In the Democratic primary on Sept. 9, Pedro Espada Jr., a Bronx businessman and a former state senator and councilman, defeated incumbent Efrain Gonzalez in the race for the 33rd State Senate District.

Espada pulled in 4,615 votes to Gonzalez’s 3,128, giving him 60 percent of the vote. The result was somewhat of a shock: Gonzalez has been in office since 1989, and he was backed by the Bronx Democratic machine and its chairman, Jose Rivera.

Espada will now face Conservative challenger William Sullivan in the November election. Assuming he wins —and it would be a miracle if he doesn’t in what is a heavily Democratic district — Espada will take office in the new year.

In a telephone interview, Gonzalez, 60, refused to blame his defeat on his ongoing legal issues. (In 2006 he was charged with stealing more than $400,000 in state funds. His much delayed trial is due to begin next May.) “I came up short because of a lack of resources,” he said. “It was not about my leadership and it’s not about the indictment.”

At press time, it was unclear exactly how much Gonzalez and Espada spent on their campaigns. But Espada, who owns a slew of Bronx health centers, has deep pockets, and told the Daily News he plowed in $100,000 of his own money.

“I call him the Puerto Rican Michael Bloomberg,” said Rivera of Espada. “He’s not as rich as Bloomberg but he’s a millionaire and we couldn’t compete with that.”

Rivera said there were other reasons why his man lost, namely the bad press that’s haunted Gonzalez for the past two years. “It’s hard with all the newspapers, including yours, that are calling him a crook,” Rivera said. “Unfortunately we were not able to overcome the negative press. It’s like he’s been found guilty before he’s gone to trial.”

According to news reports, the party neglected to print Gonzalez’s name on the palm cards (or fliers) staffers passed out to voters at polling stations. But Rivera angrily denied rumors that he had a hand in orchestrating Gonzalez’s downfall.

“I don’t know where people get that story,” Rivera said, adding that 20,000 palm cards were printed with Gonzalez’s name. “We were campaigning until the last minute; we did everything we possibly could.”

Rivera, who’s 72, said he and Gonzalez had been friends for nearly 40 years, and that there had been no falling out.

Gonzalez, it should be said, wasn’t the only candidate Rivera backed on Sept. 9 who lost. To say Rivera, whose leadership is being challenged by a group of Bronx politicians, had a bad night is an understatement.

“He has suffered the greatest loss in a primary of any [Bronx] Democratic Party leader in the last 30 years,” said Assemblyman Michael Benjamin, one of the so-called Rainbow Rebels. “There have been losses in the past, but not at this level, in one night, across the board, across the borough.”

“It’s a setback,” admitted Rivera. “[But] I don’t consider it a total defeat.” He said he found the competition “energizing.”

According to the New York Observer, Rivera’s fate as party boss will be decided at the party’s executive committee meeting at the Utopia Paradise Theater on Sept. 28.

Espada’s influence, on the other hand, is only growing. In the run up to the primary, his campaign sent out a mountain of literature to debunk claims he’s a closet Republican. “Pedro is a great Democrat. He has never been a Republican.” said one. In another, Barack Obama and Espada are placed side by side as if they’re in the same photo.

Since the primary, however, he became coy, telling the New York Times that he doesn’t know what party he’ll align himself with when he takes office. If he ultimately sides with the Republicans, the Democrats may struggle to retake the Senate. The Daily News called him “The Most Popular Man in New York.” (Espada was not available for comment by press time.)

And what of Gonzalez?

“I’m fine, I’m happy, I’m at peace,” he said. “I’ve nothing to be ashamed of, I’m proud of everything I’ve done.” Asked whether he’ll return to politics in the future, he said, “Never say never.”