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Storm3-15The man who ran City Hall for Eric Adams is now charged with turning the migrant crisis into a personal billing cycle.
“Devised and executed a scheme to exploit the City's migrant crisis for profit”
"Devised and executed a scheme to exploit the City's migrant crisis for profit," DOI Commissioner Nadia Shihata said in remarks The City quoted prominently. The outlet traced the scheme through text messages: Zhu's "Thank you my big guy" to Carone, then Chen's note to a hotel employee that "in the end it's all about money." The City named Gary Jenkins, "City Official #1" in the indictment, as the former DSS commissioner who redirected the agency after Carone's pressure and later joined Carone's lobbying firm, Oaktree Solutions. No other outlet in today's digest ran a standalone story on the arrest [33].
Read the original ›Federal prosecutors in Brooklyn unsealed a 29-count indictment Wednesday morning charging Frank Carone, 56, former chief of staff to Mayor Eric Adams; his brother Anthony Carone, a partner at the law firm Abrams Fensterman; hotel owner Yan Po Zhu; and Zhu's employee Crystal Chen. The indictment alleges that starting in the summer of 2022, as New York scrambled to house arriving asylum seekers, Carone accepted $120,000 in bribe payments from Zhu and Chen in exchange for pressuring the Department of Social Services to reverse its repeated rejections and approve a shelter contract for Zhu's 75-room hotel at 40th Avenue in Long Island City. DSS had flagged the industrial location as inappropriate for migrant families; nearby hotels were already drawing protests from residents. The contract started at $4 million and grew to $14 million; Zhu separately collected $6.8 million in rent. Payments were routed through a shell company to Anthony Carone's law firm account and used to pay Frank Carone's credit card bills for travel, dining, gym memberships, and clothing. The indictment also charges tax fraud. Bail was set at $2 million for Frank Carone and $8 million for Zhu. U.S. Attorney Nocella recused himself for unspecified reasons; First Assistant U.S. Attorney Michael Considine is prosecuting [33].
A year after taking City Hall, the mayor's machine ousted two sitting members of Congress and a borough president from his own party, and the general election test is five months away.
“The era of taking a check and cashing a check and calling it representation is over”
"The era of taking a check and cashing a check and calling it representation is over," Avila Chevalier told supporters, the line The City led with. The outlet traced the racial tensions of the final days: allies of Espaillat spread a conspiracy claiming Avila Chevalier wanted to replace Dominicans with Haitians in Washington Heights, which Espaillat himself publicly condemned. Mamdani, speaking at her victory party, framed the results as "the beginning" of the race for 2028. [36]
Read the original ›“There are 215 members of the House Democratic Caucus”
"There are 215 members of the House Democratic Caucus," Jeffries told reporters, downplaying results that included the defeat of two people he personally backed. NY1 also noted the pressure on Chuck Schumer, up for reelection in 2028 with low approval ratings, and highlighted that Trump's endorsement again proved decisive upstate in the GOP 21st CD race, where Constantino beat the establishment-backed Smullen. [22]
Read the original ›“Status quo politics in Albany and Washington is not working for this affordability crisis”
"Status quo politics in Albany and Washington is not working for this affordability crisis," political consultant Bradley Honan told Gothamist. The outlet noted the limits: in the Hudson Valley's 17th District, around 80% of the vote went to moderate candidates. The NYGOP quickly issued a statement calling the DSA "the Democratic Party in New York," a phrase built for November attack ads in swing districts. [71]
Read the original ›“Why is he not a leader on immigration? Why don't we see him fighting Donald Trump tooth and nail?”
