Source of BUILD's Wealth Revealed?
Subject: Source of BUILD's Wealth Revealed?
Hoo boy... Sorry for the long lead-in, but this one needs some space. And if you're an accountant or a "follow the money" type, you may be especially interested in bearing with us. We promise to bold the important parts so you can skim ahead.The apparently non-profit group BUILD (Brooklyn United for Innovative Local Development) is clearly the biggest and loudest bunch of cheerleaders for the Forest City Ratner (FCR) Atlantic Yards Project, the multi-billion-dollar stadium/condo-skyscraper development that will bring the New Jersey Nets to Brooklyn, casting a long shadow over Prospect Heights and making developer Bruce Ratner even more obscenely wealthy than he already is.
Here in Prospect Heights, some stadium opponents suspect that BUILD is a mouthpiece front bankrolled by FCR. And it doesn't help appearances to see somebody flaunt their stuff in front of BUILD's likely-very-expensive storefront office on Vanderbilt Avenue. Lucas wrote this a while back on Daily Heights:
"let me throw out a point for the debate: The *brand-new* massive silver Cadillac that pulls up in front of BUILD each day... what better instrument to contrast the 'extreme rates of poverty, unemployment and underclass entrapment' in the surrounding neighborhood?"
(Previously, we joked that the real source of BUILD's wealth is 65-cent color copies (see picture).)
Meanwhile, BUILD portrays itself as a scrappy, grass-roots, faith-based community group that champions the interests of the poor and downtrodden. In fact, they flat out deny financial support from Forest City Ratner on the BUILD website:
"Fact: Since its inception BUILD has been supported by its members and community based supporters. BUILD’s faith in God and strong ties to the community has sustained and perpetuates our operations and advancement of our mission. Space, computers, supplies and time has been donated to the organization by its members since its inception this year (1/2004)."
So naturally we were shocked to see this comment here on Daily Heights about a week ago (held and not published until now): "I have a copy of BUILD's 501(c)(3)tax exemption application. In response to 'what are or will be the organization's sources of financial support? List in order of size.' The response was 'real estate developers, individual private contributions" in that order."
Well, interesting... but even if it's true, that doesn't prove anything, does it?
The commenter continued: "In addition, on its form 1023 filing, it shows that President Caldwell receives annual compensation of $125,000 while CEO Marie Louis and Chief Administration Officer Shalawn Langhorne each receive annual salaries of $100,000. Not bad for a small not-for-profit. Maybe I'm in the wrong business."
While we were mulling this over, we got the follow-up comment: "Lo and behold, question 12B on form 1023 lists 'FOREST CITY RATNER COMPANIES' as making a $5M contribution. I guess that mystery is solved."
Is it authentic? Is it a forgery? It all seems so cut-and-dried. We're talking public records here... if it's in the public record, why on earth would they turn around and call it a "myth" that "BUILD is financially supported by Forest City Ratner"? Here's a scan of some relevant pages [click for PDF] so you can judge it for yourself, sent in by Daniel Goldstein of Develop Don't Destroy Brooklyn.
We remain skeptical... This could be one of those "Rathergate" things... authentic-looking documents that, when reported, make the opposition look bad. Whether it's true or not, rumor has it that reporter Juan Gonzalez will have a story on this tomorrow AM in the Daily News, so stay tuned.
By the way... Daniel Goldstein, who naturally believes this new development has potential to shift the debate, says he's "100% confident" the document is authentic: "Someone would have to have gone through a lot of trouble to forge these."
Comments
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OK... here's the reaction, from Juan Gonzalez' Daily News article:
Joe DePlasco, Forest City Ratner spokesman: "We are providing them free office space" ... he confirmed FCR is about to fund a BUILD-run job training program (BUILD has never before run a job training program). Gonzalez says they denied discussing any specific dollar amount, i.e. $5 million.
