Roosevelt Island's Trellis Diner Signs Lease Extension With Main Street Master Leaseholder Hudson Related

Image of Trellis Diner Owner Kai Razaghi Announcing New Lease Extension

Learned today that the Trellis Diner signed it's lease extension with Main Street Master Leaseholder Hudson Related. Trellis owner Kai Razaghi reports:

The good news this week is that our lease extension is in place and Trellis has a future with you on Roosevelt Island. It means we will renovate soon - an architect is already at work on the plans - and we'll have a bright new restaurant soon. The bad news is that, to do the renovation, we'll need to close for a time. That won't happen immediately, but it's also part of our future together. Meantime ... come on in and create some lasting memories of what it was like "back then"!

See You At Trellis!

Trellis joins Gallery RIVAA and these new Roosevelt Island Main Street retail tenants with signed leases:

• Wholesome Direct, an organic grocer at 530 Main Street, 
• Island Spirits, a wine shop at 605 Main Street,
• Coach Scot's Main Street Sweet's at 599 Main Street and
• the Subway Sandwich shop at 513 Main Street

RIOC Real Estate Committee Meeting Today To Review Roosevelt Island Main Street Master Leaseholder Proposals

According to the Roosevelt Island Operating Corp (RIOC):

PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will be held on Wednesday, November 17, 2010 at 6:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

The agenda for the meeting will be:

1. Review of the Jones Lang LaSalle Americas, Inc. Report on the Commercial Master Lease Proposals; and

2. 2. Extension of Trellis Lease.

More on the Roosevelt Island Main Street Retail Request For Proposals here.

An audio webcast of the meeting will be made available soon thereafter (usually with 2 business days).

UPDATE  11/18 - The Jones Lang LaSalle representative reported at the Real Estate Committee meeting that there were 2 bidders for the RFP. After reporting the number of bidders, the RIOC Real Estate Committee went into executive session and the public, including me, were asked to leave. The reason given for holding the rest of the meeting in Executive Session was so that no confidential information be made public that could impact any negotiations between the Master Leaseholder bidders and RIOC/Jones Lang LaSalle. No other information regarding the Master Leaseholder RFP was provided by RIOC.

Also, Trellis did not get any lease extension at this time. Questions remain regarding Trellis complying with previous fire safety and ventilation issues and need to be resolved by Trellis before any lease extension can be considered by RIOC.

More later.

Roosevelt Island Main Street Retail Update From Hudson Related And Leasing Broker Cushman & Wakefield - Latest On Trellis Opening, Urgent Care, Possible New Food/Coffee Shop Operator & More

The Roosevelt Island Residents Association (RIRA) Main Street Retail Advisory Committee (MSTRAC) met May 12 with Hudson Related representative Alexandra Kaplan and Cushman & Wakefield retail broker Michael Azarian for an update on Main Street leasing progress.

 Image Of Roosevelt Island's Vacant 503 Main Street

RIRA's MSTRAC Chair Anne Kanninen provides the following summary of the meeting. According to Ms. Kanninen

Summary:

Cushman & Wakefield (C&W) is negotiating a lease regarding the space at 501 Main St. with a light food/coffee shop operator. C&W feels very positive and under the best scenario if the deal is successful the operations would start in the beginning of next year.

Nisi (new name of Trellis Diner) is expected to open in June. There was a discussion about possible price increases and Mr. Azarian told us that Nisi is supposed to stay as a diner meaning huge price increases are not expected. He also informed us that the company (Nisi) appears to have deep pockets and can easily carry the one and a half year losses from the renovation/construction.

Mr. Azarian also told us that there are several companies interested in coming to the island but many of them are not financially sound or do not have successful track records, thus cannot be considered as tenants....

... 544 and 548 Main St. spaces are marketed as good sites for food business. Now when Trellis became clearly Mediterranean Nisi (Island in Greek) maybe some other than Mediterranean food restaurants would be attractive thus expanding the variety of food offerings on Roosevelt Island.

The CDM Kids pre-school continues to operate on a reduced schedule because the required window screens are still missing.

It was explained by both Ms. Kaplan and Mr. Azarian that the delays which for example the Urgent Care has experienced are very typical right now in the city due to high number of buildings constructed affecting Con Edison’s and the Department of Building inspections and certifications.

