New York City Council members are demanding answers after an investigative report highlighted a potential conflict of interest involving a top aide to Mayor Eric Adams and Taconic Investment Partners, the firm selected to privatize a crucial city public health laboratory.
The controversy centers around the relocation of the city’s public health lab, a facility with a long history of battling disease outbreaks. The Adams Administration is advocating for City Council approval to transfer the valuable property currently housing the lab at 455 First Avenue in Manhattan to Taconic Partners, a private developer.
Earlier investigations revealed that Nathan Bliss, a key City Hall chief of staff involved in overseeing the NYC Economic Development Corporation, had a prior financial relationship with Taconic Investment Partners. Financial disclosure documents showed Bliss was employed by Taconic for two years before joining the Adams administration. Notably, in his final three weeks at Taconic, Bliss received between $100,000 and $250,000.
This connection has sparked concern, especially considering Mayor Adams appointed Bliss to lead the NYC Land Development Corporation (LDC), an agency crucial in disposing of public properties. This appointment means Bliss could be involved in any transfer of the lab building to Taconic Investment Partners.
Prompted by these revelations, two high-ranking members of the NYC Council have formally requested more information about Nathan Bliss’s relationship with his former employer, Taconic Partners. Council Members Gale Brewer and Amanda Farias, leading the Oversight Committee and Economic Development Committee respectively, penned a letter expressing “significant concerns about potential conflicts of interest” due to “the overlap between Mr. Bliss’ financial ties to Taconic, his roles at City Hall overseeing EDC and LDC, and his involvement in projects like Innovation East.”
In response to these concerns, Liz Garcia, a spokesperson for Mayor Adams, stated that City Hall is reviewing the letter and emphasized Nathan Bliss’s transparency regarding his Taconic Investment Partners ties through financial disclosures. “As the Mayor has made clear, we expect every employee to avoid any potential conflict of interest, which is exactly what Nate Bliss did,” Garcia asserted.
However, the timeline of events raises further questions. The NYC Economic Development Corporation (EDC), managing the lab re-development, indicated the project bidding process began in 2018. According to his LinkedIn profile, Nate Bliss was an EDC staffer during this time. The EDC’s timeline also reveals that negotiations with Taconic Investment Partners commenced in January 2021, when Bliss was a Vice President at the development firm. Taconic Investment Partners was officially selected in April 2022, while Bliss was already working in City Hall.
The EDC has not yet provided bid documents to reveal which other companies submitted proposals for the lab property redevelopment, further fueling calls for transparency.
Jeff Holmes, an EDC spokesperson, stated that his agency is responding to lawmakers and reiterated that Nathan Bliss had no role in selecting Taconic Investment Partners. “Choosing Taconic as the lab property developer was the result of a competitive and robust selection process,” Holmes stated. “Nate Bliss was not part of this selection committee nor was he employed at the New York City Economic Development Corporation when the project entered into negotiations.”
Despite these assurances, the City Council’s letter also seeks clarity on Bliss’s ongoing financial connection to Taconic Investment Partners, even while serving in City Hall. Financial disclosures from 2022 and 2023 show Bliss is entitled to “future distributions” from a closed real estate fund managed by Taconic Investment Partners, a fund with “investments in six properties in the New York City area.” The City Council is now requesting a list of these properties.
Council Member Amanda Farias emphasized the need for transparency when transferring city-owned property to private entities, especially when potential conflicts of interest involving firms like Taconic Investment Partners arise.
The City Council has also involved the NYC Department of Investigation (DOI), which has independent authority to investigate potential ethics violations. The DOI has acknowledged receipt of the letter but has not commented on whether an investigation is underway.
Neither Nathan Bliss nor Taconic Investment Partners have responded to requests for comment. However, following a City Council presentation on a separate project, Innovation East, Taconic Investment Partners Vice President Benjamin Baccash expressed his belief that Nate Bliss was not involved in the selection of Taconic, stating, “I’m sure no,” but adding he couldn’t speak definitively for Bliss.
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The unfolding situation highlights the importance of ethical considerations and transparency in dealings between city government and private firms like Taconic Investment Partners, particularly concerning public assets and potential conflicts of interest. The City Council’s inquiry and any potential investigation will be crucial in ensuring public trust and accountability in this significant real estate development project.
