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New York City Council

Committee on Governmental Operations, State & Federal Legislation

Oct 29, 2024

·

10:00 AM

2 hr 12 min

Summary

A hearing on the Department of Citywide Administrative Services (DCAS) real estate practices, focusing on potential corruption and conflicts of interest in the agency's real estate division.

Discussions centered on:

  • The controversial 14 Wall Street lease deal
  • Deputy Commissioner Jesse Hamilton's qualifications and decisions
  • Oversight of tenant representative contracts
  • Concerns about transparency and accountability in DCAS's decision-making processes

The hearing also addressed questions about city-owned property utilization, space savings initiatives, and the promotion of privately-owned properties like the Bronx Logistics Center.

Features testimony from DCAS Commissioner Louis Molina, Executive Deputy Commissioner Shameka Overton, and the public.

Meeting chapters

Read summaries and watch videos for short segments that matter to you.

REMARKS

Council Member Restler outlines DCAS's critical responsibilities

Council Member Restler describes the crucial role of the Department of Citywide Administrative Services (DCAS) in New York City government operations. He highlights the agency's key responsibilities and the scale …

0:00:50

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49 sec

REMARKS

Council Member Restler addresses historical corruption issues in DCAS

Council Member Restler discusses the history of corruption within DCAS, highlighting how the agency's size and discretion have made it vulnerable to misconduct. He provides examples of past scandals involving …

0:01:39

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39 sec

REMARKS

Council Member Restler raises concerns about current ethical issues in DCAS

Council Member Restler acknowledges the dedication of most DCAS employees while expressing concerns about potential ethical issues within the agency's leadership, particularly in the real estate division. - Restler praises …

0:02:19

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25 sec

REMARKS

Council Member Restler criticizes Jesse Hamilton's appointment and qualifications

Council Member Restler raises serious concerns about the appointment of Jesse Hamilton as Deputy Commissioner of Real Estate Services at DCAS. He questions Hamilton's qualifications and suggests that the appointment …

0:02:44

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44 sec

REMARKS

Council Member Restler details the 14 Wall Street lease controversy

Council Member Restler describes a controversial decision by Jesse Hamilton to change the recipient of an 80,000 square foot lease from the winning bidder to 14 Wall Street, owned by …

0:03:28

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44 sec

REMARKS

Council Member Restler raises concerns about Jesse Hamilton's international trip

Council Member Restler highlights a recent international trip taken by Jesse Hamilton, raising questions about potential conflicts of interest and improper relationships. The trip involved key figures connected to city …

0:04:13

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19 sec

REMARKS

Council Member Restler questions the administration's motives in DCAS appointments and decisions

Council Member Restler poses a series of pointed questions about the motives behind recent appointments and decisions within DCAS, particularly those involving Jesse Hamilton. He challenges the administration's integrity and …

0:04:33

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31 sec

REMARKS

Council Member Restler emphasizes the City Council's oversight responsibilities

Council Member Restler underscores the City Council's crucial role in providing oversight of the mayor and city agencies. He stresses the importance of transparency, accountability, and integrity in city government. …

0:05:04

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20 sec

REMARKS

Council Member Restler concludes opening remarks and introduces DCAS representatives

Council Member Restler concludes his opening remarks by acknowledging his staff and introducing the DCAS representatives who will be testifying. He prepares for the next phase of the hearing. - …

0:05:25

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32 sec

AGENCY TESTIMONY

Introduction of DCAS Commissioner and recent changes

Commissioner Louis Molina introduces himself and his role at the Department of Citywide Administrative Services (DCAS). He outlines recent changes in oversight and transparency within the department, particularly in real …

0:06:15

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71 sec

AGENCY TESTIMONY

Overview of DCAS Real Estate Services responsibilities

Commissioner Molina provides an overview of the responsibilities and functions of DCAS Real Estate Services, including managing the city's real property and overseeing its commercial rental portfolio. - DCAS oversees …