It was mentioned by Anne Kanninen who visited the Urgent Care site today that there appeared to be a dentist’s chair in the premises. It seemed that Ms. Kaplan did not know anything about a plan that included a dentist in the urgent care operations since the island already has a dentist.

The Urgent Care space consists of several treatment rooms which were already partially furnished with treatment tables. The clinic is a major investment for the owner(s).

According to Ms. Kaplan and Mr. Azarian the clinic will open any day now.

Ms. Kaplan told us that the directional signs are under discussions with RIOC.

There was a request once again to place the benches to the walls of the buildings on the Main St. so that people could face Main St. Ms. Kaplan promised to look at the issue and maybe something could be done.

There was a complaint about the lights which are out in the arcade. Ms. Kaplan promised to take care of the issue.

The wall next to the subway entrance has become a messy bulletin board which could perhaps be better organized and cleaned. There was some opinion differences regarding this issue.

The rotting cement walls under the windows on the the Roosevelt Landing side will be taken care according to Ms. Kaplan.

There was a question of a temporary art gallery filling the empty spaces on the Main St. Both Ms. Kaplan and Mr. Azarian thought it as a good idea but did not elaborate further except that they are discussing with the person who wants to do it.

Wholesome Food is doing very well which we all can easily verify just visiting the always packed store. According to Ms. Kaplan the Subway store, Deli, Liquor store and Ice cream parlor are performing well as well. However, Ms. Kaplan’s analysis is based only on paid rents which tells only the partial story of a company’s performance. H-R does not have access to the lessors’ financials.

H-R and RIOC have started discussions about the two new buildings which will be built on the east side of Southtown. Both of the buildings are going to be rentals and building no. 8 is planned to have large number of affordable apartments. These discussions typically take a year or two. The next building’s start up will be in two to four years according to Ms. Kaplan.

Cynthia Ahn had been talking with Ms. Kaplan earlier about some kind of leaflet to be distributed to the Southtown residents to promote the businesses in the Northtown. This issue was not really discussed in the meeting despite the fact that Cynthia tried to take it up with Ms. Kaplan.

It was decided that the quarterly meetings with MSTRAC, Hudson-Related and Cushman - Wakefield will continue but timing will be switched to 9 am.

Following up on the Roosevelt Island retail meeting discussion, Cushman & Wakefield's Michael Azarian reports about the renaming of Trellis to Nisi:

Hudson Related spoke to Trellis. It has yet to be confirmed that they are changing their name to Nisi, but it is presently being discussed. Also, Trellis' lease states that they must remain a "first class diner." Trellis is finalizing their new menu now, but they are maintain the position that they will be an "upscale diner" with quality options.

And:

Hudson Related spoke with the Urgent Care tenant. That chair you saw is not a dentist chair. It is for sutures and people with broken arms!

Here's Cushman & Wakefield Roosevelt Island Shops On Main Street Brochure.

When Will Roosevelt Island New Nisi Diner, Formerly Trellis, Reopen After Being Closed More Than 2 Years For Renovations? Lease Has Not Been Sold To New Owners Say Hudson Companies

When will Roosevelt Island's new Nisi Diner,

formerly the Trellis, reopen after more than 2 years of being closed for renovations? Back in August and October of 2016, reported that Nisi

was ready to open pending inspections by the Fire Department.

Reader Cheshire Kitty asked recently:

Any updates on Trellis status? As we enter 2017, it's at least two years - maybe more - since the restaurant closed for renovations. The build-out is now complete - even the tables and chairs are in place. If there is a problem with obtaining needed City permits, red tape can't be untangled - maybe Council Member Kallos could help Kai negotiate the permit process/City bureaucracy? Just a thought..

On January 12, I asked Main Street Master Leaseholder Hudson Related's David Kramer:

... Is Trellis/Nisi ever going to open?

The number 1 question I get is what's going on with Trellis and will it ever open again.

Constant rumors that the lease was sold to a new operator.

A Hudson Companies spokesperson replied:

We anticipate that Nisi will open later this winter. There is no truth to the lease sale rumor.

I've also asked Nisi owners when they will open but have not heard back. Residents have told me that they were told Nisi plans to open at the end of January but that has not been confirmed.

Latest Info On Roosevelt island Main Street Retail From Master Leaseholder Hudson Related - Trellis Renovation Delay, Possible Move Of Card Shop To Smaller Space, New Day Care Tenant, No More Summer Eleanor's Pier On Waterfront & More

 Image Of Trellis Diner Behind Construction

Here's the latest on Roosevelt Island Main Street retail store news.

