EDC and Shulman’s Queens LDC admit illegal lobbying BY VERA CHINESE NEWYORK DAILY NEWS TWO city economic develop- ment agencies have admitted to illegally lobbying the City Council to support a plan to overhaul gritty Willets Point. ‘A three-year probe by the state Attorney General’s office con- firmed what many property own- ers in the so-called Iron Triangle hadlongcomplained about - that these agencies were exerting un- due influence on the Council The findings, unveiled Tues- day, found both the city Econom- ic Development Corp. and the Flushing-WilletsPoint-Corona Local Development Corp. unlaw- fully lobbied the Council in 2008 toapprove the redevelopment. The investigation extended to, the Coney Island Development Corp., which also admitted to so- liciting support fora project there. The agreement between the city EDC, the two other LDCs and the AG validates years of complaints from Willets Point business owners who charged the Flushing-Willets Point-Corona LDC and specifically, its presi- dent, Claire Shulman, curried fa- vor for a plan to take properties througheminent domain. ‘Mayor Bloomberg announced a different plan last month, when hesaidthecity hadreachedadeal with Sterling Equities and Relat- ed Cos. to build a 1 million- square-foot mall on land already ownedby the city. Under state law, “no such cor- poration shall attempt to influ- Flushing-Willets Point-Corona Local Development Corp., headed by Claire ‘Shulman, found to have illegally lobbied City Council. Christie M. Farriella cence legislation by propaganda or otherwise.” The law does not list ‘monetary penalties for violations, sothe LDCs will notpay fines. The agreement stipulates that each LDC will not employ out- side lobbyists, draft testimony for third parties to submit to the Counciland directorswillhaveto undergo compliance training. Members of Willets Point Unit- ed said sanctions should have been harsher. “There was a crime committed here,” said Willets Point United President Gerald Antona “People ran for the hills when they were threatened with emi- nent domain. A lot of people who sold their properties would have neverhavesoldit.” Shulman, the former Queens Borough President, could not be reached for comment. Flushing- Willets Point-Corona LDC offi- cials said they were “glad the mat- terwasbehindthem.” The EDC will also have to re- structure, losing its status as an LDC. LDCs are quasi-city agencies that have the power to buy or lease city land without undergo- ing he public bidding process. ‘An EDC spokesman down- played the ruling, stating the law didnot clearly define what con: tutedlobbying. “The restructuring should be seamless from the perspective of third parties and should have lit- tle tono impact on the day-to-day operations of the company,” the spokesman said ina statement. ‘Some of the transgressions in- cluded ghost-writing op-ed piec- es, preparing testimony for third parties and providing transporta- tion forsupporters at hearings. “These local development cor- porations flouted the law by lob- byingelected officials, both direct- ly and through third parties, to win approval of their favored projects,” Attorney General Eric Schneiderman said. vohinese@nydailynews.com