Marie Louis, BUILD: "I can't dispute what's on that form ... When we turned that in earlier this year, we were calculating what we needed to implement those [job training] initiatives..." BUILD "is still in the process of negotiating" the dollar amonut to be given by FCR. She said none of the officers are getting a salary right now. -
Sadly, that's not surprising at all. Unfortunately, I don't think it's going to lead to anything except a week or so of mild feigned ourage/shock in the local major media, and will quickly be placed into the same bin as the Karl Rove Leak investigation and every other recent scandal, replaced by whatever new flavor-of-the-week pops up. Missing white girl? Area mom gives birth to quadruplets?
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Pardon me, but what does "God" have to do with local development? If there is a "God" does he excuse BUILD for lying on in their website?
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lirio wrote: Pardon me, but what does "God" have to do with local development? If there is a "God" does he excuse BUILD for lying on in their website?
Please don't tell me Ratner is some sort of Jesus-freak too.
:roll: -
I was referring to BUILD's faith in God.
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lirio wrote: I was referring to BUILD's faith in God.
Yes, I understand that. but Ratner and Build are quite obviously in bed together, and that comment seemed very deliberate in the Build statement -
Subject: Re: Source of BUILD's Wealth Revealed?
dailyheights wrote:
"let me throw out a point for the debate: The *brand-new* massive silver Cadillac that pulls up in front of BUILD each day...
Damn, didnt anybody see GoodFellas! Next thing you know Build employees will be wearing fur coats! -
ana.log wrote: [quote=lirio]I was referring to BUILD's faith in God.
Yes, I understand that. but Ratner and Build are quite obviously in bed together, and that comment seemed very deliberate in the Build statement
God is in bed with Ratner? Crap. I thought God had better taste ...
:evil: -
alafairnadia wrote: [quote=ana.log][quote=lirio]I was referring to BUILD's faith in God.
Yes, I understand that. but Ratner and Build are quite obviously in bed together, and that comment seemed very deliberate in the Build statement
God is in bed with Ratner? Crap. I thought God had better taste ...
:evil:
Huh? -
I am openly partisan on the anti-Ratner side, but I have always tried to appreciate BUILD's perspective and have respect for the members of the group. About a year ago, I went into the BUILD office and spoke with Marie Louis at length. She told me (other BUILD members have said this on many occasions) that they are purely a volunteer organization.
She lied to me personally. I resent it, no matter how cynical I have become. This is not acceptable behavior, and we need to speak out against it.
And regarding the God stuff, Caldwell really does compare Ratner to Jesus. If that is not taking God's name in vain, I don't know what is.
I try not to demonize the political opposition and I really want to maintain my humanity in these political battles. But I don't know if I can live up to that ideal with BUILD around. -
I read the article, It states that Build members are also on the Community Board which has some say on the development process. How is this not illegal? While the are not getting paid directly it is obviously through the Build organization.
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Subject: CB 8 and Marie Louis
Marie Louis is on CB 8 and has made presentations on behalf of the Ratner project to the Board. Of course when she did this she did not disclose her organization's financial ties to Ratner. I think her Board cohorts might be displeased about this. -
Subject: BUILD & God, part ad infinitum
Here's a quote from BUILD that I don't think has circulated much. It was on a "Connect to CBA [Community Benefits Agreement] Opportunities" document that was being handed out at the Forest City Ratner booth at last Sunday's Atlantic Antic.
On the cover page of the 11-page document, which was on BUILD letterhead, was this quote, in a shaded box:
"God used us, the Coalition and FCRC, to achieve this so that the possibilities could be here for you. Now we must all keep and expand the faith and apply it to the task of manifesting the vision."
OK, we've got faith and manifestation and the vision thing, but I think the key word here, especially after the revelations in the Daily News, is used. Who's using whom here? -
Someone pass me a bucket, I think I'm gonna hurl.
