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 buyers 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 governments MitchellLama program,
which keeps rents below market levels, those rents will soar, forcing
many residents out. But rather than go to court, as some other MitchellLama
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 Gluckor any
city Mitchell-Lama ownerto buy out and would give greater protections
to tenants, while clearing the way for the associations 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 firms argument for changing the law, ticking off a long list
of statistics demonstrating the extent of the citys housing crisisand
the importance of preserving existing affordable housing such as IPNs
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.
Were 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 MitchellLama buyouts are unnecessary,
in part because government rent subsidy programs protect tenants.
Its 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 hes
waiting for approval to buy. Would he prefer to be sitting down and allaying
peoples fears? No doubt.
As for the tenants anticipated legislative action, Marino noted
that the MitchellLama 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, Glucks 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.
Glucks team is expected to argue that it would be unfair to change
the Mitchell-Lama rules nowto 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 were talking about with MitchellLama,
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 MitchellLama owners. We are not out to shaft
owners. That wouldnt fly. We have to find a solution thats
fair and equitable, but shaped by the recognition that things have changed.
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