Lobbying continues to prosper at New York City Hall despite probes

The James F. Capalino & Associates, Inc. lobbying firm has been in the headlines nearly every week since news broke this spring that the group had represented the initial and final property owners in a controversial Manhattan land use deal being probed by various law enforcement agencies.

Despite the scrutiny, including reports that Capalino was served with a subpoena, the firm’s clientele list does not appear to have been curtailed beyond the normal ebb and flow of contracts, according to a review of New York City lobbying retainer and contract termination paperwork reviewed by City & State.

Similarly, Capalino’s competitors have not experienced any dramatic shift in business amid multiple investigations into municipal government. At least one probe, into questionable fundraising for state Senate Democrats in 2014, has resulted in subpoenas being served on five political consultants by April 22, according to the Daily News.  

Apart from the lobbying documents filed with the city clerk’s office, few City Hall staffers said they had noticed any changes to the usual cycles of lobbying, except for some sources saying lawmakers seemed slightly more careful than normal and another noting a room where officials typically meet with lobbyists has been vacant more than is normal this budget season. 

City & State requested termination notices filed since Dec. 1, 2015 for James F. Capalino & Associates, Inc., SKDKnickerbocker, Red Horse Strategies, Hilltop Public Solutions, The Parkside Group, Metropolitan Public Strategies, Davidoff Hutcher & Citron, and The Ickes & Enright Group. After setting aside termination notices that coincided with the anticipated conclusion of contracts, as described in retainer agreements, City & State did not notice any unusual trends. 

Other than The Parkside Group, which was terminated by one client March 31 – before the date written in its retainer agreement – only James F. Capalino & Associates appeared to be dropped by clients before their contracts ended. 

Capalino lost one client in December, one in January, nine in February and six in the beginning of March.

On March 22, The Wall Street Journal reported that New York City Comptroller Scott Stringer was probing a decision by Mayor Bill de Blasio’s administration to lift deed restrictions limiting a building at 45 Rivington St. for use as a nonprofit residential health care facility. The move paved the way for a for-profit nursing home operator – The Allure Group – to flip the property and sell it to Slate Group, which now plans to build luxury condominiums there. Capalino represented the original property owner – VillageCare – and Slate Group, but was not representing VillageCare when the deed restrictions were lifted and is not involved with Slate Group’s work at 45 Rivington St.

After the story came out, Capalino saw three additional clients leave in March. Two more parted ways with Capalino’s firm in April, days after the Journal reported that James F. Capalino & Associates had been served a subpoena by the New York Attorney General’s office as part of its probe into the land use changes at 45 Rivington St. 

In May, Capalino lost another two clients. It’s unclear how many clients Capalino currently has, but to put the terminations in context, the firm had 304 clients in 2015, more than any other competitor in the city.

A representative for Capalino declined to discuss on the record any lobbying business changes at the firm.

The firm has said it had “no involvement” with the deed change. Capalino noted that his firm had not represented VillageCare for nine months when the deed restrictions were lifted. He also said his company’s contract with Slate Group did not cover 45 Rivington St. and that it would never have supported a move that unnecessarily reduced services provided to those with HIV or AIDS.