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    A Times Square Hotel Was Set To Become Affordable Housing. Then the Union Stepped In.

    At the height of the Covid-19 pandemic, the Paramount Hotel, sitting empty in Times Square, was on the verge of turning into a residential building, offering a rare opportunity to create affordable housing in Midtown Manhattan.A nonprofit was planning to convert the hotel into apartments for people facing homelessness. But after 18 months of negotiations, the plan collapsed this year when a powerful political player intervened: the Hotel and Gaming Trades Council, the union representing about 35,000 hotel and casino workers in New York and New Jersey.The union blocked the conversion, which threatened the jobs of the workers waiting to return to the 597-room hotel. Under the union’s contract, the deal could not proceed without its consent.The Paramount reopened as a hotel this fall, an illustration of how the union has wielded its outsized political power to steer economic development projects at a critical juncture in New York City’s recovery.The pandemic presented a devastating crisis for the city’s hotel workers, more than 90 percent of whom were laid off. But as the union has fought harder to protect them, its political muscle has also drawn the ire of hotel operators and housing advocates, who say the group’s interests can be at odds with broader economic goals.After the conversion failed, the Paramount reopened this fall, saving about 160 hotel jobs.Ahmed Gaber for The New York TimesThe union’s impact ripples throughout New York. It can block or facilitate the conversion of large hotels into housing and homeless shelters, a consequential role in a year when homelessness in the city reached a record high of about 64,000 people. The union pushed for the accelerated expansion of casinos, which could transform the neighborhoods of the winning bids. And it was a driving force behind a new hotel regulation that some officials warned could cost the city billions in tax revenue.The union’s influence stems from its loyal membership and its deep pockets, both of which it puts to strategic use in local elections. Its political strength has resulted in more leverage over hotel owners, leading to stronger contracts and higher wages for workers.In this year’s New York governor’s race, the union was the first major labor group to endorse Gov. Kathy Hochul, whose winning campaign received about $440,000 from groups tied to the union. The group was also an early backer of Eric Adams, whose mayoral campaign was managed by the union’s former political director.“H.T.C. is playing chess while everyone else is playing checkers,” said Chris Coffey, a Democratic political strategist, referring to the union’s more common name, the Hotel Trades Council. “They’re just operating on a higher playing field.”Origins of the union’s powerHistorically, the Hotel Trades Council avoided politics until its former president, Peter Ward, started a political operation around 2008.Mr. Ward and the union’s first political director, Neal Kwatra, built a database with information about where members lived and worshiped and the languages they spoke. This allowed the union to quickly deploy Spanish speakers, for instance, to canvass in Latino neighborhoods during campaigns.Candidates noticed when the Hotel Trades Council, a relatively small union, would send 100 members to a campaign event while larger unions would send only a handful, Mr. Kwatra said.The Aftermath of New York’s Midterms ElectionsWho’s at Fault?: As New York Democrats sought to spread blame for their dismal performance in the elections, a fair share was directed toward Mayor Eric Adams of New York City.Hochul’s New Challenges: Gov. Kathy Hochul managed to repel late momentum by Representative Lee Zeldin. Now she must govern over a fractured New York electorate.How Maloney Lost: Democrats won tough races across the country. But Sean Patrick Maloney, a party leader and a five-term congressman, lost his Hudson Valley seat. What happened?A Weak Link: If Democrats lose the House, they may have New York to blame. Republicans flipped four seats in the state, the most of any state in the country.To recruit members into political activism, the union hosted seminars explaining why success in local elections would lead to better job protections. Afterward, members voted to increase their dues to support the union’s political fights, building a robust fund for campaign contributions. Rich Maroko, the president of the Hotel Trades Council, said the union’s “first, second and third priority is our members.”Ahmed Gaber for The New York TimesThe Hotel Trades Council ranked among the top independent spenders in the election cycle of 2017, when all 26 City Council candidates endorsed by the union won. Some of these officials ended up on powerful land use and zoning committees, giving the union influence over important building decisions