Why Is Roosevelt Island the Way It Is?

via Forgotten-NY © 2001 Chet Wilson

Several years ago the NY State Assembly Committee on Corporations, Authorities and Commissions initiated a series of investigations into the activities of State corporations, authorities and commissions. In 2005, the Committee released this study concerning Roosevelt Island's (RIOC):

...operations, its compliance with the terms of the Island's 1969 master lease with New York City, the Island's official owner, and in particular, the selection and appointment of its senior staff, their qualifications and job responsibilities and performance..."

The Committee determined:

that for a number of years the effective operation and management of RIOC was compromised by secrecy, political patronage, a lack of long-term financial planning, and questionable fiscal policies. It is clear, however, that in many areas, past mistakes have been acknowledged and corrective steps have begun to be taken. New staff appointed by the Governor and working with the Board has begun to change RIOC's management culture by ending the policy of one-time payments, making public long-term financial planning documents, and acknowledging the need for greater transparency and accountability.

The new staff referred to applies to the administration immediately preceding the current one. The study covered the period of time prior to the current administration under Governor Spitzer and RIOC President Shane and does not reflect at all upon their management of Roosevelt Island.

The Assembly Committee study does provide some valuable background information regarding the early development of Roosevelt Island.

The City of New York ("City") owns Roosevelt Island, comprising of 147 acres located in the East River and within the borough of Manhattan. In 1969, the City leased the Island to the New York State Urban Development Corporation ("UDC") for 99 years. The main purpose of the Roosevelt Island lease agreement was "to create on the Island as rapidly as possible a New Community" or a planned community.² In the 1970's, urban planner Ed Logue planned Roosevelt Island and architects Philip Johnson and John Burgee drafted the General Development Plan ("GDP"), also known as the Master Plan, which is the design document of the Island and is part of the lease.³

The GDP delineates the design of the Island and controls its development.⁴ Roosevelt Island is divided into two principal areas: Northtown and Southtown.⁵ Northtown and Southtown are separated by Blackwell Park, which is approximately 3.8 acres.⁶ The GDP specifically called for about 5,500 units (the number of units currently proposed is 5,758 units) of subsidized, middle-income and conventionally financed housing, 20,000 square feet of office space, 100,000 square feet of commercial space, and certain public facilities, including a school for 2,000 children, a library, community rooms, children's day care centers, swimming pools and facilities for the elderly. The GDP requires Northtown to contain 60% of the housing, commercial facilities, child care, recreational facilities and the preservation of the Chapel of the Good Shepherd.⁷ The GDP requires that Southtown contain 40% of the Island housing, a swimming pool, a library, the schools and a Town Center.⁸ The GDP also requires that certain areas of the Island be designated open spaces including: Lighthouse Park, Octagon Park, Blackwell Park and other areas that were to be linked with pedestrian paths and walkways.⁹ UDC completed Northtown in 1977. It is comprised of four Mitchell-Lama buildings, of which one is a limited equity co-op, consisting of 2,200 units. Manhattan Park, considered an extension of Northtown, followed in the late 1980s. Manhattan Park is a 1,100 unit market-rate rental building and section VIII housing units.

However, due to fiscal constraints, UDC could not complete the development of the Island. Therefore, in 1984 the Roosevelt Island Operating Corporation, a public benefit corporation, was created to operate and manage Roosevelt Island.¹⁰ At the time of creation, RIOC assumed all responsibilities, rights and obligations including the agreement to pay the City rent for the use of the land.¹¹ However, to this date, RIOC has never paid any rent to the City.

RIOC Board members are appointed by the governor, or serve by virtue of their positions in State agencies,...

As to the current Hudson/Related Riverwalk buildings in Southtown the Assembly Committee reported that:

In 1999 RIOC approved Hudson Companies and Related Companies ("Hudson & Related") as the projects' developers for Southtown. Hudson & Related were chosen to develop Phase 1 (four buildings with about 900 units) and Phase 2 (five buildings with 1100 units). RIOC received a one-time payment of about $6 million for the first two buildings of Phase 1. Building 1 was sold to Memorial Sloan-Kettering;¹⁷ building 2 was sold to Cornell University.¹⁸ Both are used for staff housing. Building 3 is currently under construction as a market rate condominium, with RIOC receiving about $2.17 million. Building 4 is not yet under construction and will be used for rental housing.

Image is from Forgotten New York.