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Subject: Re: BUILD & God, part ad infinitum
MartySkeptic wrote: Here's a quote from BUILD that I don't think has circulated much. It was on a "Connect to CBA [Community Benefits Agreement] Opportunities" document that was being handed out at the Forest City Ratner booth at last Sunday's Atlantic Antic.
A classic play from the Carl Rove playbook, Charlatanism at its best!
On the cover page of the 11-page document, which was on BUILD letterhead, was this quote, in a shaded box:
"God used us, the Coalition and FCRC, to achieve this so that the possibilities could be here for you. Now we must all keep and expand the faith and apply it to the task of manifesting the vision."
OK, we've got faith and manifestation and the vision thing, but I think the key word here, especially after the revelations in the Daily News, is used. Who's using whom here? -
Subject: Re: CB 8 and Marie Louis
pacific wrote: Marie Louis is on CB 8 and has made presentations on behalf of the Ratner project to the Board. Of course when she did this she did not disclose her organization's financial ties to Ratner. I think her Board cohorts might be displeased about this.
I was already planning on attending the CB8 meeting on October 13. If Marie Louis is there I am going to have to question her about said donation, maybe in front of the CB (although I would probably chicken out on that front).
This is just unacceptable. Hopefully we will see other NYC news outlets picking up on this story in the next few days.
JT. -
Subject: Re: CB 8 and Marie Louis
pacific wrote: Marie Louis is on CB 8 and has made presentations on behalf of the Ratner project to the Board. Of course when she did this she did not disclose her organization's financial ties to Ratner. I think her Board cohorts might be displeased about this.
Did you catch the fine print in the BUILD tax statement..
"Do any of the above persons serve as members of the governing body by reason of being public officials or being appointed by public offcials"
...."No" is checked off? -
There's a pretty comprehensive critique at NoLandGrab.org. See http://www.nolandgrab.org/archives/2005/09/nolandgrab_comm_1.html#more
My question is: Can BUILD's status as a NONprofit be challenged? -
This was on NPR this morning. As a NYT reader, I have to say that it was refreshing to hear a balanced-seeming appraisal of the issue.
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This is appalling. What can we do to clean up the community board?
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This topic has enjoyed some more media attention today (9/30) and basically boils down to this:
DDDB: You accepted money from Ratner.
BUILD: No, we didn't.
DDDB: Yes, you did.
BUILD: No, we didn't.
But, alas, today is Friday and a long weekend awaits us. In other words, this development will be a dead issue as of next week.
The important question is, Will this derail Ratner's plans? And the answer to that, of course, is no.
Goldstein, Hagan, etc. remind me of a football team that is trailing 42-0 in the final minutes of the fourth quarter, yet continues to chant, "It ain't over 'til it's over!". -
Really Jack, you think taking 5 mil privately and lying about it publicly is no big deal, and everyone is so excited about two days off they'll just forget about it?
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Well technically, BUILD has NOT received $5 million from FCR. They were listing that amount as "projected" income for the next two fiscal years. The 1023 document is an application fro 501c3 tax exemption -- which means that BUILD is NOT yet a non-profit organization with 501c3 status so they can't receive any foundation, corporate or government contributions yet.
Well all I can say is if they were hoping to get $5 million from Ratner this bad publicity will ensure that he won't give it to them now. That said, I am positive that the Atlantic Yards development project will go forward. -
If they have not recieved the 5 million then how do they finance 325,000 in salaries for only 3 people on "grassroots donations"?
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If they have not recieved the 5 million then how do they finance 325,000 in salaries for only 3 people on "grassroots donations"?
It seems probable to me that, like everyone is saying in public, FCR hasn't gifted anything to BUILD other than the free office space. In this case the salaries are all contingent on receiving $5 million from FCR to implement the job training program.
That said, FCR has donated thousands in rent offset (the free office space is the home of $0.65 color copies, right?), without which BUILD would have no physical location and no credible position as an established community representative. BUILD didn't even pay for its own sandwiches. It's running on volunteer effort now, but these volunteers have committed to paper their expectation to receive a six figure salary. -
Jack Krohn wrote: But, alas, today is Friday and a long weekend awaits us. In other words, this development will be a dead issue as of next week.