"Why is he not a leader on immigration? Why don't we see him fighting Donald Trump tooth and nail?" Fordham political scientist Christina Greer told Documented, naming the frustration among Washington Heights voters who expected more from Espaillat despite his history as the first formerly undocumented immigrant elected to Congress. Six Washington Heights voters told Documented their top concerns were cost of living and protecting voting rights under Trump's denaturalization push. [137]
Read the original ›“Hay un cambio demográfico claro”
"Hay un cambio demográfico claro," an Espaillat campaign source told El Diario, which reported that more than 17,000 Hispanics left Washington Heights and Inwood between 2010 and 2020 while those neighborhoods gained nearly 5,000 white residents. El Diario's tone was cautionary: the traditional Dominican electorate that built Espaillat's base mostly stayed home, and a 12% turnout coalition is fragile going into November. [153]
Read the original ›“A huge victory for New York public transit riders up and down the ballot”
"A huge victory for New York public transit riders up and down the ballot," Riders Alliance's Danny Pearlstein said, as quoted by Streetsblog, which framed the Espaillat loss primarily as the defeat of "a bike lane opponent and recidivist driver." Streetsblog tallied StreetsPAC endorsements across more than a dozen races and found nearly all its picks won. [112]
Read the original ›“This neighborhood's soul is being ripped out by landlords and real estate developers”
"This neighborhood's soul is being ripped out by landlords and real estate developers," from Eon Huntley's housing platform, as The Real Deal quoted. The outlet catalogued industry donations to losing incumbents: Two Trees CEO Jed Walentas gave $5,000 to Rajkumar; SL Green gave $3,000; Extell chairman Gary Barnett donated to Moving Brooklyn Forward, the independent expenditure backing Zinerman. The Real Estate Board of New York's PAC gave $3,000 to Rajkumar. All lost. [95]
Read the original ›“I think it's a mobilization issue”
"I think it's a mobilization issue," WFP state director Jasmine Gripper told Hell Gate moments after Reynoso conceded, attributing the loss partly to Black and brown voters who weren't registered when they tried to show up. She declined to frame the results as a DSA defeat of the WFP, insisting the two organizations share more goals than conflicts. [80]
Read the original ›On June 24, three DSA-aligned candidates endorsed by Mayor Mamdani won Democratic congressional primaries. Darializa Avila Chevalier, 32, beat five-term Rep. Adriano Espaillat by more than 3 percentage points in the 13th District, which covers Upper Manhattan and parts of the Bronx. Brad Lander defeated two-term Rep. Dan Goldman by roughly two-to-one in the 10th District, covering lower Manhattan and parts of Brownstone Brooklyn. Assemblymember Claire Valdez beat Brooklyn Borough President Antonio Reynoso by 20 points in the open 7th District, from Downtown Brooklyn to Sunnyside, Queens. All three are endorsed by the Democratic Socialists of America. Turnout was about 12% of registered Democrats citywide: roughly 420,527 votes cast out of approximately 3.5 million registered [153]. Outside groups backing Espaillat spent more than $4 million, including $2.9 million from BOLD America, a super PAC that received funding linked to AIPAC-connected donors, against roughly $1 million in outside spending supporting Avila Chevalier, per independent reporting (Dropsite News).
A dozen state legislative seats flipped in Brooklyn and Queens, clearing the path for housing and transit bills that Albany has blocked for years.
