Tuesday, October 6, 2009

First Monday in October: An Open Letter to Sonia Sotomayor about Noticing an Eminent Reality

The Supreme Court began its work in September this year, but the court traditionally commences the first Monday in October. The new Supreme Court justice Sonia Sotomayor was officially seated Tuesday, September 8, 2009 and the court met immediately thereafter on Wednesday to discuss the political campaign spending regulation and free-speech case concerning “Hillary: The Movie.” (It looks like the court is restless about making some new law in this area.)

This Monday being the first Monday in October there is speculation about how much Justice Sotomayor will influence decisions coming before the court.

We thought this was an appropriate time to speak about one particular area to which the court needs to address itself. Accordingly, we write Justice Sotomayor, the court’s newest justice, this open letter concerning the need to halt the abuse of eminent domain. We know whereof we speak because New York is quite likely the worst of all the states in the union when it comes to eminent domain abuse.

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Our Open Letter to Justice Sonia Sotomayor

Dear Justice Sotomayor,

You and I have some things in common: Now that you sit on the Supreme Court, I hope that you will remember some of what we both learned from our common experiences to bring about a justice that is grounded in reality rather than denying it. Yes, I am advocating that you should let your past personal experience affect your judicial decision-making. That may sound like I am asking you to fly head-on into what was a hot button issue during your confirmation hearings but for the sake of bringing justice to a significant issue, eminent domain abuse, I want to urge you, as a judge, to remember and let your past experiences inform your future judgement.

I do not expect or urge that you break with precedent. Not at all. I am expecting that you would, as you expressed at your confirmation hearings, faithfully adhere and be fully bound by stare decisis. Indeed, despite frequent criticisms that the Supreme Court’s decision in Kelo was flawed, the guidance in this latest pronouncement on eminent domain prescribes lots of dandy principles that we think should be properly followed to steer clear of developer-initiated, developer-driven transactions that abuse eminent domain. Among them are not picking a particular developer-transferee before a development plan exists and not concocting development plans that are “of primary benefit to ... the developer,” or “only of incidental benefit to the city.” (See: Saturday, July 19, 2008, Reality Denied!)

Given all the dandy prescriptive principles that abound in Kelo, all that remains to animate the protection of the good intentions underlying those principles is to acknowledge basic truths about real life and politics in state development agencies.

The Kelo decision was decided 5-4. When your nomination was confirmed you replaced Justice David Souter, one of the justices in the majority who voted in the Kelo decision to give the government a dangerously tricky degree of latitude to take property from one private owner and give it to another for public development. The court’s ruling in Kelo, decided without a majority opinion, was reflected in a plurality opinion of four justices (in which Justice Souter joined) and far, far more important, the skeptical, cautionary concurring opinion of Justice Kennedy.

Let’s talk about what we both know about real life, and politics in state development agencies.

Common Background

You and I are both lawyers. Beyond this we both served the State of New York Mortgage Agency: You were a board member and I ran the legal department. In our respective positions we both endeavored to guide that public agency’s development policy and keep the agency on course. Our terms did not overlap: Your tenure ended in 1992: My term formally began when I assumed responsibilities for SONYMA’s Legal Department in the summer of 1993. Though our SONYMA service was not concurrent, we both served under the same chairman, we worked on the same projects and programs; we were supported by substantially the same agency staff.

Steering to Stay On Course

One cannot do a competent job in trying to keep a development agency on course unless one recognizes the very real potentiality for its going off course, departing from good policy and practice and even from the letter of the law. There are many ways for an agency to go off course and possibly violate a statute. One way is through simple inadvertence, something I think you have witnessed firsthand.

Departures From the Law

Statutes can, of course, be complex and technical and sometimes difficult to interpret. I have had the personal experience of writing legislation that was enacted, thinking I knew what it meant and then discussing it with people who wanted to interpret it differently from what was actually intended when it was drafted. This usually comes up when people are interested in interpreting an agency to have greater powers than conferred upon it by the legislature in actual law and legislation.

I have also been in situations where the law is known and easy to interpret but there is a strong pull of temptation to ignore what it says. Temptation presents itself when you know or believe that no one will challenge an agency if it steps outside the legal boundaries of the law. Generally an agency such as SONYMA does good things: SONYMA’s mission is primarily to produce affordable housing. If an Agency goes beyond legal limitations to accomplish additional good things that generally comport with the spirit of its mission it is unlikely that someone will rise up to challenge it for overstepping of a legal boundary, or that anyone would have the desire to notice. A more insidious temptation presents itself, however, when the temptation is not to do more good but to do what is politically desired. No matter how politicians may spin things, what is politically desired is not always what is good.

Politically Pulled

The pull of the political could be for something the public at large knows about and wants. Just as easily it could be for something relatively obscure. If an applicable law hasn’t been written (or revised and rewritten) to permit the acts in question it is possible those acts may lack broad-based support. That doesn’t mean that the temptation to go beyond the law for political reasons vanishes. What strengthens the temptation to go beyond the law is that irrespective of what the law actually says it has gotten to be extremely difficult to challenge public agencies. The courts often find that citizens do not have the “standing ” (a legal concept) that entitles them to legally challenge an agency. Further, the courts give a special (we would say questionable) degree of deference to public agencies’ interpretations (or misinterpretations) of their own statutes.

I have just been speaking above, in the most legal sense- in terms of statutes and case law-, but what I am saying has wider application. While most of what we have just been saying applies to keeping agencies on course to operate within the actual law, the same concepts also apply to keeping an agency on course in following what is good policy. When it comes to policy, public agencies can, for the wrong reasons, veer very far off and this is important to remember before weakening fundamental rights in deference to what is pronounce to be “good policy.”

Fundamental rights need to be protected by a fair process of fact-finding and impartial review. Neither of these exist in New York when public agencies pursue eminent domain. Increasingly, eminent domain is being abused in New York for private benefit rather than the public good.

Heart Svelt: Valuing Judicial Impartiality Over Empathy

The Senate hearing on your confirmation dealt extensively with whether your life experience should be allowed to color your judgment as a judge. To an extent, there were disavowals on your part of the potential value of life experiences. You were pressed during the hearings about your past statements regarding the extent that your past personal experiences would be relevant to the wisdom that could be expected from you on the bench. Senator Jeff Sessions of Alabama reportedly said that:
allowing background to affect a judge’s decision “goes against the American ideal and oath that a judge takes to be fair to every party.”
(See: Republicans Press Judge About Bias, by Peter Baker and Neil A. Lewis, July 14, 2009. More from this New York Times article follows below.)

You qualified and otherwise retreated from your quoted statements about how a “wise Latina woman” might reach better conclusions than white males without the same experiences. You made statements about putting feelings aside. For instance, you said:
“It was bad because it left an impression that I believe that life experiences command a result in a case,” . . “But that’s clearly not what I do as a judge.”

. . “Life experiences have to influence you. We’re not robots who listen to evidence and don’t have feelings. We have to recognize those feelings, and put them aside. That’s what my speech was saying.”
You also reportedly repudiated a statement by President Obama (made as a senator in 2005, before he voted against confirming Mr. Roberts to the court), that “what is in the judge’s heart” is critical in the toughest cases. You said:
“Judges can’t rely on what’s in their heart,” she said. “They don’t determine the law. Congress makes the laws.”
“Empathy,” sometimes considered its own virtue, had few defenders in the course of your confirmation hearings. The New York Times in its editorial recommending your confirmation said: “We wish she had spoken out forthrightly in favor of empathy, a quality President Obama has said he is looking for in his judicial nominees.” (See: The Sotomayor Nomination, July 20, 2009.)

“Empathy” lacked defenders at the hearing because it was being trumped by the value of “judicial impartiality” which took a preeminent place in the discussions. The New York Times did one of their intriguing word frequency charts for the opening statements of the Senate Judiciary Committee and the topic of impartiality predominated far over anything else, especially for Republicans but also for Democrats. (See image of chart below. Click to enlarge.)
Boiling Experience Down to “Just the Facts, Ma’am” (With Empathy Set Aside)

You explained that feelings and personal views must be subordinated to the impartiality of the law. (See: Transcript: Sotomayor Confirmation Hearings, Day 2, Published: July 14, 2009) You said:
As I've indicated, my record shows that at no point or time have I ever permitted my personal views or sympathies to influence an outcome of a case. In every case where I have identified a sympathy, I have articulated it and explained to the litigant why the law requires a different result. . . I do not permit my sympathies, personal views, or prejudices to influence the outcome of my cases.
But there is a distinction. While feelings and personal prejudices are to be put aside, that is not the case with facts. When Senator Sessions asked you whether it is could be “appropriate for a judge ever to say that they will choose to see some facts and not others” you responded:
It's not a question of choosing to see some facts or another, Senator. I didn't intend to suggest that. And in the wider context, what I believe I was -- the point I was making was that our life experiences do permit us to see some facts and understand them more easily than others.