in New York.In a huge victory before the pandemic, the union fought the expansion of Airbnb in New York, successfully pressuring local officials to curb short-term rentals, which the union saw as a threat to hotel jobs.Mr. Ward stepped down in August 2020, making way for the union’s current president and longtime general counsel, Rich Maroko, who earned about $394,000 last year in total salary, according to federal filings.The union’s sway has continued to grow. Some hotel owners, speaking on the condition of anonymity, say they are fearful of crossing the union, which has a $22 million fund that can compensate workers during strikes. In an interview, Mr. Maroko pointed out that the hotel industry is particularly vulnerable to boycotts.“The customer has to walk through that picket line,” he said, “and then they have to try to get a good night’s rest while there are people chanting in front of the building.”The Hotel Trades Council’s contract is the strongest for hotel workers nationwide, labor experts say. In New York City, where the minimum wage is $15 an hour, housekeepers in the union earn about $37 an hour. Union members pay almost nothing for health care and can get up to 45 paid days off.During the pandemic, the union negotiated health care benefits for laid-off workers, suspended their union dues and offered $1,000 payments to the landlords of workers facing eviction.Along the way, the union has become known for its take-no-prisoners approach to politics, willing to ally with progressives or conservatives, with developers or nonprofits — as long as they support the union’s goals.“There may be no union which has more discrete asks of city government on behalf of its members,” said Mark Levine, the Manhattan borough president, who was endorsed by the union. “You can’t placate them with nice rhetoric. To be a partner with them, you really need to produce.”Political wins during the pandemicLast year, the union scored a victory it had sought for more than a decade, successfully lobbying city officials to require a special permit for any new hotel in New York City.The new regulation allows community members, including the union, to have a bigger say over which hotels get built. The move is expected to restrict the construction of new hotels, which are often nonunion and long viewed by the Hotel Trades Council as the biggest threat to its bargaining power.Budget officials warned that the regulation could cost the city billions in future tax revenue, and some developers and city planners criticized the rule as a political payback from Mayor Bill de Blasio in the waning months of his administration after the union endorsed his short-lived presidential campaign in 2019. Mr. de Blasio, who did not return a request for comment, has previously denied that the union influenced his position.In the next mayoral race, the union made a big early bet on Mr. Adams, spending more than $1 million from its super PAC to boost his campaign. Jason Ortiz, a consultant for the union, helped to manage a separate super PAC to support Mr. Adams that spent $6.9 million.Mr. Ortiz is now a lobbyist for the super PAC’s biggest contributor, Steven Cohen, the New York Mets owner who is expected to bid for a casino in Queens.The union, which shares many of the same lobbyists and consultants with gambling companies, will play an important role in the upcoming application process for casino licenses in the New York City area. State law requires that casinos enter “labor peace” agreements, effectively ensuring that new casino workers will be part of the union.A new threatDuring the pandemic, as tourism stalled, there was growing pressure to repurpose vacant hotels. With New York rents soaring, advocates pointed to hotel conversions as a relatively fast and inexpensive way to house low-income residents.But the union’s contract, which covers about 70 percent of hotels citywide, presented an obstacle. A hotel that is sold or repurposed must maintain the contract and keep its workers — or offer a severance package that often exceeds tens of millions of dollars, a steep cost that only for-profit developers can typically afford.A plan to convert a Best Western hotel in Chinatown into a homeless drop-in center was scuttled by city officials after the effort failed to win the union’s endorsement.Ahmed Gaber for The New York TimesEarlier this year, Housing Works, a social services nonprofit, planned to convert a vacant Best Western hotel in Chinatown into a homeless drop-in center. There was opposition from Chinatown residents, but city officials signed off on the deal. It was set to open in May.Right before then, however, the Hotel Trades Council learned of the plan and argued that it violated the union’s contract.Soon, the same city officials withdrew their support, said Charles King, the chief executive of Housing Works. He said they told him that Mr. Adams would not approve it without the union’s endorsement. Mr. King was stunned.