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POLITICO New York Playbook, presented by RBC Capital Markets: CUOMO's tunnel problem (too) -- PEEBLES for mayor? -- 'LOUIS' on WNYC

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

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NOT CUOMO'S, BUT NEW YORK'S-POLITICO New York's Dana Rubinstein: A reader would be forgiven for thinking the deteriorating Amtrak tunnel that haltingly carries New Jersey commuters beneath the Hudson River deposits its riders somewhere west of Manhattan. 'It's not my tunnel!' said Andrew Cuomo, the governor of New York State, which includes Manhattan, the borough where the tunnel terminates. By Cuomo's lights, New York is really nothing but a terminus for the Garden State hordes. And if that's true, why should New York have to play any role in supporting a new tunnel to back up the existing one now falling apart?

The fact that Cuomo has gotten away with that argument for as long as he has is partly a testament to the circus-like atmosphere surrounding the presidential candidate across the river. In 2010, New Jersey Governor Chris Christie famously cancelled the last funded plan for a new rail tunnel beneath the Hudson River, a decision U.S. Senator Chuck Schumer recently called "one of the worst moves made by any political figure in the New York area for over 100 years." With delays in the tunnel apparently increasing, and Amtrak casting about for new funding for its possibly $20 billion tunnel program called Gateway, Christie's tunnel escapades are again occupying center stage. Cuomo appears content to watch from the sidelines. http://politi.co/1JgDjLd

--"Officials promise to work together on Hudson River tunnel," by AP's David Porter and David Klepper: "Gov. Chris Christie, New Jersey's two U.S. senators and Transportation Secretary Anthony Foxx vowed Tuesday to work together to obtain federal money for a $14 billion rail tunnel under the Hudson River - though New York Gov. Andrew Cuomo's absence highlighted the challenge of bringing together the many parties involved in the complicated project. Christie, Sens. Cory Booker and Bob Menendez and Foxx said in a joint statement that they had a 'substantive and productive meeting' and 'all of us are committed to working together on a path forward on this critical project.'" http://yhoo.it/1E4VGXl

AN ASTERISK TO CUOMO'S PITCH-POLITICO New York's Jimmy Vielkind: The top Democrat in the state Legislature said on Tuesday that General Electric needs to be a good corporate citizen, and that New York should consider its record before offering any incentive package to lure the industrial giant's headquarters back to the Empire State. (POLITICO New York reported that Governor Andrew Cuomo had made an unannounced visit to GE's Connecticut headquarters to make a pitch for moving.) Standing next to a solar-powered boat on the shore of the Hudson River - where he was greeted by local officials, environmental activists, and a blazing sun - Assembly Speaker Carl Heastie listened to arguments making the case that GE should do more to clean up the river. "I know that this has been a huge issue here, in the Assembly. Many of our colleagues support the clean-up here," Heastie said. "I believe companies should be good corporate citizens and they have a social responsibility, and I think in the discussion on GE moving here, their responsibility and what they need to do here should be part of any discussion." http://politi.co/1WDrRDx

DE BLASIO: DONOR TREATMENT ORDINARY -- POLITICO New York's Conor Skelding: Mayor Bill de Blasio said Tuesday that there was nothing extraordinary about his administration's response to a campaign donor who asked City Hall for help with utility outages at her Greenwich Village co-op.

"Yeah, I know the situation from the story. I don't really know her personally,' he said on Tuesday, interrupting a reporter as she began her question. The campaign donor, the lawyer Roberta Kaplan, had emailed an aide, Avi Fink, as well as Berlin Rosen co-founder Valerie Berlin regarding a heat and hot water outage following a water main break. After Kaplan's email, non-emergency complaints involving her building, which are usually investigated within forty days, were investigated within a day.

