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POLITICO New York Playbook, presented by The Business Council's Annual Meeting: SUBWAY celebrated, tensely -- TIM WU's new job -- MORELAND discontent

09/14/2015 07:40AM EDT

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

OPENING A NEW STATION, WITH BARBS -POLITICO New York's Dana Rubinstein: It was all smiles and ill feeling Sunday morning, when the Metropolitan Transportation Authority's chairman and Mayor Bill de Blasio inaugurated the New York City's 469th subway station, the first in 26 years. De Blasio and Tom Prendergast, the MTA's chairman, shook hands. Prendergast and de Blasio's transportation commissioner, Polly Trottenberg, exchanged kisses. But rancor simmered beneath the politesse.

Cuomo didn't attend the opening of New York City's first new subway station in two and a half decades. (Nor did former Mayor Michael Bloomberg, who made the project happen). But on Sunday morning beneath the glass canopied subway stop, Prendergast continued to press the state agenda. "Eighty percent of the [MTA's] trillion-dollar asset is in New York City," said Prendergast, during his formal remarks. "And Mayor de Blasio, we appreciate your support of this project, but we need your help."

De Blasio commended Bloomberg's "vision" and obvious passion for the 7 train project, which Bloomberg had the city fund. Then de Blasio responded to Prendergast. "We're very proud of the $2.4 billion dollars we invested in this project right here, $2.4 billion dollars," said de Blasio. "I think it's very important we remember the facts. The city of New York and the people of New York are the backbone of the funding of so much of the MTA. We pay 73 percent of the MTA budget through the city government's contribution, through the fares our people pay, the tolls our people pay, the taxes our people pay. We are doing our share."

'BUM-STAT' -- News' Thomas Tracy, Erin Durkin and Jennifer Fermino: "Operation "Bum-Stat" is in full effect. The NYPD is mining some of the data-driven tactics it used to bring down crime in the late 1990s and applying them to the homeless crisis, multiple sources tell the Daily News.

-- "All precinct commanders are now required to inform higher-ups about homeless problems on their watch, including encampments, aggressive panhandling and crimes in homeless shelters, NYPD sources said. They are also expected to tabulate 311 calls about homelessness in their command. The information is then sent to 1 Police Plaza, the NYPD's lower Manhattan headquarters, to be analyzed. ... In another sign of how seriously the NYPD is taking the crisis, nearly all of the department's weekly CompStat meetings - typically devoted to crime trends - focused on the homeless problem two weeks ago, said one attendee."

-- Related: "Rudy Giuliani says people living in shelters aren't homeless."

#PatakiWatch: George Pataki said he won't vote for Donald Trump to be president, calling him "unfit" to hold the office.

-- @RealDonaldTrump: Why is someone like George Pataki, who did a terrible job as Governor of N.Y. and registers ZERO in the polls, allowed on the debate stage?

HAPPY BIRTHDAY: Assemblymen Angelo Santabarbara and Ken Blankenbush, freelance flack Dan Morris, Times reporter Matt Flegenheimer, and senior associate editor at The Atlantic Russell Berman.

PIC OF THE DAY: Karen Hinton, back in the day, with whiskey and a cigarette.

CLICKER - "Before-and-after photos show how Brooklyn's bodegas, shops and garages became slick breweries, brunch spots and hotels in little more than five years" - The Daily Mail -- 25 pix on one page

TABS -- Post: "PULLING OUT: Exec [Arthur Schwartz] quits Weiner firm [MWW] - fears he's Carlos Dangerous" -- News: "BUM-STAT: Bratton orders data driven push to curb homeless crisis" -- amNY: "7's UP!" -- Metro: "7-UP" -- El Diario [translated]; The 7 train finally arrives at 34th Street

FRONT PAGES: NYT, 3-col. below the fold; "Now Arriving After 25 Years, a New Subway Stop" -- WSJNY, 4-col. above the fold: "Bold Ambitions, Bad Blood"

QUOTE OF THE DAY: "The investigation should be completed before a decision is made about the officer's status." -- Karen Hinton, de Blasio's press secretary, via Daily News:

