy and exploiting the weaknesses of the opposition.
By accepting or rejecting a client, skilled consultants can
significantly affect the odds of a campaign succeeding.
"When a
firm helps someone get elected to office, that firm may have an easier
time getting access to that office when they're trying to influence how
they're going to vote on a particular issue," says Bill Mahoney, the New
York Public Interest Group's legislative research coordinator.
Making points on Willets
The
$3 billion proposed development at Willets Point has gone through
several incarnations. Challenged relentlessly by Willets Point property
owners who have protested the use of eminent domain to take away private
property, the development, according to its backers, will bring
thousands of jobs and economic benefits to Queens.
The battle
over Willets Point illustrates how a consultant like Parkside manages to
occupy almost every pivotal sphere of the issue. Besides its work for
the Queens Development Group, Parkside also lobbies for labor unions
that are in support of the Willets Point development, like Local 1500
UFCW and 32BJ SEIU. Meanwhile, Parkside often works side-by-side with
the Queens County Democratic Party to ensure, in most instances, their
handpicked candidates gain or retain their offices. Four of the elected
officials with districts that include or border the Willets Point
development—Assemblyman Michael Simanowitz, State Sen. Jose Peralta,
Congressman Joe Crowley and State Sen. Toby Stavisky—have employed
Parkside for their political campaigns, funneling the firm many
thousands of dollars.
The county organization picked Simanowitz
to run in a 2011 special election and he paid Parkside roughly $40,000
during that race. And Stavisky, facing tough re-election fights in 2010
and 2012, has funneled almost $300,000 to Parkside over the last decade.
Stavisky and Simanowitz did not return requests for comment. Both have
been very supportive of the Willets Point development.
The chair
of the Queens County Democratic Party, Rep. Crowley, is also an
unambiguous supporter of the Willets Point project. The scrapyards lie
in his Congressional district. Parkside lists Crowley as one of their
few Congressional clients on their website. As county leader, Crowley
holds sway over many Democratic elected officials, but because it is not
a federal issue he'll have no legislative say on the development.
According
to lobbying records, on behalf of QDG, Parkside has lobbied former or
current clients like Peralta, Stavisky and Simanowitz over the past
decade. Beyond the state legislature, QDG's lobbying targets have
included the City Council and the Queens borough president's office,
where Parkside's ties have run particularly deep.
Lobbying on
behalf of the Flushing Willets Point Corona Local Development
Corporation in 2009, Barry Grodenchik was a key Parkside lobbyist in the
early years of the approval process for the development. In 2010 he
became a deputy borough president to Queens Borough President Helen
Marshall. Now running for borough president himself, Grodenchik, who is
not employing Parkside for his borough president race, declined to
comment.
Though derided as a toothless tiger in the political
world, the borough president's office nevertheless plays a pivotal role
in the city's lengthy Uniform Land Use Review Procedure. The beep's
approval is an important indicator to the City Council whether a
project, no matter how controversial, has received the proper vetting
locally. Marshall so far has been one of the biggest boosters of the
Willets Point development, penning an op-ed and attaching her support in
a Bloomberg press release last year. She employed Parkside for her
re-election campaign in 2009.
Last year, Attorney General Eric
Schneiderman charged the Flushing Willets Point Corona LDC with
illegally lobbying—by law, local development corporations are restricted
from "trying to influence legislation by propaganda or otherwise."
Forced to pay a fine, the city's Economic Development Corporation, which
oversees the LDC, restructured itself to comply with the law. During
the Attorney General investigation into the LDC's lobbying activities,
Parkside lobbyists Stavisky, Grodenchik, Williams Driscoll and Harry
Giannoulis were served with subpoenas in 2009.
The connections
make juicy targets for critics. "Parkside consultants have become kings
because they use their business client's resources, including the Queens
Democratic machine, to attract candidates and fund their campaigns,"
says political consultant and journalist Gary Tizler.
Consulting fees in municipal campaigns, 1989-2009 (2009 dollars)
Spending
on consultants increased dramatically over the 1990s. Most consultants
do not, however, double as lobbyists. For more on the data behind this
story, click here. Source: CFB
Parkside,
however, denies anything unseemly about its consultant relationship
with potential targets for its lobbying work. "We are proud of the work
we do for a variety of clients and we pride ourselves on upholding the
highest standards of ethical conduct in all of our activities," stated
Evan Stavisky, a partner at Parkside and the son of Toby Stavisky. "Our
firm, and our clients, file more than 550 reports each year with city
and state regulators outlining our compensation and our activities.
These reports are available online to the public because government and
politics function best when everything is open and transparent."
Indeed,
not every Parkside client is a supporter of the Willets Point plan.
Peralta has paid Parkside more than $200,000 over the course of a decade
to consult on various campaigns. He was recently an enthusiastic backer
of development at Willets Point, pushing for a convention center to be
placed there, but has since soured on the development because the
affordable housing component is being delayed and scaled back.
"It's hard to make money if you have to wait every other year"
In
a 2011 report, the good government group Citizens Union highlighted the
possibility of the overlap of political consulting and lobbying leading
to, at the minimum, a perceived ethical issue. The group applauded all
the disclosure of lobbying and campaign expenditures but added: "The
perception persists, however, that candidates who get elected through
the campaign services of lobbying firms may feel obligated to support
policies advocated by the lobbying firms after they are elected.
According to data provided by the [New York City Campaign Finance
Board], of the 80 companies earning over $100,000 for campaign-related
services in the 2009 election cycle, nine, or 11.5 percent, were
registered lobbyists that provided campaign consulting-related services.
