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THE CITY
On the evening of Aug. 10, 2021, Eric Adams joined a rooftop party in
Brooklyn where a crowd of real estate industry figures awaited him,
each of them bearing gifts. It was a month after Adams’ victory in his
hard-fought race to become the Democratic mayoral nominee and he was
busily harvesting donations from those eager to show support for the man
overwhelmingly favored to become the next mayor of the City of New
York.
That morning, a breakfast fundraiser at a Manhattan law firm
active in land use issues netted the candidate $38,750 in
contributions. He picked up $20,250 more at a later event with
healthcare executives and doctors. Another soiree, at a hotel in the
Rockaways, yielded $25,925 for his campaign coffers.
But his
biggest haul of the day came on the Brooklyn rooftop. The host was a
successful developer and investor in commercial and residential projects
around the city named Mark Caller. The party was held atop Caller’s
office building on Nostrand Avenue in Brooklyn’s Midwood neighborhood
where his firm, The Marcal Group, is headquartered.
Once all
donations from the gala had been collected, Adams’ campaign was $47,050
to the better. Almost a third of that money, $15,400, came from members
of Caller’s family, with the rest from his friends and business
associates, records obtained by THE CITY via a freedom of information
request show.
Even in a campaign that ultimately took in nearly
$9 million in private donations, it was the kind of political generosity
that stood out.
Now, the previously undisclosed fundraiser stands out for a much different reason.
In
coming days Caller is expecting to be indicted by the Manhattan
district attorney on charges that he provided a luxury apartment at
below-market rent to Eric Ulrich, a former City Council member and Adams appointee, in exchange for official favors.
Ulrich,
a Republican ex-Council member from Queens who bucked his party in 2021
to support Adams’ mayoral bid, is also expected to be charged. After
Adams took office, he was appointed a senior advisor to the mayor. A
few months later, Adams named him city buildings commissioner. The post
put Ulrich, who held no management experience other than handling his
Council staff, in charge of a sprawling agency of some 1,700 employees,
one that is crucial to the city’s construction industry and notoriously
prone to corruption.
The job didn’t last long. In November, five
months after his appointment, Ulrich was forced to resign after it was
revealed that the DA had seized his cell phone during an investigation
into a mob-tied gambling ring.
It’s unclear what favors Ulrich is alleged to have provided for
Caller. The developer has been involved in significant construction
projects that needed city approvals. Since 2020, Caller has built at
least four
new projects in the Rockaways, part of Ulrich’s former Council
district. Just two weeks before he hosted the Adams fundraiser, Caller
won a zoning change approval from the city planning commission to add a
gym to a new condominium project he built on Beach 116th Street in
Rockaway Park. That’s the complex where Ulrich lived in a fifth floor
apartment near the ocean with two bedrooms and two baths. Units there currently range from $700,000 to $1.4 million; listed rents go from $3,000 to $4,100.
Campaign
records show Caller was an early supporter of Adams’ mayoral bid. In
December 2019, nearly a year before Adams officially announced his
candidacy, Caller and his wife, Rivka Spitzer, made donations of $1,000
apiece to Adams’ campaign. After Adams became an official candidate, the
campaign returned $600 of Caller’s own donation. That’s because, due to
his quest for city land use assistance for his Rockaway condo project,
he is considered someone doing business with the city and limited to
donations of $400 to candidates for citywide office. His wife’s donation
was unaffected.
THE CITY
One of the more disturbing allegations involved Ulrich’s effort in
2022 to shut down a hotel housing the homeless because it enraged
Caller, the real estate developer. Prosecutors say he made this corrupt
effort to aid Caller at the same time he was negotiating to obtain a
discount apartment across the street from the hotel from Caller.
At
one point in March 2022, while he was a senior advisor to Adams, Caller
let Ulrich know he wanted to shut down a hotel at 158 Beach 116th
Street that was housing homeless adults because it happened to be across
the street from and adjacent to two of his upscale rental buildings.
In
a WhatsApp exchange captured by prosecutors, Caller wrote to Ulrich,
“There has to be a way to put 158 B116th out of business. It’s an
absolute disgrace.”
In response, Ulrich promised Caller to set up a “task force” of
inspectors from the FDNY and the buildings department, writing, “They
might be able to vacate the f...g thing. It’ll take months to get it
reopened.”
Prosecutors described a conversation Ulrich had with a
state Assemblymember described as Jane Doe #1. At the time, Stacy
Pheffer Amato was the Assembly member representing the Rockaways.
Ulrich
is alleged to have requested that the Assembly member demand an
FDNY/DOB inspection of the hotel, and instructed the Assembly member “to
make sure FDNY and DOB issue a full vacate order so the occupants can
be moved by the New York City Department of Homeless Services into
alternative housing.”
Prosecutors say that shortly after several
violations were issued at that address, but none involved a vacate
order. Pheffer Amato did not respond to THE CITY’s questions Wednesday
about this exchange.
While Ulrich was targeting the homeless
shelter, he was simultaneously discussing with Caller obtaining an
apartment at a discount rate in a building across the street from the
hotel, an upscale address at 133 Beach 116th Street, prosecutors say.
Caller
then offered Ulrich an apartment for $2,000 a month, the lowest monthly
rental in the building, and said Ulrich could apply the rental toward a
down payment on the unit at a reduced rate. He also threw in the
furniture and offered to void the closing costs.
Ulrich moved into
the apartment about a week before he was named buildings commissioner.
Just before the appointment was made public, he called Caller to advise
that their communications would no longer be direct.
“We have to
be smart,” he said. “I have to be a little more careful because I can’t
be conflicted. If you have to communicate with me about something
directly, about something concerning a property you own, maybe it’s
better if it comes from the councilwoman or the elected officials, so
that we’re working on it at their requests.”