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POLITICO New York Playbook, presented by Nuclear Matters: NYPD probe includes de Blasio backers -- HILLARY and CHIRLANE in Crown Heights -- BUFFALO WING WAR

04/06/2016 07:00 AM EDT

By Azi Paybarah in Manhattan, Jimmy Vielkind in Albany, and Mike Allen in D.C., with Daniel Lippman

FBI PROBE INTO NYPD FINDS QUID PRO QUO -- New York Post's Shawn Cohen, Jamie Schram and Kate Sheehy: "New details emerged Tuesday in the FBI's corruption investigation into the Police Department, including how deep-pocketed businessmen who were the original targets of the probe sought out high-ranking officers they knew could 'get things done for them' ...

"The feds are looking into whether high-ranking NYPD officers then received gifts as part of an illegal quid pro quo - including jaunts to the Super Bowl, China, London, Brazil and Rome and golfing trips to the Dominican Republic ... The suspected corruption surfaced during a separate financial investigation into Mayor de Blasio cronies Jona Rechnitz, an Upper West Side real-estate powerhouse, and Jeremy Reichberg, a prominent Borough Park figure ... [Former NYPD Chief of Department Philip] Banks and his buddy, Correction officers union chief Norman Seabrook, were the first law-enforcement officials to come on the feds' radar ... Both took overseas trips with Rechnitz and Reichberg, with Banks' and Seabrook's bills at least partly paid for by Rechnitz .... Banks also was treated to two golf trips to the Dominican Republic ... Seabrook is suspected of using Rechnitz's JSR Capital LLC to invest union money without board approval."

"F.B.I. Questions Police Leaders Amid Inquiry Into Businessmen Linked to de Blasio" Times' William Rashbaum: "A spokesman for the mayor's re-election campaign said that it would not accept contributions from the two men while the investigation was underway. A lawyer for Mr. Rechnitz, Marc S. Harris of the Los Angeles law firm Scheper Kim & Harris, said his client had broken no laws and had not been notified that he was the subject of any investigation. ...

"The investigation developed in the course of another inquiry focused on the head of the union that represents New York City correction officers, Norman Seabrook , and Philip Banks III, who retired in 2014 as the Police Department's chief of department, the force's top uniformed official. That inquiry, focused on whether Mr. Seabrook had enriched himself during his two decades running the union, began nearly two years ago, one of the people briefed on the matter said. A grand jury subpoena served on Mr. Seabrook's union in May 2015 sought a wide range of union and business records, including any relating to JSR Capital, according to a copy of the subpoena that was reviewed by The New York Times. Mr. Banks, who has emphatically denied wrongdoing on several occasions, said on Tuesday that he had never been contacted in connection with any investigation and did not want to comment.

-- CBS2's Marcia Kramer: "[S]ources said it all started with an investigation of Norman Seabrook, the head of the city's Corrections Union, and an investment he made of millions of dollars of union pension funds into hedge funds operated by local businessmen. But sources said wiretaps of the businessmen's phones caused the FBI and U.S. Attorney Preet Bharara to expand to the probe to include possible corruption in the NYPD."

** A Message from Nuclear Matters: Providing 61 percent of the state's carbon-free electricity, New York's nuclear energy plants are a necessary and valuable part of the state's energy mix, and deserve the support of state lawmakers for their role in providing New York with reliable electricity while protecting the environment. Learn more: **

SCHNEIDERMAN SUBPOENAS PARTIES LINKED TO REAL ESTATE DEAL -- POLITICO New York's Sally Goldenberg and Laura Nahmias: The city's top lobbyist, a nursing home operator and a property appraisal firm are among those who have been subpoenaed by New York State Attorney General Eric Schneiderman as part of an investigation he has opened into an ongoing city land use scandal. Schneiderman's office sent the subpoenas to eight parties involved with the sale of Rivington House, a former nursing home for people with AIDS that is in the process of being converted into luxury condos on the Lower East Side. City officials at the Department of Citywide Administrative Services (DCAS) enabled the conversion by signing off on lifting a deed restriction that required the property be maintained as a health care facility.