Main Street Retail Master Leaseholder Hudson Related's representative Arianna Sacks Rosenberg briefed and answered questions from the Roosevelt Island Operating Corp (RIOC) Board of Directors and members of the community during last night's RIOC Real Estate Advisory Committee meeting (audio web cast of meeting will be here).

The meeting began with RIOC Director Howard Polivy establishing the ground rules for the meeting and introducing Ms. Rosenberg.



Ms. Rosenberg reviewed progress made  to date including signing 9 new leases with these tenants:

• Wholesome Factory,
• New York Public Library,
• Island Wines,
• Subway Sandwiches,
• Main Street Sweets,
• Urgent Care Medical Center,
• the Trellis and Gallery RIVAA renewals and

confirmed the signing of a new lease with a Day Care Center at 568 Main Street.

Ms. Rosenberg said they are talking with other retailers including restaurants and "non profit types" for the 6 existing vacant spaces.

Among the other issues discussed were:

• Is the rent sought by Hudson Related too high for potential Roosevelt Island tenants? Ms Rosenberg said no.
• Ugly empty storefront windows - asked Hudson Related to make windows more attractive with signage or temporary installations
• Card and Gift Shop lease expired and being offered smaller space at 615 Main Street (former Boy Scout Storage Space) and 507 Main Street (former Chiropractor's office)
• Roosevelt Island Residents Association (RIRA) Main Street Retail Committee input.

• Ugly Trellis plywood construction shed,
• Concern that Hudson Related leasing program is waiting for completion of Cornell Campus,
• Bleak view down Main Street Arcade,
• Deterioration Of Main Street Arcade, new paint is chipping,
• Benches at Roosevelt Landings should be turned around facing street instead of facing building,
• Fresh new sidewalks for Northtown, remove the Z Bricks,
• Trellis renovation construction problems caused by discovery of unknown structural wall,
• Perception by some that Hudson Related Main Street retail improvements were being done for the benefit of their Southtown buildings

• Neither H-R, Trellis or Island House owner knew about the structural wall before demolition began and
• New Day Care tenant at 546 Main Street is a woman who has operated day care facility in Roosevelt Island apartment but may not be currently doing so.

We also learned the unfortunate news that Hudson Related is not bringing back the Eleanor's Pier waterfront restaurant this summer.



I hope RIOC has some plans for bringing another restaurant or food service of some kind to the Pier this summer.

Hudson Related's David Kramer Provides RIOC With Update On Roosevelt Island Main Street Retail Progress - Arcade Transformation, Window Removal, Trellis Renovation, Public Library Lease, Signage & More

During April 2 Roosevelt Island Operating Corp (RIOC) Real Estate Advisory Committee meeting (audio web cast of meeting is here), Roosevelt Island Main Street Master Leaseholder Hudson Related's David Kramer provided an update on Main Street retail retail progress.

Mr. Kramer reported that the big news is that Hudson Related will immediately begin to:

... transform the Arcade Experience with wood ceiling, different light fixtures and opening up the space... provide some lighting for the signage...

Here's Mr. Kramer on the Arcade Transformation.



Later in the meeting Roosevelt Island Residents Association (RIRA) Retail Subcommittee Chair Susan Marcus asked Mr. Kramer what the best strategy would be to fight him on removing the Westview Arcade Windows. After some laughter Mr. Kramer jokingly suggested some

... Civil Disobedience...

and then stated his long held position for removing the Arcade windows:

... we need the approval of the building owner and to the extent the building owner doesn't grant the approval, that would stop us in our tracks us and that would be a huge mistake...

...I would suggest you and your band of advocates wait until you see how it looks at Eastwood...  I have never  been particularly swayed by the argument that the diagonally slanting rain needs to be protected by intermittent window panels where there is space in between where there isn't window panels and at some point you leave the Arcade and then you are not protected at all...

... I encourage you guys to have an open mind before you hold rallies in front of Westview owners residence to take a look at how it turns out at Eastwood...

Here's Mr. Kramer on the removal of window arcades.



Ms. Marcus provides this summary of Mr. Kramer's full presentation.

