Lobbyists to Face Off in Battle Over IPN

By Ronald Drenger

IAs the city continues to review the proposed sale of Independence Plaza, tenants and the prospective buyer of the residential complex are squaring off for battle, pitting one high-powered lobbying and public relations campaign against the other.

The tenant association, led by Neil Fabricant, has hired Geto & de Milly, an influential lobbying and PR firm, to help shape legislation that could block the buyer’s plans, and to shepherd the bill through the political bureaucracy.

The prospective buyer, Larry Gluck, is represented by the Marino Organization, a PR firm, to promote his message that the sale would not unduly hurt tenants. He also hired Marty McLaughlin, a veteran city lobbyist, who will attempt to thwart the tenants’ legislative effort.

The tenant association fears that if Gluck acquires IPN and withdraws, or “buys out,” of the government’s Mitchell–Lama program, which keeps rents below market levels, those rents will soar, forcing many residents out. But rather than go to court, as some other Mitchell–Lama tenants have done, or merely hope for the best in negotiations with Gluck, the tenant group is preparing an unprecedented effort to create new laws for Mitchell-Lama buyouts.

“For the city administration to leave the preservation of affordable housing to lawsuits between tenants and landlords, and thus for judges to decide, is a grievous abdication of responsibility,” Fabricant said.

The tenant association plans to introduce legislation in the City Council as early as this month that would make it tougher for Gluck—or any city Mitchell-Lama owner—to buy out and would give greater protections to tenants, while clearing the way for the association’s own proposal: a tenant-led purchase of IPN.

Fabricant declined to discuss details of the legislation before it goes to lawmakers. But Ethan Geto, president of Geto & de Milly, indicated his firm’s argument for changing the law, ticking off a long list of statistics demonstrating the extent of the city’s housing crisis—and the importance of preserving existing affordable housing such as IPN’s 1,300 apartments.

The tenant association will also try to put a human face on their campaign: that of longtime tenant Diane Lapson, who has helped the tenant group gain national recognition for its efforts to organize the community in the aftermath of Sept. 11.

“We’re being acknowledged as an inspiration for community participation and survival around the country, but not yet in New York,” said Lapson.

For his part, Gluck wants to tell key political figures and the press that changes to the laws governing Mitchell–Lama buyouts are unnecessary, in part because government rent subsidy programs protect tenants.

“It’s somewhat premature to get into a complete discussion, because Larry Gluck does not own the property,” Frank Marino, president of the Marino Group, said last month. “The tough part is while he’s waiting for approval to buy. Would he prefer to be sitting down and allaying people’s fears? No doubt.”

As for the tenants’ anticipated legislative action, Marino noted that the Mitchell–Lama program, created in the ’50s, allows owners to buy out after a building has been in the program for 20 years.

“The law is very clear on this issue,” he said. “Any of the recent court decisions that have come down were clearly in favor of ownership in properties like this.”

Marty McLaughlin, Gluck’s lobbyist, declined to comment on the record and Gluck did not return calls last month seeking comment. McLaughlin was a press secretary and campaign aide for Ed Koch and his clients have included many residential and commercial developers.

Gluck’s team is expected to argue that it would be unfair to change the Mitchell-Lama rules now—to move the goalposts, so to speak.

But Geto said that policies have to be flexible. “A lot happens over a period of decades, which is what we’re talking about with Mitchell–Lama, and we now have a terrible crisis in affordable housing in the city.”

He said that the proposed legislation, while benefiting tenants, will also be fair to Mitchell–Lama owners. “We are not out to shaft owners. That wouldn’t fly. We have to find a solution that’s fair and equitable, but shaped by the recognition that things have changed.”