The Attorney General's Medicaid Fraud Control Unit issued subpoenas to lobbyist James Capalino; the Allure Group; and Metropolitan Valuation Services, an appraisal company. Sources familiar with the subpoenas confirmed those recipients.

-- Times' J. David Goodman: "The subpoenas came from the attorney general's Medicaid Fraud Control Unit, according to a person with direct knowledge of the inquiry. The unit's involvement suggests that the focus of the inquiry into possible wrongdoing was the companies that received the subpoenas, and not the city. City Hall officials were not aware of any subpoenas being sent to the city. 'We will cooperate with the A.G.'s investigation, any investigation, because we want to get to the bottom of what happened,' the mayor's spokeswoman, Karen Hinton, said in a statement."

DEMOCRATS ATTEMPT TO CLOSE LLC LOOPHOLE - POLITICO New York's Bill Mahoney: Democratic commissioners on the state Board of Elections failed Tuesday to pass an opinion that would have changed the treatment of limited liability companies in state elections. LLCs are considered individuals for the purposes of determining contribution limits, which lets individuals who control many of them donate hundreds of times as much money to state politicians as typical companies. For the second time in a year, the two Democratic commissioners moved to change this interpretation, which has its roots in a 1996 board opinion, only to have it not advance after opposition votes from the two Republican commissioners resulted in a deadlock.

TABS -- Post: "Corruption bombshell: RENT A COP: Brass 'traded services' for 'China trips, Super Bowl tix"" -- Daily News: "Bernie's Sandy Hook shame: Callously defends gunmakers against Newtown kin lawsuit" -- amNY: "BIG APPLE CIRCUS: Prez candidates descent on NY to battle for primary votes" -- Newsday: "REVOLT CONTINUES: WAVE OF OPT-OUTS: Tens of thousands of LI students refuse to take Common Core tests" -- SEE THEM:

-- Hamodia: "NY Budget Disappoints Private School Community" -- El Diario [translated]: Vital subsidy

FRONT PAGES -- NYT, 1-col., below the fold: "DE BLASIO DELAYS WATERLINE WORK: Priority Project Held Up Over Rate Concerns" -- WSJNY, 4-col., above the fold: "New York Probes Land Deal: -- SEE THEM:

QUOTE OF THE DAY: "It does not appear that Mr. Banks, either while employed by the New York City Police Department or after he retired, was involved in any intentional criminal conduct." -- Ben Brafman, attorney for Phil Banks , former NYPD Chief of Department, via the Post:

BONUS QUOTE OF THE DAY: "When they threw daggers at her for 11 hrs , she caught them in her teeth & spit them right back."-- Gwen Carr, mother of Eric Garner, at a Clinton campaign event in Brooklyn, via @AndreaWNYC:

EXTRA BONUS QUOTE: "Bernie Sanders is Jesse Jackson, is really what he is, in 1988." -- Anthony Weiner on NY1:

ANOTHER TRAVEL BAN - POLITICO New York's Josefa Velasquez: Cuomo Tuesday afternoon signed an executive order banning all non-essential official travel to Mississippi after the state enacted legislation that could foster discrimination. Mississippi Gov. Phil Bryant signed the "Protecting Freedom of Conscience from Government Discrimination" Act earlier Tuesday, which allows businesses and government workers to deny services or goods based on religious beliefs. "Discrimination is not a New York value. We believe our diversity is our greatest strength, and we will continue to reject the politics of division and exclusion," Cuomo said in a statement. "This Mississippi law is a sad, hateful injustice against the LGBT community, and I will not allow any non-essential official travel to that state until it is repealed."

CLINTON AND CHIRLANE IN CROWN HEIGHTS -- POLITICO New York's Dana Rubinstein: Hillary Clinton chose a city college named for a slain civil rights leader as the site of her campaign rally in Brooklyn on Tuesday, part of a spate of events she's hosting in the run-up to New York's possibly competitive, April 19 Democratic primary. Beneath the folded-up basketball hoops at a Medgar Evers College gymnasium in Crown Heights, Clinton touted her support for President Barack Obama's policies and made it clear she understands the challenges women - particularly women of color - face in modern-day America. "African Americans, Latinos, women," were "hardest hit" by the Great Recession, she said, and President Obama doesn't get "the credit he deserves" for digging the country out of it. Crown Heights is just a 20-minute subway ride from Hillary Clinton's campaign headquarters in Brooklyn Heights, which is, itself, just a 15-minute subway ride from Vermont Senator Bernie Sanders' New York headquarters in Gowanus. Brooklyn is also Mayor Bill de Blasio's home borough.