0:07:28

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122 sec

AGENCY TESTIMONY

DCAS leasing process explained

Commissioner Molina details the multi-step leasing process followed by DCAS, from the initial approval of space needs to the final execution of the lease. - Process begins with OMB approval …

0:09:31

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166 sec

AGENCY TESTIMONY

Improvements in DCAS operations and tracking

Commissioner Molina outlines improvements in DCAS's internal operations, focusing on better tracking of space utilization to save taxpayer dollars. - DCAS built a database called Archivist to document all non-court …

0:12:18

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39 sec

AGENCY TESTIMONY

Space savings program implementation

Commissioner Molina introduces the space savings program, an initiative to optimize the use of city office space and reduce costs. - The program began in November 2023 - It involved …

0:12:58

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45 sec

AGENCY TESTIMONY

Efforts to streamline leasing process and expand property search

Commissioner Molina outlines efforts to streamline the leasing process and expand the search for suitable properties to meet city needs more efficiently. - Increased early communication with OMB regarding project …

0:13:44

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57 sec

AGENCY TESTIMONY

Commitment to cost-effective outcomes and conclusion

Commissioner Molina concludes his testimony by reaffirming DCAS's commitment to delivering the best and most cost-effective outcomes for New Yorkers. - Emphasizes the department's dedication to serving the public interest …

0:14:42

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14 sec

Q&A

Inquiry into FBI and Manhattan DA investigations of DCAS real estate division

Council Member Restler inquires about reported FBI and Manhattan District Attorney investigations into DCAS's real estate division. Commissioner Molina states he has not been notified of any such investigations and …

0:14:57

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50 sec

Q&A

Commissioner Molina's awareness of 14 Wall Street lease and Deputy Commissioner Hamilton's activities

Council Member Restler questions Commissioner Molina about his awareness of various events related to the 14 Wall Street lease and Deputy Commissioner Hamilton's activities. Molina consistently denies prior knowledge of …

0:15:47

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107 sec

Q&A

Discussion of tenant representative firms' compensation packages

Council Member Restler provides information about the substantial compensation packages that tenant representative firms like Cushman & Wakefield receive for transactions made on behalf of DCAS. Commissioner Molina acknowledges awareness …

0:17:34

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71 sec

Q&A

Examination of Jesse Hamilton's qualifications as Deputy Commissioner for Real Estate Services

Council Member Restler questions Commissioner Molina about Jesse Hamilton's qualifications to serve as Deputy Commissioner for Real Estate Services at DCAS. Molina defends Hamilton's credentials, while Restler expresses concern about …

0:18:46

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73 sec

Q&A

Executive Deputy Commissioner Overton's qualifications and experience at DCAS

Council Member Restler questions Executive Deputy Commissioner Overton about her qualifications and experience, particularly in relation to real estate and facility management. Overton acknowledges her lack of specific expertise in …

0:20:01

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59 sec

Q&A

Commissioner Molina's experience in real estate and facility management

Council Member Restler questions Commissioner Molina about his experience in real estate and facility management. Molina emphasizes his experience in managing complex operations but acknowledges his lack of direct real …

0:21:01

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107 sec

Q&A

Discussion of delegation authority and oversight mechanisms within DCAS

Council Member Restler raises concerns about the delegation of authority within DCAS, particularly regarding real estate decisions. Commissioner Molina explains the oversight mechanisms and collaborative nature of decision-making in the …

0:22:48

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55 sec

Q&A

Inquiry into Deputy Commissioner Hamilton's phone seizure and subsequent actions

Council Member Restler questions Commissioner Molina about the seizure of Deputy Commissioner Hamilton's phone by investigators and the actions taken by DCAS in response. Molina provides information about when he …

0:23:44

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154 sec

Q&A

DCAS protocols for employees under law enforcement investigation

Council Member Restler inquires about DCAS protocols for handling employees who are subject to ongoing law enforcement investigations. Commissioner Molina's responses reveal a lack of specific DCAS protocols and a …

