Developer Files Ethics Complaint Against Rep. Espaillat Over Kingsbridge Armory Bid

Introduction to the Complaint

The developer suing the city over his losing bid for the Kingsbridge Armory project has filed an ethics complaint against U.S. Rep. Adriano Espaillat and his former chief of staff, calling for an investigation into their alleged improper ties to the winning bidder. In an April 12 letter to the Office of Congressional Ethics shared with the Bronx Times, Manny Tavarez of Agallas Equities accused Espaillat, who represents parts of the northwest Bronx and upper Manhattan, of violating House rules and federal bribery laws.

Allegations of Favoritism

In the letter, Tavarez said that the fifth-term Congress member played favorites during the armory awards process, backing a bid from a firm that donated substantially to his election campaigns and steering the main decision-maker, the NYC Economic Development Corporation (NYC EDC), away from other finalists he disfavored. Tavarez also raised concerns about Espaillat’s former chief of staff, Aneiry Batista, who left the job in February 2025, a month after 8th Regiment was announced the winner, and a month later registered as a lobbyist for Maddd Equities — a firm that, combined with Joy Construction, makes up the winning bidder.

Ethics Rules and Federal Statutes

Tavarez’s letter accuses Espaillat and Batista of violating several House ethics rules and federal criminal statutes regarding improper influence in government proceedings, quid pro quo arrangements, bribery, and post-employment lobbying restrictions and disclosures. “The evidence demonstrates a clear pattern of Rep. Espaillat using his official position to benefit a major campaign contributor in violation of federal law and House ethics rules,” said Tavarez in the letter. “I urge prompt investigation of these serious allegations.”

Conflicts of Interest

When Mayor Eric Adams, Hochul, Espaillat, and the NYC EDC announced 8th Regiment as the winner on Jan. 7, Espaillat issued a statement praising the project. However, Tavarez maintains that his firm had a superior bid to redevelop the armory and lost due to a politically tainted awards process. His House ethics complaint is an extension of the lawsuit he filed March 28 against the city, NYC EDC, Bronx Borough President Vanessa Gibson, and her deputy, Janet Peguero, who has since resigned from office.

Lobbying and Campaign Contributions

State records show that in 2020 and 2021, Peguero was a lobbyist representing Maddd with Constantinople & Vallone Consulting, a firm hired by Maddd between at least 2019 and 2024. Following her resignation from the BP’s office, Peguero announced on her LinkedIn profile in mid-April that she returned to her former firm as chief operating officer. As for Batista, state records show she registered on March 26 to perform lobbying and non-lobbying services for Maddd at a rate of “$2,500 per month plus expenses” between March 17, 2025, and March 16, 2026.

Beyond the Armory

Tavarez’s firm was not the only prospective armory developer affected by alleged favoritism, according to the ethics complaint. He argued that the third finalist, the Northwest Bronx Community and Clergy Coalition (NWBCCC), also lost out on the deal because Espaillat disfavored the group. In his letter, Tavarez said former EDC VP Fernando Ortiz told him in conversation that Espaillat contacted EDC CEO Andrew Kimball to oppose NWBCCC’s bid, referring to the organization as “a bunch of crazies in yellow t-shirts.”

Conclusion

The complaint against Rep. Espaillat highlights significant concerns about the integrity of the bidding process for the Kingsbridge Armory project. With allegations of favoritism, improper lobbying, and potential violations of House ethics rules and federal statutes, this case underscores the need for transparency and accountability in government contracting processes. As the investigation unfolds, it remains to be seen what actions will be taken and how this will impact the future of the Kingsbridge Armory project and the political career of Rep. Espaillat.

FAQs

1. What is the basis of the ethics complaint filed against Rep. Espaillat?

   • The complaint alleges that Rep. Espaillat used his official position to favor a bidder for the Kingsbridge Armory project who had made significant campaign contributions to him, violating House ethics rules and federal bribery laws.

2. Who else is implicated in the complaint besides Rep. Espaillat?

   • The complaint also implicates Rep. Espaillat’s former chief of staff, Aneiry Batista, who became a lobbyist for the winning bidder shortly after leaving her position, and Janet Peguero, the former deputy to the Bronx Borough President, due to her past lobbying work for the same firm.

3. What are the potential consequences for Rep. Espaillat if the allegations are found to be true?

   • If the allegations are substantiated, Rep. Espaillat could face penalties under House ethics rules, including censure, fines, or even expulsion from Congress, although the latter is rare. Additionally, there could be legal consequences under federal law.

4. How does this complaint affect the Kingsbridge Armory project?

   • The complaint could potentially delay or alter the course of the project, especially if the bidding process is found to have been improperly influenced. This could lead to a re-evaluation of bids or legal challenges to the project’s current status.
5. What is the current status of the complaint?
   • As of the last update, the Office of Congressional Ethics had confirmed receipt of the complaint. The next steps, including whether an investigation will be launched, are not publicly known due to the confidential nature of the process.