Roosevelt Island Tennis Club Follow-Up

The Webcast of the RIOC Board's Real Estate Committee meeting on the proposed License Modification for the Roosevelt Island Racquett Club is now available for viewing. Those interested in getting a small glimpse of how decisions are made concerning the future of Roosevelt Island will find the 30 minutes both fascinating and tedious.
A Roosevelt Island resident who supports the expansion of the Tennis Club sends in this letter of support which I have excerpted below. The full contents of the letter appear in the comments section.

The recreational needs, and more specifically the tennis needs of Roosevelt Island’s population, 12,000 and growing, is not adequately served by the small volume of courts at Octagon, (the number of which have remained unchanged since the Island’s population was 2000.)

The Racquet Club’s 530 members as well as 50 staff frequently arrive and depart (for hourly games) on our tramway and eat at or order from our restaurants. The Racquet Club provides free instruction and play to a vast amount of community residents. PS/IS 217 uses 5 courts for several hours, twice a week for its children. The NY Junior Tennis League (NYJTL) program runs on weekends from the first week of November to April. The Winter program provides continuity throughout the year to an enrollment of approximately 300 children. Adults enjoy a significant discount in their membership fees, the Racquet Club has provided free hours for Roosevelt Islanders since its inception, and much of the Racquet Club’s open programs are used by Roosevelt Island residents.

I question whether this is sufficient reason to expand the facility without first exploring additional alternatives. I sent the following message to RIOC President Shane seeking more information on the proposed expansion.

... Since you have advised that had I previously asked about the length of the tennis club's license term you would have informed me it extends through 2031, I would like to ask you the following questions regarding the Racquet Club's proposed lease modification in the interest of a fully and knowledgeable Roosevelt Island public and hope to get a similar response.

What is the approximate square footage of the premises?

I understand from the webcast of the Real Estate committee meeting that the current base license fee is $225 thousand with approximately an additional $60 - $70 thousand in % fee. Is that correct?

What is the new proposed license fee?

How does the license fee for the Roosevelt Island Racquet Club compare to other similarly situated clubs in New York City? Is it comparable in terms of fees and term? Is it even a relevant question?

Since the current license term extends through 2031 why does it have to be extended for an additional 15 years? The waiver of any potential liability for tram discontinuance does not seem reason enough to justify such an extension. After all there have been previous occasions when the tram was out of service and to my knowledge no such liability occurred. The willingness of the Tennis club owner to spend additional sums on a market study to determine the potential of a business opportunity for themselves hardly seems reason for RIOC to extend the license term either. Please explain what benefit does RIOC receive in exchange for the additional 15 year term?

Why does the Public Authorities Act not apply to such a large space as the Tennis Club with a license term extending to the year 2048. These premises are not the small shops on Main Street where applying the Public Authorities Law makes no sense.

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How many Roosevelt Island residents are members of the club, either adult or children? What is the discount rate for Roosevelt Island residents and for how long has that been in effect?

Eventually, if an RFP is issued for the Sportspark facility and a bidder other than the current tennis club operator wins the RFP, under the terms of the proposed license modification, what exactly does that bidder have to pay the tennis club operator. I watched the webcast of the real estate committee meeting and am unclear in the event that another bidder wins the RFP what you meant by the winning bidder having to pay the tennis club for it's "going business value". Do you mean merely the value of the current tennis club or do you mean to include the potential value of a new "Chelsea Pier" type complex at the combined Sportspark/tennis facility. If you mean the potential value of the new facility that would put a competing bidder at a severe and unfair disadvantage in any bidding process.

I would greatly appreciate it if you would provide answers to these questions so that I may present the issue clearly, correctly and fairly to readers of Roosevelt Islander.

I was also surprised that none of these questions were raised during the RIOC Board's Real Estate subcommittee meeting. Is it that they either already knew the answers to these questions, do not think them relevant or some other reason that I am not aware of? ...