• construction on new lights and wood ceilings should begin very soon
• lights will be put behind signs
• signs must be same shape but store owner can use own colors and designs
• Eastwood is being insulated
• empty store front windows will have new film put on them like the deli
• Trellis' plans were rejected because they went beyond the actual store to the street. H/R is giving Trellis generous amount of time to come up with new plans.
• New Market will be opening soon. What soon is was unclear.
• Liquor store has license but will not be worked on until market is open
• Library lease is moving forward but still an issue with windows at 504. Lease has yet to be signed.
• H/R is willing to partition the top of 504
• Kiosks are still in the planning stage. H/R is thinking of using a vendor the city is using. Will be fancy electronic ones. Not sure about concrete ones that we are using now. May take a handful of years to install the new electronic ones.
• a bakery may be close to signing a lease
• Hardware store is still in the middle of a slow eviction process
• No news on Thrift Store and is not a big concern of H/R at this time.

Here's the full discussion on Roosevelt Island Main Street retail update with Mr. Kramer.

Update On Roosevelt Island Main Street Retail - Organic Grocer and Wine Shop Leases Signed, Subway Sandwich, Europan Bakery and Child School Still Not Signed Says Hudson Related

Reported last week on 5 new leases signed by retail Master Leaseholder Hudson Related for Roosevelt Island's Main Street:

...Retail leasing activity includes new tenants and renewals, including:

·         Island Spirts, a new wine and liquor store will open at 605 Main St. The island has been without a wine store for several years.
·         Wholesome Direct, a gourmet and organic natural food market at 530 Main St.
·         Europan Bakery Cafe at 503 Main St. will offer fresh gourmet foods, beverages and baked goods.
·         Subway Sandwich at 513 Main St. will offer sandwiches for breakfast, lunch, and dinner.
·         The Child School is opening a 7,000 square foot fine arts center at the upper floor of 504 Main St, which will be complementary space to the School’s other existing facilities on Roosevelt Island and will include art, music, drama and dance studios....

Last Wednesday, Hudson Related representative Andrew Jackson met with a group from the Roosevelt Island Residents Association (RIRA) Main Street Retail Committee to discuss what is happening with the Main Street retail situation.

During the meeting it was learned that the announcement of 5 new signed Main Street leases was a bit premature. Mr. Jackson reported that the only leases for Roosevelt Island's Main Street that have been signed are for the Wine Store and Organic food market, which are owned by the same person, at $45 per square foot. The Subway Sandwich Shop, Europan Bakery and Child School leases are close to being signed but not yet signed. A handshake deal has been made with Trellis and Gallery RIVAA but no signed lease yet.

The discussion included these topics among others:

• the fate of existing stores such as Trellis, Gallery RIVAA and the Thrift Shop, 
• the removal of windows from Roosevelt Landings Arcade, 
• garbage removal from sidewalk in front of Rivercross if the Subway and Europan Bakery or any other restaurant leases are signed, 
• sit down restaurant,
• a full service drug store (prohibited in Norhtown by Gristedes lease provision and prohibited in Southtown by Duane Reade lease provision, 
• pet stores don't seem to be interested in Roosevelt Island due to lack of foot traffic,
• Status of Public Library for first floor of 504 Main Street,
• the issue of a conflict of interest if the lease with the Child School is signed for 504 Main Street because the Child School Executive Director Sal Ferrera is a Roosevelt Island Operating Corp (RIOC) director who will be involved in issues concerning Hudson Related's Ground Lease Modification for Southtown Buildings 7-9

Here's what happened during the meeting.

You Tube Video of Roosevelt Island Main Street Retail Meeting

You Tube Video of Roosevelt Island Main Street Retail Meeting

New Daycare Facility Coming To Roosevelt Island's Main Street - Update From Hudson Related On Roosevelt Island Main Street Retail Leasing And Wayfinding Signage At January 29 RIOC Real Estate Advisory Committee Meeting

 Image Of Trellis Diner

Roosevelt Island residents are getting increasingly concerned with the lack of any recent progress in securing Main street retail tenants and with what appears to be the Trellis Diner renovation work stopping.

MJMNYC asks:

I haven't seen any activity recently at Trellis. Any idea on the progress of the remodeling?

Westviewer replies:

There are no permits posted on the DOB's website for Trellis. (There are DOB permits on the plywood panels, so something must have been filed.) Has anyone called the DOB?

and Ratso wants to know:

Does anyone know the disposition of the Urgent Care Unit that was scheduled for the former location of the Thrift Shop?

Here's some Roosevelt Island Main Street retail news. A lease has been signed for a daycare facility at 568 Main Street.

