LOWER -MANHATTANCONSTRUCTIONCOMMAND CENTER

Facilitate, Mitigate. Communicate

Charles MaikishExecutive Director

April 12, 2006

PRIVILEGED AND CONFIDENTIAL

Robert F. RoachChief of StaffNYC. Department ofInvestigation80 Maiden LaneNew York, NY 10038

Dear Mr. Roach:

I write to you in response to your letter ofApril 11, 2006 (the "letter"), regarding130 Liberty Street --- the Deutsche Bank Building.

Clearly, the Lower Manhattan Construction Command Center ("LMCCC") wasremiss in not fully communicating with the Department ofInvestigation ("DOZ") aboutthis project. LMCCC acknowledges, that it did not ask DOI to vet the John GaitCorporation beyond the request for a name check! In addition, LMCCC did not ask DOIto vet the John Galt Corporation's employment of NIx'tc r ("Aivo") and D Mle("Adler") on the 130 Liberty Street prooject. The LMCCC also acknowledges that DOIhad previously provided the LMCCC with negative inforrimation regarding Alvo andAdler.

LMCCC had recommended to the Lower Manhattan Development Corp.("LMDC") that as a condition to the John Galt Corporation employing Alvo and Adler,those individuals would have to cooperate with DOI in its ongoing investigation of

T In the request for a name check amongst the Lower Manhattan Constmction Integrity Team("LMCIT") ofwhich DOI is a member, Ron Calvosa specifically indicated that the 'John Gait Ca orationwas a proposed deconstruction subcontractor -tar 130 Liberty Street. In addition, Calvosa ha3'aconversation with Mary Piechocki in which he specifically indicated to her that this request ;should bebrought to your attention. Ina subsequent email from Piechocla to Calvosa, she indicated that she waswaiting for information from you regarding this request. -

One Liberty Plaza, 20th FloorNew York, New York 10006

V. 212-587-9643Fax 272-266-7810

Robert F. RoachApril 12, 2006Page 2

Safeway. When LMCCC and DOI met on Februarv 2, 2006, T raised the possibility ofconditioning Alvo and Adler employment dh the 130 i erty treet project contingentupon their cooperation with DOT. At that time, DOT indicated that it would take thematter under advisement. Admittedly, LMCCC did not consult further with DOI on thisissue prior to LMCCC recommending to LMDC that this be included as a condition forthe approval ofthe subcontract to the John Galt Corporation.

I would also like to raise the following two points which are in need ofclarification. First, decisions regarding whether contractors and subcontractors are

"responsible"' are up to LMDC. In this instance, information obtained as a result of theLMCIT name check (including DOI's response), and other checks performed by LMDCand its outside consultant were reviewed by LMDC who made a determination regardingthe responsibility of the John Galt Corporation. Second, in footnote No. 6 of your letteryou indicate that the conditions regarding the approval of the John Galt Corporation'ssubcontract "does not preclude such arrangements with individuals who could be as non-responsible as consultants for this job." The inference is therefore that certain individualsmay have been precluded from being employed by the John Galt Corporation may bebrought on in a consultant role. This precise arrangement has been contemplated and isaddressed and precluded in the first condition regarding the approval ofthe subcontract.The first condition is:

"LMDC at this time approves the pending request to employee Mitchell Alvo andDon Adler but Bovis and the John Galt Corp., will not employee or utilize theservices ofany other senior executives, principals, or owners of Safeway,Environmental Corp, Dynamic Equipment Corp and Big Apple Wrecking Corp ortheir successors." (Emphasis added).

This language clearly addresses a potential consultant relationship.

The 130 Liberty Street project is being very closely supervised and scrutinized bya variety of entities, including government regulators. In addition, there is an IntegrityMonitor assigned to oversee this entire project.

The activities ofthe John Galt Corporation will be closely scrutinized. IfAlva orAdler engages in any activity which demonstrates a continued connection to Safeway orifthey engage in any illicit activity, we will immediately demand their removal from thisproject.

I have reviewed with Ron Calvosa, his involveinent in the 130 Liberty Streetproject as discussed in your letter and am completely satisfied that he has actedappropriately.

Robert F. RoachApril 12, 2006Page 3

I look forward to our continued working relationship and will get back to youregarding the draft Memorandum of Understanding which DOI has sent to LMDC andLMCCC regarding potential funding for DOT for its work in regarding Lower Manhattanprojects.

cc: Hon. Rose Gill Hearn, Commissioner, DO!