0:26:20

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66 sec

Q&A

Review of Deputy Commissioner Hamilton's leasing decisions

Council Member Restler questions Commissioner Molina about whether a review of Deputy Commissioner Hamilton's leasing decisions has been conducted, especially in light of recent events. Molina's responses indicate a limited …

0:27:28

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78 sec

Q&A

Deputy Commissioner Hamilton's international trip with Diana Boutross

Council Member Restler questions Commissioner Molina about Deputy Commissioner Hamilton's international trip with Diana Boutross, a broker from Cushman & Wakefield who handles the DCAS account. The discussion reveals Molina's …

0:28:46

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3 min

Q&A

Meetings with Cushman & Wakefield team following Hamilton's trip

Council Member Restler questions Commissioner Molina about meetings held with the Cushman & Wakefield team after Deputy Commissioner Hamilton's trip with Diana Boutross. The discussion reveals that a meeting took …

0:32:03

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60 sec

Q&A

Introduction to questions about 14 Wall Street lease

Council Member Lincoln Restler introduces his intention to ask questions about the 14 Wall Street lease controversy. He mentions that he will ask a couple of questions before allowing other …

0:33:06

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31 sec

Q&A

Timeline of RFP for DFTA office space

Council Member Restler inquires about the timeline of the Request for Proposals (RFP) process for the Department for the Aging (DFTA) office space. Commissioner Molina provides the dates for the …

0:33:49

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21 sec

Q&A

Selection process for DFTA office space

Council Member Restler questions Commissioner Molina about the selection process for the DFTA office space. Molina initially states that 14 Wall Street was selected, but Restler presses for clarification on …

0:34:11

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29 sec

Q&A

Best and Final Offer (BAFO) for 250 Broadway

Council Member Restler inquires about a Best and Final Offer (BAFO) made to 250 Broadway. Commissioner Molina disputes the characterization of a BAFO and emphasizes the fluidity of real estate …

0:34:40

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28 sec

Q&A

Controversy over changing from 250 Broadway to 14 Wall Street

Council Member Restler questions Commissioner Molina about the controversial decision to change from 250 Broadway to 14 Wall Street. Molina defends the decision, citing cost savings and agency preference. - …

0:35:10

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6 min

Q&A

Deputy Commissioner Hamilton's role in the decision

Council Member Restler questions Commissioner Molina about Deputy Commissioner Hamilton's role in the decision to change from 250 Broadway to 14 Wall Street. Molina defends Hamilton's decision as beneficial to …

0:42:05

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25 sec

Q&A

Former general counsel's advice on the decision

Council Member Restler questions Commissioner Molina about the former general counsel's advice regarding the decision to change from 250 Broadway to 14 Wall Street. Molina acknowledges some concerns but downplays …

0:42:29

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89 sec

Q&A

Commissioner Molina's briefing on the 14 Wall Street lease

Council Member Restler questions Commissioner Molina about when he was first briefed on the 14 Wall Street lease and his knowledge of previous concerns. Molina's responses indicate limited awareness of …

0:43:59

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38 sec

Q&A

Questions about potential corruption and protocol adherence

Council Member Restler questions Commissioner Molina about potential corruption and protocol adherence in the 14 Wall Street lease decision. Molina maintains that the decision was made in the best interest …

0:44:37

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28 sec

Q&A

Commissioner Molina's awareness of 14 Wall Street ownership

Council Member Restler questions Commissioner Molina about his awareness of 14 Wall Street ownership and potential conflicts of interest related to mayoral donations. Molina's responses indicate limited knowledge of these …

0:45:06

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44 sec

Q&A

Cost-effectiveness of relocating DFTA to 14 Wall Street vs renovating 2 Lafayette Street

Council Member Marte questions Commissioner Molina about the cost-effectiveness of relocating the Department for the Aging (DFTA) to 14 Wall Street instead of renovating their current location at 2 Lafayette …