Hopefully, we will get more information about the new daycare facility, Trellis and other retail news from Main Street Retail Master Leaseholder Hudson Related during the Roosevelt Island Operating Corp (RIOC) Real Estate Advisory Committee meeting tomorrow.

According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will be held on Thursday, January 29, 2015 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

Agenda:

Update from Hudson Related on Retail Master Lease Progress

Discussion of Island Wayfinding Signage

Any Other Committee Business That May be Brought Before the Committee

Hudson Related's last retail update was during July 30 RIOC Real Estate Advisory Committee meeting.

More Restaurants Needed For Roosevelt Island's 14,000 Residents Says New Main Street Landlord Hudson Related - Indian, Mexican Asian, Maybe Even A White Cloth Restaurant - Standing Ovation For Trellis Diner At Retail Town Hall Meeting

Can Roosevelt Island support more restaurants than currently exist? We have the Riverwalk Bar & Grill (Sports Bar), Fuji East (Japanese), Nonno's Focacceria (Italian, and they have recently added a Mexican menu as well), Trellis Diner and China 1 Take Out. Starbucks, though not a restaurant almost counts as one in the context of Roosevelt Island options.

During the Roosevelt Island Main Street Retail Town Hall Meeting, a resident spoke in opposition to the notion of a "white table cloth restaurant" being opened on Roosevelt Island. (Video of remark is here at the 43 minute 55 second mark of the third video in post).

In response, David Kramer of the Hudson/Related Main Street Retail Master Leaseholder partnership indicated that the new landord is open for business and it is up to the free market to determine if a white table cloth restaurant, Mexican, Indian or any other type of restaurant opens on Roosevelt Island. Mr. Kramer added that it is up to the free marketplace to decide, not him, whether any particular restaurant can pay the $35 -50 per square foot in rent that Hudson will be seeking for new Main Street retail tenants and that 14,000 people can support more than the existing restaurants.

Mr. Kramer also indicated he believes that Roosevelt Island Main Street rents have been too low which created an environment in which retailers did not have to be on their "A game" and that with market rents better retailers will be providing service to Roosevelt Island residents.

Here's Mr. Kramer's remarks on this issue.

You Tube Video of Roosevelt Island Restaurant Discussion

Video of the entire Main Street Retail Town Hall Meeting is here.

During the Town Hall Meeting, Trellis Diner owner Kaie Razaghi was given a standing ovation by many of those attending when he got up to speak including shouts of Go Trellis followed by more applause. His son Alex thanked the crowd for their support and said that he was proud to have grown up on Roosevelt Island, keeping their prices low and doors opened despite blackouts and other emergencies. Alex said that they would like to stay in the community and secure a new lease.

You Tube Video of Trellis Owner Addressing Retail Town Hall Meeting

Whatever you think of the Trellis Diner, it was a very touching moment. Roosevelt Island Residents Association President (RIRA) President Matt Katz added that if you are what you eat he is at least 2/3 Trellis parts.

What's The Latest On Roosevelt Island Main Street Retail Stores? Master Leaseholder RFP Submissions Received, Being Analyzed & Will Be Discussed At November 17 RIOC Real Estate Committee Meeting

Main Street Image From Jones Lang LaSalle

What's going on with the Roosevelt Island Main Street retail situation? Will the depressing, dreary, Soviet Union/East Berlin before the Fall of the Wall, looking storefronts

Main Street Image Of Roosevelt Island Is The Village From Glark

ever become vibrant and appealing to Roosevelt Island residents? Will government, in the form of the Roosevelt Island Operating Corp (RIOC) finally get out of the business of leasing and managing retail real estate?

Some Roosevelt Island residents are skeptical of stores ever filling Roosevelt Island's dreary Main Street as expressed by this reader's comment to RIOC President Leslie Torres November 4 Report to the Community:

Once again, not a word about the empty storefronts on Main Street, obviously because there has been no progress, Nor will there ever be, until then head of RIOC actually lives on the island, or until such time as we get out from under the thumb of NY State and become a normal New York City neighborhood.

and this comment to Ms. Torres October 21 Report:

Jonathan Kalkin should be commenting on the RFP for the Retain Master Lease Project. I heard there are no takers for that, just a few inquiries.

So, you sent Mr. Shane packing just a few months before he was going to retire, and you don't have anyone to start filling the storefronts. Great.

