Yesterday, the Post ran a story that we dubbed “Sofagate,” saying that Coney Island USA’s Dick Zigun, who founded the Mermaid Parade, was living in the building that the city helped the organization buy last year. Sources tell us they suspect that the story was given to the Post by Thor Equities and noted that it appeared the same day as one questioning the safety of Cyclone roller coaster operated by Astroland. Mr. Zigun has been sleeping on a pullout sofa in his office since 1996, we are told, and the fact that he slept there (and had been a “caretaker” of the building) was widely known both at the Coney Island Development Corp. and among those familiar with Mr. Zigun and his organization. The “apartment” consisted of a pull-out bed in Mr. Zigun’s office and a place to store clothing and belongings. Today’s Post reports that City Councilman Dominic Rechia, who is a close ally of Thor Equities developer Joe Sitt, says that “We gave him the money to keep the Coney Island museum and sideshow in Coney Island, not for him to also use it for a free place to live.” He says there will now be an investigation of Sofagate and that Coney Island USA could lose $2.4 in funding to help it buy another building.

We talked to Mr. Zigun yesterday afternoon and he told us that he’s no longer using the sofa bed. He slept on a friend’s couch last night and will be moving his clothing from the building by tomorrow. He is now looking for temporary housing until his wife returns to the country and they find a permanent apartment in early 2009. “I want to make it very clear there is no luxury apartment,” Mr. Zigun said. “To the extent I’m guilty of something, it’s for the love of Coney Island. I’ve been sleeping on a couch in an office that’s hardly luxurious at all. Now that the legality of it has been questioned, I won’t be sleeping here. My clothes and personal effects will be gone in 48 hours.” Mr Zigun said that he did not believe the story had come from sources connected to the city. “To whatever extent someone is trying to engage in the politics of personal destruction, I don’t think it comes from the city,” Mr. Zigun said. He said that he “suspects” the story had been given to the Post by someone associated with Thor Equities and, in fact, had strong personal praise for Coney Island Development Corp. President Lynn Kelly. “Lynn is terrific and understands” the issues in Coney Island, adding that backtracking on the part of the city “is not her decision at all.”

So, why did Sofagate break now, given that Mr. Zigun has been harsh about developer Joe Sitt in the past, although he was very supportive of the first version of the city’s rezoning plan? Mr. Zigun speculated that the timing had to do with the fact that “I threw a bomb last Wednesday, so I’m fair game.” He said he will be “sleeping on a couch for the rest of the week and putting my personal effects in storage. I’ve been seriously apartment shopping anyway.” He is look for a short-term rental until his wife is back in the country early next year.

Reactions among Coney watchers on the Coney Island Message Board varied, with several calling the story “a smear.” Here’s one comment:

This also raises questions about Rich Calder and the New York Post. What’s in it for them and what or who motivated them to write this? The games have begun. We’re in for a long ride.

The review of the Coney rezoning will be going on all year and into 2009.