BONUS QUOTE OF THE DAY: "It can't be an apology and then we move on our way. ... I would welcome a meeting with the commissioner, with the mayor, with whoever else feels the need to speak about this. I would love to learn what their plan is." -- James Blake, former tennis player wrongfully tackled and handcuffed by an NYPD officer, via Post:

** A message from The Business Council's Annual Meeting: Register now for The Business Council's Annual Meeting (Sept. 16-18). Hear from education reform advocate Campbell Brown. Mingle with hundreds of the state's top business executives, all while enjoying the beautiful vistas of Lake George. Register: **

EAT BEAT - "New York Taste Returns November 10" - Grub Street: "Gillian Duffy has lined up a roster that includes Upland's Justin Smillie, Bâtard's Markus Glocker, Marcus Samuelsson from Red Rooster and Streetbird Rotisserie, Daniel Eddy of Rebelle, Laurent Tourondel (who just opened L'Amico), Toro's Ken Oringer and Jamie Bissonnette, and plenty of others. Drinks, meanwhile, will be handled by the likes of Julie Reiner and Audrey Saunders. The whole thing goes down at the Waterfront Building on Eleventh Avenue, and tickets are available as of today: $100 gets you in via general admission, or for $195 you can get VIP access an hour earlier, access to the VIP lounge, and a special VIP gift bag. The most important part: Either option grants you access to all you can eat and drink, prepared by some of the most talented chefs in the city."

BHARARA ASSERTS MORELAND CONCERNS - Times' William K. Rashbaum, Susanne Craig and Thomas Kaplan: "Senior officials of a state anticorruption commission shut down last year by Gov. Andrew M. Cuomo have told federal prosecutors that they believed he and his staff intervened in its operations "in a manner that, at times, led them to question the independence" of the panel, the prosecutors said in a recent letter. The letter, which briefly summarizes the officials' statements, was attached to court papers filed on Friday night by lawyers for Sheldon Silver , the former Assembly speaker, as he prepares for his corruption case in federal court in Manhattan. The officials have not spoken publicly about the involvement of the governor's office in the operation of the panel, which was known as the Moreland Commission. Their statements to prosecutors are in contrast to Mr. Cuomo's assertions last summer that his office did not inappropriately intervene in the work of the panel, which he created in July 2013 and abruptly disbanded nine months later. ... A spokesman for Mr. Cuomo, John P. L. Kelly, said on Saturday, 'The Times and other media outlets have extensively reported on the views of various commission members and staff regarding their relationship with the Executive Chamber.' "

ANDREW AND JOE - POLITICO New York's Dana Rubinstein: Don't let all of the governor's buddying around with the vice president fool you: Andrew Cuomo is not endorsing Joe Biden for president, he insisted Friday afternoon after the two attended several September 11-related events together. He and the vice president are merely carrying out "governmental functions." Biden, who's thinking about running for president, and Cuomo, who has endorsed Hillary Clinton's presidential campaign, have been spending a lot of time together lately. Biden joined Cuomo on Thursday, when the governor announced his support for a $15-an-hour statewide minimum wage. "We wanted to get attention to the minimum wage proposal," Cuomo explained on Friday.

-- The governor explained how his minimum wage proposal is feasible, and consistent with his earlier proposals.

-- Cuomo also backed up the state's corrections officers, who he said have a "very difficult job" and "have to make sure they get a certain amount of respect ... Otherwise they get hurt."


-- Host Bill Ritter: "Would you have done something different?

-- Ray Kelly: "No. Absolutely, it's a lifesaver ... If you go to grassroots, minority communities, there's a big desire for stop-question-and-frisk."

JOYCE MITCHELL, WHO AIDED DANNEMORA ESCAPE, SPEAKS - NBC exclusive interview with Matt Lauer: 'I'm just somebody that got caught up in something that she couldn't get out of,' Mitchell, 51, said during the interview that took place in Clinton County Jail, where she is awaiting sentencing. 'I am so sorry for everything that everyone went through because of me ... I never, never wanted this to ever happen. Never. I would take it all back, if I could. But I can't.' ... Asked by Lauer whether Richard Matt had 'complete control' over her, Mitchell responded affirmatively: 'Yes. He was good at that.'"