The original October 13 deadline for submissions in response to the Roosevelt Island Main Street Retail Master Leaseholder Request For Proposals (RFP) was extended to November 1 and now we are waiting to see the results, if any. We may have some answers as to the status of the RFP next week because the RIOC Real Estate Development Committee is scheduled to receive a report on any proposals received by Jones Lang LaSalle, (RIOC's consultant on project) during the November 17 Committee Meeting. The meeting's Agenda is below.

PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will be held on Wednesday, November 17, 2010 at 6:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

The agenda for the meeting will be:

1. Review of the Jones Lang LaSalle Americas, Inc. Report on the Commercial Master Lease Proposals; and

2. 2. Extension of Trellis Lease.

Asked to comment on the Master Leaseholder status, RIOC President Leslie Torres responds:

It has only been a few days since the submission deadline but we are encouraged by the proposals that have been submitted and are optimistic about the process. We are currently reviewing and  preparing analysis of the proposals for our board and we will, of course, discuss the matter in public at the first appropriate instance.

As to Mr. Kalkin, I have been observing this issue from the very start and in my opinion Mr. Kalkin has done a terrific job shepherding this challenging and difficult issue to it's present state despite the many roadblocks placed in his way. Whether a Main Street Master Retail Leaseholder is the best option for Roosevelt Island is still an open question but it is worthy of exploration. Let's see what happens!

The RFP is here and an addendum was added here.

Also, here are links to audio web casts of RIOC Real Estate Committee Meetings in which Roosevelt Island Retail Master Leaseholder issues were discussed and debated in great detail as well as a comprehensive Study on Roosevelt Island retail prepared by consutants Phillips Preiss Shapiro Associates.

Roosevelt Island Main Street Retail Update Discussed At RIOC Board Meeting, Exciting Lease Proposal Currently Being Negotiated Says Hudson Related But No Details Given - Trellis To Open In About A Month?

Image Of Main Street Retail Brochure From Cushman & Wakefield

The Roosevelt Island Operating Corp (RIOC) Real Estate Advisory Committee met Monday March 7 (full audio cast of the meeting here). Among the items on the agenda was a Main Street retail update.

RIOC Director Howard Polivy read portions of a statement from Hudson Related Main Street Retail Master Leaseholder David Kramer. According to the statement read by Mr. Polivy:

... tenants actively working on renovating their spaces - NY Public Library, Archdiocese, Urgent Care, CDM Kids...

and:

.... we have a a very exciting lease proposal we are negotiating for one of our most high profile retail locations which we hopefully can talk about soon....

followed by laughter among those present.

Mr. Polivy added that RIOC's interest in Main Street retail is limited to Hudson Related paying their rent to RIOC, which is being done.

RIOC Director Michael Shinozaki noted that RIOC's interest may be greater than just accepting rent from Hudson Related. Mr. Shinozaki thought there was a "claw-back" clause in the Master Lease in the event a tenant does not open within a certain period of time. The other Directors were not sure about any "claw-back" provision for tenants. RIOC President Indelicato said they would check to see if there was such a provision.

RIOC Director Fay Christian said that the Trellis Diner owner told her the long under renovation Trellis would be open in about a month. More laughter followed.

Mr. Polivy concluded:

...Apologies to the public - we wish it would work faster, better....

Here's the full Main Street retail discussion



and latest update from Hudson Related and retail broker Cushman Wakefield given in February.

Letter Grades For New York City Restaurant Health Inspections - Roosevelt Island's Trellis Diner Gets An A, Others Not Graded Yet

The New York Post reports on the New York City Health Department's recently enacted letter grading system for restaurant inspections.

Now you "C" them, now you don't. The Health Department has identified the first 15 restaurants branded with a lowly C since the city's A-B-C grading system was launched more than three months ago -- but more than half of those eateries were caught hiding their lousy grades from customers....

According to the NYC Health Department Restaurant Inspection Information page:

... Starting in July 2010, New York City is requiring restaurants to post letter grades that correspond to scores that it receives from its sanitary inspection. An inspection score of 0-13 is an A, 14-27 points is a B, and 28 or more points is a C. Grade cards must be posted where they can easily be seen by people passing by...

How did Roosevelt Island restaurants do on the grading system? Well, the Trellis Diner had the most recent inspection on November 4, received 12 violation points for a grade of A and like a parent proud of a child's Report Card, posted the A grade on their window for all passing Roosevelt Island residents to see.