But in the end, you're absolutely right, that's why we have appellate judges that are more than one judge, because each of us, from our life experiences, will more easily see different perspectives argued by parties. But judges do consider all of the arguments of litigants. I have.

* * * *

I don't stand by the understanding of that statement, that I will ignore other facts or other experiences because I haven't had them. I do believe that life experiences are important to the process of judging -- they help you to understand and listen -- but that the law requires a result. And it will command you to the facts that are relevant to the disposition of the case. (Emphasis added)
Facts Don’t Escape Judicial Notice

In other words, whatever check is to be put on feelings and sympathy in order to achieve aspired- to impartiality, life experience still helps us to perceive facts, and neither facts nor the help of life experience in perceiving them should be set aside. This is consistent with the rule that some facts are allowed to be validated in our judicial system by “judicial notice,” which means that the facts need not be “proved” by litigants if the truth of them is sufficiently well known or notorious by common experience (including the judge’s) so that they cannot be refuted.

The judiciary may not yet have taken official “judicial notice” that there is corruption and politics in government but the recognition that government agencies engage in pretense rather than performing as promised or advertised is almost as commonly known (perhaps more so) as things which are readily subject to judicial notice by the courts, things like the rising and setting times of the sun.- -

Judicial Impartiality - With a Certain Added Appeal

- - Actually, the judicial system has, in effect, taken judicial notice that human systems are imperfect and that impartiality is hard to achieve: Your remarks above make specific reference to the importance of the fact that the judicial system has “appellate judges.” The reason “why we have appellate judges” is not merely because their additional“ life experiences” contribute additional perspective. Extra layers of review are a check and balance on the system designed to encourage care and impartiality.

Impartial Judicial Appointments vs. Political Development Agency Appointments

We are speaking here of the judicial system where your own confirmation hearings and the tradition of adhering to precedent demonstrate that impartiality is highly valued and reinforced. We normally think of our rights and the protections we have under the Constitution as being entrusted to the judicial system.

The world of development agencies in which we both participated is notably different. New York development agencies, particularly the uppermost levels, are traditionally staffed in large part in the most important positions by political appointees. The very top positions are, in fact, always political employees.*

(* For the astute this likely raises the question whether I was a political appointee. Although I ran the legal department at SONYMA and the other affiliated state finance agencies for more than a decade, I was not a political appointee and because I did not want to be misconstrued as being in a politically held postion I did not agree to permanently ascend to the level of Counsel. Accordingly, I ran the legal department alternately as acting counsel during the multiple interregnums between politically appointed counsels or in the number two capacity position of first deputy.)

Adjudication of Rights by Political Agencies?

New York is a state where issues of whether eminent domain should be used are adjudicated (to the extent they are at all), by politically-run agencies and not in the more impartial environment the courts could, and in fact should, provide. The process is mostly internal. There is no impartial arena for fair fact-finding. This ought to be surprising if you think about it: Remember, what is being adjudicated is a fundamental right protected by the Constitution’s Bill of Rights. The core theory of that right is to provide protection against excesses of the government. But the government is being given the right to totally control the process so as to negate any protections. The situation is actually worse, because in New York the public agencies have privatized and sold eminent domain so that it is now used for developer-initiated ,developer-driven projects. In so doing, the agencies have set it up so that it is the private developers who now ascend to this remarkable immunity from review when they violate the intent of Fifth Amendment’s protections to seize the property of their neighbors.

Tenacious Politcality

The acknowledged flat-out politcality of our New York agencies was especially in evidence recently as both the New York State governor and the mayor of New York fought against public authority reform, not wanting that politcality in any way diluted. When the governor and the mayor ran for their political offices they campaigned for public authority reform. Finally confronted with a long labored over bill to enact such reform they have opposed it. (See: Wednesday, August 19, 2009, Brodsky, Perkins fire back at objections to public authority reform raised by Paterson aide; are authorities really checked by elected officials?) The governor and the mayor are arguing that public authority board members do not, and should not, have a fiduciary duty to hew to and serve the public purpose of their agencies rather than simply taking direction from the politicians who appoint them. They also argue that when board members do wrong and breach the fiduciary duty which the board members owe to the public they should not be accountable to anyone except the politicians they are serving. It hardly makes sense: The breach of fiduciary duty we are concerned about is, after all, the bending of the purpose of public agencies to the political will of those who appointed them.

Unappealingly Political

Not only are New York citizens’ Bill of Rights protections adjudicated in the political environment of these agencies rather than what is intended to be the more impartial environment of the courts as ought to be expected, but the right to meaningfully appeal the bias of these agencies is virtually nil.

During your confirmation hearings, you mentioned the importance of the ability to appeal in ensuring fair results, but in New York the right to contest a political agency’s eminent domain policy determinations and fact-finding is highly circumscribed. Is this the way to treat the protections against abuse that are stated in the U.S. Constitution as part of the Bill of Rights and in comparable provisions of the New York State Constitution? Remember that the developers who are buying the right to use eminent domain from the state make massive political contributions to the politicians who run the political agencies.

Contesting the Notion of Popularity as a “Right” Thing

The Bill of Rights is meant to afford protections to individuals against the majority. The rights of individuals can never be protected if all it takes to snuff out those rights is deference to a political decision issuing from someone elected by the majority. With certain rights this ought to be even more self-evident than with others, eminent domain principally among them. What could protection against eminent domain abuse possibly consist of if it isn’t the ability of the individual to be protected against government, since governments generally take office via elections involving populous majorities. By definition, the individual right will always be snuffed if the political trumps principle. Ownership rights could be routinely and regularly reassigned by publicly held popularity contests.

Favoring Missed-Popularity

Frequently though, eminent domain is not driven by popularity contests but by unpopular political favoritism. The Atlantic Yards megadevelopment in Brooklyn is an infamous example of eminent domain abuse and it is exceedingly unpopular with the community.

When political favoritism drives projects we wind up with developer-driven projects, the kind of projects that according to much of the key guidance in the Supreme Court’s Kelo case should be unlawful. Justice Kennedy in his concurring opinion permitting the taking in Kelo expressed the rule that for such taking to be permitted there shouldn’t be discernable evidence of “impermissible favoritism.”

Politicians Multiple Constituencies: Voters vs. the Monied

There is political analysis that observes that politicians have more than one constituency. Politicians not only have their “voting constituencies” resident in the districts from which they must be elected; politicians also have their “dollar constituencies” and sometime only a fraction of those dollars are coming from within their districts. (See:Dollar Politics: Who Has Access To Max Baucus? by Andrea Seabrook and Peter Overby, All Things Considered, July 22, 2009) If we recognize that dollar constituencies can be a driving force in politics and we see situations where that is happening, how hard should we have to look for the discernable evidence of “impermissible favoritism” that disqualifies the legitimacy of a taking? Atlantic Yards in New York is a very strange situation indeed, where New York agencies are propping up a financially feeble Cleveland-based developer whose future, by their own reports, now rests on doing only two projects, Atlantic Yards and one other. In order to survive, the developer has invested heavily in the local political landscape.

The Stevens Plurality Opinion in Kelo

Some people think that "The majority decision in Kelo v City of New London written by Justice Stevens was wrong, wrong in its holding and wrong on its facts."

Justice Stevens did not actually write a “majority decision.” He wrote a plurality opinion. The most important opinion in Kelo is Justice Kennedy's, which was essential to the holding.* The Stevens’ opinion, distressingly superficial, is relatively weak on the law and weak on guidance but it still contains guidance which is inconsistent with the support New York State politicians give for projects like Atlantic Yards.

The Kennedy Opinion in Kelo

The pivotal Kennedy opinion in Kelo is much stronger on the law* but it was weak on the facts. In essence, Justice Kennedy, despite superior legal reasoning, was snookered because the facts upon which the court decided things, the facts he assumed, were not the actual facts in real life. This is a mistake all the Supreme Court justices can avoid in the future. Unfortunately, deciding cases on facts that do not represent real life has opened a door where, more and more prevalently, New York agencies believe that they can have the latitude to take property as Justice Kennedy allowed in the particular instance of Kelo if they can state the facts of their case as other than they are in real life. In other words, if they can tell a good pretextual story.