“Clearly they have the mayor’s ear,” Mr. King said, “and he gave them the power to veto.”A spokesman for the mayor said the city “decided to re-evaluate this shelter capacity to an area with fewer services,” declining to comment on whether the union influenced the decision.The Chinatown hotel remains empty.An obstacle to affordable housingIn the spring of 2021, state legislators rallied behind a bill that would incentivize nonprofit groups to buy distressed hotels and convert them into affordable housing. They sought the Hotel Trades Council’s input early, recognizing that the group had the clout to push then-Gov. Andrew M. Cuomo to oppose the bill, according to people involved in the discussions.The union supported the conversions, but only if they targeted nonunion hotels outside Manhattan. Housing groups have said that, unlike large Midtown hotels, nonunion hotels are not ideal candidates for housing because they tend to be much smaller and inaccessible to public transit.As a compromise to gain the union’s support, the bill allowed the Hotel Trades Council to veto any conversions of union hotels.“While we certainly support the vision of finding shelters and supportive housing for the people that need it,” Mr. Maroko said, “our first, second and third priority is our members.”One housing advocate involved in the legislation, who spoke on the condition of anonymity, said she warned elected officials that the veto provision would diminish the law’s effectiveness.The law, which passed last year, came with $200 million for conversions. Housing experts criticized the legislation for not sufficiently loosening zoning restrictions, prompting another law this spring that made conversions easier.Still, no hotels have been converted under the new law.Now, with tourism rebounding, housing nonprofits say the window of opportunity has largely passed.“It’s not like hotel owners are clamoring to sell the way they were two years ago,” said Paul Woody, vice president of real estate at Project Renewal, a homeless services nonprofit.How the Paramount deal endedIn the fall of 2020, the owners of the Paramount Hotel began discussing a plan to sell the property at a discount to Breaking Ground, a nonprofit developer that wanted to turn it into rent-stabilized apartments for people facing homelessness.But as the deal neared the finish line, Breaking Ground failed to anticipate pushback from the Hotel Trades Council. In a series of meetings last year, the union said its obligation was to fight for every hotel job and it proposed a range of solutions, including keeping union employees as housekeepers for residents. Breaking Ground, however, said the cost was too high.The nonprofit even asked Mr. Ward, the union’s former president, to help facilitate the conversion. Mr. Ward said he agreed to call Mr. Maroko to gauge his interest in Breaking Ground’s severance offer.This spring, lobbying records show, union representatives met with Jessica Katz, Mr. Adams’s chief housing officer, and other officials about the Paramount. Soon after, Ms. Katz called Breaking Ground and said city officials would not be able to make the conversion happen, according to a person familiar with the conversation. A spokesman for the mayor said the city “cannot choose between creating the housing the city needs and bringing back our tourism economy,” declining to comment on whether the union swayed the decision on the Paramount.The failed conversion saved about 160 hotel jobs, and the Paramount reopened to guests in September.It was a relief for workers like Sheena Jobe-Davis, who lost her job there in March 2020 as a front-desk attendant. She temporarily worked at a nonunion Manhattan hotel, making $20 less per hour than at the Paramount. She was ecstatic to get her old job back.“It is something I prayed and prayed for daily,” she said. More

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    N.Y.C. Mayor Candidates Court Unions and Latino Voters

    #masthead-section-label, #masthead-bar-one { display: none }N.Y.C. Mayoral RaceWho’s Running?5 TakeawaysCandidates’ N.Y.C. MomentsAn Overview of the RaceAdvertisementContinue reading the main storySupported byContinue reading the main storyCourting Unions and Latino Voters: 5 Takeaways From the N.Y.C. Mayor’s RaceEric Adams won three big labor union endorsements, confirming his status as a top contender, and Loree Sutton dropped out of the race.Eric Adams is lining up coveted labor union endorsements.Credit…Michael M. Santiago/Getty ImagesEmma G. Fitzsimmons, Dana Rubinstein, Andy Newman and March 15, 2021Updated 10:56 a.m. ETLabor leaders are throwing their weight behind Eric Adams in the New York City mayoral race.Mr. Adams, the Brooklyn borough president, has won three major labor endorsements in the past two weeks, cementing his status as one of the top candidates in the crowded Democratic primary field.As Mr. Adams rose, Loree Sutton, one of the first women to join the race, dropped out, and the campaigns pushed to qualify for public matching funds. Andrew Yang, the former presidential candidate, announced over the weekend that he had raised an impressive fund-raising haul.Here is what you need to know:Adams wins key labor endorsements.Mr. Adams is making the case that he is the candidate for working-class New Yorkers.