Reviewing Leases
The commissioner of the Department of Citywide Administrative Services (DCAS) appears to have given misleading testimony to the City Council in attempting to justify why his agency made a last-minute switch to lease office space in a building owned by a big donor to Mayor Eric Adams.
The Switch
With questions around the deal intensifying, the mayor’s office has informed the Council that it’s moving to "pause" the lease to move the city Department for the Aging to 14 Wall St., owned by billionaire and Adams donor Alex Rovt. Testifying last month at a Council committee hearing on questions surrounding DCAS leases, Commissioner Louis Molina claimed taxpayers will save $31 million by choosing 14 Wall St. over 250 Broadway a few blocks away.
Misleading Testimony
Molina asserted that 250 Broadway had a higher per-square-foot cost than 14 Wall St., and would require the taxpayers to cough up $10 million in renovation expenses for the raw space being offered, while the Wall Street building was move-in ready. However, sources familiar with the matter tell THE CITY that it was the landlord of 250 Broadway who would have swallowed the renovation costs under an agreement that had been worked out before DCAS suddenly switched to Rovt’s building.
The Review
Late Wednesday in response to THE CITY’s questions about Molina’s testimony, a spokesperson for DCAS, Anessa Hodgson, responded, "We have no further comment. This matter is under review." The city has paused the lease, and a review is underway.
Questions Remain
Questions about the 14 Wall St. lease center on DCAS Deputy Commissioner Jesse Hamilton, a longtime associate of Adams appointed by the mayor to handle city real estate transactions, and reports that he intervened to nix an agreement with 250 Broadway and switch it to 14 Wall St. Councilmembers Lincoln Restler of Brooklyn and Christopher Marte and Keith Powers of Manhattan wrote to First Deputy Mayor Maria Torres-Springer asking her to withdraw the 14 Wall St. lease and look into the circumstances that led up to it.
Conclusion
The controversy surrounding the 14 Wall St. lease highlights the need for transparency and accountability in city government. The pause in the lease and the review underway are a step in the right direction, but more needs to be done to ensure that city agencies are acting in the best interests of taxpayers, not just their political allies.
FAQs
Q: Why did DCAS switch from 250 Broadway to 14 Wall St.?
A: The exact reasons for the switch are unclear, but it appears that DCAS Deputy Commissioner Jesse Hamilton intervened to nix an agreement with 250 Broadway and switch it to 14 Wall St.
Q: Why did Commissioner Molina give misleading testimony?
A: It is unclear why Commissioner Molina gave misleading testimony, but it appears that he was trying to justify the switch to 14 Wall St.
Q: What is the status of the lease?
A: The lease has been paused, and a review is underway.
Q: What is the purpose of the review?
A: The review is intended to ensure that city agencies are acting in the best interests of taxpayers, not just their political allies.