WEEKEND WEDDINGS -- "Dana Schuster, Adam Kopald" - Times announcement: "The bride, 30 ... is a senior features writer and features editor at The New York Post and graduated cum laude from Yale. ... The groom, 32, is an associate in the New York office of Goodwin Procter, the Boston law firm, where he is a member of the real estate capital markets and hospitality and leisure practices. He graduated from Princeton and received a law degree from N.Y.U. ... The couple met at a wedding in September 2011 in Garrison, N.Y." With pic

--"Anna Sale and Arthur Middleton: A Political Favor Wins Her Back," by Eric V. Copage in the Times: "Ms. Sale is the host and managing editor of 'Death, Sex & Money,' a sometimes cheeky podcast on WNYC described as a discussion of those things that are often left out of polite conversation. Her friends say she is ambitious and driven, but also kind and considerate. ... Dr. Middleton, who sports a suntan that borders on sunburn, the kind of complexion that comes from working outdoors for days at a time, is a research scientist at the Yale School of Forestry and Environmental Studies and has studied firsthand the behavior of wolves, bears, elk, pumas and condors in the wilds of Wyoming and Argentina. ... Ms. Sale, 35, and Dr. Middleton, 36, met in 2011 at a July 4 weekend party after both were invited by Mr. Lieber, who said he was not intending to play matchmaker at the time." With pic

SPEED READ -- "Cities United, de Blasio's Immigration Coalition, Has Big Goals but Modest Start," by Times' Alex Burns: "Over the past nine months, Mr. de Blasio's coalition, Cities United for Immigration Action, has become an entity of far more modest proportions. It has struggled with the polarized politics of immigration and encountered logistical turbulence in its efforts to coordinate action across dozens of cities. Like the Obama administration, it has been buffeted by court rulings that have stopped the president's policies from taking effect. Some advocates have expressed dissatisfaction with the level of drama involved in the coalition's start: An early fight over the authorship of a high-profile legal brief left immigration leaders frustrated by what they viewed as a heavy-handed approach by officials in New York. At least one major advocacy organization, the National Immigration Forum, quietly withdrew from the coalition this year."

CAPITOL MOVES: "Tim Wu, Open Internet Advocate, Joins New York Attorney General's Office," by Times' Thomas Kaplan: "Mr. Wu's appointment brings a well-known figure in technology circles to Mr. Schneiderman's office, which has sought to assert itself as a watchdog over technology companies and the so-called sharing economy. Mr. Wu, who starts his job on Monday, will serve as a senior lawyer and special adviser to Mr. Schneiderman, the attorney general's office said. He will be on sabbatical from Columbia Law School, where he is a professor. 'If I have a life mission, it is to fight bullies,' Mr. Wu, 43, said in an interview. 'I like standing up for the little guy, and I think that's what the state A.G.'s office does.' Mr. Wu will focus on issues involving technology, including protecting consumers and ensuring fair competition among companies that do business online."

REAL ESTATE -- BOOM OR BUST-"Brooklyn's Possible Housing Glut," by WSJ's Douglas Feiden: "It came as no surprise two years ago in an earnings call that Equity Residential, the giant apartment landlord, was bullish on Brooklyn. The borough 'has come on strong with double-digit base rent growth,' said David Santee, chief operating officer of the real-estate investment trust. Today, though, Chicago-based Equity is striking a different chord: While its Manhattan assets are generating strong demand and, in turn, higher rents, Brooklyn 'is really dragging the portfolio down,' Mr. Santee said in a discussion of second-quarter results this summer."

ESCAPE CLAUSE-"The Loophole In De Blasio's New Mandatory Inclusionary Zoning Policy," by YIMBY's Rebecca Baird-Remba: "On the last day of July, the de Blasio administration quietly introduced a key piece of its plan to build 80,000 affordable units of housing: mandatory inclusionary zoning. The framework will require market-rate developers to set aside at least 25% of their units in each new building as affordable housing. As the city rezones several neighborhoods across the five boroughs, they'll impose the policy along with the updated zoning-beginning with East New York.

"But there's a loophole in the policy that's barely seen the light of day. New buildings with 10 units or less won't have to abide by the new mandatory affordable rules. And that's huge for East New York, where virtually all new market-rate construction is three or four-story masonry structures with fewer than 10 apartments. Taller steel-frame buildings cost more to build and are more to challenging to finance, particularly if they have subsidized units. Rents in the area simply aren't high enough to justify the cost. ...

