Gov. Kathy Hochul donors eye prized Hudson Yards site amid pay-to-play concerns

Gov. Kathy Hochul’s campaign is drawing millions of dollars in contributions tied to real estate power brokers seeking or doing business with the state — including donors salivating to develop a prized vacant Hudson Yards parcel across from the Jacob Javits Convention Center, records show.

Donahue “Don” Peebles, one of the largest minority builders in New York, plans to resubmit a plan to develop the vacant site on 11th Avenue known as “Site K” when the Hochul-controlled Empire State Development solicits new bids some time after the election.

Peebles, his wife, Katrina, and son, Roy III, donated $15,000 apiece for a combined $45,000 to Hochul over the summer.

Peebles also bundled more donations by hosting a dinner-fundraiser with her campaign committee, Friends for Kathy Hochul, at his Sag Harbor summer home, generating more than six figures to her campaign coffers.

Developer Don Peebles
Developer Don Peebles, who wants to build a towering hotel-office tower in Hudson Yards across from the Jacob Javits Center, held a fundraiser and personally donated to Gov. Kathy Hochul’s campaign.
John Roca

The donations come as Hochul has been accused of pay-to-play schemes while she’s raised a record $45.8 million in donations for her bid to win a full-term as governor.

Disgraced ex-Gov. Andrew Cuomo sought to develop the vacant Site K lot, but Hochul put the brakes on the project last year amid complaints that it lacked any affordable housing.

Other developers — including Related Companies — also have expressed interest in developing the site, a source close to the bidding process said.

Related Companies chairman and Miami Dolphins owner Stephen Ross and CEO Jeff Blau both donated the maximum $69,700 to Hochul’s campaign earlier this year.

Gov. Kathy Hochul
Hochul and her campaign have denied any “pay-to-play” allegations.
William Farrington

Peebles’ original proposal called for a 1,663-foot Affirmation Tower with two hotels, commercial space, an ice-skating rink and an observation deck.

Peebles told The Post he would also offer space to the NAACP and Al Sharpton’s civil rights museum.

“Absolutely we’re going to rebid on it again,” said Peebles.

Peebles argued that it’s too expensive to build housing at the property but said the revenues from the sale could be used to build affordable apartments elsewhere.

Hudson Yards skyline
Hochul’s campaign is getting an influx from Hudson Yards developers.
Getty Images

He said Hochul and her team had reached out to him shortly after she replaced Cuomo following his resignation as governor amid multiple scandals last year.

“She had to reach out. No one knew who she was,” he said, noting Hochul was under the shadow of the former three-term governor, who denied wrongdoing, while she was lieutenant governor.

Peebles said he emphasized to Hochul the importance of generally expanding economic opportunities to minorities and minority-run businesses.

The black developer, who has flirted in the past with running for mayor, acknowledged that New York State’s contribution limits for governor and other offices are lax compared to cities he does business in — including New York City, Los Angeles and Miami.

These cities impose stricter limits on donations that executives and companies can give to local officeholders while they do business with local governments.

“There is a need for campaign finance reform in New York,”  he said.

Hochul has been dogged by revelations about the no-bid deal her administration made late last year with the NJ-based Digital Gadgets, which charged the state twice as much as other states paid for the same tests.

Digital Gadgets founder Charlie Tebele hosted a fundraiser for the governor last November just days before she declared a state of emergency that suspended normal state oversight procedures and he and his family have donated nearly $300,000 to Hochul.

Digital Gadgets founder Charlie Tebele
Digital Gadgets founder Charlie Tebele and associates donated nearly $300,000 to Hochul’s campaign and landed an emergency no-bid state contract to supply COVID-19 test kits
charlietebel/linkedin

Records also show Medical Answering Services, which manages transportation for Medicaid patients on behalf of the state, has donated more than $300,000 to the campaigns of Hochul and disgraced ex-Gov. Andrew Cuomo, who Hochul replaced last August.

The governor has denied giving preferential treatment to anybody.

“Certainly, there’s been no connection ever has been or ever will be between a contribution and a policy or decision and so we are in a very competitive environment,” Hochul said Wednesday during an unrelated Manhattan press conference highlighting funding about abortion services.

“I don’t have the benefit of having billionaires dumping millions and millions of dollars as recently as this week into dark money Super PACs,” Hochul said, referring to independent Super PACS supporting her Republican gubernatorial opponent, Rep. Lee Zeldin, who has raised a mere fraction of what Hochul has.

Steve Wynn
Retired casino mogul Steve Wynn donated $500,000 to the Save Our State Super PAC backing Hochul’s Repubilcan rival for governor, Long Island Rep. Lee Zeldin.
REUTERS

Cosmetics heir Ronald Lauder has contributed at least $4.45 million to pro-Zeldin groups Save Our State and Safe Together.

Former casino mogul Steven Wynn has also donated $500,000 to Save Our State.

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texasstandard.news contributed to this report.

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