EDC Cash Clash: Is It Payback Time? (City Limits)

Now that New York City’s comptroller has charged that the city’s development arm illegally withheld $125 million in revenues from the city treasury, does he actually have a shot at getting it back?

Comptroller John Liu’s finding that the Economic Development Corporation (EDC) had shortchanged the city treasury by $125 million raises the question of whether the comptroller can force the EDC to return the monies.

Asked at a telephone press briefing on Wednesday if he’d use his power to refuse to sign off on city contracts to compel EDC to pass the money buy generic inderal along (EDC, though effectively a branch of the mayor’s office, is technically a non-profit corporation that contracts with the city to do economic development), Liu replied: “I hope it doesn’t need to get any further beyond this point,” adding: “We will use every authority we have in this office, and I imagine the mayor will do the same thing, to get that $125 million.”

It seems unlikely, however, that the mayor will have Liu’s back, since two mayoral agencies have already signed off on the EDC’s practice… [read more]

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