Fisher Brothers, Friedman roped into tax break probe
Fisher Brothers and Friedman Management were the remaining two developers subpoenaed as part of a state task force’s probe of favorable tax breaks received by some of the city’s biggest real estate players, sources told Crain’s.
The companies join several other firms subpoenaed today to see whether there is a link between their campaign donations and tax breaks they received under the 421-A abatement program for new residential developments, as previously reported.
The other firms subpoenaed today include Extell Development, Thor Equities and Silverstein Properties.
An investigatory panel called the Moreland Commission, put together by Governor Andrew Cuomo earlier this year to tackle state corruption, plans to take a closer look at the question of campaign donations and these lucrative tax breaks. The issue stems from a state law that allowed the developers to use the tax abatements at luxury developments in high-density neighborhoods, though the program is intended to spur construction in under-developed areas.
Fisher Brothers was subpoenaed in connection with a residential tower it is building at 86 Trinity Place, the former home of the American Stock Exchange, while Friedman’s examination focuses on 113 Nassau Street. Both are in Lower Manhattan. Extell’s One57 in Midtown, Silverstein’s planned Four Seasons tower in Lower Manhattan, and Thor’s project at 516 Fifth Avenue are also part of the investigation. [Crain’s] — Julie Strickland