GLENN THRUSH podcast, "Hillary Clinton has had enough of Bernie Sanders": "In an exclusive interview for POLITICO's 'Off Message' podcast, the former secretary of state compares Donald Trump to foreign demagogues and says she's not even sure her primary opponent is a Democrat." ... Audio

... Subscribe

NEW YORK CONTEST LOOMS LARGE FOR CLINTON AND TRUMP -- AP's Jonathan Lemire: "The year's biggest, wildest show is finally coming to Broadway. And Brooklyn. And Buffalo. And Syracuse. ... The voting on April 19 will be the first time the state has a played a meaningful role in the nominating process in decades. New York is a coveted prize, offering the most delegates of any contest left on the primary calendar until California's primary June 7. And the two leading hometown candidates, Hillary Clinton and Donald Trump, who have long eyed New York as a bulwark against their opposition, now both need the state to provide a bounce-back victory after some disheartening defeats."

--"Bill de Blasio, a Punching Bag for G.O.P. Candidates, Fights Back," by Times' Alex Burns: "Mr. de Blasio has pursued his role with obvious enthusiasm. He was set to hold a pro-Clinton rally on Wednesday in Manhattan, alongside Mrs. Clinton's campaign manager, and Dan Levitan, a spokesman for the mayor, said he met privately with her after a campaign event in Brooklyn on Tuesday. Mr. de Blasio has seized opportunities to appear on national television to rebut criticism of his policies, casting attacks on his agenda as aggression not merely against his administration, but toward New York City and its tolerant social values."

TWEET DU JOUR -- @maggieNYT: "Newest expected hire for the Trump campaign - former NY Rep. John Sweeney"

@POLITICO_Steve replies and reminds us: "You may remember John Sweeney from his first DWI, his second DWI, the House ethics investigation, domestic violence".

SNEAK PEEK - Hollywood Reporter's new cover story, "Guys From Brooklyn: An Interview with Bernie Sanders," by Spike Lee with "Hollywood" crossed out and "New York" written in. See the cover. ... Cover and story will post shortly on

HAPPY BIRTHDAY: Assemblyman Phil Ramos ... WSJ media reporter Keach Hagey, a Politico alum ... Todd Beeton, web director for Senator Kirsten Gillibrand ... Jesus Gonzalez, an organizer with Churches United for Fair Housing ... Aaron Short, Post reporter ... and Gabrielle Birkner, managing editor at JTA News.

WORLD'S BIGGEST STARBUCKS -- WSJ's Keiko Morris: "Starbucks Corp. aims to go bigger and bolder in New York City, planning to make southwest Chelsea the home of its largest store in the world. The Seattle-based coffee retailer said Tuesday that it would set up its second roastery in a 20,000-square-foot space at the bottom of a boutique office building at 61 Ninth Ave. The massive store, expected to open in 2018, will be modeled on the company's Seattle roastery, which the company describes as 'coffee-as-theater' and a highly sensorial experience. At the 15,000-square-foot Seattle location, where the company roasts small batches of rare coffees, customers chat with baristas to learn about the various methods of brewing and sourcing, and taste the high-end coffees."

WING WAR - Buffalo News' Andrew Z. Galarneau : "The Anchor Bar and Duff's have been the most celebrated purveyors in the homeland of the Buffalo-style chicken wing, competing at a distance for decades.But the wing war is increasingly being fought on the same suburban turf. And on Monday, the battle for the hearts - and stomachs - of University at Buffalo students was joined. An Anchor Bar franchise is planned for the former Fuddruckers building, 4300 Maple Road, at Sweet Home Road, Amherst. The 250-seat restaurant will be the largest Anchor Bar restaurant so far, said Mark Dempsey, a company vice president. The newest franchise to bear the name of the Anchor Bar, the restaurant that is given credit for inventing the chicken wing, will be a short drive from the original Duff's location at Sheridan Drive and Millersport Highway in Amherst, a wing favorite of UB students and others for more than 30 years."