(* Civil rights attorney Norman Siegel was right on the law when, in the September 8, 2009 Public Advocate debate preceding the primary for Public Advocate, he said the Kennedy decision sets forth the current limitations on takings. For those struggling to understand why the Kennedy opinion is pivotal, consider this: Four justices signed onto Justice Stevens’ plurality opinion, not enough to uphold the taking. Exactly the same number, four, were prepared, without arguing the facts under discussion, to overturn and disallow the way eminent domain was used. The taking was upheld only because Kennedy voted in accordance with the reasoning of his separate opinion to uphold rather than overturn it. Kennedy voted to uphold it only because, based on his understanding of the facts, the precepts he expressed were not being violated. It can be argued that Kennedy’s precepts are not binding precedent because the exact facts relating to his precepts were not determined to be present in the case. But that dismissal of his guidance is weak since his precepts hewed so close to the actual facts of the case as opposed to being “dicta” (obiter dictum) that related to something highly hypothetical. )

Kelo Not Necessarily Emboldening

Not everyone in the development community was instantly emboldened by Kelo. Consider this 2005 advice to real estate professionals from two Chicago real estate lawyers in the Chicago office of Seyfarth Shaw LLP. law firm as they promise a brave new world where they can take advantage of broader use of eminent domain:
The challenge to real estate professionals will be conforming to the Supreme Court’’s test in Kelo, which requires that a development/condemnation plan be comprehensive, carefully considered, and not tailored to favor any one group over another.
(See: Eminent Domain: a Legal Look at the Ruling, The recent Supreme Court ruling has far-reaching implications for commercial real estate. By Jay Gitles and Scott Buser, August 2005.)

The concept above of a “comprehensive, carefully considered” development/condemnation plan is from Justice Stevens’ opinion which calls for a “carefully formulated” “ economic development plan.” We don’t have these in New York, where in ad hoc fashion the development plans for a project like Atlantic Yards are in continual flux with the only thing not changing is the opportunity to give more benefit and a monopoly to one particular politically- connected developer.

The idea expressed above that the eminent domain project shouldn't be “tailored to favor any one group over another” is from the more thoughtful Kennedy opinion. Kennedy says flatly at the outset that “transfers intended to confer benefits on particular, favored private entities, and with only incidental or pretextual public benefits, are forbidden by the Public Use Clause.” Kennedy expresses the precept that “Benefitting” the developer should not be "the primary motivation or effect of this development plan" and that the benefits to the city should not be “only incidental to the benefits that will be confined on private parties.” He won’t allow “impermissible favoritism” (unless perhaps the political agencies lie well enough about it?).

Kennedy’s opinion indicates that it would importantly be a key concern if “the development plan is of primary benefit to ... the developer” or “only of incidental benefit to the city.” Rather than permit the development to originate with the private parties that will benefit, his opinion specifically looks to find, not only that the development didn’t so originate, but that substantial government funds were committed “before most of the private beneficiaries were known,” with “evidence that respondents [the government] reviewed a variety of development plans and chose a private developer from a group of applicants rather than picking out a particular transferee beforehand.”

Kennedy also suggests that certain takings may require a “more stringent standard of review” for a subcategory of takings where “the risk of undetected impermissible favoritism of private parties is so acute that a presumption (rebuttable or otherwise) of invalidity is warranted under the Public Use Clause.” (Emphasis supplied.) In his conclusion he refers to “categories of cases in which the transfers are so suspicious, or the procedures employed so prone to abuse, or the purported benefits are so trivial or implausible, that courts should presume an impermissible private purpose.”

New York political officials have certainly gotten to that stage where the eminent domain procedures are “prone to abuse,” the transfers “so suspicious” and the “purported benefits are so trivial or implausible” that the “that courts should presume an impermissible private purpose.” The New York political officials just don’t know that they have crossed the line because they think they will be able lie well enough to disguise how they are handling the impermissible favoritism of developer-initiated, developer-driven, developer-designed megadevelopments.

Making Up the Facts

Notably, the advice of the Chicago lawyers about Kelo’s brave new world of eminent domain opportunities quoted above is restrained, so restraining that it would not permit the current practices in New York. Note, also, that the advising lawyers did not, in the 2005 article, advise real estate professionals that they could simply make up and decide to tell a fact-compliant story. But real estate professionals are smart, and astute real estate connivers can quickly deduce that making up facts might be a viable tactic from the advice the lawyers provided next in their article:
In providing guidance, it is helpful to review the plan and process approved in Kelo.
Connivers in the real estate industry almost certainly got extra encouragement for the making up of stories when word started getting around that in the case of Kelo “the official story wasn’t exactly true.” Whatever the debatable flaws of the Kelo decision are, the most calamitous of its flaws is the way door it opens to the telling of false stories that misrepresent government motivations.

Anyone the least bit familiar with a mega-project such as Atlantic Yards knows that it is developer-initiated and developer-driven and that the political public authorities and agencies, (the Empire State Development Corporation, the Metropolitan Transportation Authority and the City of New York) that have hosted the developer and his ambitions relinquishing their authority to him have all compliantly molded themselves to all the developer’s impulses. That among, other things, accounts for the very strange and inappropriate design of the project and for its use of eminent domain.

What happens when a developer is allowed to dictate what a project should be and to define what its benefit to the public should be considered to be?

Loopy Problems: Why It Doesn’t Make Sense To Let an Industry Self-Certify What Is In the Public Good
Why doesn’t it make sense to turn over initiation, design and the basic concepts of “desirable” project elements to a developer? Because, when it comes to making a profit, the private sector, if left entirely to its own devices, will self-certify as beneficial to the public virtually anything that garners them a high profit margin. Case in point (to make a point): sugary breakfast cereal. Analysts of the American food industry have pointed out that our supermarket shelves are disproportionately crowded with highly processed unhealthy food because there are high profit margins associated with each additional processing step. The New York Times recently reported that under a “new food-labeling campaign called Smart Choices, backed by most of the nation’s largest food manufacturers” Froot Loops cereal now has a prominently displayed label saying that it is a “smart” nutritional choice. 41 percent of the Froot Loops cereal, measured by weight, is sugar. (See: For Your Health, Froot Loops, September 4, 2009.)

The Times article quotes Walter C. Willett, chairman of the nutrition department of the Harvard School of Public Health to make the obvious point that “These are horrible choices,” representing “a blatant failure of this system” that he says “makes it, I’m afraid, not credible.” Michael Jacobson, executive director of the Center for Science in the Public Interest, an advocacy group, who quit the industry’s self-certification panel explained that “the panel was dominated by members of the food industry, which skewed its decisions.”

Add Vitamins to Poison And You Get. . . The NYC Development Analogy
Taking the analogy one step further we should note the industry was willing to self-certify Froot Loops as a good nutritional choice no matter how bad they actually are simply because vitamins were dumped into the processed mix. Quoting Mr. Jacobson explaining how bogus the basis for these panel decisions could be:
“The criteria allow foods to carry the Smart Choices seal if they contain added nutrients, which he [Mr. Jacobson] said could mask shortcomings in the food.

* *

“You could start out with some sawdust, add calcium or Vitamin A and meet the criteria,” Mr. Jacobson said.
“Affordable housing” is to New York City development and eminent domain abuse what the tossed-in vitamins are to Froot Loops. Say the magic words “affordable housing” and a pernicious to the public project like Atlantic Yards gets a pass, even if the only way that “affordable housing” would ever wind up in that mega-project is for the public itself to pay for it at a far higher cost per unit than other developments, diverting subsidy away from those more cost-efficient affordable housing ventures (that could provide a much greater number of units) that better projects and better developers can provide.
(“Smart Choice” Development? Some blessed it as such because the magic words “affordable housing” were mentioned even if that housing might not be built. Rendering by the Municipal Art Society showing the teardown of the neighborhood the Ratner project plan involves. At this point, even some of the replacement buildings shown above next to the arena probably won't come in the near future either. -Original Aerial Photograph by Jonathan Barkey.)

Escaping the Lasso of the Loop

The situation is worse though. Froot Loops are being provided through the private enterprise system where there is at least a reasonable amount of competition. In theory, this is an example of where private enterprise is working and the public is getting more or less what it wants. If you are a consumer, you don’t have to buy Froot Loops or shop in the candied cereal aisle. Not so with an eminent domain project like Atlantic Yards. Atlantic Yards and its use of eminent domain is first and foremost about monopoly. It’s about precluding competition and the options of others. The Atlantic Yards site is adjacent to other property of Forest City Ratner, thereby giving the developer unchallenged control over 30 acres of some of Brooklyn’s most valuable real estate. (In fact, jumping over to the nearby subway stops just up the line you find that Forest City Ratner’s monopolistic ownership of Brooklyn real estate continues.)