-- "It's normal that anybody who reaches out -look, I have constituents who walk up to me on the street all the time," de Blasio said. "I make sure their cases are followed up on. Anyone who reaches out to us, we're going to do all we can to make sure things are handled right. No situation is too small." http://politi.co/1hKPIRC

DONOR FLOATS CITY HALL CHALLENGE -- Don Peebles and wife donated almost $10,000 -- Post's Carl Campanile: "One of the nation's wealthiest black business leaders is considering mounting a self-financed campaign to topple Mayor de Blasio in 2017 - saying he has lost faith in the candidate he once supported. 'I'm giving serious thought to running for mayor of New York City ... I was a political supporter of Bill de Blasio,' real estate mogul Don Peebles told The Post on Tuesday. Peebles and wife Katrina contributed $9,675 to de Blasio's 2013 campaign and inaugural committees, records show. But during an extensive interview, the lifelong Democrat - who is reportedly worth $700 million - delivered a withering attack on the mayor's handling of taxes, charter schools, stewardship of the NYPD and chilly relations with Gov. Cuomo. 'I've lost confidence in him. It would be irresponsible of me to do nothing,' said Peebles, 55, who owns the largest African-American-run real-estate company in the United States." http://goo.gl/75RNMB

POST COVER - "EXCLUSIVE: TOP BACKER BOMBSHELL - BILL'S LOST ME! -Mayor is anti-business -Anti-student -And anti-cop": http://nypost.com/cover/

MOMENT OF ZEN, ALREADY -- Times' Michael Grynbaum and Matt Flegenheimer: "Mr. de Blasio, in a news conference at City Hall on Tuesday, showcased a side of his personality that New Yorkers have seen little of lately: crankiness replaced by comity, defiance replaced by evenhandedness. When his press secretary, Karen Hinton, signaled that it was time to go, Mr. de Blasio, a former campaign manager who has a habit of overruling aides, collected his papers and walked off. The appearance was a sign, preliminary to be sure, that Mr. de Blasio may be starting to heed the concerns of allies and advisers who are worried that a pileup of political headaches and public-relations bungles have dimmed views of his administration." http://nyti.ms/1J2RnsB

--"NYC mayor's office screening sensitive records," by AP's Jake Pearson: "Mayor Bill de Blasio, who promised to run the most transparent administration in city history, has taken steps to have his office review any public records request of any city agency that could 'reflect directly on the mayor.' That broad mandate, outlined in a May 5 email obtained by The Associated Press, could give de Blasio's office control over virtually all newsworthy Freedom of Information Law requests from journalists, watchdog groups or members of the public." http://apne.ws/1LiS6sq

QUOTE OF THE DAY: "You know, I really like this mayor, and it's bothered me that there's sort of a culture of clickbait in the news right now that only little negative stories get attention." -- a caller to WNYC's "Brian Lehrer Show" who identified himself as "Louis in the Village," who sounded like de Blasio ally and comedian, Louis C.K. http://bit.ly/1TSxCc4

TABS -- Post: "EXCLUSIVE: TOP BACKER BOMBSHELL: BILL'S LOST ME! Mayor is anti-business; Anti-student; And anti-cop" -- News: "Flesh pit pimps: Claim art, but it's really about cash" -- amNY: "KISS'EM GOODBYE! Mayor plans to rein in Times Square Tip Seekers" -- Metro: "De Blasio: Mayor's job is seven days a week" -- El Diario [translated]: Naked Girls: 'We do nothing wrong.'

FRONT PAGES -- NYT, 2-col. below the fold: "Hurricane Sandy's Red Tape: 'I'd Rather Go Back to Falluja'" -- WSJNY, 1-col. above the fold: "De Blasio Takes Aim At Begging By Topless"

**A message from RBC Capital Markets: RBC Capital Markets ' U.S. Municipal Finance group strives to help our clients build better communities. We believe design-build procurement enables clients to do so more efficiently and effectively with existing resources. To learn about the successes of design-build implementation, click here for a full report by NYU's Rudin Center. **

#PatakiWatch: @ChrisCuomo interviews @GovernorPataki, the man who ousted his father from elective office http://politi.co/1Jp9zSy Watch: http://cnn.it/1Jp4zxh

HAPPY BIRTHDAY: Queens Borough President Melinda Katz.

