PHILIP J. GROSSMAN
ATTORNEY AT LAW
NEW YORK, NEW YORK 10013
November 10, 2010
Lower Manhattan Development, Corp.
One Liberty Plaza
New York, NY 10006
ATTN: David EMIL, President
Re: Grossly wasefu1 expenditure of your
$5,400,000. Clean streets program-
grant to CHINATOWN PARTNERSHIP LOCAL
DEVELOPMENT CORP
Dear Mr. David Emil:
I represent various local property owners and the
groups known as the coalition of Business And property owners,
and The Coalition Against The CHINATOWN B.I.D., in connection with
this complaint to your agency. The local property owners whom I
represent, and. whom are affiliated with the above-mentioned groups,
have been adversely affected by the qross waste of the $5,400,000.
clean streets program grant to the CHINATOWN PARTNERSHTP LOCAL
DEVELOPMENT CORP.
In support of our complaint of grossly wasteful expenditures, I
enclose our "ANALYSIS OF CHINATOWN PARTNERSHIP LOCAL DEVELOPMENT
CORPORATION CLEAN STREETS EXPENDITURES under AGREEMENT #: M07-571*
FoR PERIOD FROM January 0I,2006 to June 30,2009^, with supporting schedule
and documentation. Our analysis is limited, to [he period from January
01, 2005 Lo June 30, 2009, because financial statements for the period
after .rune 30 , 2009, are not yet available from the CHINATOWN
PARTNERSHIP LOCA], DEVELOPMENT CORP..
The basis of our complaint, is that based on the above described
analysis of financials for the period from January 01, 2006 to June
30, 2OO9I iN which the CHTNATOWN PARTNERSHIP LOCAI. DEVELOPMENT CORP.
expended $2,025,352. of your agency/s clean streets program grant, it
appears that, only $633,608. was actually expended on Street cleaning
and maintenance, which is only 31.3.percent of the total funds
expended for the period.
Furthermore, under: the 8/I/2008 addendum to the contract between
the CHINATOWN PARTNERSHI,P IOCAL DEVELOPMENT CORP. and the stTeet
cleaning sub*contractor BLOCK BY BLOCK (copy attached, ) the parties to
the contract agreed that the sub-contractor BLOCK BY BLOCK, would be
reimbursed for it's street cleaning management personnel, and which
reimbursement in fact did occur. See copies attached of BLOCK BY BLOCK
invoices.
Page I of 2
Therefore, in view of the fact that the street cleaning
sub-contractor Block By Block was managing itlnown street cleaning
crew, it is astounding and amazing that, the "CHINATOWN PARTNERSHIP
LOCAL DEVELOPMENT CORP. expended $583,266. on management personnel,
out of total expenditures of $2,025,352, for the period from
January 01,2006 to,June 30, 2oog, or 28.g percent of the total fund
expended for the period
Furthermore local property owners, and. store owners, have been
damaged by the gross waste of your agency's street cleaning grant
by the CHINATOWN PARTNERSHIP LOCAL DEVELOPMENT CORP., in fact they
have not derived the full benefit of your agency’s street cleaning
grant, as only 31.3 percent of the grant was actually expended on
street cleaning & maintenance.
Therefore, we respectfully request that your agency investigate,
what appears to be, a gross waste of the clean streets grant money by
the CHINATOWN LOCAL DEVELOPMENT CORP., and. we also
respectfully request that you seek recoupment, of what appears to be,
grossly wasted grant money
Philip J. Grossman
Lower Manhattan Development Corp., One Liberty Plaza, 20th Floor,
York, NY 10006, ATTN: Avi Schick, chairman Board of Directors
