Giuliani wants to make a deal on Clinton office space

NEW YORK (CNN) -- Mayor Rudy Giuliani said Wednesday he holds all the cards in negotiations with former President Bill Clinton over office space in Harlem, but he's willing to make a deal.

Discussions were under way between New York City officials and representatives of the former president over office space on the 14th floor of 55 West 125th Street. That space, and four other floors, was leased to the city in December for use by the Department of Children's Services.

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Clinton is considering part of the 14th floor for his office, after an uproar erupted over his earlier choice in Manhattan's Carnegie Towers, which leased for $700,500 a year. The space in Harlem is estimated to rent for about half that amount.

Tuesday, Giuliani said he is willing to work with the former president on making room for him in the building. He said he want to make sure that the city's Department of Children's Services gets equivalent space if it ends up moving to accommodate Clinton.

But at a news conference Wednesday, the mayor said he wants compensation if the landlord leases the space to Clinton. He said he'd like to make a deal, but stressed that his primary concern is the best interests of the abused children and others who will benefit from the services using that space.

But so far it appeared no deal was in sight.

"They haven't made us an offer yet that we can't refuse," Giuliani said. "In fact, they have made us two offers that we can refuse."

The mayor said he would leave it to the landlord, Arthur Stern of the Cogswell Realty Group, to deal with the former president, but he said it had taken the city two years to find that space and the loss of it would set the program back at least a year.

Stern did not return phone calls for comment.

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