Veering slightly from our typical Crown Heights focus [NP1], we wanted to highlight a great investigative piece written by Michael Corley of My Brooklyn Report, regarding Goldman Sachs’ recent investment into the “emerging market” that we all know as Bed-Stuy.  Definitely check it out when you have a moment.

While Michael’s piece touches on the potential pitfalls and controversies around these types of investments (and they undeniably exist), we’d like to explore – in a devil’s advocate type of fashion – the upsides for the community.   For instance, the Canyon-Johnson investment fund, which is the nation’s largest PE group investing in DEM (domestic emerging markets also known as EDM – emerging domestic markets), is not just about the bottom line – instead they focus on the “‘triple bottom line’ of achieving successful financial results, fostering opportunities for underserved urban neighborhoods and their residents, and embracing environmental responsibility” (or at least that’s what they claim).

Indeed as a recent study by the National Association of Investment Companies reveals – private equity investments in DEM result in higher job growth, with the majority of new jobs going to minorities; higher wages; increased revenue for the target businesses; and greater access to health benefits for employees. [NP2]

Even Goldman’s Bed-Stuy project together with a project in Harlem they are investing in, is expected to yield over 200 mixed-income condominium and rental units, along with 16,000 square feet of retail and community facilities space (that is, if the economic downturn has not stalled or otherwise derailed it).

The poll above will allow you to “voice” your thoughts on this.

[NP1] Note from LB: Of course, this really is not off topic at all.  Based on first hand information, Crown Heights has definitely been punted around on the DEM short list in private equity circles.  This could have just as easily been an article about this neighborhood.

[NP2] Admittedly, the claims in the report have to be viewed with a critical eye.  Reading all the way through the article, at least part of the motive behind the study seems to be to bolster arguments against federal tax hikes on private equity groups.

The first American-American mayor of New York City reflects in candid detail about the Crown Heights riots, their impact on his mayoral legacy, misconceptions about what transpired, and what he would have done differently to address the riots.

Listen Here:

(To skip directly to it: 4:19 – 9:02)

I’m not a big political buff, but thanks to a question originally posed by Ferentz, I have been absolutely riveted by the upcoming city council race in District 36. Ferentz’s question: will the excitement and turnout that marked the 2008 Presidential elections spill over to the local level? The more I pondered the question, the more interested I became in the race. Here are just some of the reasons why:

10. Crowded Race – Great Coverage – This seat is highly contested – this piece only covers 5 of the 8 contenders.  Good thing there are bloggers out there trying to keep us informed.  Brooklyn Ron provides great coverage of the race, which he describes as “Bed-Stuy’s Crowded Race to City Council” (ahem … Crown Heights and Bed Stuy’s Crowded Race … but we’ll forgive the oversight.)  And  MyBrooklynReport offers an innovative dicussion forum for the candidates and constituents.  

9. Kindred Spirit – A couple of people told me that I remind them of candidate Tremaine Wright, who like me is an attorney turned entrepreneur. After meeting her the other day, I take the comparison as a true compliment.

8. Good Looking Bunch – On an admittedly less than profound note all of the candidates are good looking people, making following this race quite easy (on the eyes).

7. Athlete Turned Politician – I’m curious how the 6’10″ former basketball player, Robert Cornegy, Jr., comports himself in the political court. In a comical poke at his stature, Cornegy produced a great campaign commercial that is worth checking out.

6. Pre-Obama (African-American) politicians v. Obama era (African-American) politicians – Obama-esque themes of “change” permeate this race, as at least four relatively young contenders compete to unseat the 70+ year old incumbent, Albert Vann, who’s been in office at the state and local level for over thirty years.

The difference between the old guard and new school can be seen when, for instance, you compare Vann to younger challengers Tremaine Wright and Saquan Jones:  One of Vann’s recent projects was to try to get certain streets in Bed-Stuy, which were named after slave owners, renamed after black heroes and sheros. The new school seems to have a different focus.  In a progressive move, Wright opened her own coffee shop on Tompkins between Putnam and Jefferson (two slave owner streets).  And Jones, who was raised in the projects but went on to get his MBA, trumpets “turning adversity into advantage” that focuses on “us” rather than “them”.