EVERYTHING IS AWESOME - Daily News' Ken Lovett: "What feud? A top aide to Gov. Cuomo Tuesday denied there is an ongoing feud between the governor and Mayor de Blasio.Speaking at a breakfast hosted by Crain's New York Business at the New York Athletic Club, Secretary to the Governor William Mulrow dismissed the public tensions between Cuomo and de Blasio as normal between governors and mayors.' know that's the storyline, I've read it a lot, we've all read it a lot - that the governor and the mayor don't get along, sometimes there are conflicts, sometimes that's not good for the state or the city,' Mulrow said. 'You know, I don't buy it.' Mulrow said Cuomo and de Blasio, who before the mayor took office in 2014 played up their longtime friendship, 'talk constantly' as do top aides from both administrations."

DE BLASIO POSTPONES WORK ON WATER TUNNEL -- Times' Jim Dwyer: "Mayor Bill de Blasio has postponed work to finish New York's third water tunnel, a project that for more than half a century has been regarded as essential to the survival of the city if either of the two existing, and now aged, tunnels should fail. The new tunnel has already been completed and is carrying water into Manhattan and the Bronx. But segments that would supply Brooklyn and Queens, home to five million people, though also virtually finished, still await the building of two deep shafts.

"If calamity or age forced the shutdown of City Water Tunnel No. 2, which is 80 years old, the primary water supply to much of Brooklyn and Queens would be lost for at least three months, city engineers said, the time it would take for an emergency activation of the sections of Tunnel No. 3 in Brooklyn and Queens that have already been finished. The entire Brooklyn-Queens leg of the new tunnel was scheduled to be finished by 2021, with $336 million included in the capital budget in 2013 by Mr. de Blasio's predecessor, Mayor Michael R. Bloomberg , for whom completion of the third tunnel was the most urgent and expensive undertaking of his tenure."

SUMMONS REDESIGN -- POLITICO New York's Gloria Pazmino: The city announced on Tuesday it will begin rolling out a new set of logistical aids to change summonses, reduce the number of open warrants and help New Yorkers better navigate the court system. "The changes we are rolling out today will help New Yorkers avoid unnecessary warrants - an important step toward a fairer criminal justice system," Mayor Bill de Blasio said in a statement. "These changes will also make sure we stay safe by allowing police to focus on threats to public safety." De Blasio, Chief Judge Janet DiFiore and Police Commissioner Bill Bratton jointly announced the new tools, which include a redesigned summons form, text message court date reminders and flexible appearances to help reduce the number of open warrants and allow the city to focus its policy resources on serious crime. According to data provided by the mayor's office, nearly 40 percent of people who receive a summons fail to appear, which has resulted in the courts issuing 135,143 warrants in the past year.

HOMELESS OUTREACH -- POLITICO New York's Brendan Cheney: Mayor Bill de Blasio announced on Tuesday that Dr. Michael Jacobson, a former commissioner under mayors David Dinkins and Rudy Giuliani, will lead Home-Stat, a multi-agency initiative to identify, track and house unsheltered homeless people. During a press conference at Tompkins Square Park, de Blasio also announced that the program is now fully operational. The city has had programs to contact and house unsheltered homeless people under previous mayors. Under former mayor Michael Bloomberg, city contractors in each borough worked to establish relationships with unsheltered, often chronically, homeless individuals to get them help and housing. The new program greatly increases those efforts, coordinates with the city's health, police, fire and emergency medical and sanitation services while also increasing tracking.

-- Homeless Man Removed From de Blasio Presser on Homelessness- Observer's Jillian Jorgensen: "In Tompkins Square Park, Mayor Bill de Blasio was just about to talk about the progress of his effort to help people living on the streets, dubbed Home-Stat. Jerry Foust sat in one of the blue chairs meant for the press, hoping to listen. 'I wanted to see the mayor talk about homelessness, because I'm homeless,' Mr. Foust said in an interview, as he smoked a cigarette on the edge of the park. 'And I wanted to fuckin' help homeless people. If I had the money, honey, no one would be homeless in this country.'"

