Politics & Government

Brooklyn Heights Library Sale Under Federal Investigation: Report

Investigators with the DOJ and the Manhattan DA are looking into whether Hudson Companies won the contract fairly, reports the NY Post.

  • Pictured: The proposed design for the new Brooklyn Heights Library. Rendering courtesy of Marvel Architects

BROOKLYN HEIGHTS, BROOKLYN — City and federal investigators are looking into whether a Bill de Blasio donor was unfairly awarded a $52 million contract for the redevelopment of the Brooklyn Heights Library (BPL), according to a Sunday report in The New York Post.

The deal, approved by the City Council last December, allows The Hudson Companies Incorporated to tear down the existing branch and build a condominium tower in its footprint that includes a new, 26,620 square foot library inside it.

Hudson is also required to add STEM education labs to the library; keep its doors open 7 days per week; construct a second, 5,000 square foot library near the DUMBO/Vinegar Hill/Farragut Houses; and build about 115 affordable housing units at a separate Clinton Hill location.

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But according to the Post, which cited unnamed sources, the U.S. Attorney's Office for the Southern District of New York and the Manhattan District Attorney's Office have subpoenaed "several of the 14 developers that bid on the project."

At issue, reports the paper, is the fact that Hudson submitted a bid for the property that was $6 million lower than competing offers.

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Additionally, company head David Kramer was a donor to de Blasio's political campaigns, as well as the now-shuttered Campaign for One New York, a non-profit created to push the mayor's agenda.

The Post reported that Kramer had not received a subpoena from investigators.

Both the Southern District and the Manhattan DA's office declined to comment Monday on the report.

De Blasio's office did not immediately return a request for comment, either, but a spokesman told the Post that the process that selected Hudson "followed a strict protocol" and that the developer was chosen "meritoriously."

In an email Monday, Kramer denied the suggestion of any improper influence peddling.

"‎We worked very hard on our proposal for the Brooklyn Public Library, which included double the amount of required affordable housing and an interim library to maintain service during construction," he wrote.

"We participated in 11 public hearings, which culminated in an overwhelming vote of approval by the City Council," Kramer continued. "This was one of the most reviewed, questioned, transparent, public processes for a development."

Kramer also wrote that, "And as far as I know, none of the purported subpoenas have had anything to do with the library project."

Asked for clarification, he said that, "Some developers contributed to the non-profit and have been subpoenaed about that," explaining that it was a coincidence that developers subpoenaed also bid on the library property.

The Brooklyn Public Library has long presented the deal as a win for library patrons, and spokeswoman Madeline Kaye did so again on Monday.

“Hudson Companies offered by far the best proposal for our library patrons and the community at large – including not only a very competitive purchase price, but short construction timelines, stringent contract provisions, the highest number of affordable housing units, a guaranteed interim library space, and a track record of delivering on projects of this size and complexity," Kaye wrote in an email.

"We are confident that Hudson is a strong development partner that will deliver a world-class library to the Brooklyn Heights community," she added.

In the past, the Brooklyn Public Library has argued that it lacks the funds needed to upgrade branches like the one in Brooklyn Heights, explaining the need for private investors to step in.

But the Hudson deal faced strong opposition last year from activists with Citizens Defending Libraries, which opposes the sale of library assets.

In December, the group described the sale as "heedless plundering," warning that it was part of a trend that would continue without opposition.

Following the closure of the Brooklyn Heights branch, an interim library located at Our Lady of Lebanon Church (95 Remsen Street) is scheduled to open in July, according to the BPL. Construction on the Heights' new building is scheduled to break ground in the fall.

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