Atlantic Yards was birthed through the preclusion of allowing other developers to bid against Forest City Ratner for the site. Without that first step it never could have proceeded. The abuse of eminent domain was just a next step that was similarly about removing competition to complete the FCR monopoly. And, unlike Froot Loops, the public cannot walk away.

Ada Louise Huxtable is one of those who has described architecture as “the art we must live with.”
If you want to experience painting or sculpture it’s an option. But there is absolutely nothing optional about your experience of architecture. . . . We see an awful lot of bad buildings and I guess my life has been devoted, or a good part of it, to trying to say, `We have entitlements; we deserve better than this’
(See: Wednesday, December 10, 2008, Times Coverage of Landmarks Preservation Commission: The Pieces Needing to Fall Into Place.)

Megadevelopment mega-monopolies created through the abuse of eminent domain is an example of inescapable architecture writ large. It is not just one building whose architecture you can’t escape but swaths of buildings. And it is not just the architecture you can’t escape; it is also the commandeering of the subways, streets and avenues (in the case of Atlantic Yards those streets and avenues are literally vanishing into developer ownership), it is all the skewed planning, marketing, landlord and retail decisions made to enrich the developer at the public expense.

With Froot Loops you can avoid the abuse in the pursuit of profit by walking away from the candied cereal aisle. But with Atlantic Yards you can’t nourish yourself by instead patronizing a competitor who is more attentive to the public good: Those competitors get eliminated when a mega-monopoly developer gets to wield the weapon of eminent domain.

It must Be Presumed That Developer-Initiated, Developer-Driven, No-bid Mega-monopolies Are So Suspicious. . . .

Justice Kennedy’s opinion is clear enough. The guidance is there and there should be no problem in adhering to precedent to do the right thing. Developer-initiated, developer-driven, no-bid mega-monopolies should be so suspicious that the courts “should presume an impermissible private purpose.” Especially when, as in Atlantic Yards (as no one should be surprised), the purported “implausible” public benefits are so “trivial” as to actually be negative, representing substantial identified “net losses.” (The public agencies are incapable of producing anything resembling true and legitimate cost benefit analyses.) It should be especially suspicious when the eminent domain process, conducted by biased political agencies, is so prone to abuse that it is entirely devoid of fair fact-finding forums and involves no opportunity for impartial review.

Knocking the Less Advantaged Off the Up-Escalator in Improving Neighborhoods

One last point should be made about this kind developer-initiated, developer-driven use of eminent domain to stifle competition. Justice Thomas in his dissenting Kelo opinion observed that:
. . . extending the concept of public purpose to encompass any economically beneficial goal guarantees that these losses will fall disproportionately on poor communities. Those communities are not only systematically less likely to put their lands to the highest and best social use, but are also the least politically powerful.
Justice Thomas is right about this but he did not foresee the full extent of the injustice that would flow from developer-initiated, developer-driven takings such at Atlantic Yards or Columbia University’s expansion into West Harlem. When developers push for developer-initiated, developer-driven takings of private property they are attracted to neighborhoods that are not poor neighborhoods, per se, but to neighborhoods that are already on their way up economically, neighborhoods that are gentrifying or “unslumming,” as Jane Jacobs would say. Consequently, this kind of opportunistic condemnation winds up knocking the existing community off the up escalator so that opportunities belonging to them are seized by those doing the condemnation. The community’s opportunities can be more readily seized by the opportunistic developer when, as Justice Thomas predicts, the victims in these communities have unequal political power.

Ideological Commonality

Some have predicted that there will be little change with your arrival on the court, summarizing that you are merely a “moderate liberal replacing a moderate liberal on the court.” But we are not talking in this case about issues or principles that should divide conservatives and liberals. This is where ideologies should find common ground. All it takes is applying the Kennedy precepts to the reality of what is happening and Kennedy’s precepts should be attractive to anyone at any either end of the political spectrum. Yes, when the Supreme Court decided Kelo there was a division, which in retrospect actually seems a strange one, with conservative justices voting against an unfettered latitude on the part of government to take private property for private use and liberal justices voting the other way. Nevertheless, polls showed that most Americans disagreed with this unfettered latitude, some polls showing that the number who disagreed exceeded 90%. Such near unanimity is only possible when the ideological common ground is substantial.

Skepticism vs. Pretextual Tales

The precepts of the Kennedy opinion, handy and dandy as they are, can be meaningful only if the reality of what is happening is recognized. If political public agencies are allowed to tell pretextual tales with impunity there will be no justice and no protection of fundamental constitutional rights. If eminent domain determinations are entirely in the hands of biased political agencies and receive no impartial review as is happening in New York, the process will be deeply prone to ever-escalating abuses.

Recognizing reality takes a practical skepticism about the extent to which public agencies can be depended upon always to stay on course when politics and monied interests would pull them elsewhere. Further, without the check and balance of a review by an impartial and robust judiciary, those political agencies will, as we now see in New York, likely veer substantially.

Justice Sotomayor, having shared common agency background, I believe that you, from your own experience, therefore also share the practical skepticism about public agencies that I recommend to anyone interested in ensuring justice. Our agency, SONYMA, faced far lesser temptations than some of the other state agencies. We did not have the same opportunity for massive mischief as those agencies that wield (and now sell) the power of eminent domain. We were in an environment that was less political and did proportionateley more good than other agencies, but I am sure that you, like me, learned enough about human beings and their frailty to believe in the essential need for strong checks and balances to protect fundamental constitutional rights.

You have an opportunity. When the time comes all you need to do is recognize the reality of what is happening in our home state of New York.

Saturday, October 3, 2009

What Purnick Has Purged: The Bloomberg Bio Mysteriously Missing Atlantic Yards

Our last post, (Friday, October 2, 2009, No Real Debate About It: Press Remains Way Off Track in Presupposing Bloomberg’s “Charity”) was about “a press corps far too pliantly in the thrall of official Bloomberg mythology,” particularly Bloomberg’s ostensible charitable intent in using his vast financial resources. We suggested that the public is paying significant prices it hasn’t even begun to consider yet. To make our points we relied to a fair extent on Joyce Purnick’s brand-new biography of Bloomberg, Mike Bloomberg: Money, Power, Politics, which (officially published this week, on September 28th). It has been noted that the book is far too adulatory.

Unimpeachable Admiration

In our post we wrote:
As asserted by Fred Siegel’s review of her book in the Wall Street Journal, Ms. Purnick is probably much too easy on Bloomberg. He says her book “is mostly an admiring portrait of the man and his mayoralty” and that Ms. Purnick “who had extensive access to the mayor and his staff” “sees Mr. Bloomberg as he would like to see himself.” We concur.
Bloomberg expert and feature reporter for the Village Voice, Wayne Barrett, says of Ms. Purnick and her book:
She is evenhanded to a fault and concluded that Bloomberg could be "one of the most effective mayor's in the city's history." So when Purnick slams the mayor, or even reports something about the mayor with negative connotations, it's unimpeachable.
(See: Barrett: More Bloomberg Revelations in Purnick's Book, By Wayne Barrett Monday, Sep. 21 2009.)

The Tease of Revelation

Unimpeachable? That’s good because we used Ms. Purnick’s book to help nail the true problem that Bloomberg’s ostensible “charity” really is. Well, maybe not totally unimpeachable, not exactly. We think Ms. Purnick gets some things wrong. We used a few internal contradictions (and contradictions from Bloomberg own 1997 book, “Bloomberg by Bloomberg”(By Bloomberg- With invaluable help from Matthew Winkler.) to tease out revelations we think others may be missing, including revelations about the origins and arc of Bloomberg’s political ambitions.

How does one write a book that is “mostly an admiring portrait” of Bloomberg? It helps to write a pretty short one. Ms. Purnick’s is 227 pages. Bloomberg’s own biographical venture in self-adulation, not even getting into his political career is 249 pages, the second edition a few pages longer.

Keeping Development Down to Half A Burden

Another way to write an overly adorational book do it is to report virtually nothing about one of Noticing New York’s main concerns, Bloomberg’s effect on New York urban design and development. City Planning Commission Chairman Amanda Burden gets a half-sentence mention on page 88:
. . . . And Amanda Burden, Member of the City Planning Commission and a friend of Patti Harris,* took him touring to dilapidated corners of Brooklyn.
* We had a lot to say about quid-pro-quoing Patti Harris in our last post. Any interest this key political operative (currently Bloomberg’s First Deputy Mayor) takes in real estate development is something we consider foreboding.- “ dilapidated corners of Brooklyn”?: Humm.

There is little about Bloomberg’s predilection for megadevelopment or his mishandling of them by virtue of his focus on benefitting developers and letting them take the lead in setting public policy. Ms. Purncik obviously hasn’t been reading Noticing New York posts like Un-funny Valentines Arriving Late: Your Community Interests at Heart (Monday, February 23, 2009) or Getting Bloomberg Out of The Way to Honor Moynihan (Wednesday, September 23, 2009).

