Ratner Beats Steinbrenner: He's Third in '06 Lobbying Spending

So, who was ranked Number Three in spending on lobbying in Albany last year? Try Bruce Ratner. Overall, firms and trade associations trying to influence the outcome of things in the Capitol spent a record $151 million last year, triple what was spent a decade ago. A hospital group, the Healthcare Association of New York State, came in first by spending $2.2 million. A doctors group, the Medical Society, ranked No. 5 at $1.5 million and the Greater New York Hospital Association was No. 7 at $1.2 million.

Verizon ranked No. 2, spending $2.15 million.

None of those are a surprise given the high stakes nature of health care and telecommunications. No. 3, however, turned out to be Bruce Ratner, who spent $2.11 million. Meanwhile, No. 8 was the New York Yankees Partnership, which was looking for state assistance to build a new baseball stadium. Mr. Steinbrenner spent $1.1 million on lobbying, one of the rare instances when he was outspent by another team.

While Atlantic Yards Report points out that $2.11 million on lobbying is a drop in the bucket for a $4 billion project, it's still interesting to find that Mr. Ratner outspent New York State United Teachers. AYR's Norman Oder also notes that there was a potentially significant payoff to the lobbying as New York City eventually increased its contribution to the project from $100 million to $205 million.

"Forest City Ratner had $2.11 million to lobby Albany on 'Atlantic Yards' but will not spend a single penny to purchase the rail yards which comprise over one-third of the development site Bruce Ratner desires," Develop Don't Destroy Brooklyn's Daniel Goldstein said. "Instead NYC taxpayers will pay to buy the yards for Ratner. It's an exquisite shell game."

Grouped by business nature, health-related groups by far spent the most, $22.3 million. They were followed by real estate and construction ($15.9 million) and unions and trade associations ($12.6 million).

As for Mr. Ratner's spending, Develop Don't Destroy Brooklyn called it a "shell game" because money he saved on land acquisition could be spent lobbying state and city officials. The Real Estate wrote:

The Real Estate thinks the big winner in all of this is lobbying firm Fried Frank Harris Shriver & Jacobson, which received $656,520 for its efforts. Among other targets listed in its lobbying report are "acquisition of Altantic Avenue railyards from MTA" and "acquisition of city-owned property at Atlantic Yards."

Apparently, Mr. Fried and Mr. Frank persuaded Forest City that it needed their help persuading the state and the city to do things that they pledged when they signed a memorandum of understanding back in 2005, and for a sweet price.

In the registration letter, Forest City agreed to pay up to $995 an hour for Fried Frank's services.

You can find the report here. Fascinating stuff.

Related Stories:

• Groups Spent Record $151 Million Lobbying in 2006 [Sun]
• New High in Pay to Sway [NYP]
• Ratner among state lobby leaders [Metro]
• Lobbying Ms. Burden [AYR]
• Forest City Ratner's Spending on Lobbyists [AYR]