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Corruption Probe Focuses On $630M Yonkers Project

By Jonathan Dienst And Alice McQuillan

POSTED: 1:21 pm EDT May 5, 2008
UPDATED: 8:32 pm EDT May 5, 2008

Federal prosecutors have been questioning Yonkers City Council members and subpoenaing municipal records about a sprawling development deal that will transform the city, sources said.

Sources said a decision about whether charges will be filed is expected in the next few weeks.

A switched City Council vote and the role of a longtime Westchester County power broker appear to be of interest to federal prosecutors, sources said.

Scrutiny, sources said, has fallen on City Councilwoman Sandy Annabi, who had opposed the $630 million Ridge Hill project in 2005 but subsequently changed her position and voted for it the following year. Her attorney, Murray Richman, had no comment Monday.

Prosecutors, sources said, have also been asking about the role of veteran lobbyist Al Pirro, whose Web site for his firm, The Pirro Group, lists the Ridge Hill developers among his clients. Pirro, husband of former Westchester County District Attorney Jeanine Pirro, said he has done nothing wrong.

"I have absolutely no reason to believe that I am a target of any investigation since I had absolutely nothing to do with the vote," he said. "I had not worked on the aspect of the project that had to do with the Yonkers City Council vote after Dec. 31, 2005."

The vote that approved the Ridge Hill project came in the summer of 2006.

Sources said prosecutors are also asking questions about another development deal for a former school and about water and sewer rate increases.

City Council president Chuck Lesnick said federal prosecutors had asked him about "any interactions I had with Al Pirro." Lesnick said Pirro had not lobbied him on behalf of the project. Another person questioned by prosecutors also said they had asked questions about Al Pirro.

Ridge Hill, a project of Forest City Ratner, is slated to bring 1,000 apartments, 1.3 million square feet of retail space and a movie complex to 81 acres near Sprain Lake.

"We're cooperating with the investigation," said Loren Riegelhaupt, spokesman for Forest City Ratner, developers of Ridge Hill as well as the Atlantic Yards project in Brooklyn.

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Emmy award-winning reporter Jonathan Dienst is a member of NewsChannel 4's investigative reporting team.
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