FISHKILL INMATE DIED AFTER FIGHT WITH OFFICERS-Times' Michael Winerip and Michael Schwirtz: "In the four months since, state corrections officials have provided only the barest details about what happened at Fishkill, a medium-security prison in Beacon, N.Y., about 60 miles north of New York City. Citing a continuing investigation by the State Police, officials for weeks had declined to comment on the inmates' accounts of a beating. An autopsy report by the Orange County medical examiner, obtained by The New York Times, concluded that (inmate Samuel Harrell), 30, had cuts and bruises to the head and extremities and had no illicit drugs in his system, only an antidepressant and tobacco. He died of cardiac arrhythmia, the autopsy report said, "following physical altercation with corrections officers." http://nyti.ms/1hLxgbo

-- The state's Correctional Association is urging the federal Department of Justice to expand its investigation into the state's Department of Corrections and Community Supervision following the death. http://politi.co/1J2QyQr

CONNECTICUT REACTS TO GE FISHING-Hartford Courant's Daniela Altimari and Christopher Keating: "A spokesman for (Connecticut) Gov. Dannel P. Malloy declined comment Tuesday on a report that his fellow Democrat, Gov. Andrew Cuomo of New York, made a recruiting trip last month to General Electric Co. headquarters in Fairfield. Cuomo quietly met with GE executives on July 30 and talked about incentives for a possible move to nearby Westchester County, N.Y., according to a report Tuesday by Politico New York. Republicans said Cuomo's visit was important. 'This is not Texas or Florida,' said Sen. Tony Hwang, a Fairfield Republican whose district includes GE. 'This is the next state over. It's much more dramatic. This is New York, and they are making a pitch, and GE is entertaining it.'" http://cour.at/1Plaf9V

NYCHA CHAIR VS. 'NOSTALGIA' -- POLITICO New York's Laura Nahmias: The chairwoman of the New York City Housing Authority is preparing herself for what could be a contentious four months. She's likely to face opposition from Housing Authority tenants angry over plans to turn over green space in the authority's projects to developers who will build market-rate and affordable units. Tenants don't want to lose their green space, and they especially don't want to lose it to developments designed for residents who are somewhat better off than most residents of the projects.

The authority chairwoman, Shola Olatoye, says they can't be guided by sentiment. "There are very strong feelings on both sides," the chairwoman said. "Our open spaces are precious resources that should be stewarded and cared for, and you know what? I agree." But, she said in an interview with POLITICO New York, "If you go to any of those open spaces today, they're strewn with trash. We don't have the resources to keep up with them, no one is sitting in them because they're gated off. So I think there's a little bit of this nostalgia that's heaped on the authority. ... If we only could go back to the good old days." http://goo.gl/fZ20D9

HILLARYWATCH - "Allies fault Hillary Clinton's response on emails," by Politico's Annie Karni in Las Vegas: "A news conference on Tuesday in Las Vegas grew heated as Clinton was grilled about whether or not she had tried to wipe her email server. ... David Brock ... told POLITICO he has heard concerns from the donor class [that the] barrage of headlines [is] harming the campaign. He added that campaign surrogates ... have sometimes done a poor job of presenting the argument to win what he deemed another wholly partisan fight. Some Democratic strategists said their advice would have been to 'get it out there, get it done with, get it behind you,' by turning over everything - emails, server, thumb drives - to the Justice Department months ago to move on. ... A campaign aide [said] if there is any slow drip of news, the aide said, it's only because of the endless review process of the inspectors general, as well as monthly email dumps by the State Department." http://politi.co/1E4PiPL

JAMES CARVILLE on Correct The Record, "Pay no attention to the 'full-scale Democratic freakout": "[F]inding a 'nervous Democrat' is about as hard as finding a drunk in the French Quarter." http://bit.ly/1hLTYjF

HILLARY's new 30-second ad, "Reshuffle," off embargo at 6 a.m.: Hillary to camera, airing this week in Iowa and N.H.: "When you see that you've got CEOs making 300 times what the average worker's making, you know the deck is stacked in favor of those at the top. I want it to be back where it was when I came of age. Where my mom, who never got to go to college, could see her daughter go to law school. We need to have people believing that their work will be rewarded. So I'm going to be doing everything I can to try to get that deck reshuffled so being middle class means something again." Video http://bit.ly/1hnGFWI

--"Hillary ... [c]ampaign wants donors to pay for their own food, parking," by Politico's Ken Vogel: "Clinton's campaign, which has struggled to keep costs in check, wants donors to pay for their own food and valet parking at fundraising events ... The request ... sketches out a novel accounting plan under which the Clinton campaign would shift some fundraising costs to donors, without counting against their contribution limits." http://politi.co/1Kv8zXM

REAL ESTATE -- DEVELOPMENT DISPUTE-"Debate continues over Brooklyn Heights Library redevelopment," by POLITICO New York's Kelly Weill and Sally Goldenberg: "A labor-backed coalition that supports construction of residential towers in Brooklyn Bridge Park urged the builder of a nearby, and equally controversial plan to redevelop the Brooklyn Heights Library to use union workers as well.