Further underscoring the old school v. new school nature of the race – while the new contenders each employ plush LinkedIn, Facebook, Myspace and Youtube pages to reach constituents in the district; Vann’s online presence is limited to his templated city council page. But does that matter? As a colleague of mine pointed out, even though he has been arguably less visible of late, Vann has historically done a lot for the district (e.g. projects with Medgar Evers and Restoration Corporation) and name recognition alone is expected to yield him upwards of 5,000 votes. Plus, many residents in the district are not actively tapped into the web, relying instead on “old school” means of information exchange (church, word of mouth, etc.).

5. Term Limit Controversy – Could it be true that as the incumbent, Vann’s re-election is almost 97% guaranteed despite the number of people who came out against term limit extension. But for the controversial extension of term limits, Councilman Vann would not be eligible for re-election.

4. Obama Reincarnate – As a friend pointed out when we ran into candidate Mark Winston Griffith on the street the other day, Griffith has a Barack Obama air about him (not to mention that he was a community organizer at one point in his career). So for those who may miss the political excitement and fervor surrounding Obama 2008, this might be your chance to recapture it.

3. Heated Debate on Class Divisions in the District – I’m curious how the very heated debate between Griffith and Jones will play out. (Jones accused Griffith of being an elitist who is out of touch with the masses in District 36. Griffith, who was actually raised in Crown Heights, provides an impassioned and thoughtful retort). I did an informal poll of friends and family (okay … it was only 3 of them) about the debate and everyone agreed that Jones’ comments were a bit off-putting and that Griffith “won” the debate. That said, I do sense that Jones would be able to connect with and even inspire a lot of residents in the district in a way that the other candidates may not.

2. Where do they stand? – I’m still eagerly awaiting the candidates to provide comprehensive insight into their overall vision for the district and issues specific to Bed-Stuy and Crown Heights:

a. Cornegy – website is missing any articulation of his perspective on the issues in the community and how he will address them. That said, he did a great job outlining his commitment and contributions to public health issues in Bed-Stuy in his recent interview on On the Spot.

b. Griffith – website provides a teaser on his position on various important issues including foreclosures, green jobs, gentrification, but to date, he has only fully elaborated on foreclosures.

c. Jones – greatly appreciate and support his position on “Financial Freedom” and “Community Revitalization”, however, I’m not convinced that the other issues that he mentions, e.g. “Change of Mentality” can be tackled in the political arena.

d. Vann – Without a real web presence, it’s difficult to ascertain much about Vann online. Instead I’ve taken to asking district residents – Bed-Stuy, Crown Heights, young, old, renters, executives and business owners – about their thoughts on our councilman. Almost across the board I hear great things about Vann’s past accomplishments. But only one person was able to speak highly of recent efforts. Actually what that person, a non-profit exec, said is that Vann has in fact been active recently, he just hasn’t been promoting it. He called Vann a “connector” who links organizations and resources together.  For me, it would be helpful if all that was on a website.

e. Wright – of all the candidates, her website does the best job (IMHO) of outlining her position on the issues and how she thinks they should be addressed.  However, her focus is very Bed-Stuy centric, with not a single mention of any Crown Heights locales. What about Crown Heights?

1. We need a strong leader – There are a number of pressing issues in the district that I really care about and want to see addressed – including commercial development, education, affordable housing and public safety. We need a strong, effective and competent leader for Bed-Stuy and Crown Heights to continue to thrive. I want to make sure that I vote for the right person.  Hopefully others will be inspired to get involved!

We recently posted an article about the fate of rent regulation in New York in the wake of the now notorious “Albany defection”. Today, NYC’s Rent Guidelines Board is going to take a final vote on whether to pass their proposed 2.5% – 7.5% increases in the rent rates on regulated apartments. We came across a couple of articles online that add more depth to this conversation (or maybe more appropriately, “controversy”) and we wanted to share:

The first piece, posted on Uptown Flavor, describes mayorial candidate, Bill Thompson’s fight to put a freeze on raising rents.