Net of Atlantic Yards

A prime example of ignoring significantly errant Bloombergian megadevelopment is Purnick’s lack of mention of Atlantic Yards. Her book contains only an oblique misleading sliver of a reference. Neither Atlantic Yards nor Bruce Ratner or his Forest City Ratner are mentioned anywhere in the book. Similarly, you won’t find mention of Yankee Stadium in the index, though there are two paragraphs about the new Yankee and Mets stadiums into which there is tucked the slight hint that there might be plans for a megadevelopment far more problematic than either stadium. On page 207 Ms. Purnick breezes through this topic area thusly:
After blocking Giuliani’s subsidies to new stadiums for the Mets and the Yankees in his first year, judging, in his pragmatic businessman’s fashion, that the city could not afford them, Bloomberg later relented. He was lavishly generous to the two teams and their ultraluxurious stadiums, as well as to a new basketball arena in Brooklyn.

The stadiums benefited (sic) from tens of millions of dollars* in city investments, tax breaks and subsides, bundled into complex deals whose true cost to the taxpayers may never be clear. The city will gain from economic activity in the long run, the mayor said, as all mayors say about sports stadiums everywhere. Rarely do the predictions meet the promise but the stadiums are built anyway.
(* Only “tens of millions of dollars”? Total public subsidies for Atlantic Yards are in the hundreds of millions aggregating up to $2-$3 billion and the subsidies that come from the state and other levels of government should not be disregarded: Those are funded with taxes from NYC taxpayers too, and divert resources from other city projects. ESDC and the MTA just piled on hundreds of millions of extra subsidy on the basketball arena alone.)

(Purnick's basketball arena? Rendering by the Municipal Art Society showing the teardown of the neighborhood the Ratner project plan involves. At this point, even some of the replacement buildings shown above next to the arena probably won't come in the near future either. -Original Aerial Photograph by Jonathan Barkey.)

Also From AYR’s Perspective

Norman Oder in his own Atlantic Yards Report post reviewing the book, notes* one other mention of the arena, that with what Ms. Purnick communicates as an attitude of “Development is development, good for the city's economy,” Bloomberg “bowing to the economy” backed developer Forest City Ratner’s switcheroo to the cheaper (subsequently modified) Ellerbe Becket design “for the Brooklyn stadium” (sic) that “looked like nothing so much as a bland, boxy factory.” (Page 209).

(* This post is being updated as of October 7, 2009 to refer to this AYR post: Tuesday, October 06, 2009, Bloomberg's biographer offers gentle treatment of development issues, and barely a mention of the Nets arena (but no AY).)

Mr. Oder’s review of the book is very thorough, spotting other references to development dealt with by Ms. Purick in her breezily sparse way. (Mr. Oder similarly uses the adjective “breezy.”) Aptly and with devastating documentation he faults Ms. Purnick for the false dichotomy she creates to portray Bloomberg as a “pragmatic,” “prudent” mayor content with “imperfect development” whom only “sticklers” tolerating “neglect” would criticize. Mr. Oder also reveals that Ms. Purnick has absolutely no excuse to be as cursorily mistaken about Atlantic Yards given that:
AY uber-opponent Patti Hagan, who shares mutual friends with Purnick, assures me [as well as us at Noticing New York] she provided the biographer with copious background material on the controversy in Brooklyn.
Not Coming to Terms With Limits

Ms. Purnick may have overlooked the quintessential Bloombergianism of megadevelopment (and debacles like Atlantic Yards), but Mr. Bloomberg apparently doesn’t. Bloomberg’s term limits extension is generally viewed as the most ignoble (and revealing) moment of his political career. When Bloomberg’s signed the bill extending term limits and provided a reason for why his pursuit of the legislation was justified, he apparently focused on his drive for megadevelopment, perhaps thinking of Atlantic Yards in particular. In his brief statement before signing, his reasons for signing the bill included the following (emphasis supplied):
“You know that I have fundamentally changed my opinion in terms of how long someone should be in office. I have not changed my opinion in terms of the value of term limits. I have made a commitment that I will appoint a charter review commission to look at the issue of whether two or three terms is appropriate and to put on the ballot the ability for the public to either reaffirm what we have today or to change. There is no easy answer and nobody is irreplaceable, but I do think that if you take a look at the real world, of how long it takes to do things; we live in a litigious society, we live in a society where we have real democracy and lots of people have the ability to INPUT their views and approve or disapprove projects. I just think that three terms makes more sense than two. . . . I feel that this time the public should have a choice and while I still am in favor of term limits it is seriously something that everyone should think long and hard about.”
See: Tuesday, November 4, 2008, Remembering; Not Forgetting in Chinatown.)

Among Hidden and Not So Hidden Revelations: Bloomberg is Not Outgunning Shy

Read our last post for what we think are some of the most significant hidden revelations in Ms. Purnicks’ book.

Others have been suggesting, with Mr. Barrett perhaps taking the lead in his Village Voice piece, that the key revelations in Purnick’s book concern Bloomberg’s recently disclosed dislike for Barack Obama:
. . revealing their true feelings about Obama. In extolling his own readiness to be president to Purnick, Bloomberg assailed both Obama and John McCain in an interview shortly before he announced he wouldn't run: "What the hell do they know about management and dealing with people? Nothing." Kevin [Kevin Sheekey, Bloomberg’s top political aide] said that Arkansas Governor Mike Huckabee and Obama were the candidates, "I'd write the filing checks myself," suggesting that he was so sure Bloomberg could beat those two ideologically polarizing figures that he'd pay the fees to get the mayor on various state ballots.
Mr. Bloomberg’s “true feelings about Obama”? “[E]xtolling his own readiness to be president”. . . "What the hell do they know about management and dealing with people? Nothing.". . "I'd write the filing checks myself,"? We don’t think that “true feelings” about Obama have anything to do with it. We think that Bloomberg is tactically positioning himself to run against Obama for president in 2012, planning to fulfill an intention (worked out with Patti Harris) that he revealed in the mid-1990's. Bloomberg is obviously outgunning Thompson financially now in the race for mayor. He would very likely outgun Obama too. Obama raised three quarters of a billion in the 2008 campaign while Bloomberg was willing to spend $1 billion. For more about this and the origin story of Bloomberg-the-politician, see our last post.

Friday, October 2, 2009

No Real Debate About It: Press Remains Way Off Track in Presupposing Bloomberg’s “Charity”

(NY1's Dominic Carter above, interrupting to protest: “But, but, but Mr. Avella, but he’s only, but Mr. Avella, he’s donated money YEARS in advance of running for public office.”)

Not very long ago, during the first Thompson/Avella debate for the Democratic nomination for mayor, we got to see in rather stark microcosm the problem we face with a press corps far too pliantly in the thrall of official Bloomberg mythology.

Debating your opponent is difficult enough but it’s a truly formidable challenge when the debate’s moderator steps in to contradict you on behalf of an opponent (Bloomberg) who isn’t even there. It must be especially frustrating to be contradicted with incorrect information tossed into the discussion.

That’s what happened during the debate when perhaps the most important issue of the campaign, Bloomberg’s political use of wealth, was being discussed. Debate moderator Dominic Carter interrupted candidate Tony Avella. Why? Apparently Carter had it in mind to speak up for the heartfelt honesty of Bloomberg’s charitable giving. Really now!

More Than “Moderately” Off Track
Here is what happened. The debate was getting into its final third. Dominic Carter had asked about whether the huge amount of Bloomberg’s personal spending on his own political campaign wasn’t good because it saved the taxpayers money. (The answer is no, it isn’t good and no it doesn’t save the taxpayer money, but we will get back to that.) Carter then segued into asking, in a rather loaded way, whether Bloomberg’s charitable giving wasn’t “a good thing.” Here is the exchange between Mr. Carter and the candidates, Bill Thompson and Tony Avella.
Carter: And, and we’re going back to the questions in one second, but is it also a good thing [Note: “also” assumes, for starters, that the excessive Bloomberg campaign spending is good] that he [Bloomberg] donates so much of his money to organizations in New York City that desperately need dollars?
Thompson: Contributions with no strings attached are something that’s admirable. Contributions with strings attached and expectations- . . . Something’s wrong with that.
(Applause from the audience.)
Avella: These. . . You know this is. . . You know we talk about the $200 million that the mayor is going to spend, Mike Bloomberg is going to spend on reelection. We don’t know what the real figure is on how much money he’s donating to the nonprofits. It’s a good thing but there are strings attached. He’s in effect buying their silence as to how the city is truly running. And that’s a disgrace because he’s not donating that money for charitable purposes. He’s donating that money as an extension of the campaign.

