New York State Considers Canceling Paladino Leases...

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http://www.wgrz.com/news/local/story.aspx?storyid=76036

ALBANY, N.Y. - Carl Paladino's inappropriate emails could cost him some of the $85 million dollars worth of leasing business he does with New York State.

Two days after Paladino admitted that he forwarded racist and sexually explicit e-mails to friends, the Administration of Governor David Paterson said it was looking into all of the state contracts with Paladino, who is running for governor as a Republican.

Paladino, a Buffalo developer, owns all sorts of office space. The state leases a significant portion of that space. The Paterson Administration is looking at options to possibly cancel those leases, such as whether there is a "morality clause." Also Wednesday, a state agency today called on Paladino to withdraw his company's pending lease with the state.

John Egan, commissioner of the state Office of General Services, wrote a letter to Paladino calling on him to withdraw the lease for a Workers' Compensation Board office on Main Street with his company Ellicott Development Co., which has a number of leases with the state.

A spokeswoman for the agency said the lease agreement is still under review and the agency will wait for a response from Ellicott to determine the agency's next step.

"I am very disturbed about recent reports of e-mails sent or forwarded by you that contain racist and sexist depictions and remarks," Egan wrote. "As a landlord doing business with the state of New York, I expect you to conduct yourself in a professional manner." He added, "The lack of respect these e-mails show for the rights of minorities and women is of great concern to me both as commissioner and as a citizen of this state."

During a morning radio interview on the Fred Dicker Show on 1300 AM in Albany, Paladino vowed to continue his campaign and blasted the lease threats.

"They want to give the leases to their cronies," Paladino said. "This is what it's all about. Ok. It's about the ? politics. Here's a government official trying to use politics, alright, to give leases - take lease from Paladino to give them to his cronies."

Both Paladino and his campaign manager, Michael Caputo, accused Paterson of political payback. Last month Paladino asked the U.S. Attorney to investigate the Paterson Administration's leasing practices, after it tried to force Paladino to pay prevailing union wages to his employees.

REPORTER: Do you believe the governor has the legal authority to cancel out some of these leases, or at the very least, just not renew them?

CAPUTO: As long as Carl is the lowest bidder and offers the highest-quality space to his tenants, they're going to have a hard time trying to steer these contracts toward their political cronies.

Ironically, one of Paladino's Buffalo tenants is the Erie County Democratic Committee. When asked whether he was considering moving the office, Chairman ? Lenihan said the committee currently has a lease with Paladino, but that he is "looking into the situation."

REPORTER: Are you afraid the Democratic Party and perhaps some of your tenants here locally may say, you know what, I don't want to be a in a Carl Paladino anymore?

CAPUTO: You know, there have been that have been calling for the Democrat Party to leave the building for many years... If they haven't moved yet, they probably won't move now."

After announcing his candidacy last week, the tough-talking Paladino has faced a barrage of criticism for the inappropriateness of the e-mails that a western New York Web site, WNYMedia.net, this week revealed he had forwarded to friends.

State chairmen for the Democratic and Republican parties have denounced Paladino, as have officials with the Tea Party Express, which had been among Paladino's supporters. He was disinvited to a GOP candidate forum in the Albany area on Friday. Paladino said the committee could not disinvite him because it never invited him to begin with.

Paladino has pledged to spend $10 million of his own money on a GOP primary run. Former Rep. Rick Lazio and Suffolk County Executive Steve Levy are also seeking the Republican nomination for governor. Attorney General Andrew Cuomo is expected to be the Democratic candidate for governor.

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