“These communities are organized. Bushwick and East New York have organized themselves; they're not looking to be saved”
"These communities are organized. Bushwick and East New York have organized themselves; they're not looking to be saved," Tate told City & State, describing a campaign built on 4,000 door knocks and his work through the East New York Community Land Trust. He named signing on to New York for All, the New York Health Act, and "ending toxic home flipping" as his first-day priorities in Albany. [3]
Read the original ›"If you are unsupportive of building affordable housing on parking lots, if you accept money from... big real estate PACs... you are more than guaranteed to lose an election here," City Council Member Chi Ossé wrote on Instagram about the Zinerman-Huntley race, as The Real Deal quoted. The outlet documented the financial divide clearly: SL Green, Two Trees CEO Jed Walentas, and Extell's Gary Barnett all donated to losing incumbents. Incoming member Orkin pledged to support the Tenant Opportunity to Purchase Act, which would give tenants partnered with nonprofits right of first refusal when buildings sell. [95]
Read the original ›“a rare win”
Streetsblog singled out Tate for leading his community board to oppose the NYPD's criminal crackdown on cyclists, "a rare win," and praised Huntley for supporting universal daylighting and wanting the state DMV to be more proactive against unsafe drivers. It called the overall results "a huge victory for New York public transit riders up and down the ballot." [112]
Read the original ›“He is, for better or worse, able to direct endorsements to electoral outcomes”
"He is, for better or worse, able to direct endorsements to electoral outcomes," political consultant Bradley Honan told Epicenter. Epicenter noted the casino split in western Queens: González-Rojas backed the Citi Field Metropolitan Park development that Ramos opposed, with unions behind the casino for its promised jobs, showing that the left-right divide does not always line up cleanly at the local level. [160]
Read the original ›Alongside the congressional primaries, DSA-backed candidates beat incumbents in at least six state legislative races in New York City. Christian Celeste Tate beat 11-year incumbent Erik Dilan in AD-54 (Bushwick, Cypress Hills, East New York) with 62%. Eon Huntley beat Stefani Zinerman in AD-56 (Bed-Stuy, Crown Heights) by 22 points. David Orkin beat five-year incumbent Jenifer Rajkumar in AD-38 (Ridgewood, Glendale, Woodhaven) by 19 points. Samantha Kattan won AD-37 (Ridgewood, Sunnyside, Maspeth). Aber Kawas won SD-12, the western Queens seat held by retiring Sen. Mike Gianaris. Assemblymember Jessica González-Rojas flipped to the state Senate, beating incumbent Jessica Ramos in SD-13 (Jackson Heights, Corona, East Elmhurst). In Central New York, DSA-backed Maurice "Mo" Brown was leading 28-year incumbent Bill Magnarelli with absentees still outstanding [22].
One million leases. Six Mamdani appointees. A hearing in East Harlem. The mayor's most specific campaign promise gets a binding vote tonight.
“It's just not that costly to the landlords if you do a short-term rent freeze, and it can provide significant relief for the consumer”
"It's just not that costly to the landlords if you do a short-term rent freeze, and it can provide significant relief for the consumer," Fiscal Policy Institute economist Emily Eisner told Gothamist. The outlet quoted Astoria tenant Farhana Rahman, who pays $2,200 a month on combined household income that puts her already at 60% rent-to-income, double the federal threshold for rent-burdened. New York Apartment Association head Kenny Burgos countered that a $45-a-month increase on a 40-unit building amounts to $21,600 a year, real money for insurance and maintenance. Gothamist noted that Mamdani has stopped publicly saying "freeze the rent" since taking office, a deliberate retreat from his campaign language. [60]
Read the original ›The Rent Guidelines Board convenes tonight at El Museo del Barrio in East Harlem for its binding final vote on rents for approximately one million rent-stabilized apartments covering roughly two million tenants. In May, the nine-member board voted to consider a range from 0% to 2% on new one-year leases and 0% to 4% on two-year leases, keeping a full freeze within reach. Six of the nine members were appointed by Mayor Mamdani, who made a rent freeze his signature campaign promise but has publicly backed away from calling for one since taking office, citing legal concerns about undue influence on an independent board. The board's own 2024 data show landlords' net operating income rose more than 6% in buildings with at least one rent-stabilized unit, though landlord groups argue this figure is skewed by strong Manhattan properties and obscures financial distress in parts of the Bronx where insurance costs have surged. Wednesday morning, Mamdani released a request for proposals for a city-backed insurance program, an attempt to give landlords something before the vote without asking tenants to pay for it [60].
Janno Lieber says signing the Memorandum of Agreement would make the MTA a tenant at will in its own station. Andy Byford says they will proceed regardless.