0:45:57

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132 sec

Q&A

Plans for 2 Lafayette Street after DFTA's potential relocation

Council Member Marte inquires about the plans for 2 Lafayette Street once DFTA potentially relocates. Commissioner Molina explains that the building is not yet vacant and that future plans are …

0:48:18

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44 sec

Q&A

Capital improvements and space considerations at 14 Wall Street

Council Member Marte questions Commissioner Molina about capital improvements and space considerations for the proposed DFTA relocation to 14 Wall Street. Molina explains that the deal is turnkey with no …

0:49:05

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95 sec

Q&A

Inquiry about other city agencies at 14 Wall Street and city's leasing portfolio

Council Member Marte inquires about the presence of other city agencies at 14 Wall Street and the city's leasing portfolio with the property manager. Commissioner Molina provides limited information but …

0:50:42

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28 sec

Q&A

Suggestion to withdraw the 14 Wall Street lease application

Council Member Marte suggests that DCAS should withdraw the 14 Wall Street lease application due to the ongoing questions and scrutiny. Commissioner Molina maintains confidence in the deal and declines …

0:51:10

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102 sec

REMARKS

Chair Restler's comments on the commissioner's testimony and donations

Chair Restler expresses concern about Commissioner Molina's lack of awareness regarding donations to the mayor's legal defense fund and his confidence in the 14 Wall Street deal despite ongoing scrutiny. …

0:52:53

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45 sec

Q&A

Inquiry into the ownership of 14 Wall Street

Council Member Lynn Schulman inquires about the ownership of 14 Wall Street. Commissioner Louis Molina responds that Alexander Roth owns the building, but there might be a company name associated …

0:53:41

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25 sec

Q&A

Comparison of floor plans between 14 Wall Street and 250 Broadway

Commissioner Molina explains the differences between 14 Wall Street and 250 Broadway, highlighting cost savings and readiness for occupancy. - 250 Broadway requires over $10 million in capital improvements due …

0:54:06

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64 sec

Q&A

Presence of city agencies at 14 Wall Street

Council Member Schulman inquires about the number of city agencies currently at 14 Wall Street, expressing concern about prioritizing it over 250 Broadway. - Commissioner Molina confirms that there are …

0:55:11

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42 sec

Q&A

Overview of the citywide space saving task force

Commissioner Molina provides information about the citywide space saving task force, its composition, and its progress. - The task force was initiated in November 2023 under the First Deputy Mayor …

0:55:54

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120 sec

Q&A

Space reduction initiatives for city agencies

Council Member Schulman inquires about specific agencies being asked to reduce their office footprint, and Commissioner Molina explains the broader approach to space reduction. - It's reported that the law …

0:57:56

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42 sec

Q&A

Balancing space reduction with potential future hiring

Council Member Schulman raises concerns about reducing office space while also trying to recruit new workers. Commissioner Molina explains the strategy for accommodating future hires. - Schulman points out the …

0:58:38

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52 sec

Q&A

Detailed discussion of scoring and selection process for 14 Wall Street vs. 250 Broadway

Council Member Powers questions Commissioner Molina about the scoring and selection process for office spaces, specifically comparing 14 Wall Street and 250 Broadway. Molina explains the scoring criteria, including test …

0:59:36

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7 min

Q&A

Concerns about lack of reviews and guardrails for real estate transactions

Council Member Powers expresses concern about the lack of reviews and guardrails for real estate transactions involving the deputy commissioner. He references previous questions and answers, highlighting that no comprehensive …

1:06:47

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26 sec

Q&A

Changes to the deputy commissioner's role and responsibilities

Council Member Powers inquires about any changes or modifications made to the role and responsibilities of the deputy commissioner. Commissioner Molina explains that while there have been no direct changes …

1:07:14

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37 sec

Q&A

Suggestion for comprehensive review of real estate transactions

Council Member Powers strongly suggests conducting a comprehensive review of real estate transactions involving the deputy commissioner. He emphasizes the importance of evaluating these transactions to address questions about the …

