New York’s carpenters’ union is on the cusp of independence after 30 years of court supervision.
This week, a federal judge signed off on a plan that, if all goes well over the next year, will lead to a new chapter for the New York City District Council of Carpenters.
The union agreed to court-appointed supervision in 1994 to settle federal racketeering charges to root out the mob’s influence over its leaders and members.
The road to independence has been a years-long process. In 2022, the court allowed the union to shift responsibility from its court-appointed monitor to its in-house inspector general. The latest court order basically completes that transition, though the monitor will still oversee the union’s elections.
The union is also creating a new position, an independent integrity officer, which will be yet another role overseen by the court but less intensive than the original monitor role. Thomas McKay, a partner at Morvillo Abramowitz, will serve as integrity officer, which will help settle internal disputes between the NYC District Council leaders and provide legal assistance to the inspector general.
The bottom line is that if this arrangement “goes as anticipated,” the union and government “would be in a position to negotiate a final agreement” that would replace its 1994 settlement, according to court filings. The International Brotherhood of Teamsters reached a similar deal in 2015 that, after three decades of government oversight resulting from a racketeering case, allowed the union to govern itself.
The latest changes to the union’s governance coincide with the head of the NYC District Council, Executive Secretary-Treasurer Joseph Geiger, taking on a broader role as vice president of the eastern district for the union’s parent organization, the United Brotherhood of Carpenters. In that position, he will oversee regional groups (including the New York chapter) along the East Coast.
Douglas McCarron, who heads the United Brotherhood of Carpenters, pointed to this week’s court order and the NYC District Council’s progress toward self-governance as evidence of Geiger’s “unwavering commitment to transparency, accountability, and the strength of our union.”
In a letter to members, Geiger indicated president Paul Capurso and vice president Dave Caraballoso would continue to lead the NYC District Council as he moves into his new role.
As the union has dealt with its internal governance, it is also active in New York politics and policy discussions. The NYC District Council has clashed over the years with the Real Estate Board of New York, including over the replacement of 421a and the FARE Act. The union also declined to publicly support the City of Yes for Housing Opportunity text amendment, even though the Building and Construction Trades Council of Greater New York backed the proposal.
What we’re thinking about: The City Council this week revived J-51. How many owners will take advantage of the program? Send a note to kathyrn@threaldeal.com.
A thing we’ve learned: Landlords who receive the J-51 (a tax break provided to owners who renovate their residential properties) but who fail to follow certain rules can wind up in prison.
Landlords receiving the benefit who, say, rent an apartment out as an Airbnb or deregulate a unit, can face a fine equal to double the value of however much they gained through unlawful use of the apartment or up to 90 days in jail, or both. Owners who lie about how much renovations cost or make other false statements on their application to receive the benefit could face a fine of $500, 90 days in jail or both.
Elsewhere in New York…
— Mayor Eric Adams told WNYC that the City of Yes for Housing Opportunity is part of a broader set of policy priorities aimed at helping working-class New Yorkers, Gothamist reports. Another such proposal would eliminate income taxes for more than 429,000 New Yorkers. The change would, however, require state-level action.
— Eric Adams was a registered Republican from 1995 through 2002, and he may yet be one again. In two separate interviews, Adams did not rule out running as a Republican instead of a Democrat in his bid for re-election next year, Politico reports.
— Police police the person who fatally shot the chief executive of UnitedHealthcare in Midtown this week may have left the city, the New York Times reports. Joseph Kenny, the NYPD’s chief of detectives, told CNN that surveillance footage showed the suspected gunman taking a cab to a station used by interstate buses.
Closing Time
Residential: The priciest residential sale Friday was $24.8 million for a 5,500-square-foot penthouse condo unit at One High Line’s 500 West 18th Street. The unit is a new development and was sold by Corcoran Sunshine Marketing Group’s Steve Gold and Deborah Kern.
Commercial: The largest commercial sale of the day was $12 million for a retail building at 54-02 31st Avenue. The Woodside property is only one story but has nine units.
New to the Market: The highest price for a residential property hitting the market was $8.9 million for a 3,000-square-foot condo unit at 255 East 77th Street. Compass’s Alexa Lambert, Alison Black and Shelton Smith have the Upper East Side listing.
Breaking Ground: The largest new building application filed was for a 70,577-square-foot building at 2351 Lorillard Place. The residential property will have eight stories that can fit 80 families. Leandro Dickson of LND Architect is listed on the application.
— Joseph Jungermann