Support of developers an open field with Malloy out of mayoral race

Posted: 02/15/2009 07:51:01 AM EST

STAMFORD -- Mayor Dannel Malloy's decision not to seek re-election this year not only opened up the Democratic field, it also leaves the support of influential developers -- and their dollars -- up for grabs.

In the past, all the major development players have backed Malloy, but this year there is a twist: the Republicans' potential candidate, Michael Pavia, is a developer.

Pavia, 60, owns Pavia Development LLC, a Stamford-based company that builds primarily residential projects, from single-family houses and two- and three-family apartments to small-scale condominiums. Pavia said ne of the largest projects he has worked on was a 19-unit condominium. He also is a co-owner of Darien Ice Rink.

Pavia formed an exploratory committee in December, meaning he can raise money and gauge voters' interest in his campaign without officially entering the race. Malloy recently decided to focus on a gubernatorial run in 2010.

One important Stamford development family, the Mercedes of Frank Mercede & Sons, already has contributed $1,500 to Pavia's committee. Mercede & Sons owns at least eight corporate centers in the city. In the past, several members of the Mercede family contributed to Malloy's campaigns.

It's an open question as to whether other developers will follow the Mercedes in their support of Pavia, or if considerations such as party loyalty -- or Malloy's influential endorsement -- will keep many in the Democratic camp. One potential Democratic candidate, Board of Finance member Timothy Abbazia, has tentatively entered the race, setting up an exploratory committee last week. Board of Representatives President David Martin also expressed interest in running.

Frank J. Mercede, president and chief executive officer of Frank Mercede & Sons, said the decision to support Pavia was based on his family's familiarity with the candidate and Pavia's work as public works commissioner under former Mayor Stanley Esposito. Pavia also served as a former police commissioner and city representative.

He stepped down from the Board of Representatives in 2006, saying he could not commit to the time required.

"We always go for the person," said Mercede, a registered Democrat. "The one that's going to be the best for the city is who we support." Mercede said it is too soon to say whether he and his family will support Abbazia.

Interviews with several developers and land-use attorneys indicated the down economy may mean developers will see less emphasis in this election cycle on who supports major construction and more on which candidate can best provide stable city services.

"Anyone who is considering a real estate project is much better able to market that product in the environment of a well-run city," said Michael Cacace, a lawyer who has represented the now on-hold expansion of Lord & Taylor, among many other projects.

William Hennessey, a lawyer who helped guide the 80-acre Harbor Point proposal through the land-use approval process, agreed that developers are likely to have a different perspective in this race.

"It's going to be based on who can run the best city, not who will be most supportive of development, because right now, the real estate market is in a slowdown," Hennessey said. "Now, it's all about management."

Anthony Malkin, president of W&M Properties, the owner of First Stamford Place and co-developer of the South End office and residential tower project Metro Green, said it is too soon to say which candidate his family-owned company will support, but that he will look for the person "who has the best answers for the challenges ahead" in a tough economic climate.

"We've got to be looking at the long-term viability and not make short-term decisions or choose what is going to be expedient," Malkin said.

Rapid development has been a hallmark of the Malloy administration.

By courting the finance industry and encouraging speed and professionalism in the land-use process, Malloy ensured that developers found Stamford an attractive place to do business, sources said.

Malloy's campaign records suggest developers responded by readily supporting him.

During his 2005 mayoral bid, Malloy collected at least $23,750 in contributions from all the major development players, including land-use attorneys and consultants who represent projects before the city's planning and zoning boards.

Among the donors were executives of the Trump Parc developer and Urban Renewal giant F.D. Rich Company and the original masterminds of the massive South End Harbor Point project, James Cabrera and Joseph Beninati of Antares Investment Partners. Cacace, Hennessey and prominent land-use consultant Richard Redniss all gave maximum contributions of $1,000 each to Malloy's 2005 campaign.

The Republican Party's candidate in 2005, Christopher Munger, made an issue of the contributions, saying Malloy was creating a "pay to play" atmosphere.

Munger labeled as unethical cases in which developers who donated had business before the Zoning Board, as with Antares and the Harbor Point project.

Munger lodged a complaint against then-Zoning Board Chairwoman Jacquelin Heftman, Malloy's treasurer on his unsuccessful gubernatorial campaign and deputy treasurer for his mayoral campaign, saying she could not be impartial on applications filed by developers who donated to those campaigns.

Heftman, a 12-year Zoning Board veteran and six-year chairwoman, resigned the post after the mayoral election, citing the increased time commitments of working on the gubernatorial campaign.

Only one prominent name from a developer family, now semi-retired Nicholas Mercede, contributed to the Munger campaign.

Those who enter this year's race face a decision whether to accept developer dollars, and more narrowly, whether to accept money from developers with projects before the city's land-use agencies.

Pavia said he plans to evaluate contributions on a case-by-case basis.

"A prudent approach is to rigorously look at everyone and make sure that donations don't put anybody in a compromising situation and reject those that might," Pavia said. "That said, Stamford is Stamford. We all have friends from all walks of life, and basically you can expect them to contribute whether they're firefighters, teachers, policemen or other businessmen."

Abbazia said he has not yet considered how he would make such choices. Abbazia, 46, has been a finance board member since 1999, serving two years as its chairman.

He previously served as a city representative and member of the planning board. Abbazia is an accountant employed as a contractor by The Advocate.

"I'm going to try to raise money according to the law," Abbazia said. "I haven't thought through whether I would go over and above by not accepting money from certain people." Martin said it was premature for him to make such decisions because he has not yet formally entered the race.

Abbazia said his experience on the Planning Board has taught him that community concerns must be taken into consideration when encouraging development.

"You need to find a balance between development that enhances the city and maintaining the characteristics of each neighborhood," Abbazia said. "You need to have fair policies in place, and you need to implement them consistently." Pavia cited his priority in setting a tone for development in Stamford if he were elected mayor.

"Absolutely first and foremost, protection and enhancement of integrity of neighborhoods -- both the social integrity and the aesthetic integrity."

He cited the recent creation of a new high-density "Village District" zoning regulation in Springdale as an ideal example of how community input can shape development projects.

In the past, the influence of developers on the mayoral race has extended beyond their individual campaign contributions, with some holding fundraisers or promoting a candidate among friends and associates, according to Cacace.

But that role may diminish as the recession slows the pace of the real estate market, he said.

"The economy is certainly in distress, and it has affected developers in particular," Cacace said. "I would believe they'd be less inclined to be active contributors compared to what they've done over the last 10 years or so."

-- Staff Writer Magdalene Perez can be reached at

magdalene.perez@scni.com or 964-2240.