“We are building a blue-collar coalition that will deliver results for the New Yorkers who need them the most,” Mr. Adams said last week.He has received support from three unions: Local 32BJ of the Service Employees International Union, which represents about 85,000 building workers in New York; the Hotel Trades Council, which has nearly 40,000 members in the hotel and gaming industry; and the District Council 37 Executive Board, the city’s largest public employees union, representing 150,000 members and 50,000 retirees.The string of endorsements shows that some Democrats believe Mr. Adams has the best chance of beating Mr. Yang, who has been leading the field in recent polls.While Mr. Adams has secured some of the city’s most coveted labor endorsements, Maya Wiley, a former counsel to Mayor Bill de Blasio, was recently endorsed by another major union, Local 1199 of the S.E.I.U. The powerful United Federation of Teachers has not yet picked a candidate.Scott Stringer, the New York City comptroller, had been a contender for the 32BJ endorsement, according to the union president, Kyle Bragg.“But this is more than just about friendships,” Mr. Bragg said, adding that the union had to consider who had “the strongest path to victory.”Sutton’s long-shot bid comes to an end.Loree Sutton, left, has left the mayoral race.Credit…Jose A. Alvarado Jr. for The New York TimesFor Loree Sutton, the retired Army brigadier general who withdrew from the mayor’s race on Wednesday, the turning point came in late February when a state judge rejected a lawsuit seeking to limit in-person petition-gathering during the coronavirus pandemic.Candidates must gather a certain number of signatures in person in order to get their names on the ballot.“I just would not go out and do in-person petition-gathering under these circumstances,” Ms. Sutton said. It was, she said, a matter of “public health principle.”Her mayoral bid was always a long shot. The former commissioner for the city’s Department of Veterans’ Services, she had little in the way of political experience or name recognition. She was running as a law-and-order moderate in a Democratic primary that tilts left.Some advisers had encouraged her to run as a Republican, but doing so would have felt inauthentic, she said. Centrism, she argues, remains an essential part of the Democratic Party.But early on there were signs that her brand of moderation would be unwelcome.She was excluded from an early Democratic forum because she had argued that protesters should be required to obtain city permits.She campaigned on the importance of public safety and rejected calls to defund the police, a posture that seemed out of step with many of her competitors.“Some of the worst atrocities in human history have taken place under the misconception that somehow we can create a utopian society,” she said.In the end, Ms. Sutton pulled out of the race, having raised only $200,000.She has yet to decide whom she will endorse, but she was complimentary of Kathryn Garcia, the former Sanitation Department commissioner, who is running as a pragmatist. And she has not ruled out running for office again someday.“It’s the journey of a lifetime,” she said.Candidates debate how to fix public housing.Kathryn Garcia argues that private management of some buildings in the city’s public housing system can be effective.Credit…Brendan Mcdermid/ReutersAt a mayoral forum on housing on Thursday, a tenant leader at a city public-housing complex, Damaris Reyes, challenged the candidates: “I want to know if you will commit to preservation of public housing, and how you will repair trust and empower resident decision making.”The 175,000 apartments in the city’s public housing system have been sliding into disrepair for decades, with the price tag for replacing leaky roofs, old heating systems, broken elevators and other problems now estimated at $30 billion to $40 billion.But the city’s proposal to fund the repairs by using a program that would hand over management of tens of thousands of apartments to private developers has been greeted with skepticism. Many New York City Housing Authority residents fear their apartments would be privatized, leading to rent increases and evictions.At the housing forum, hosted by the local news channel NY1, two candidates with experience running housing systems said the city’s plans provided a realistic platform.Ms. Garcia, who served as interim commissioner of NYCHA in 2019, said the blueprint would let the city leverage federal money that was already available. She said she could win over skeptics by taking them on tours of the