Three of these firms made upwards of $1 million from selling such
services."
Besides Parkside, Sheinkopf Ltd., MirRam Group and the
Advance Group are all major firms that lobby and consult on political
campaigns simultaneously. Statewide, Berlin Rosen, a firm that consults
and lobbies, was the biggest recipient of campaign money in the 2010
election cycle among firms that perform both functions, according to
NYPIRG. All of this activity is legal, but it has sometimes raised
eyebrows when elected officials take stances on hot button issues.
As
the Bloomberg Administration has fought for a ban on large sugary
drinks, many elected officials have lined up to savage the proposal. Two
prominent clients of MirRam, Brooklyn Councilwoman Letitia James,
running for public advocate, and former Comptroller Bill Thompson,
running for mayor, are outspoken critics of the mayor's proposal. James
even co-wrote an opinion piece in the Huffington Post last year titled
"Why the Soda Ban Won't Work," citing how it would hurt small businesses
and infringe on civil liberties.
Thompson wrote a letter to the
Health Department last year asking the commissioner to table the vote on
the ban. In the letter, he said the soda ban, "pretends to address the
problem [of obesity] while accomplishing nothing more than limiting
individual choices and hurting small buisnesses."
Thompson's 2009
and 2013 mayoral campaigns have paid for $637,000 in MirRam's services;
James' public advocate bid has spent $16,000 so far on MirRam. Under
its lobbyist hat, MirRam works for Coca-Cola, which has paid MirRam
$30,000 so far this year on top of $90,000 in 2012. Their target,
according to lobbying records, was the City Council where James serves.
"MirRam adheres to the highest standards of ethics and law. We maintain
a separation between our campaign clients and lobbying projects,"
MirRam said in a statement, speaking also for their clients James and
Thompson. James' allies argue she was long an opponent of the soda ban
before hiring MirRam.
Municipal Lobbying Fees (2012 dollars)
Total lobbying compensation fluctuates considerably. For more on the data behind this story, click here. Source: City Clerk
Defenders
of the practice of firms lobbying and consulting argue that, beyond it
being perfectly legal and protected by the First Amendment, it allows
firms to remain financially viable when it is not campaign season.
"It's
hard to make money if you have to wait every other year," said a
Democratic insider. "I understand why they do it. They try to create a
wall where one has nothing to do with the other."
Indeed, in conversations with
City Limits,
firms insist that they keep lobbying and consulting operations
separate, and do nothing unethical because their activities are
disclosed.
Access is key
The Advance Group, headed
by Scott Levenson, is one of the more visible consulting firms in the
city. Consulting for a bevy of candidates during this election cycle,
the group is also producing a series of television advertisements
attacking Council Speaker Christine Quinn, the front-running candidate
for mayor. While steering campaigns, many of them for the City Council,
the group is also lobbying the City Council for a number of interests,
chief among them hotel groups.
The city, undergoing a hotel
building boom, in 2011 added 4,404 new hotel rooms to the city's
existing 74,025 rooms, an annual increase of 5.9 percent and the highest
on record, according to a story last year in the
New York Times.
To make their case for hotel development, the Hotel and Motel Trades
Council and the Hotel, Restaurant and Club Employees and Bartenders
Union Local 6 have paid the Advance Group $24,000 since the beginning of
2012 to lobby the City Council. These labor groups have seen their
membership swell as hotels rise in New York and unionize. For Democratic
mayoral candidates, the Hotel Trades Council in particular has become a
much coveted endorsement because of their organizing strength.
Currently
serving in the City Council are several elected officials who
Levenson's group helped elect in 2009, including Council members Ydanis
Rodriguez, Inez Dickens, Vincent Gentile and Erik Dilan. Lobbying
records do not specify which individual candidates the Advance Group
lobbied and Levenson declined a request for comment. He recently told
the
Daily News he doesn't receive special favors from politicians
he helps elect, but said the access they have is inevitably a part of
their sales pitch.
"We're a lobbying organization," Levenson told
the newspaper. "One of the things we do is talk about our ability to
have access."
Henry Sheinkopf, a Democratic political consultant
and long-time lobbyist, also did not insist, unlike Parkside, that
lobbying and consulting activities were always completely separate.
"Sometimes
you do it, sometimes you don't. It depends on the client," he said. "It
depends on the client and it depends on the appropriateness of the
situation and it depends on what you consider lobbying."
Reforms sought, scrutinized
Citizens
Union recommended in their 2011 report that candidates who participate
in New York City's campaign finance program should be prohibited from
using matching funds to purchase campaign consulting services from firms
that also provide lobbying services. The recommendation has not been
adopted.
Top consultants, total campaign fees, 2009-2013
Source: CFB For more on the data behind this story, click here.
At
the state level, Sen. David Valesky, a member of the breakaway
Independent Democratic Conference (IDC) that governs the State Senate
with Republicans, proposed a bill on May 6 that would bar campaign
consultants from turning around to lobby those that they elect to
office.
Whether any law could actually be passed on the city or
state level to limit this practice is unlikely, political observers say,
precisely because of the close relationship between legislators and the
consultants whom the law would affect. Members of the IDC like State
Sen. Jeffrey Klein and State Sen. Diane Savino have employed firms that
do double duty like MirRam and the Advance Group for past campaigns.
Meanwhile, some are suspicious about whether reforms are about cleaning up politics, or just silencing inconvenient voices.
"I have a very jaundiced view about all the people who call for clean
government because most of them never worked a day in their lives or put
a callous on their hands," Sheinkopf said.
Reporting for this project was generously supported by the Fund for Investigative Journalism.