Congestion pricing kerfuffle, authors write, makes it clear that public authorities are subordinate to politicians. Atlantic Yards watchers have known that ("rubber stamp") for years.
A recent search on the name Suma Mandel, a board member--at least as of 2023--of the Pacific Park Conservancy led me to an article she co-authored last June for Vital City, Governance in the Time of Congestion.
Another Atlantic Yards episode
Consider a legal affirmation, filed Dec. 17, 2010, by Jeffrey Baker, an attorney for a group of community groups arguing that the recently-discovered extended timetable for Atlantic Yards merited a Supplemental Environmental Impact Statement, which ESDC and the arena developer, of course, opposed.
He described how he was denied relevant documents to presented to the ESDC Board and observed that it was obvious that the Board "did not have an opportunity to review and consider those documents before the meeting and could not be expected to read or comprehend them at the meeting."
The article was stirred by New York Gov. Kathy Hochul's unilateral decision--since modified--to direct the Metropolitan Transportation Authority to pause congestion pricing, but the subheading, "Who do public authorities serve — the public or the politicians who appoint their boards?" is eternally relevant to observers of Atlantic Yards/Pacific Park.
As the authors write:
Even to the casual observer, when the governor announced the pause, it was obvious that the MTA leaders were mere bystanders, watching a major policy U-turn and realizing it would create a major funding gap in the agency’s capital program...
Some board members made reference to their fiduciary and legal obligations, asserting that they could not be “directed” by the governor. Yet [MTA Chair and CEO, Janno] Lieber, a gubernatorial appointee, held a press conference explaining how the MTA would address but not defy the pause.
"Are board members," the authors ask, "advisors or deciders? Is their obligation to facilitate the governor’s priorities, or is their role to act as fiduciaries?"
The record of Empire State Development (ESD), a less discussed but equally important "quasi-independent" (the authors' term) public authority, is of course an agency of the governor, despite a state law requiring independent judgment.
Recall, for example, my coverage of the claim that ESD's board (then known as ESDC) determined blight, rather than ubiquitous consultant AKRF, even as a board member and the board chair showed notable ignorance about basic facts.
Recall, for example, my coverage of the claim that ESD's board (then known as ESDC) determined blight, rather than ubiquitous consultant AKRF, even as a board member and the board chair showed notable ignorance about basic facts.
Another Atlantic Yards episode
Consider a legal affirmation, filed Dec. 17, 2010, by Jeffrey Baker, an attorney for a group of community groups arguing that the recently-discovered extended timetable for Atlantic Yards merited a Supplemental Environmental Impact Statement, which ESDC and the arena developer, of course, opposed.
He described how he was denied relevant documents to presented to the ESDC Board and observed that it was obvious that the Board "did not have an opportunity to review and consider those documents before the meeting and could not be expected to read or comprehend them at the meeting."
Since there was no public discussion in the open session, he wrote, "It appears obvious that ESDC violated the Open Meetings Law by holding an
illegal executive session."
"In fact, prior to the commencement of the meeting there was a live feed of the meeting room on the webcast," he stated. "At that time, I distinctly heard at least one Board member say to another that they were expected to “rubber stamp” the Atlantic Yards resolutions. Immediately
after that comment was made, the live feed was cut and was not restored until the meeting
commenced."
"If the governor’s unilateral action controls the MTA, what is the point of having a fiduciary board at all?" they ask.
Michael K. Rozen, Director
Managing Partner, TRGP Investment Partners, LP
More from the article
The Vital City article was co-written by former ESD Chair Steven M. Cohen, a current business partner of Mandel, and independent infrastructure consultant Francis Sacr.
Despite the “Report of the Governor’s Taskforce on the Implementation of the 2009 Public Authorities Reform Act”, which stresses "the fiduciary nature of board service" and the admonitions of the late watchdog Assemblyman Richard Brodsky, most board members "explicitly or implicitly take direction from the elected official who appointed them," the authors write.
In fact, many work for those officials. Others continue on expired terms, making them vulnerable to removal. As the authors write, "Taken together, these practices do not enhance independent decision-making."
That leads to a problem, given the fiscal need for congestion pricing--one that by now has been partly resolved.
"If nothing else, for the first time in a generation, the pause has brought to light the obligations of public authority board members," they write, suggesting, "What is being served up is an actual fiduciary conflict," given that some MTA appointees were vocal advocates for congestion pricing.
"If nothing else, for the first time in a generation, the pause has brought to light the obligations of public authority board members," they write, suggesting, "What is being served up is an actual fiduciary conflict," given that some MTA appointees were vocal advocates for congestion pricing.
"If the governor’s unilateral action controls the MTA, what is the point of having a fiduciary board at all?" they ask.
Well, yes. We know that already.
Today's ESD board
ESD's board includes two ex-officio members and seven members appointed by the governor with the consent of the Senate. The chair is selected by the governor. Board members serve without compensation. That means they don't necessarily have the incentive to do all the reading--the Agenda and Materials for the November meeting was 343 pages.
ESD's board includes two ex-officio members and seven members appointed by the governor with the consent of the Senate. The chair is selected by the governor. Board members serve without compensation. That means they don't necessarily have the incentive to do all the reading--the Agenda and Materials for the November meeting was 343 pages.
The list below include the information provided by ESD. I have added some biographic info in italics.
Kevin S. Law, Chair
Executive Vice President and Partner, TRITEC Real Estate Company
Kevin S. Law, Chair
Executive Vice President and Partner, TRITEC Real Estate Company
Family-owned real-estate company based in Ronkonkoma, Suffolk County
Hope Knight, Ex-Officio Director
Empire State Development, President & CEO
NYS Department of Economic Development, Commissioner
Hope Knight, Ex-Officio Director
Empire State Development, President & CEO
NYS Department of Economic Development, Commissioner
Former President of the Ibero-American Action League in Rochester
Adrienne A. Harris, Ex-Officio Director
NYS Department of Financial Services, Superintendent
A lawyer who worked at the Treasury Department, served as Special Assistant to the President for Economic Policy, and then General Counsel and Chief Business Officer at insurance start-up DOMA, among other positions.
Adrienne A. Harris, Ex-Officio Director
NYS Department of Financial Services, Superintendent
A lawyer who worked at the Treasury Department, served as Special Assistant to the President for Economic Policy, and then General Counsel and Chief Business Officer at insurance start-up DOMA, among other positions.
Michael K. Rozen, Director
Managing Partner, TRGP Investment Partners, LP
Associated TRGP Capital "provides capital for corporate disputes including antitrust, international arbitration, breach of contract, business torts, and other causes of action."
Robert M. Simpson, Director
President & CEO, CenterState Corporation for Economic Opportunity
Robert M. Simpson, Director
President & CEO, CenterState Corporation for Economic Opportunity
An "independent and forward-thinking economic development strategist, business leadership organization and chamber of commerce," based in Syracuse
John Wang, Director
Founder and President, Asian American Business Development Center
Based in New York City, it aims to raise the representation of Asian Americans in corporate leadership, increase the numbers of Asian American women in senior roles, and advocate for economic equity for all minority-owned small businessesJohn Wang, Director
Founder and President, Asian American Business Development Center
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