1:07:51

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52 sec

Q&A

Inquiry about deputy commissioner's attendance at the hearing

Council Member Powers asks a final question about whether the deputy commissioner is testifying at the hearing. Commissioner Molina provides a brief response. - Powers asks if the deputy commissioner …

1:08:44

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9 sec

Q&A

Council Member Restler questions Commissioner Molina about 250 Broadway lease and delegation of authority

Council Member Lincoln Restler engages in a detailed questioning of DCAS Commissioner Louis Molina regarding the 250 Broadway lease offer and the delegation of authority within DCAS. Restler seeks clarification …

1:08:52

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143 sec

Q&A

Discussion on tenant representative firms' selection and contracts

Council Member Brewer inquires about the selection process and contracts for tenant representative firms Cushman & Wakefield and CBRE. Commissioner Molina explains the history of their selection, upcoming plans for …

1:11:35

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110 sec

Q&A

Comparison of space at 2 Lafayette Street and 14 Wall Street

Council Member Brewer inquires about the space differences between 2 Lafayette Street and 14 Wall Street. Commissioner Molina provides information about the usable square footage at 14 Wall Street and …

1:13:25

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40 sec

Q&A

Questions about increased city leasing despite fewer employees and remote work

Council Member Brewer expresses concern about the city leasing more space despite having fewer employees and increased remote work. Commissioner Molina explains the reasons behind the apparent increase in leased …

1:14:06

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55 sec

Q&A

Concerns about transparency in space allocation and leasing decisions

Council Member Brewer raises concerns about the lack of transparency in space allocation and leasing decisions. Commissioner Molina explains the process of determining space needs and availability in city-owned buildings. …

1:15:01

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168 sec

Q&A

Debate over the choice between 250 Broadway and 14 Wall Street locations

Council Member Brewer and Commissioner Molina engage in a debate about the decision to choose 14 Wall Street over 250 Broadway for the Department of Aging. They discuss cost savings, …

1:17:49

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178 sec

Q&A

Future plans for renovating and repurposing 2 Lafayette Street

Commissioner Molina outlines the future plans for 2 Lafayette Street after the Department of Aging moves out. The building will undergo significant renovation before being repurposed for other city agencies. …

1:20:47

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56 sec

REMARKS

Council Member Restler questions 14 Wall Street lease decision

Council Member Restler raises concerns about the decision-making process for the 14 Wall Street lease. He questions why DCAS did not return to 250 Broadway to see if they could …

1:21:49

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55 sec

Q&A

Inquiry about Deputy Commissioner Jesse Hamilton's absence from the hearing

Council Member Restler questions why Deputy Commissioner Jesse Hamilton is not present at the hearing to answer questions directly. Commissioner Molina defends the decision to represent DCAS himself at the …

1:22:44

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36 sec

Q&A

Questions about Diana Butros' appointment as Cushman and Wakefield account manager

Council Member Restler questions the appointment of Diana Butros as the new account manager for Cushman and Wakefield, replacing Robert Gigglio. Commissioner Molina admits limited knowledge of the situation due …

1:23:22

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4 min

Q&A

Questions about Diana Butros' political donations and relationships with city officials

Council Member Restler raises concerns about Diana Butros' political donations to Mayor Adams and her relationships with city officials. Commissioner Molina claims limited knowledge of these matters. - Restler mentions …

1:27:52

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45 sec

Q&A

Discussion of tenant representative commission rates and potential earnings

Council Member Restler and Commissioner Molina discuss the commission rates for tenant representatives and the potential earnings from large lease agreements. The discussion highlights the significant financial implications of these …

1:28:38

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132 sec

Q&A

Questions about delay in issuing new RFP for tenant representation services

Council Member Restler inquires about the delay in issuing a new Request for Proposal (RFP) for tenant representation services. Commissioner Molina explains the reasons for the delay and the city's …