Carter: (interrupting to protest): But, but, but Mr. Avella, but he’s only, but Mr. Avella, he’s donated money YEARS in advance of running for public office.
(We wonder whether Avella was caught off guard and didn’t know precisely how to respond to Carter’s interjection of off-base information.)
Avella: But not as much. Not as much, and the focus has changed dramatically, and we all know that.
(At this point Mr. Carter broke things off as he chose that particular moment to remind the candidates about the rules for responding to questions.)

And Where Does Mr. Carter Get His Information?

Does Mr. Carter have access to information that none of the rest of us have? (But, but, but Mr. Avella, but he’s only, but Mr. Avella, he’s donated money YEARS in advance of running for public office. !?!) We have already researched and written about the connection in time between the mayor’s charitable giving and his political career. (See: Monday, February 2, 2009, The Good News IS the Bad News: Thanks A lot for Mayor Bloomberg’s “Charity.”)

Since we wrote about how Bloomberg misuses charities for political purposes the New York Times added to the record with a story in August (the month of the debate) about the mayor illegally sending City Hall fund donations to nonprofits for political purposes. (See: City Hall Broke Rules Funneling Money to Groups, by Michael Barbaro and Ray Rivera, August 3, 2009.)

When last we wrote on the subject we observed that Bloomberg’s “giving” began to be prominently highlighted starting in 1997:
Bloomberg’s “giving” began to be prominently highlighted in a series of articles about philanthropic giving corresponding in time to when his quest to become mayor began. Bloomberg’s quest was public information as of 1998. Bloomberg participated as an interviewee in several of these articles, including one, the theme of which, was the value of giving conspicuously. (See: Lone Rangers Of Charity Are Losing Their Masks, By Geraldine Fabrikant and Shelby White, February 2, 1997, Why Do We Donate? It's Personal, by Susan Jacoby, December 9, 1997, It's All in Who You Know (and Who They Know), by Shelby White, November 18, 1998 and Neighbors Give Central Park a Wealthy Glow, By Blaine Harden, November 22, 1999.)
Similar articles about Bloombergian “giving” do not seem to have appeared before this time.
We also wrote, citing contemporaneous Times articles back in 1997/1998, that Bloomberg’s charitable presence was then viewed as new upon the scene, the Times writing that “He is becoming ubiquitous on the charity circuit.” (Emphasis supplied.)

1997: An Even Tighter Correlation Than We Thought

O.K., Bloomberg’s “giving” began to be prominently highlighted in 1997. When does Bloomberg’s interest in being mayor date back to? It also dates back 1997.

The match-up is even more clear to us now than when we were writing about this before. Since then, we discovered that the match-up between Bloomberg’s interest’s in politics (1997 as opposed to 1998) and the 1997 date when we find his prominent “giving” coordinates even more exactly than we thought.

In Joyce Purnick’s new biography of Bloomberg, Mike Bloomberg: Money, Power, Politics, which (officially published this week, on September 28th) Ms. Purnick recounts the surfacing of Bloomberg’s interest in being mayor and president (page 81 of the book).
The first media mention of Bloomberg’s political aspirations appeared in the Financial Times, during his 1997 book tour, slipped into an interview, it would seem by one Michael R. Bloomberg. “He would quite like to be president of the US, but accepts that it would be a tall order to arrange,” wrote the reporter, Raymond Snoddy. “Instead, he is thinking about running for mayor of New York.” That article, all of 497 words, generated a buzz.

* * * *

Once planted, dutifully reported and repeated the notion of a mayoral run developed a life of its own, with substantial encouragement from the antsy Bloomberg and from fellow business tycoons. . .
First Brewed Up When?

So the political aspirations and the “giving” both surfaced in 1997, the same year as the “Bloomberg by Bloomberg” book tour. ((That’s Bloomberg by Bloomberg: By Bloomberg- With invaluable help from Matthew Winkler.) But when do you think this actually began? Don’t you think that some preparation and lead time was required for the 1997 surfacing of these events whose concurrence was more likely coordinated than coincidence? Was the book and book tour coordinated as well? Seems so- - Read on.

Bloomberg’s Book: Mentioning Charity in a Transition to Politics

“Bloomberg by Bloomberg” isn’t exactly full of early mentions of Bloomberg’s charitable giving. They almost all come at the end of book, but here is one of the first mentions, something about charity that is choicely apt if one were indeed thinking of running for mayor:
A favorite philanthropic cause to which I have long been dedicated is the New York City Fire Widow’s and Children Benefits Fund. The unhappy purpose of this mostly Wall Street charity is to provide funds to the widows of the newly fallen officers and firefighters who died protecting us. Unfortunately, the list of beneficiaries grows longer each year.
This tidbit is inserted in the middle of a juxtaposition of how revered Bloomberg declares police and firemen should be (“My support for a well disciplined and fully civilian accountable police and firefighter force comes from what I learned as a child.”) versus how unappealing “politicians” can be (this starts on page 230):
It’s unfortunate that we don’t always have the same feeling of service, when thinking of politicians, another group whose (sic) salaries we pay. It’s true that other than election time, the concept of whose working for whom does get a little foggy.

* * * *

Poll after poll shows that people rank elected and appointed officials at the bottom of the most respected list . . .
Note: It becomes clear on the next page (231) that he is very definitely thinking of politics

Politics, no matter what the cynical say, is a noble profession.
The Running Gag

And then gets to the subject of running for mayor himself:
In a democracy we need good, smart, hardworking people to run for office. We need choice from which to select able souls to run for office.

* * *

I’ve never run for political office myself. . . . If I ever ran, it would be for a job in the executive branch of government - - mayor, governor, or president. I think I’d be great in any of these three executive jobs that mirror my experience. (Those wanting competent government needn’t worry. I have no plans to enter the public arena.)
What a coy ploy! The reverse psychology “I’m not interested” gambit in order to pursue public office. We beg to differ with Ms. Purnick, we don’t think that “The first media mention of Bloomberg’s political aspirations appeared in the Financial Times, during his 1997 book tour.” To us it looks like the first media mention is right in Bloomberg’s own book.

The ploy ought to have been recognized by Purnick as her own book has an entire chapter (Twelve: “See Mike Not Run”) about the ploy’s reuse when Bloomberg campaigned to become president, something he did from 2005 far into the 2008 season when Obama was ultimately elected. “No. No. No. Wink. Wink Wink.” writes Purnick explaining how “at the same time, his aides let it be known that Bloomberg could spend whatever he wanted on running for President. , , `a billion-dollar* campaign’” (pane 164).

(* Comparatively, Obama shattered records by raising only three-quarters of a billion.)

Charity? Scratch That: Charity and Politics Delivered With a Requisite “Quid Pro Quo”

Interestingly, on the next page of Bloomberg’s own book, right after discussing his interest in politics (p. 233), Bloomberg’s “non-interest” appeal for the office of mayor transitions into a melded discussion of what he refers to as the “You scratch my back, I’ll scratch yours” aspects of making both political and charitable donations. This is part of what he says (emphasis supplied):
I find it infuriating when my former wife asks our old friends to help with her fund raising and they ignore her. How dare they, considering all those years both she and I together supported their charities and political candidates? People need to understand that life, like it or not, has to be quid pro quo.
Now doesn’t that sound rather like someone putting everyone on notice that he is calling in his markers? (Recall now candidate Bill Thompson’s caution that there is something wrong with “Contributions with strings attached and expectations”?)

1994: Enter An Experienced “Political Operative”

Bloomberg’s book, copyrighted 1997, was released at least by May. Let’s guess when the idea of the book’s encapsulated launching of Bloomberg’s mayoral campaign was conceived? Here is a critical clue: In recounting how Bloomberg mounted his campaign, Ms. Purnick tells us (p. 84) that the “pivotal partner” in a “team of experienced political operatives” was “Patricia `Patti’ Harris.” Patricia Harris was a New York City official who came out of the Koch administration where she was a former director of the Arts Commission. She was hired by Bloomberg at Bloomberg, L.P. in 1994. We would suspect that it’s a very good wager that the idea for the 1997 book’s launch of Bloomberg’s political aspirations came either immediately before or immediately after Ms. Harris’s 1994 hiring.

(If you think Harris’s interest in playing political angles waned after leaving public office you should consider the probability that is more likely in her blood. In 1998 while employed privately at Bloomberg and presumably a well-paid, private citizen, Harris was getting free parking permits at the expense of the city, along with the likes of such other notable non-city employees as Bruce Ratner.)