"So will builders start dividing their units to avoid the new mandatory affordable rules, just like they've done for parking requirements? Well, City Planning has thought of that. Sources tell us that the rules for mandatory inclusionary zoning will prevent builders from splitting up units to sidestep the 10-unit threshold. Or the city could simply require developers of larger projects to rent 25% of their units at below-market rates, regardless of whether they're in the same building."

SOARING RENT-"Citadel to pay priciest rent in city history, if not the world," by Crain's Daniel Geiger: "A new king has been crowned at the top of Manhattan's office market. The developer of 425 Park Ave., a 900-foot-tall luxury office tower under construction between East 55th and 56th streets, has signed a deal with the hedge fund Citadel to take over 200,000 square feet at the property for a record-breaking sum. The lease includes the building's penthouse, which Citadel has agreed to pay $300 per square foot to rent."

THE HOME TEAMS -- POLITICO New York's Howard Megdal: Mets 10, Braves 7: There's no longer any drama in watching the Mets, just waiting for precisely how they'll win. Sunday, it was a ninth-inning, two-out comeback down three runs, capped by a Daniel Murphy three-run homer, with three more in the tenth to seal it. Their magic number is 11.

-- Yankees 5, Blue Jays 0: Facing a potential sweep at the end of a disappointing weekend, Masahiro Tanaka dominated for seven innings while Dustin Ackley homered. The Yankees now trail the Blue Jays by 3.5 games, though they lead the wild card chase, three ahead of Texas and four ahead of Minnesota.

-- Fever 81, Liberty 76: Sugar Rodgers scored 15 to lead a balanced attack in a game that didn't really matter, since the Liberty already clinched the top seed in the WNBA playoffs. That begins 7 PM Friday at The Garden against the Washington Mystics.

-- Bills 27, Colts 14: Rex Ryan won the opener, his trademark defense shutting down Andrew Luck and the Colts.

-- Jets 31, Browns 10: Todd Bowles won his Jets coaching debut at home, the first Jets coach to do so since Sammy Baugh did so in the franchise's first game back in 1960. Ryan Fitzpatrick threw for two scores, and Chris Ivory ran for two others.

-- Cowboys 27, Giants 26: A forced fumble by Brandon Meriweather led to a Giants touchdown with eight minutes left to put the Giants up 23-13 with eight minutes left. But some heroics from Tony Romo and poor late-game offensive planning (Eli Manning inexplicably stopped the clock with less than two minutes to go) doomed the Giants in Week 1.

-- The day ahead: the Mets return home to host the Marlins. The Yankees are off to Tampa Bay.

COFFEE BREAK -- "East Village's Birdman Abandoning His Nest of CDs and Cassettes," by Times' Corey Kilgannon: "For 17 years, the Birdman was known among East Village music collectors as having the messiest CD store imaginable: Rainbow Music, on First Avenue. During a visit to his shop recently, the Birdman reluctantly confirmed that his given name was Bill Kasper, and that he was closing for good at the end of the month, after running the shop seven days a week with little time off. ... Collectors are already mourning the news that yet another mom-and-pop shop that added to the eclecticism of the East Village was disappearing. 'There used to be 20 record stores down here - J&R, Bleecker Bob's, Rockit Scientist - but there are very few of us left,' Mr. Kasper, who is 73, said."

#UpstateAmerica: Check out this Bills fan.

**A message from The Business Council's Annual Meeting: Time is running out! Register NOW for The Business Council's Annual Meeting (Sept. 16-18). Engaging speakers, incomparable access to business leaders and politicians and the striking beauty of The Sagamore Resort on scenic Lake George await you at The Business Council of New York State's Annual Meeting. The event features a keynote address from Campbell Brown, plus panels on: protecting your company from a cyberattack; the latest changes to the ACA; the state of Albany from people who lived it; and much more. Speakers include: former Governor David Paterson; Bob Duffy, the President and CEO of the Rochester Business Alliance; former Assemblyman Michael Benjamin; former Senator George Winner; plus policy experts from the U.S. Chamber, the Cuomo administration and the state Legislature. Register: **

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