Kingstonian Saga Continues. Are KLDC Members Liable if They Gift Land in Bad Faith?

“…Spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.” ― Thomas Jefferson

May 19, 2021

Kingston, NY – A local group tasked with gifting a prime Kingston parcel and perhaps a city street to a controversial luxury housing project may risk charges that its members acted in bad faith.

Developers of the Kingstonian multi-use project and their cheerleaders in local government are counting on the Kingston Local Development Corporation (KLDC) to transfer the land in order to avoid statutory requirements for open bidding. It was unclear from the agenda whether the vote would take place at the monthly meeting on May 20.

The KLDC’s by-laws refuse to shield its members from legal judgments if they act in “bad faith.”

The by-laws also forbid participation “directly or indirectly in any political campaign on behalf of or in opposition to any candidate for public office.” Yet a few days ago, Mayor Steve Noble, who is also president of the KLDC, took the unusual step of endorsing two candidates for the Kingston School Board in an election that was widely seen as a referendum on tax breaks for the Kingstonian. The incumbents, who had voted against the tax break, trounced the challengers.

It was unclear whether the mayor’s actions would redound to the entire KLDC, or whether a member who voted to gift the property was aiding and abetting the mayor in his violation of the Certificate of Incorporation.

Prohibition Against Conflict of Interest

Even if the remaining KLDC members remain unscathed by the mayor’s School Board endorsement, there’s no way they could have missed that developer and ex-KLDC member Brad Jordan violated the provisions against conflict of interest. The original document calling for the parcel to be developed, known as an RFQ, or Request for Proposals, contained that prohibition on P. 12. Although plans for the Kingstonian were hatched in 2017, Jordan remained on the KLDC until early 2021. He also still sits on the Police Commission.

Local architect Andrew Wright originally won the rights to develop, but in June 2017 he sold those rights to Jordan and Jordan’s partner Joe Bonura, a Poughkeepsie developer. Mayor Steve Noble approved that assignment on June 26, 2017. The developers were supposed to sign a “binding contract” with the city, but none appeared to be on file. Such a contract would surely have had to revisit the issue of conflict of interest.

City Lawyer “Gary Daniels”: Tax Break Opponents are in Rival Developer’s Pocket

A Facebook user by the name of Gary Daniels recently posted that “self-proclaimed progressive community activists” were in the pocket of rival property owner Neil Bender, who has sued the Kingstonian developers. After uncovering information linking the post to City Attorney Dan Gartenstein, The HV Vindicator published a satire that included screenshots of the original thread and FB page.

KingstonCitizens dot org, a local community group, asked the City for confirmation of Gary Daniels’ identity. Within an hour, the posts were removed and the Facebook page was taken down. KingstonCitizens received no reply, so it sent a follow-up email, but once again, there was no response. No local publications have investigated.

Conflict of Interest on DRI Committee

Jordan was also appointed to sit on a local committee chosen to allocate a $10 million Downtown Revitalization Award from Gov. Andrew Cuomo, but apparently the conflict of interest was too blatant, and he stepped down in December 2017.

But the decisions had already been made, including a $3.8 million allocation to the Kingstonian. “I felt like they knew what had to be done with the majority of the money,” Micah Blumenthal, who sat on the committee, told Hillary Harvey May 24 on Kingston Radio’s The Source. “And it was mostly a matter of, there’s maybe still some more and we’re open to some input on what the rest of it might go to. But that’s not how it was presented to us. The way it was presented to us was, ‘Here’s ten million dollars. Help us figure out where ten million is going to.’ And I don’t think that’s accurate in terms of what the process really was.”

Jordan Steered Property to Local Bruderhof Religious Group

In early 2017, as plans for the Kingstonian were taking shape, the Kingston Local Development Corporation agreed to sell the Bruderhof a building in Kingston’s Business Park.  A former member of the Kingston Local Development Corporation who asked to not be identified said developer Brad Jordan steered the property to the Bruderhof even though five other buyers had made offers. According to the former KLDC member, a real estate agent representing one of the other businesses grumbled that “Jordan sells a lot of materials to the Bruderhof.” Jordan owns most of the land on which the Kingstonian would be built; owns the abutting mall, and also owns a building supply company located in the mall.

In Tuesday’s election, the pro-tax break challengers were roundly defeated, except in one school: Graves, which is the area where the Bruderhof reside. The lopsided votes could mean that the Bruderhof voted as a bloc for the two challengers as well as incumbent Robin Jacobowitz. See here for the breakdown, and note the lopsided aspect of the Graves tally.

Judge Who Is Spouse of Long Time Jordan Tenant Signed Petition for Pro-Kingstonian School Board Challenger

Keri E. Savona is a Family Court Judge in Kingston, and the wife of Dan Savona, part owner of the local Savona restaurant chain, including a pizza parlor in Brad Jordan’s mall. Dan Savona also sits on the Industrial Development Agency, which awarded the $30 million tax break. The IDA lawyer, Joe Scott, found there was no conflict of interest, and Savona was allowed to vote for the tax break. His wife, Keri, signed the petition of Michele Milgrim, who is the wife of the Ulster County Deputy County Executive John Milgrim, the public face of the county in supporting the tax break for the Kingstonian. It was not clear whether Savona should have been allowed to vote on the IDA, or whether his wife’s signing Milgrim’s petition violated Canon 5 of the NYS Code of Judicial Conduct.

Tainted ethics have plagued the Kingstonian since its inception, and the examples provided in this article are only a small sampling. Given the conflict of interest in Jordan’s continued presence on the KLDC until a few months ago; the possible steering of the Kingston Business Park property to the Bruderhof in return for  supporting the Kingstonian’s tax break and School Board candidates, and Jordan’s appointment to the DRI local planning committee where he could ensure the grant money was allocated to his projects, it is hard to believe that the KLDC can duck charges of “bad faith” if members agree to transfer these properties.

A recent report by the Pew Foundation shows states are waking up to the damage wreaked by profligate “economic incentives.” Lawmakers often award grants and tax favors as Thank You notes for campaign donations, while up-and-coming government officials may lend support in return for political backing and potential job promotions. According Pat Garofalo, an expert on tax breaks and author of The Billionaire Boondoggle: How Our Politicians Let Corporations and Bigwigs Steal Our Money and Jobs, New York is among the top states guilty of handing out so-called “incentives.” Read the transcript or listen here for a podcast with Garofalo, and visit ReinventAlbany.org for an eye-opening look at corporate welfare in New York State.

-0-