“Simply bizarre... gamesmanship”
"Simply bizarre... gamesmanship," Lieber called Byford's approach, in amNewYork's most direct quote. The outlet focused on Lieber's core concern: the MOA would effectively convert the MTA from a protected leaseholder to a tenant at will, subject to displacement from a concourse it recently renovated. Lieber also raised publicly the question of how much MSG owner James Dolan stands to benefit from the project, a question the administration has not answered. [102]
Read the original ›Streetsblog gave the dispute a brief mention alongside its primary coverage, noting that Assembly Member Tony Simone wrote a Daily News op-ed warning Trump to keep his hands off the station. [112]
Read the original ›At the MTA's monthly board meeting Wednesday, MTA Chair Janno Lieber publicly accused the Trump administration of trying to pull "a fast one" on the agency over Penn Station's redevelopment. The dispute centers on a Memorandum of Agreement that Amtrak special adviser Andy Byford asked the MTA to sign. The MTA has been excluded from the process since the Trump administration took it over last year. In May, the Trump DOT and Amtrak named Penn Preservation Partners, a joint venture of Halmar, Skanska, and Vornado, as master developer. Earlier this month Amtrak released renderings of a single-level concourse with an 8th Avenue entrance and higher ceilings, without disclosing a cost estimate or who pays. Lieber says the MTA's lease gives it approval power over the station's northern half, including the recently renovated 33rd Street LIRR concourse, and that signing the MOA would mean surrendering those rights. "I'm declining to be the first person in New York real estate history to say I want to enter into a real estate deal with Donald Trump, with no lease and no protections, and just roll the dice," he said. Byford responded: "We will proceed regardless." Governor Hochul's office called the project "too important not to work collaboratively," without taking a clear side [102].
Max Klimavicius arrived from Colombia in 1974 as a kitchen assistant. Wednesday night he handed over the most famous restaurant in Broadway history, and seventy employees are waiting to find out if they still have jobs.
“For me, this wasn't about the money”
"For me, this wasn't about the money," Klimavicius told the Times, as Eater quoted. "It was about the continuity of this legacy." The piece recalled the story of a 93-year-old regular who had dined there for 77 years, starting the night Vincent Sardi Sr. bought him dessert after his show closed in 1940. Eater noted the recent Ethan Hawke film Blue Moon, set over a single evening at Sardi's, had renewed attention to the restaurant. No details on the new restaurateur or the renovation plan were available. [193]
Wednesday, June 24, was the last day Sardi's operated as an independently owned restaurant, after nearly a century on 44th Street in the Theater District. Ownership passed from Max Klimavicius, 71, to the Shubert Organization, which has owned the building since Vincent Sardi Sr. and his wife Eugenia opened the restaurant in the 1920s. The restaurant will close for several months of renovation. The more than 1,000 celebrity caricatures, appraised at $6.9 million in 2020, go into storage and return after construction. Shubert chairman Robert Wankel told the New York Times a new restaurateur will take over operations, and the menu could change. The 70-plus employees will likely need to reapply for jobs. A renovated Sardi's is expected to reopen in November, timed to coincide with the opening of Galileo across the street at the Shubert Theatre. Klimavicius started as a kitchen assistant in 1974, worked his way to maître d', became a partner with Vincent Sardi Jr. in 1991, and bought the remaining shares after Sardi Jr. died in 2007 [193].
For seven years, Mitchell Robinson played for teams that finished near the bottom of the Eastern Conference. He wore a number changed from 26 to 23 in memory of two high school teammates who died before they could watch him play in the NBA. He set single-season field goal percentage records in buildings that were half-empty. He fouled out in games he couldn't afford to miss, got hurt, came back, and stayed, the only player from that era still in orange and blue when the Knicks finally won the championship last week. No lottery pick, no marquee free agent, no blockbuster trade got them there. The longest-tenured Knick was a second-round pick at 36, taken behind a decade of lottery busts whose names longtime fans know too well. "After tiptoeing his way through the graveyard of busts and forgettable has-beens," as Knicks blog Posting and Toasting put it, "he's emerged on the other side as an NBA champion. Our NBA champion" [247]. This city waited more than fifty years for that sentence. It belongs to a seven-footer from Pensacola who sat out an entire college season in protest, showed up in most projections as an afterthought, and never left.