Tuesday, August 31, 2010

Master Leaseholder Request For Proposal Issued For Roosevelt Island Main Street Retail Stores - Good Bye East Berlin, Hello 21st Century! Maybe

Main Street Image Of Roosevelt Island Is The Village From Glark

The Time has finally arrived. New ideas may soon be forthcoming to change the empty, dreary, depressing Prisoner and communist East Berlin like view and operation of Roosevelt Island's Main Street Retail corridor. Government, in the form of the Roosevelt Island Operating Corp. (RIOC) may finally be out of the business of retail management on Roosevelt Island.

The reason for this is that today, RIOC issued a Request For Proposals (RFP) for a private sector Master Leaseholder to take over the Roosevelt Island Main Street retail stores currently controlled by RIOC. RIOC Director Jonathan Kalkin Tweets:
My Master Lease RFP Roosevelt Island Retail Revitalization Initiative is LIVE today!
and:
Bye Gov't Run Commerce on Roosevelt Island. Hello Freedom, Hope, Choice, & Prosperity. RIOC Tear Down This Wall.
According to RIOC real estate consultant Jones Lang LaSalle:
On behalf of the Roosevelt Island Operating Corporation of the State of New York (“RIOC”), Jones Lang LaSalle (“JLL”) is seeking to leverage the expertise of the real estate industry to improve the community retail and services offered on Roosevelt Island (“RI”) through this request for proposals (“RFP”) from qualified investors and operators (“Investors” or “Proposers”) for the acquisition and management (the “Disposition”) of some or all of the retail and office space in the following six (6) buildings (the “Buildings”) located on Main Street, the primary north/south thoroughfare and the central retail corridor on RI (the “Retail Space”):
Below is the RFP for Roosevelt Island's Main Street retail portfolio.
RI Master Leaseholder RFP

Here are some highlights from the RFP (Page 2):
... RFP Goal: Through this RFP RIOC is seeking to maximize the best value for RIOC (“Best Value”), which is defined generally, and more specifically defined in the Selection Criteria, as the selection of a single Investor entity as master operator of the Retail Space or multiple Investors operating their respective Retail Units based on a proposal or proposals that:

(i) furthers RIOC’s objective of maximizing the long-term aggregate revenues RIOC receives from the Retail Space while

(ii) making available to RI’s residents, workers and visitors an improved and appropriate mix of goods and services;

(iii) improving the appearance and vibrancy of Main Street; and

(iv) maintaining quality operating and management standards for the Term of the transaction(s)

While the importance of maximizing RIOC’s revenues should not be understated, RIOC is seeking to encourage creativity and commitment on the part of the Investor(s) with this broader Goal of maximizing Best Value....
What does Best Value mean? According to the RFP (Page 10-11):
... In order to determine Best Value when evaluating RFP responses, RIOC will utilize the following Selection Criteria and weightings that, in its sole and absolute discretion are in the best interests of RIOC:

1. The total economic value and financial return to RIOC, which is defined as the present value of the risk adjusted economic value of the sum of: (i) upfront and future payments, (ii) the value of any in-kind considerations received by RIOC and (iii) the value of any other economic benefits received by RIOC. Any such in-kind consideration and or other economic benefits in (ii) and (iii) must be, in the sole judgment of RIOC, bona fide, legitimate, quantifiable and reasonable. (50%)

2. The proposer’s plans to improve the Retail Space or Retail Units including, but not limited to, marketing, design, operations, tenant mix and selection processes, approach to providing some space for non- profits, management, maintenance and renovation, including improving the Retail Spaces’ or the Retail Units’ relationship with its immediate surroundings and overall benefit to Roosevelt Island. (25%)

3. The experience, competence and commitment of the proposer (including the identity of the key employees and professionals the proposer intends to have work on the proposed project) in the re- development, management, marketing and leasing of projects that are similar in scale and complexity to that proposed under the RFP. (25%)...
Here are the available retail store spaces available for the Master Leaseholder (Page 14 of RFP).

Click On Image to Enlarge

Image of Roosevelt Island Main Street Corridor From Jones Lang LaSalle

For some reason, the Roosevelt Island Racquet Club Tennis Bubble at 281 Main Street is not included in this RFP.

It must be remembered that nothing in this RFP commits RIOC to accept any received proposals from potential private sector Main Street Retail Master Leaseholders. This is an information gathering process to determine whether there is any interest on the part of the real estate community to take over Roosevelt Island's Main Street retail corridor and if there is, RIOC will then have to make a determination if that is a good deal for Roosevelt Island.

