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Q&A

Controversy over changing from 250 Broadway to 14 Wall Street

0:35:10

·

6 min

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.

  • Restler suggests that a BAFO was made to 250 Broadway before a unilateral decision to change to 14 Wall Street
  • Molina disputes this characterization, emphasizing the non-binding nature of the RFP and negotiations
  • Molina cites a $31 million cost saving by choosing 14 Wall Street
  • Restler repeatedly tries to get Molina to confirm on record that 250 Broadway was initially selected
Lincoln Restler
0:35:10
So just so I understand, Decast entered into negotiations with 250 Broadway, made a best and final offer to 250 Broadway, which is a technical term, a best and final offer was made to that tenant.
0:35:25
To that building owner, excuse me, for a deal to be transacted.
0:35:30
And deputy commissioner Hamilton unilaterally reached out to decast officials and informed them that they he was no longer interested in moving forward with 250 Broadway that he was redirecting the transaction to 14 Wall Street.
Louis Molina
0:35:43
No.
0:35:43
I think it's important to frame things in the proper way, and that first of all, 14 Wall Street was always the preferred location for the department of the aging.
0:35:55
And we give a lot of difference to agencies as to where they best feel that workers can do their work and them serve the clients that they serve.
0:36:04
With that, we then begin to negotiate with a number of parties that want to do business with the city and 14 Wall Street was part of that consideration process.
Lincoln Restler
0:36:17
Commissioner Melina, I've been I've worked for the city for a long time as you know.
0:36:20
Mhmm.
0:36:20
And I cannot recall an instance where an agency makes a best and final offer, and then unilaterally walks away from it for no apparent reason.
0:36:29
So I'm confused.
0:36:30
When was the BAFO made for 250 Broadway?
0:36:34
When was the what made?
0:36:35
When was the best and final offer made for 250 Broadway?
0:36:39
Do you have a date?
0:36:40
You said you reviewed this case.
Keith Powers
0:36:41
We can
Louis Molina
0:36:41
provide you reviewed the email.
0:36:42
So we communicated with 250 Broadway 250 Broadway.
0:36:46
But again, this was not a binding lease.
0:36:49
This was a fluid negotiation process that we have to ensure that we have the best price possible for city taxpayers.
0:36:57
And at the end of the day, 14 Wall Street represented was 30 over $31,000,000 cheaper than locating the Department of the Aging at 250 Broadway, which was not the location they wanted to be in they wanted to be in 14 Wall Street.
Lincoln Restler
0:37:13
So I just wanna make sure I follow this right.
0:37:15
That's the final offer was made 250 Broadway was selected.
0:37:19
Right?
0:37:19
So Best And Final offer was made, if I have this right, tell me if if this is correct, 250 Broadway And 14 Wall Street, and Decast selected 250 Broadway.
0:37:29
And then
Louis Molina
0:37:29
250 Broadway was under serious consideration, but there was there was not a binding agreement made with the ownership group of 250 Broadway.
0:37:39
It is a fluid situation to make sure that we get the best price for the city taxpayers of the city, and 14 Warshal represented an over $31,000,000 savings by placing the agency there, where they wanted to be versus 250 Broadway, which was a location that they did not like.
Lincoln Restler
0:38:00
So just so I understand, Decast selected 250 Broadway based on its best and final offer, and then unilaterally changed its course of action.
Louis Molina
0:38:12
No.
0:38:12
Decast had on the serious consideration entering into agreement with 250 Broadway.
0:38:19
And that consideration was nonbinding, and there was a backcountry
Lincoln Restler
0:38:24
So there was no selection process of 250 Broadway where they were selected based on their best and final offer.
0:38:28
Your find today.
0:38:29
I just wanna make sure that I have this on the record very clearly because we've heard from many people inside and outside the administration who have told this explicitly contrary to this.
0:38:37
So I just wanna make sure I have it clear from you on the record that have this accurately.
0:38:43
A best and final offer was made to 250 Broadway.
0:38:46
It was selected by Decast.
0:38:47
The city walked away from it.
0:38:49
And then unilaterally shifted course to to 14 Wall Street.
0:38:52
You're saying that is not true.
Louis Molina
0:38:53
No.
0:38:54
What I'm saying is Wait.
0:38:55
Here's 250 Broadway.
0:38:57
First of all, we should take a step back.
Lincoln Restler
0:38:59
Okay.
0:38:59
The strike.
Louis Molina
0:39:00
RFP was nonbinding.
0:39:03
And the nonbinding standards of that RFP were made very clear in the in the in the language of the RFP for all parties to understand.
0:39:13
Right?
0:39:13
And the goal of that RFP was to do a couple of things.
0:39:16
1, make sure that we can move faster in selecting the site and executing the lease on behalf of the city, a process that normally takes sometimes over 2 years, we wanted to go between 7 14 months.
0:39:31
That was our goal.
0:39:32
We also wanted to open up the opportunity, as you stated, minority and woman owned business, landlords possibly that had never really done work with the city to be able to be given consideration of that.
0:39:45
And we advertise the pilot RFP on our website and in Crane's Business Magazine so that individuals could know that it was being offered But again, it was nonbinding as we evaluated originally what I would describe as the 4 optimal locations that could possibly house aging, Agent's preference was always to be in 14 Wall Street.
0:40:09
As we were going through the scoring process, it appeared at that moment that 250 Broadway might be the better option But given that we were gonna ultimately have a savings of over $31,000,000, Asian was adaptable.
0:40:25
And the layout of 14 Wall Street, there was capital improvements that did not have to be done at 14 Wall Street, and that saved the taxpayers of the city over $31,000,000.
0:40:37
Nothing in the communications though seriously considered option of going to 250 Broadway were abandoned.
0:40:44
No lease was executed.
0:40:46
What we're committed to is making sure that we're bringing the best value to the city taxpayers of the city, and that's what happened in this process.
Lincoln Restler
0:40:54
Appreciate the context that you're providing.
0:40:56
I just wanna again get as clear as I can on the record A best and final offer was made to 250 Broadway and 14 Wall.
0:41:04
Decast selected 250 Broadway, and then deputy commissioner Hamilton unilaterally decided to move in a different direction.
0:41:12
You're saying that is not true.
Louis Molina
0:41:13
I'm saying that 250 Broadway was under serious consideration, but it was not
Gale A. Brewer
0:41:24
in a binding situation with 250
Louis Molina
0:41:28
Broadway.
0:41:29
And it was our responsibility to evaluate every location to bring the best deal forward for the city's taxpayers.
Lincoln Restler
0:41:36
I just wanna be very clear on the record.
0:41:38
To say to say to that, we have gotten very clear information from people who are involved in this process.
0:41:43
The 250 Broadway was selected with the best and final offer.
0:41:47
And there as was been reported in the press, emails from deputy commissioner Hamilton that unilaterally decided to move in a different direction.
0:41:53
Understanding it had been one of the sites that was considered, but after a best and final offer was selected, 4 250 Broadway, deputy commissioner Hamilton chose to go to a different building.
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