1:30:51

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73 sec

Q&A

Discussion of MWBE participation in tenant representation contracts

Council Member Restler raises concerns about the reduction in Minority and Women-owned Business Enterprise (MWBE) participation in tenant representation contracts. Commissioner Molina and Executive Deputy Commissioner Overton struggle to provide …

1:32:04

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131 sec

Q&A

Questions about changes in agency portfolio assignments between CBRE and Cushman & Wakefield

Council Member Restler inquires about changes in agency portfolio assignments between CBRE and Cushman & Wakefield since Diana Butros became the account holder. Commissioner Molina provides limited information due to …

1:34:15

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166 sec

Q&A

Concerns about ethical implications of vacation taken by Deputy Commissioner Hamilton

Council Member Restler raises ethical concerns about Deputy Commissioner Hamilton going on vacation with Diana Butros (Cushman & Wakefield account lead) and Ingrid Lewis-Martin (Chief Advisor to Mayor Adams) just …

1:37:02

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5 min

Q&A

Discussion of the Bronx Logistics Center and DCAS's consideration of the site

Council Member Restler questions Commissioner Molina about DCAS's consideration of the Bronx Logistics Center, a privately-owned site that Deputy Commissioner Hamilton has been promoting for city use. Molina provides limited …

1:42:53

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149 sec

Q&A

Discussion of promotional video for Bronx Logistics Center

Council Member Restler presents a promotional video for the Bronx Logistics Center created by DCAS, which Commissioner Molina claims to have never seen before. The video features Deputy Commissioner Jesse …

1:45:22

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3 min

Q&A

Questions about increase in Real Estate Services division headcount

Council Member Restler questions the significant increase in headcount within the Real Estate Services division under Deputy Commissioner Hamilton, despite overall city workforce reductions. Commissioner Molina attempts to explain the …

1:48:25

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134 sec

Q&A

Discussion of increasing city lease payments despite shrinking workforce and lower market rents

Council Member Restler questions the 20% increase in city lease payments over the last five years, despite a shrinking workforce, increased remote work, and lower market rents. Commissioner Molina attempts …

1:50:42

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4 min

Q&A

Promotional video for Bronx Logistics Center featuring Jesse Hamilton

Council Member Lincoln Restler questions DCAS Commissioner Louis Molina about a promotional video featuring Deputy Commissioner Jesse Hamilton endorsing the privately-owned Bronx Logistics Center. Restler expresses concern about the appropriateness …

1:54:49

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177 sec

Q&A

Council Member Brewer inquires about availability and utilization of city-owned space

Council Member Gale A. Brewer engages in a Q&A session with DCAS Commissioner Louis Molina about the availability and utilization of city-owned space. The discussion covers topics such as the …

1:57:47

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3 min

REMARKS

Council Member Restler concludes hearing with concerns about DCAS decisions

Council Member Lincoln Restler concludes the hearing by thanking Commissioner Molina and Executive Deputy Commissioner Overton for their attendance and responses. He expresses serious concerns about recent decisions made at …

2:00:58

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60 sec

PUBLIC TESTIMONY

Testimony by Sharon Brown Jeter, Member of the Public

Sharon Brown Jeter provided testimony on the topic of leases and real estate practices by the Department of Citywide Administrative Services. She offered suggestions for reclaiming sold city properties and …

2:04:47

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137 sec

PUBLIC TESTIMONY

Testimony by Christopher Leon Johnson, Member of the Public

Christopher Leon Johnson testifies about his concerns regarding corruption and conflicts of interest in the DCAS real estate dealings, particularly focusing on Jesse Hamilton, Maria Torres-Springer, and the involvement of …

2:07:08

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177 sec

PUBLIC TESTIMONY

Testimony by Barbara Mennu on Homelessness and City Agency Treatment

Barbara Mennu, a member of the public, provides testimony about her family's struggles with homelessness and their treatment by city agencies. She expresses frustration with the lack of response from …

2:10:23

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63 sec

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