For those interested in the process of how the Roosevelt Island Main Street Retail Master Leaseholder RFP was developed, below are links to RIOC Real Estate Development Committee audiocasts in which these issues were discussed.

6/10 RIOC Real Estate Development Committee audiocast

5/25 RIOC Real Estate Development Committee audiocast

5/17 RIOC Real Estate Development Committee audiocast

4/27 RIOC Real Estate Development Committee audiocast

Great job by Mr. Kalkin and the RIOC Board of Directors in getting this through. Now let's see what happens.

UPDATE 9/2 - Neglected to mention that proposals are due October 13 2010.

UPDATE 9/5 - RIOC has also posted links to audiocasts of Master Leaseholder related Real Estate Committee meetings.

34 comments :

Anonymous said...

Without reading the whole thing I have two questions:

1) What happens to the existing merchants with no lease or a month-to-month lease? Are they going to be kicked out? I hope some will.

2) Who has the final say on what merchant will get what space? I, for example, would love to see a Dunkin Donuts or some other place that is despised by a rather minority of folks.

Anonymous said...

Does P.14 showing the space in Motorgate mean that Gristedes is up for grabs? If so, bring it on! One other thing...I hope the services we want and crave are going to be acknowledged to keep a town/village feel and they are not going to turn Main Street into an extension of big chain stores and banks like they are doing on 3rd avenue!

Anonymous said...

The column "Vacant or Space w/o Long-term lease" says 0 SF for Motorgate. So, no, unfortunately we'll have to live with Gristedes for a while longer.

This island would do well with one or two of the big chain stores. A Dunkin Donuts or a Baskin Robbins would be very nice to have. Even small towns and villages have those.

Anonymous said...

A fast food place like McD would do quite well, too.

Anonymous said...

I vote for a subways, a decent pizza place, perhaps a coldstone...I'm sad to hear that Gristedes is still clinging on, a whole foods would have been nice...Have you been in that so called "deli"? Needless to say the mop water does less to clean the floor and more to paint it black

Anonymous said...

How is the RFP to be disseminated? Is there a way for the public to find out who the "main recipients" of the document will be (at the outset). I have to guess that the managements of all the large commercial concerns on the island will be included, but how will others know about it?

Anonymous said...

We need a Dunkin Donuts/Baskin Robbins here. They can be one in the same as both chains are owned by the same Corporation. What about a Flower Shop? A nice Liquor Store? A Butcher Shop? A McDonalds? A Spanish Restaurant? A Quiznos? How about turning 504 Main Street into a Movie Theatre?

Anonymous said...

Wow, Dunkin Donuts, Baskin Robbins, a McDonalds? Thats exactly what we need! A teenage hangout where they can all get fat and have health problems and then get into fights over their chicken mcnuggets
Oh, and get rid of the one grocery store we have. Maybe turn into a Mega Taco Bell so you dont have to cook

Anonymous said...

I vote for a nice little titty club!!!!

Anonymous said...

Hooters!!!

Anonymous said...

To the poster at 12:17am: What's with all the hyperbole? Do you really think the current China 1 and Riverwalk Bar & Grill is so much superior when it comes to dining options? What's your suggestion? A vegan restaurant?

Anonymous said...

Riverwalk Bar and grill is good. China1 is Garbage. I would not hold my breath for a decent establishment coming in here, and I dont consider the ones I mentioned decent, so yeah bring on Mickey D.

Anonymous said...

And my suggestion is to hop on a train and go to Manhattan for eating, or better yet exercise and cross the bridge into Queens

Anonymous said...

Come on people....let's get back to the original topic which was, "What establishments would we want to see here in our EMPTY storefronts?"

I agree with some of the above posters, that some other food choices would be good (even if they are chains). We should also consider a Bakery and another Fish Store or Meatery.

Anonymous said...

as the last three decades have confirmed: unless the retail is going to be a "destination" spot for people off island, there is not enough resident consumption to support even a liquor store!!! come on people, get real, this place will remain stuck in the 1980s era, that is soviet era!!!

Anonymous said...

I agree that it is doubtful Roosevelt Island will be more than a short stop for tourists. They will not be drawn for the shopping or dining.

Roosevelt Island will likely remain "quaint" and personally I like it that way.

I only regret that one development Riverwalk was given lawns in the back instead of everyone having an uninterrupted promenade from which to enjoy the sight of Manhattana

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