A Political Operative With the “Sole Job” of Dispensing Bloomberg’s “Philanthropy”

Bloomberg’s 1997 book which doesn’t acknowledge Ms. Harris’s role in his political campaign (as noted it doesn’t actually acknowledge he was already running at all) describes Ms. Harris as follows (p 248 in the first edition- Emphasis supplied):
Like many other companies with a feeling of community service, we employ a full-time person, Patti Harris, whose sole job is to decide which philanthropic activities are appropriate for our company and to ensure we get our money’s worth when we donate our time, money and jobs.
“Sole job?” Is Ms. Purnick wrong about Harris’s role as a “pivotal partner” in a “team of experienced political operatives”? The New York City government website bio for Ms. Harris says that at Bloomberg, L.P. Ms. Harris was also in charge of the “Public Relations, and Governmental Affairs divisions.”

Bloomberg-Style Giving: Putting Bloomberg, L.P. First

Bloomberg in his book continues immediately on to inform us more about Ms. Harris’s theoretical sole function overseeing his “philanthropic” endeavors:
One of Patti’s questions [apparently the very FIRST] is, When does helping others help us? . . A third [THIRD?] is based on compassion- - sometimes we’ve just got to do it anyway.
The FIRST question about “giving” is when does it help the giver? Bloomberg explains more about why he gives and we hear that he does so when:
. . . it will be useful to our company later in our commercial activities.

Not only does Patti commit our dollars, she follows, influences and directs how our gifts are used ensuring our objectives are met.
What it Is Better to Receive than to Give

Sounds to us, however, like Ms. Harris follows the influence of the money. In fact, we have written before about how Ms. Harris’s combined her two most prominently highlighted functions of “political operative” and dispenser of “philanthropic” largess through a very simple expedient. Known as the “velvet hammer,” Ms. Harris after becoming Deputy Mayor has called the recipients of Bloomberg charitable gifts to exercise political influence over them. Her script? Supporting Bloomberg opponents is “unfriendly or disloyal" and makes Bloomberg not `happy.’ (See: Sunday, April 12, 2009, Bloomberg Update: Fire and Ice (Part I).) Making matters worse, when Bloomberg became mayor in January 2002 , he and Deputy Mayor Harris also took over control of dispensing public funding in connection with which Ms. Harris’s tactics are similarly an issue.

Bloomberg and Harris: Buried Differences

Ms. Harris is so trusted and relied upon by Bloomberg it is virtually impossible to distinguish the two of them. She is now the First Deputy Mayor, who assumes control when Bloomberg leaves New York. Ms. Purnick’s book tells us that Ms. Harris “picked” Mr. Bloomberg’s “burial plot” (somewhere in NYC) and although Mr. Bloomberg doesn’t know where it is, she does. Last month the New York Times reported that in a highly unprecedented move, Bloomberg “has quietly given at least $1 million* to stamp the name of his most trusted deputy [Ms. Harris] at City Hall on a new academic center at her alma mater, Franklin & Marshall College in Lancaster, Pa.”. (See: A Mayor Prizing Loyalty Pays Costly Tribute to His Top Aide, by Michael Barbaro, September 1, 2009.)

(* Though this figure may astound, it can be put in perspective by looking at the $235 million Ms. Harris was charged with distributing in 2008.)

(Photo from the Times Story.)

1994-1997: Bed-Fellowed Introductions Made

According to the Times, Bloomberg’s use of his fortune “to pay tribute to a current city employee” is “a gesture that historians said had no precedent in the city government.” Noting that Ms. Harris “has an extraordinarily close relationship with the mayor” the Times credits Ms. Harris (just as we have been saying above) with getting Mr. Bloomberg launched (simultaneously or sequentially?) in both philanthropy and politics:
Known as Mr. Bloomberg’s consigliere and sounding board, she helped introduce him to the worlds of the arts and philanthropy when he was a businessman, and then paved the way for his entry into politics, handpicking the staff for his 2001 campaign.
Again, regarding whether this was simultaneous or sequential, it was apparently between 1994 and the writing of his book that materialized in 1997.

A Tribute to Where Loyalties Lie

Describing Bloomberg’s huge gift as an example of the kind of “anomaly” that has become “commonplace” in the Bloomberg administration the Times said:
. . several historians and experts on good government said the gift violated no government ethics rules, but they raised the possibility, that Ms. Harris’s loyalties would be to Mr. Bloomberg rather than to taxpayers.
We think the issue of Ms. Harris’s loyalties was already resolved. Among other things, Deputy Mayor Harris is reportedly assured that after leaving government she will continue administering the dispensation of Bloomberg’s philanthropies, a postion she has never relinquished.

Ms. Harris also oversees the city’s Landmarks Preservation Commission which puts her in a prime position for additional quid pro quoing in the area of real estate. There has certainly been some evidence of this in the Bloomberg administration, some of it interrelated with charitable giving.

Ms. Purnick In Bloombergian Thrall?

As asserted by Fred Siegel’s review of her book in the Wall Street Journal, Ms. Purnick is probably much too easy on Bloomberg. He says her book “is mostly an admiring portrait of the man and his mayoralty” and that Ms. Purnick “who had extensive access to the mayor and his staff” “sees Mr. Bloomberg as he would like to see himself.” We concur. For instance, we note how Ms. Purnick telegraphs the famous myth that Bloomberg can actually be viewed as admirably above politics (even though she ascribes the notion to Bloomberg’s “fellow business tycoons”): “Given his resources he could rise above the sordid politics of New York.” (P. 81)

Further, if you are heeding what we have already laid out here, we think she similarly gets the narrative arc wrong when she says (p.79) that Bloomberg was already “noted philanthropist” when he “decided to switch careers”into politics. We suspect that the reason that Bloomberg called to introduce himself to Barbara Walters out of the blue “one day in the mid -1990's” (p. 55) and the reason that Ms. Purnick herself first met Bloomberg “in the late 1990s at a dinner party in his Manhattan townhouse” with Dan Rather and Peter Jennings (p.1) is that Bloomberg wanted to go into politics and get noted as a philanthropist at roughly the same time. In fact, on the very next page Ms. Purick says that this was when Bloomberg’s philanthropy was not yet very well known! - (p.2 )

We note that Ms. Purnick, a long-time urban affairs correspondent for the New York Times, was named deputy editor of the Metro department, the largest news department of The Times, at the start of 1997." The cover of her book says that “she has, so far, covered six mayors.” She is married to Max Frankel, the former executive editor of The Times.

Ms. Purnick on Chilly Charity

Even if Ms. Purnick is favorably biased toward Mr. Bloomberg, she provides some worthwhile confirmations about the political aspects of Mr. Bloomberg’s “charity.” Ms. Purnick, who admits that sizing up Bloomberg’s philanthropic activities involves “guesswork,” assesses its political impact thus (p. 196):
It also does the mayor good. It helps him as surely as doling out government pork helps the less financially endowed politician, maybe more so.
She quotes David Jones, head of the Community Service Society, who admits being less critical of Bloomberg’s housing policy because of the “bribe”/donation his charitable organization received. Mr. Jones says (p. 196):
But I think the personal funding has clearly kept the not-for-profit community very pro-Bloomberg. It chills dissent. You are going to watch what you say.
Siegel Suckered by Bloomberg Myth Too?

While Fred Siegel may scorn Ms. Purnick’s credulous acceptance of Bloomberg’s preferred view of himself, we think Mr. Siegel himself succumbs to a key Bloomberg promulgated myth in his WSJ review when he writes:
It is certainly true that Mr. Bloomberg hasn't used his political power to aggrandize himself financially—there is no need for that.
(He goes on to assert that “New York is once again in fiscal peril” because of Bloomberg’s expenditures of public funds to aggrandize “the greater Bloomberg glory.” Siegel gives different examples but we wonder if Mr. Siegel could have been thinking of Mr. Bloomberg’s expenditure of post 9/11 federal recovery funds on his pet Waterfalls project?)

Is it correct to assert that Mr. Bloomberg hasn’t aggrandized himself financially with this interweaving of “philanthropic” spending and accretion of political power?

Bloomberg’s “Bottom Line” on Giving

Tellingly, Mr. Bloomberg chooses to end his 1997 book talking about his philanthropy as dispensed by Patti Harris. In the penultimate paragraph he says this about his “giving”:
It all helps the bottom line.
The last sentence of the book? This:
Give something back and you will wind up with something more!
The Technical Answer to What Was Incorrectly Presupposed

That brings us back to Dominic Carter’s questions and more of what was said on the night of the Thompson/Avella mayoral debate. We turn to what led into the discussion we quoted from at the beginning of this post.