''If done in a responsible manner, the redevelopment of the library could be beneficial to the community. We are here today to urge you to recommend that Hudson Companies provides good jobs, affordable housing and (minority and women) contractors enough funding that those can grow and thrive and provide the good jobs Brooklyn residents deserve,' Carole Raftrey of the politically active coalition Build Up NYC said during a rowdy public meeting Tuesday night at Brooklyn Borough Hall.

"Hudson Companies has yet to commit to using union workers for the project. More than 100 residents shouted over each other at the standing-room-only meeting." http://politi.co/1Nj2fZl

NOT OVER MY BACKYARD-"Skyscraper that would soar over Sutton Place runs into neighborhood opposition," by Times' Charles V. Bagli: 'Herndon Werth met with several lawyers last week in a restaurant around the corner from his home of over 40 years, on a sleepy stretch of 58th Street near luxurious Sutton Place on the East Side of Manhattan. They offered to give him an apartment rent-free for life, moving expenses and, by one account, $1 million, if only he would vacate his rent-regulated studio on the top floor of a six-story brownstone. ... Mr. Werth is only one obstacle in the quest by the developer, Joseph P. Beninati, to build the deluxe skyscraper.' http://nyti.ms/1Mx0ne0

BROOKLYN BOOM-"Brooklyn residential construction reaches 10-year high," by POLITICO New York's Sally Goldenberg: "Brooklyn's housing boom, and its skyline, are reaching new heights. New data released on Tuesday shows overall residential construction is set to hit a 10-year peak next year, based on projects that have been announced or are in the pipeline. The website CityRealty's 'Brooklyn Development Report' found that about 22,000 new apartments are on pace to be built in Kings County through 2019, including 2,700 new units this year and 5,000 next year." http://politi.co/1J1xwMx [PRO]

THE HOME TEAMS -- POLITICO New York's Howard Megdal: Mets 5, Orioles 3: A routine win became anything but when Lucas Duda and Jeurys Familia got confused about who should cover first on what would have been the final out of the game. Two bases-loaded walks followed, and only a groundout by Manny Machado with the winning run at first kept this from turning into a Mets debacle for the ages.

-- Yankees 8, Twins 4: Old friend Mike Pelfrey came back to town and pitched well for six innings. But Alex Rodriguez launched the 25th grand slam of his career off the Twins relief corps to give the Yankees a lead they wouldn't relinquish.

-- The day ahead: the Mets are still in Baltimore. The Yankees host the Twins in a matinee at Yankee Stadium. NYCFC heads to Columbus.

COFFEE BREAK -- "Beatles' first recording contract to be auctioned next month," by AP's Ula Ilnytzky: "The Beatles' first recording contract was signed in Hamburg, Germany, where the band honed its craft playing gigs in the city's boisterous nightclub district. The 1961 recording session produced the single 'My Bonnie.' It was released on the Polydor label in Germany only and never hit the top charts. But the tune led directly to the Beatles' discovery back home, a contract with EMI the following year and their first hit, 'Love Me Do.' Heritage Auctions will auction the six-page contract in New York on Sept. 19 for an estimated $150,000. It's the centerpiece of a Beatles collection spanning the band's entire career." http://yhoo.it/1K5wyAR

#UpstateAmerica: You can now get Sahlen's hot dogs in Arizona. http://bit.ly/1Jp5A8K

**A message from RBC Capital Markets: RBC Capital Markets is a recognized leader in U.S. Municipal Financing. RBC is North America's 5th largest bank and has been named by The Economist as the World's Most Trusted Investment Bank. With the resources, national presence and global experience, we focus on assisting our clients with their infrastructure financing needs. **


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