EAT BEAT - "Del Posto Doubles Down on Luxury," by Times' Jeff Gordinier: "Extravagance - the chef sums it up as 'linen, crystal and silver' - has been the stated mission at this cavernous restaurant with a sweeping central staircase ever since it opened 12 years ago. But in recent months, the management has chosen to buck the prevailing winds in local (and international) gastronomy. ... Del Posto's new strategy for continued relevance is to double down on fancy."

--"Kazakh president unleashes inner 'Borat' at posh SoHo eatery," by Post's Ian Mohr : "[T]he Central Asian strongman demanded waiters at a posh Soho restaurant be replaced with his own lackeys, his dishes be disinfected with vodka, and a doctor test every morsel of food for danger ... Nursultan Nazarbayev was so worried about his safety during his visit to the celebrity hangout Mamo on Monday that he garrisoned the eatery with security guards. 'He had eight people from the [US] Secret Service inside the restaurant,' a witness told The Post. 'As well as 15 to 20 people from his own security detail. Outside the restaurant, it was insane.' Nazarbayev, 75, even had his food tested by an underling, as if he were some kind of ancient king instead of a modern national leader."

CHANGING CITY - "Fire latest blow to NYC area's once-thriving pigeon keepers," by AP's Karen Matthews and Michael Balsamo : "A Brooklyn fire last week that wiped out a pigeon keeper's flock of 500 birds was the latest blow to a working-class pastime that has dwindled from the days it was a passion of a young Mike Tyson and Marlon Brando's character in 'On the Waterfront.' Rising rents and gentrification have left only about 100 pigeon keepers in the New York City area, down from a few thousand during the heyday in the 1940s, '50s and '60s. But the tradition of pigeons flying over communities around New York City has dwindled over the years, driven mainly by a large chunk of the keepers and their families moving to the suburbs in the 1970s and '80s."

PIC -- @BuzzFeedAndrew: ".@BuzzFeedBen told @EricTrump the Trump campaign should stop running from BuzzFeed."

CLICK - Transcript of Bernie Sanders' meeting with the N.Y. Daily News editorial board, which did not go well.

NEW BERNIE AD -- "Erica" (Garner): "Bernie is not scared to go against the criminal justice system."

VIRAL BERNIE AD - "It's a Revolution": "Day in and day out, from sun up to sun down, volunteers and supporters all across this country have powered this political revolution. For that, we thank you."

PLAYBOOK IN-BOX: A friend responds to the ad: "Bernie's campaign definitely gets that you sell hope to the young and fear to the old."

MEDIA MORNING -- "How Megyn Kelly Survived Donald Trump," by Variety's Ramin Setoodeh -- Q: "Do you think there's a double standard in the news business when it comes to women?" A: "Let me put it to you this way. One of the biggest lessons I've learned in the past 10 months is we have a long way to go. We as women in the country-where we are, how we think of ourselves, what we're willing to accept-we have a ton of work to do." Do you think Trump's attacks on you are different because you're a woman? ... Q: "Your contract is up after the election. Have you decided if you're staying at Fox News?" A : "I haven't. You might not stay? Never say never. I don't know what's going to happen. I've had a great 12 years here, and I really like working for Roger Ailes. ... But you know, there's a lot of brain damage that comes from the job. There was probably less brain damage when I worked in the afternoon. I was less well known. I had far less conflict in my life."

--"Lester Holt on His Rise to the Top and Replacing Friend Brian Williams: 'This Wasn't About Us,'" by The Hollywood Reporter's Marisa Guthrie: "Holt, named one of THR's 35 Most Powerful People in Media in the New York issue, publishing [today], took over the anchor chair at NBC News during crisis. He now dominates ratings (and the newsroom) with a quiet, understated confidence that reveals more work ethic than ego - hence, that 'Iron Pants' nickname." ... Video, "Lester Holt Shares Advice for New Yorkers"