Dominic Carter asked Tony Avella the following question:
And does he [Bloomberg] at the end of the day, deserve any credit for using his own money? I mean there are some people who that believe it is a good thing that he is financing his own campaign. He don’t deserve any credit for that Mr. Avella?
There is actually a direct simple technical answer to this question: Bloomberg’s campaign expenditures do not save the taxpayers money as Mr. Carter went of to suggest a moment later. Though Bloomberg himself has tried to promote the idea that it saves the taxpayers money, it actually costs the taxpayers (as Dominic Cart’s own NY1 has covered) because under the campaign finance law competing publicly financed mayoral candidates qualify for millions of additional matching funds if they face a non-participating opponent like Bloomberg who is not limiting his spending. (See: Friday, February 6, 2009, The-Not-So “Ridiculous” “Outrage” of the Mayor’s Campaign Spending: Getting the Whole Story.)

Avella’s Nontechnical Answer Goes Back to Bloomberg’s Bottom Line

Mr. Avella did not go with the technical answer. In fact, he jumped quite a few steps ahead to question whether the public isn’t actually paying another price when Bloomberg deploys his “own” resources? In essence, he raised the question of whether Bloomberg’s resources should actually be considered really his own if Bloomberg nets more than he spends to campaign by virtue of being in office:
Avella: No, ah. . So he is taking a dollar a year. How is it, how is it that when he became mayor he was worth $3 billion* and somehow, even though the economy of the United States was on the downturn he’s now worth between $16 and $18 billion.* You cannot tell me that he didn’t use the position of mayor to further his own financial wealth. And I know, as chairman of Zoning and Franchises. . . I believe that he used the information in his office through Deputy Mayor Dan Doctoroff to help his company when it came to negotiations with the cable franchise renewals. And I think that actually came out in part in the New York Times. It’s amazing to me how he was able to increase his financial wealth multi-fold, yet somehow he didn’t see the financial crisis coming on the scene to New York City.
(* Forbes said that Bloomberg was worth $1.3 billion in 1997 when he first openly embarked on his political path. In 2008 Forbes gave a figure of $20 billion for his wealth which has since been reduced by losses.)

Mr. Avella’s knowledgeable skepticism about the escalation of Mr. Bloomberg’s personal bottom line is refreshing. What is Bloomberg’s focus and “bottom line” purpose?

It’s obvious that there was once a Bloomberg who wrote in his 1997 book that the FIRST consideration of charity was helping Bloomberg, L.P. We must therefore necessarily ask whether this Bloomberg who previously looked at charity primarily in terms of being “useful to our company later in our commercial activities” and who dismissed compassionate intention as something two-steps down the list that “sometimes we’ve just got to do it anyway” has somehow transformed into a different Bloomberg? - - Is the current Michael Bloomberg a man who, with the help of Patricia Harris, simply substituted political goals for his former economic ones, or is it conceivable that our New York mayor is just the same old fellow who is still quite focused, when giving, on how “It all helps the bottom line”? In other words, when Bloomberg takes a salary of $1 a year, is he “giving” the rest of his salary back to the taxpayers without his formerly requisite quid pro quo? Or is he still acting in the expectation that for his “giving” he will “wind up with something more!”

If the answer could simply be answered by looking at how Bloomberg’s wealth has escalated it would seem to be evident. If the answer could be answered in terms of the opportunity for conflicts of interest that exist or the way the mayor disregards them, the answer would also be clear. The cable franchise negotiation mentioned by Mr. Avella is certainly not the only conflict-of-interest situation Bloomberg has that positions him well to make money by virtue of his City Hall office.

Coming to Terms With a Lack of Limits When Conflicts Build on Conflicts

If you want to read about how the NYC Conflicts of Interest Board is failing to rein in Mr. Bloomberg, read our earlier work. If you want to read the very latest on the subject, including how some of the recent problems in the reining in of Mr. Bloomberg result specifically from “ties to city funding and the mayor’s fortune that raise questions about their own potential conflicts” read: City Board Set Up to Monitor Ethics May Have Conflicts of Its Own, by David W. Chen, September 6, 2009. All five members of that board are now members appointed y Mr. Bloomberg himself. (They have six-year terms.)

By way of dismissing the conflicts of the Conflicts board, Steven B. Rosenfeld, chairman of the board (appointed by Bloomberg), said that some members of the board “were not aware of the mayor’s philanthropy or the city’s grants to the groups they were involved with.” The Times goes on quoting Mr. Rosenfeld:
“I really do reject the suggestion that we’re giving anyone any easy ride because of who they are or how much money they have,” he said
Still, the board was roundly criticized last year for allowing the City Council to tear up the term limits law, a move that Mr. Bloomberg supported so he could seek a third term.
Back to Debating Where Credit is Due

The debate proceeded with Thompson picking up the critical theme though more gently (or naively?) he does not speculate about whether the mayor’s multiplying wealth is somehow coming from his public position.
Thompson: Do I think he deserves credit for spending obscene amounts of money to try and convince the. . Or to try to buy the votes?

Carter: But is there something to be said for the man using his own money and not being forced to use taxpayer money? [We reiterate, it actually COSTS taxpayers money.]

Thompson: Dominic, New York City has probably the best public finance law in the nation. If Mike Bloomberg wanted to get credit, then spend his own money and adhere to the same levels. But spending in excess of a $100, $150 million dollars or $200 million dollars- You don’t get credit for that. No! Because it’s your money? Because you are using it to try to influence and taint a process? No, you don’t get credit for that.
(Applause from the audience.)

And that comes back to where we started this piece with Mr. Carter then asking:
Carter: And, and we’re going back to the questions in one second, but is it also a good thing that he donates so much of his money to organizations in New York City that desperately need dollars?
Topping the Important Topics In This Piece

Is this piece about Bloomberg’s spending hundreds of millions every year in “charity” ($235 million last year, $205 million the year before- much higher figures if you talk about the City Hall money that Bloomberg also controls) bent toward political purposes? Is this piece about how Bloomberg’s “charity,” spent with his self-confessed quid-pro-quoism, focuses on Bloomberg, L.P’.s bottom line? Is this about how Bloomberg’s pursuit of politics and retention of the office of mayor has helped him multiply his wealth multi-fold?

No. Those are all extremely important topics. We are glad they came up during the debate. In all probability these topics are more important than anything else that was discussed the night of the debate or could have been discussed even though the New York Times the next morning (In Face-Off, Rivals Take On Bloomberg, By David W. Chen, August 26, 2009) made no mention of the exchanges we have been reporting here. The Times lead-in was: “Neither of them has ever been arrested, or gotten into a fistfight as an adult. Neither has had the time to set foot in either of the city’s new baseball stadiums.” Reading what the Times wrote about whether the swine flu outbreak could have been handled better or whether the city should name a subway station or street after Michael Jackson, you would probably come away thinking that the candidates discussed mostly trivial things.

Bloomberg’s use of his wealth is an important subject, far from trivial. Still, that’s not what we are talking about here. What we are talking about instead is what an uphill battle it is going to be to have these issues properly aired if the media doesn’t treat them seriously and is a source of misinformation about the situation. After all, when is the last time you can think of when a debate moderator interfered with a debate, breaking into it to debate a candidate on behalf of someone who was not even there by furnishing misinformation such an important issue?

Do we hear Mr. Carter interrupting at this point?
But, but, but Mr. Noticing New York, but he’s only, but Mr. Noticing New York . . .
Take Bloomberg at His Own Word? Term Limits and the Hypocrisy of a “Reelection at All Cost Mentality”

The Times account of the debate ends observing that when Mr. Thompson threw Mr. Avella a “softball question” asking “what was the worst thing that Mr. Bloomberg had done” Mr. Avella laughed, stating that it was Bloomberg’s overturning of term limits. That is a respectable note on which to have ended the article. Term limits, overridden only by some very tricky, ignoble and hardball stratagems to sidestep a voter referendum, were probably the only thing that would have brought an end to the vicious circle of Bloomberg’s wealth accretion and influence the city now confronts.

On the other hand, perhaps like Dominic Carter, taking Mr. Bloomberg at his word, we should believe about him what he would like us to believe, that his giving is above politic and his interest in politics is a thing separate from the Bloomberg, L.P. bottom line. Given the spectacle of Mr. Bloomberg’s override of term limits we thought it might be good to give Mr. Bloomberg the last word here. In his 1997 book, right after noting that “Poll after poll shows that people rank elected and appointed officials at the bottom of the most respected list” (to tee-up the reasons he should run for office) Mr. Bloomberg observes:
I am certainly not above taking cheap shots at politicians’ hypocrisy and their “reelection at all costs” mentality, but no one in public service deserves that much vilification!