“Our City has become unaffordable for a vast number of its residents,” Thompson said. “In Bedford-Stuyvesant or Bushwick, for example, a family making the median income for the neighborhood would need to spend two-thirds of that income to rent a three-bedroom apartment. In Washington Heights, Kingsbridge or Brownsville, it would cost three-quarters of their income; in Harlem or Mott Haven, that same family would spend 100 percent of its income on rent. [Emphasis in original]

The other side of the conversation is described in a very interesting article by the NYTimes. A campaign to raise rents leads to an “attempt to humanize landlords:”

In folksy tones, the five men and women describe themselves as small landlords who own only one or two buildings. And they talk, as birds chirp in the background, about their high costs.

One landlord, Ernst Endrich, a retired transit worker who owns two small buildings in the Bronx, says in an ad:  “I pay $50,000 in property taxes and water rates.” Another, Constance Nugent-Miller, a nurse who owns a six-unit building in Crown Heights, Brooklyn, that has been in her family since the mid-1950s, says: “I use my second income as a nurse to pay fuel bills and make repairs. I do what it takes to provide quality housing my tenants can afford.”

So the real question is – how can these two competing interests be balanced? The need for affordable housing in New York City is darn near palpable. As the Uptown Flavor article points out, for many New Yorkers, the cost. of living. in the city. is overwhelming. their budget. Without housing the is truly affordable housing, the very diverse fabric of our city’s identity is threatened.

On the other hand, despite what we may want to believe, the reality is that many landlords are not cash-rich Bruce Ratner-like magnates. The rapidly rising rate of foreclosures underscores this point all too vividly. Undoubtedly, there are plenty of unscrupulous landlords. But the picture is bigger than that. Many landlords have families. And bills. Much like the entrepreneur who’s primary income is derived from product sales, or the laborer who’s primary income comes in the form of weekly paycheck, for many owners of property, rental income supports their livelihood.

Costs are rising. And this is a zero sum game. Who wins? Who loses?

Yesterday morning we reported on a new citizen patrol unit featuring Black and Jewish community residents. As coverage of this story evolved throughout the day it was discovered that one of the expected Jewish leaders of this unit, Leib Skoblo, had been arrested in 1995 for assaulting a Izena Goudy, who is black, when she was 12. Skoblo was 19 at the time of his arrest which explains why his record was not sealed and the press were able to uncover this information. NYPD leaders have been silent on this embarrasing turn of events. Now an adult serving in the Army National Guard, Ms. Goudy was outraged that her former attacker had been selected for this top post, and her sentiments appeared to have been echoed by a number of African American residents once this information was revealed. Thus, what seemed like grand slam public relations moment for Crown Heights and the NYPD appears to have devolved into a soap opera.

Before this story gets out of control and begins fueling the tensions the organization was created to stem, let us take a step back and consider these facts objectively. Are we really prepared to declare that a person should not be forgiven for a crime committed 14 years ago, when he or she was 19? Mr. Skoblo’s actions were heinous, indeed, but also reeked of immaturity, which one hopes would have dissovled in the ensuing 12 years since he attacked Ms. Goudy. Additionally, can one not make a case that who better to serve in a leadership capacity in a Black/Jewish coalition than a person who has had a past indiscretion against a person from the other group?

If, Mr. Skoblo is willing to acknowledge his mistake and is committed to working towards peace in the neighborhood, then who are we to condemn his past.

Another story grabbing headlines in the past 24 hours is police commissioner Raymond Kelly’s visit to the 77th Precinct Community Council. From early reports it sounded as if the meeting started out with a fairly pro-forma report by Commissioner Kelly on the state of crime and the NYPD. According to at least one published article by Nicole Brydson on Brooklyn The Borough, commissioner Kelly surprisingly managed to make it through the meeting without addressing allegations “that officers from the 77th assaulted two lesbian women outside of a local nightclub while spewing anti-gay remarks.”

We’ll do our best to keep an eye on both stories to see how they unfold.

(Note: This entry has been corrected since its initial publication)