REAL ESTATE -- NO GOOD DEED-"Schneiderman subpoenas parties linked to Manhattan real estate deal," by POLITICO New York's Sally Goldenberg and Laura Nahmias: "The city's top lobbyist, a nursing home operator and a property appraisal firm are among those who have been subpoenaed by New York State Attorney General Eric Schneiderman as part of an investigation he has opened into an ongoing city land use scandal. Schneiderman's office sent the subpoenas to eight parties involved with the sale of Rivington House, a former nursing home for people with AIDS that is in the process of being converted into luxury condos on the Lower East Side. City officials at the Department of Citywide Administrative Services (DCAS) enabled the conversion by signing off on lifting a deed restriction that required the property be maintained as a health care facility. The Attorney General's Medicaid Fraud Control Unit issued subpoenas to lobbyist James Capalino; the Allure Group; and Metropolitan Valuation Services, an appraisal company. Sources familiar with the subpoenas confirmed those recipients. A source within the attorney general's office confirmed that there had been other subpoenas sent as well, but none to city governmental officials."

FOREIGN EXCHANGE-"100 Varick could become first NYC development funded (almost) entirely from China," by The Real Deal's Konrad Putzier: "A Renzo Piano-designed luxury condominium at 100 Varick Street could become the first major New York development to get debt, equity and mezzanine financing all from China. The developers' turn to the country comes as U.S. lenders increasingly shy away from funding luxury condo projects. Bizzi & Partners Development, Halpern Real Estate Ventures and Aronov Development are raising EB-5 funds for their 115-unit, 320,000 square-foot luxury condo development in Soho, according to a press release from Wailian Overseas Consulting Group, a prominent Chinese EB-5 placement agency. The developers already secured a $320 million construction loan from Bank of China and a $135 million equity investment from Cindat, the U.S. subsidiary of Chinese investment firm Cinda Asset Management."

OFF THE MENU-"Four Seasons Restaurant sets closing date," by Bloomberg News via Crain's: "Manhattan's Four Seasons Restaurant, the midtown dining spot for power brokers, celebrities and well-to-do tourists, plans to close on July 16 following a week of festivities at its Seagram Building home, where it has operated for more than half a century. The restaurant will probably be without a home for about a year, then move into a new space 'about five minutes' walking distance' from its current spot at 99 E. 52nd St., on the south side of the Seagram tower, co-owner Alex von Bidder said. The skyscraper's owner, RFR Holding LLC, co-founded by investor Aby Rosen, decided not to renew the Four Seasons' lease and has started making plans to install a new eatery in the space, designed by famed architect Philip Johnson. ... The closing will settle a longstanding conflict between the restaurateurs and Rosen, who has regarded the Four Seasons as tired and part of the past."

THE HOME TEAMS -- POLITICO New York's Howard Megdal: Syracuse's own Breanna Stewart won her fourth national title in four years Tuesday night, scoring 24 points in UConn's 82-51 win over the school she grew up rooting for. I have never seen anything like this team.

-- Astros 5, Yankees 3: Carlos Correa hit a two-run homer, and Dallas Keuchel beat the Yankees yet again.

-- Mets 2, Royals 0: Neil Walker launched a two-run homer in support of Noah Syndergaard's six shutout innings.

-- The day ahead: Old friend Jeremy Lin and the Charlotte Hornets come to The Garden. The Nets are in Washington. The Yankees host the Astros.

#UpstateAmerica: Fayetteville's culling program resulted in nearly 90 deer being eliminated.

** A Message from Nuclear Matters: New York's existing nuclear energy plants provide 61 percent of the state's carbon-free electricity and play a vital role in achieving our clean-energy and carbon-reduction goals. Additional premature retirements of safe, reliable nuclear energy plants mean New Yorkers would pay more for electricity, the economy would suffer and we would face substantially higher carbon emissions.

New York has taken an essential step forward to address the premature closures of our nuclear energy plants. The proposed development of a Clean Energy Standard by the Public Service Commission would, for the first time, ensure that existing nuclear plants are valued for their carbon-free attributes.

We urge the state to include all of New York's existing nuclear energy plants, regardless of their geography in the state, in the proposed Clean Energy Standard. All nuclear energy facilities bring significant reliability and clean-air benefits to New York. Learn more: **

FOR MORE political and policy news from New York, check out Politico New York's home page:

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