ALBANY — Senate Deputy Majority Leader John DeFrancisco, a GOP candidate for governor who has been critical of state economic development programs under Gov. Cuomo, personally benefited from a lucrative pre-Cuomo tax break he voted to enact.
DeFrancisco’s Syracuse law firm received $187,525 in state tax credits between 2002 and 2013 by taking advantage of a loophole under the now-defunct Empire Zone program that was designed to attract big businesses and jobs to needy areas, public records show.
During that time, records show, the firm, which started with three full-time jobs, hit a high of nine in 2007 before dropping to seven in its last year of eligibility.
Limited-liability company 121 East Water Street, connected to DeFrancisco’s wife and owner of the law firm’s building, received $83,546 in Empire Zone tax credits, despite reporting only one job, the records show.
DeFrancisco consultant Michael Lawler said the senator voted to authorize the program before he started his law firm.
Lawler said DeFrancisco “supports economic development programs that are broad-based, that anyone who qualifies can apply for. What he doesn’t support is the way Gov. Cuomo does it, where he, and he alone, is picking the winners and losers and only supports those that are willing to engage in his pay-to-play schemes.”
But state Democratic Party Executive Director Geoff Berman ripped DeFrancisco and his fellow Senate Republicans, who have also criticized Cuomo’s economic development programs as costly and ineffective, as hypocrites.
“This is not only another example of Sen. DeFrancisco’s habitual hypocrisy, it also shows the Senate Republicans’ blinders when it comes to one of their own,” Berman said. “Every Senate Republican should insist that Senator DeFrancisco pay back the taxpayers of New York. Otherwise they need to answer the question: ‘Are the only economic development programs they support the ones that enrich their own members?'”
DeFrancisco over the past week has also been attacked by the Democrats — and even some Republicans — for being a double-dipper by already collecting his state pension while at the same time drawing his legislative salary.
Joseph Holland, a housing official in former Gov. George Pataki’s administration, and ex-Erie County Executive Joel Giambra are the only other declared Republican candidates for governor.
DeFrancisco has touted a number of endorsements from his Senate colleagues and some county GOP chairmen. But other Republicans are seeking out other potential candidates, fearing DeFrancisco’s record in Albany could make a challenge against Cuomo more difficult.
Former Pataki chief of staff John Cahill and Dutchess County Executive Marcus Molinaro are said to be seriously considering getting into the race. Their decisions are expected by the time state and county GOP leaders gather in Saratoga on March 1 and 2 to nominate Chele Farley as their candidate to challenge U.S. Sen. Kirsten Gillibrand.
“I would say (Cahill and Molinaro) will have to say whether they are in or out by then,” said one county leader. “If not, it’s hard to say, ‘Go away John (DeFrancisco).'”
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While Republicans continue to bicker over whether DeFrancisco should head the GOP ticket in November, they have yet to find candidates to run for state attorney general or controller.
One name that has surfaced as a potential AG candidate is political novice Sarmad Khojasteh, a Westchester County commercial litigation lawyer who recently dropped a bid for state Senate.
Westchester County Republicans are promoting Khojasteh as a new voice with a compelling story. As a young boy, he fled Iran with his family after the Islamic Revolution and during the Iran-Iraq War. He grew up in Poughkeepsie.
David Catalfamo, a GOP consultant and former top aide to Pataki, recently met with Khojasteh and came away impressed.
“He’s got a great story, he’s the right age and has the right message for the party that needs to be able to expand its reach,” Catalfamo said.
Others say Khojasteh’s lack of name recognition and political inexperience would make a statewide run difficult.
Khojasteh confirmed he is considering a statewide bid and that “we’re looking strongly at the possibility of attorney general.”
He did not put a timeframe on when he’ll make a decision.
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The Westchester County Independence Party has endorsed Senate Democratic candidate Shelley Mayer over Republican Julie Killian for an April 24 special election that could determine which party controls the state’s upper chamber.
The minor party just two years ago endorsed Killian’s failed run against incumbent Democrat George Latimer, who resigned in January to become Westchester County executive.
The recent Mayer endorsement has raised questions about whether the state Independence Party, which has been close to Senate Republicans, is abandoning them.
The minor party is also close to Gov. Cuomo, whose reelection it has already backed, and a breakaway group of eight Senate Democrats. Both Cuomo and the breakaway senators say they are committed to winning the open Westchester County seat to help the Dems regain control of the chamber.
State Independence Party Chairman Frank MacKay couldn’t be reached for comment.