OK... here's the deal. Daily Heights knew about this BUILD document and the $5 million payment 2 weeks ago, and we didn't say a word.
In retrospect, we really abdicated our responsibility to report this. We willingly kept quiet about it, at the request of Dan Goldstein. Today, it seems like a huge mistake.
Let's talk about you for a moment, readers and contributors to Daily Heights: instead of opening the dialogue on this, you're stuck reacting to the documents, as interpreted by our official news media and official spokespeople for the Ratner opposition.
DDDB's long-awaited masterstroke was: (1) give the story to Juan Gonzalez so Daily News can get an exclusive, and (2) hold a press conference on a THURSDAY, just in time for the Big Weekend News Lull.
He really thinks this is a big break in the case. Even if it is, by putting DDDB front and center in the story, he effectively kills it. Honestly, what kind of an impact does he think it will have? "Critics Criticizing Arena Again." If you agree with DDDB, you already know what they are going to say. If you don't like DDDB, then anything DDDB says is going to make your faith in Ratner's Grand Plan that much stronger.
AP, Newsday, WNYC, Brooklyn Papers and New York Sun have all turned this into a story about DDDB. Juan Gonzalez, to his credit, actually focused on the controversy itself.
What would have happened if Daily Heights had posted this information 2 weeks ago? Would the story have had a bigger impact? Or would it have fizzled? Would it have caught BUILD unaware and forced them to say more? Or would it have given BUILD more time to spin the story and prepare a palatable response? They don't appear to be talking to anyone today. -
Well, things like this story are a double-edged sword. This reveal has shown that the shadiness permeates everything, but then again, it's all played out pretty shady from the start and the project has been humming along despite misgivings. By having DDDB as front and center, it does have a preaching to the choir effect. Besides the concentrated chatter here on the board, this potentially big news to me and maybe other people in the neighborhood has fallen like a tree in an empty forest. It may be cynical of me, but in this day and age, you're probably better off just throwing your information out there at the start than trying to arrange the big effect.
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I imagine that your decision was based on a relationship with Goldstein and/or belief in his good intent. No fault there. I also don't think you did the community any disservice by having waited. I think the story is being ignored regardless. Even if the $5m is widely known, and BUILD exposed as a bunch of liars (yes, now I'm talking in public about my neighbors a few doors down), the press consensus seems to be "so what? No illegal activity has occurred, correct? Where's the story?"
I'm at a loss as to where to go from here, but I certainly don't fault DH for the MIA press reaction. -
What would have happened if Daily Heights had posted this information 2 weeks ago? Would the story have had a bigger impact? Or would it have fizzled? Would it have caught BUILD unaware and forced them to say more? Or would it have given BUILD more time to spin the story and prepare a palatable response? They don't appear to be talking to anyone today.
The papers have a short attention span, and haven't covered this issue with much diligence. Editors are guessing that most readers don't care about conflicts of interest or quid pro quos in a CBA signee. This is not headline news, and even if they allotted space for coverage, it wouldn't be enough to help an unfamiliar reader make sense of it. It seems to me that the timing of this information wouldn't change anything. -
Subject: jack
jack. wrong.
this isn't he said she said.
or BUILD said DDDB said.
or BUILD said Daily Heights said.
this is BUILD said, IRS filing said.
BUILD said no payment has been made.
I spoke with the IRS. the line item where they put $5m from Ratner is where you put what YOU HAVE BEEN PAID. not what you project, or hope to be paid, but what you have been paid.
jack, fights over developments are not football games, they are wars of attrition. if you think that Patti Hagan and I are the only one's fighting Bruce Ratner, you are sadly mistaken.
and, BUILD has received their 501c3 status. for the poster who thought they hadn't.
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