Ocean Bay complex in Queens, where a private landlord has been making repairs. “You know who the best spokespeople are?” she asked. “The people who have actually had their apartments renovated.”Shaun Donovan, who ran the city’s department of housing preservation under Mayor Michael R. Bloomberg and who served as President Barack Obama’s commissioner of housing and urban development, said that partnering with the federal government provided “the only pathway where we can truly get to scale.”Mr. Donovan’s plan also calls for the city to kick in $2 billion a year and includes job-training programs for NYCHA residents who would be hired to do much of the work, he said. Mr. Yang has promoted his own $48 billion — and entirely federally funded — “green new deal” for NYCHA. To combat NYCHA residents’ “massive trust deficit,” the city should “make NYCHA residents the majority of the board of NYCHA itself,” he has said.Public money comes rolling in.Andrew Yang has been a potent fund-raiser.Credit…Mark Lennihan/Associated PressSix candidates now say they have qualified for public matching funds, and a seventh may qualify soon.At the latest donation deadline last week, Mr. Yang proved that he is a strong fund-raiser. He reported that he had met the matching-funds threshold by raising more than $2.1 million from 15,600 individual donors in the 57 days that he has been in the race. Mr. Yang’s campaign said it expects to have raised $6.5 million once public dollars are received.“With 100 days left, we have built the foundation and energy to win,” Mr. Yang’s campaign managers said in a statement.To qualify for public matching funds, a candidate must raise $250,000 from at least 1,000 New York City residents. Those donations are matched at either an $8 to $1 rate or $6 to $1 rate, depending on which plan the campaign chose for a maximum of $1,400 to $2,000 per contributor.Mr. Donovan reported meeting the threshold, which would bring his total raised to $4 million. Ms. Garcia reported meeting the threshold by raising over $300,000 in matchable contributions. Dianne Morales, a former nonprofit executive, said Monday she had qualified for matching funds as well, raising about $320,000 in matchable contributions.The fund-raising leaders have also continued to rake in public dollars. Mr. Adams and Mr. Stringer, the only two candidates who have received matching funds so far, reported having raised a total of more than $9 million each once matching funds were factored in. Ms. Wiley, who announced that she had met the threshold last period before an audit from the Campaign Finance Board determined that she had not, declined to release fund-raising figures. Her campaign was waiting on a ruling Monday from the board.Raymond J. McGuire, a former banking executive who shook up the race when he raised $5 million in three months, is not participating in the public funds program. His campaign said he had raised another $2.6 million since the last filing period.According to campaign finance rules, if a nonparticipating candidate raises or spends more than half of the $7.3 million spending limit, the spending cap could be increased by 50 percent. Matthew Sollars, a spokesman for the board, said a determination on an increased spending cap would be made late next month.A candidate looks for the Latino vote.Scott Stringer, the city comptroller, has a Puerto Rican stepfather.Credit…Richard Drew/Associated PressLittle known fact about Scott Stringer, who is white and Jewish: His stepfather moved to New York from Puerto Rico as a toddler, his stepfamily is Latino and, partly on that basis, he hopes to win over Latino voters in the mayoral election.“Buenos días a todos,” Mr. Stringer said on Sunday in Upper Manhattan, as he formally kicked off his “Latino agenda,” not far from the Washington Heights neighborhood where he grew up. His stepfamily joined him and lauded his record, character and intelligence. “Scott is simpático,” said Carlos Cuevas, Mr. Stringer’s stepbrother, a lawyer.Mr. Stringer’s effort to highlight his family to identify with a particular constituency is not a novel one. Mr. de Blasio relied heavily on his African-American wife and biracial children in his 2013 run for mayor. At a forum about Jewish issues, Ms. Wiley, whose father was African-American and mother was white, made a point of noting that her partner is Jewish and the son of Holocaust survivors.The Latino vote — which is far from monolithic — is coveted, representing about 20 percent of the New York City electorate.The mayor’s race has several candidates of Latino descent: Ms. Morales and Carlos Menchaca, a councilman from Brooklyn, both of whom are Democrats, and Fernando Mateo, a Republican. None responded to requests for comment on Mr. Stringer’s Latino voter push.The same day Mr. Stringer was rolling out his agenda, his competitor Mr. Yang made his pitch to Spanish-language viewers of Telemundo.AdvertisementContinue reading the main story More