Gov. David Paterson signed into law last night a measure that legalizes the residential use of industrial loft buildings and expands protections for loft tenants, including those in three of the city’s 16 Industrial Business Zones: Greenpoint-Williamsburg, North Brooklyn and Maspeth. According to Crain’s, the Bloomberg administration had fought hard to exclude all of the IBZs from the law, asking Paterson to veto the bill unless all 16 were protected. But in a last-minute deal with Paterson, Bloomberg was only able to spare some. IBZs were created by the Bloomberg administration to aid manufacturers, who were being priced out of their industrial spaces by landlords looking to make larger profits through — sometimes illegal — residential conversions. Sources said the mayor’s office was disappointed with the agreement, though publicly a spokesperson for Bloomberg said the administration is happy with the deal. [Crain's]

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The first of St. Vincent’s Medical Center’s creditors has begun receiving payments, as the bankrupt facility begins to sell off portions of its property, according to Crain’s. Sun Life Assurance has received around $2.5 million from the sale of 555 Sixth Avenue, better known as the hospital’s “Staff House.” [more]

As St. Vincent’s Hospital faces closure, rumors are swirling over what will become of the West Village campus on the corner of 12th Street and Seventh Avenue, according to the New York Times, with preservationists alarmed over the possibility that it could become a luxury residential development. Rudin Management will likely redevelop the site and has promised to maintain at least part of the space for health care, with CEO William Rudin describing the creation of “an alternative health care facility” as “essential.” But community advocates are wary of Rudin’s claims, and the West 12th Street Block Association has already begun voicing concern.

St. Vincent’s Hospital, the struggling Greenwich Village institution that for the past several months has been fighting to stay open despite $700 million in debt and $10 million in monthly operating losses, will shutter its inpatient unit after a vote by the hospital’s board last night, Crain’s reported. Elective procedures will stop in two days’ time and other services, save an urgent care center, will be phased out over the next few weeks. The vote clears the way for a Chapter 11 filing. If a partner can be found during the bankruptcy process, the urgent care center could remain open. Mount Sinai Medical Center and Continuum Health Partners had previously expressed interest in taking over the hospital, but lenders GE Capital and TD Bank resisted forcing the hospital into bankruptcy, and each of the potential acquirers backed out as the task of returning the St. Vincent’s to profitability loomed large. Governor David Paterson said in a statement that the state Department of Health would seek proposals for partners in St. Vincent’s new, limited care services. [Crain’s]

A package of state foreclosure legislation that will enforce broad protections for troubled homeowners is set to take effect April 15. The new laws aim to crack down on loan modification scams, extend the number of days banks are required to give notice before foreclosing on a home and demand that banks provide upkeep on foreclosed homes to avoid degradation of property values. The bills, which were signed into law last December, are also designed to help homeowners who did not take out subprime mortgages but, nonetheless, face foreclosure. “A lot of innocent bystanders were impacted by [the] subprime crisis,” State Senator Jeff Klein said. “These are people who played by the rules and paid their mortgages on time.”

Andrew Cuomo

From the April issue: Four years ago, Andrew Cuomo was a newly divorced lawyer living in a one-bedroom apartment Downtown. Now, he’s likely preparing to move into the Governor’s Mansion.

The eldest son of former governor Mario Cuomo has effected a miraculous political comeback since his failed 2002 gubernatorial campaign, thanks to what even his detractors call a remarkably successful turn as attorney general. And while anything can happen in politics, right now Cuomo is viewed as a virtual shoo-in as New York’s next governor — despite the fact that he hasn’t yet officially announced his plans to run.

His candidacy, as has been reported, is getting serious support from the real estate industry. Of the $18.28 million in campaign funds Cuomo has raised since 2007, $2.79 million, or 15.2 percent, has come from real estate and construction interests. At the equivalent point during the last gubernatorial campaign, then-Attorney General Eliot Spitzer raised only $2.15 million, or 8.4 percent, from the industry. [more]

Options are dwindling for St. Vincent’s Hospital, the financially-troubled medical center that’s been facing possible closure since January, with a recent negotiating partner leaving the table, according to Crain’s. Mount Sinai Medical Center had been in talks with St. Vincent’s to provide a financial injection, but the commitment proved beyond Mount Sinai’s scope, according to a statement from Mount Sinai officials. Mark Torey, the chief restructuring officer for St. Vincent’s, has indicated that the center would need upwards of $275 million to stay in business. Governor David Paterson said that he was disappointed by the news, and that he is concerned that “at this point, there does not appear to be a partner for the hospital.” City Council speaker Christine Quinn said that local officials will continue to search for an alternative to closure for St. Vincent’s.

New York State Senate Democrats are riled over possible subpoenas from the state Inspector General’s office in relation to the recent Aqueduct racetrack contract controversy. John Sampson, the senate conference leader, said that the inspector has no jurisdiction over the legislature and shouldn’t be allowed to access to private documents related to the selection of the Aqueduct Entertainment Group for the racetrack contract selection last month. The Inspector General’s probe follows massive public outcry over the contract award to AEG and accusations of impropriety on the part of local lawmakers.

JetBlue announced plans today to keep its headquarters in New York City, while consolidating its Forest Hills office and its Connecticut location into one central office in Long Island City. The move will keep 880 corporate jobs in the city and will bring 70 from Connecticut, according to Mayor Michael Bloomberg, who announced the news today along with Governor David Paterson and JetBlue CEO Dave Barger. The decision comes after a multi-year, nationwide search to determine the best home base for the airline. Barger said that the decision was made for logistical reasons and as a way of maintaining the company’s distinct brand. “The city is an important part of our heritage and culture, our brand and our customer connection, as well as our operation, with our base at JFK’s Terminal 5,” Barger said today. TRD

The Aqueduct Entertainment Group won’t be running slots in Ozone Park anytime soon. State officials have barred the group from receiving its gaming license, following weeks of corruption rumors surrounding Governor David Paterson’s selection of the group for the racetrack and gambling development contract. After the decision came down, Paterson’s office released a statement saying it would back down from its decision. “The Division of the Lottery has concluded that it cannot issue a gaming license to Aqueduct Entertainment Group. Therefore, the State has officially withdrawn its support for AEG to develop and operate a video lottery terminal facility at Aqueduct Race Track,” Paterson’s office said.