Trellis Diner Received An A Grade From NY Health Department Restaurant Inspection

None of the other Roosevelt Island restaurants have yet to receive a letter grade though their most recent Restaurant Inspection reports are here. UPDATE 4:40 PM - Extension of the Trellis Lease is on the Agenda for the November 17 RIOC Real Estate Development Committee Meeting.

RIRA President On RIOC President Shane's Departure, Master Leaseholder, Free Market Economics, Mitchell Lama Privatizations, Reunion & More

RIRA President Frank Farance Speaking At June RIOC Board Public Comment Session

Roosevelt Island Residents Association (RIRA) President Frank Farance sends the following report to Roosevelt Island residents. Mr. Farance addresses:

1. RIRA Blood Drive a huge success. Thank you to all participated. This year was our best effort ever. Thanks to Matt Katz for organizing this, vampires would have been proud.

2. Roosevelt Island Day was wonderful! This is such a great community day. Thank you to Doryne Isley, Charlie DeFino, the managing companies, RIOC, and others who supported, helped, and participated. RIRA was served hundreds of free bagels, coffee, and orange juice to residents — thanks to Trellis for the wide assortment of bagels. My children and I enjoyed the rides, the ponies, the little train ride, and the children's ID event. The Motown review band was excellent including watching PSD Deputy Director René Bryan work up the crowd. Mr. Bryan, you were having so much fun, you should have been in the band.

3. Roosevelt Island Reunion. Last weekend, we had a reunion of original residents circa 1976 to 1986. About 200 returned to picnic, swap stories, show off their children, and play music. I was in the last category, a keyboard player. In our younger days, us musicians would haul equipment on spring Saturday mornings to the water's steps at Motorgate and jam for a couple hours. (Or as one derisively put it: a loud tuning of guitars for four hours.) Over six hours of playing we covered Jeff Beck's Freeway Jam, Tom Petty's American Girl, Credence Clearwater Revival's Born on the Bayou, Wild Cherry's Play That Funky Music, James Brown's Papa's Got a Brand New Bag, Allman Brother's Statesboro Blues, Jimi Hendrix's Fire, and ending with Blind Faith's Can't Find My Way Home. Thanks to residents Dana Doyle, Olya Turcihin, and Brian Dorfmann for organizing the event. Thanks to RIOC staff Donna Masly, Carol Rubino, Mike Smith, and Fernando Martinez for their excellent help. Thanks to Public Safety for providing security who received many compliments from us old-timers.

4. RIRA Town Hall meeting on Main Street storefronts. We had our town hall meeting, unfortunately no one from the RIOC Board's Real Estate Development Advisory Committee attended. The whole idea was to be informed about the process to hear the multiple sides. RIOC President Steve Shane explained that we could have a 90-day process for renting storefronts. Cynthia Ahn, who runs a nail salon, and Julie Palermo, of the RI Chamber of Commerce. expressed concerns and dissatisfaction over the potential master lease process. Merchants are worried that when their leases expire will they be pushed out? Here's some of the main problems with the present master lease process:

- The big developers (Southtown and Octagon) are willing to invest millions in this because it will help with their rentals and sales. This is baloney. If spending a million dollars helped their rentals/sales, they'd spend the money now. But we have already learned that they won't spend money: for all the chatter from developers about getting a ferry while the tram is out, when it came to these developers putting up money, they balked. So we learned that the developer's sob story about rental/ssales is not true. The same applies here: they are piggy backing on residents' frustration with a plausible but phony story about a loss of rentals/sales. Yes, developers might be interested in the storefronts, but not because of loss of rentals/sales.

- Some RIOC Board members claim that only "free market" economics works and government can do no good. Recent US economic history tells us that "free market" doesn't always work. Not only will it not work here, we are NOT getting "free market" economics with the master plan. According to RIOC Board member Mr. Jonathan Kalkin, developers would allow the stores to run at a loss. So if RIOC allows their stores to run at a loss, it's bad government; but if a private enterprise does it, it's "free market". Furthermore, the deals that brought Duane Reade and Starbucks to the Island were not standalone profit operations, they were trades (as described by RIOC's real estate advisor Jones Lange Lasalle) where the developer would allow the merchant some prime location OFF of Roosevelt Island, but in exchange the merchant has to put a store on Roosevelt Island. These kind of arrangements aren't "free market" economics, they are merely choosing between two kinds of artificial/non-market economies: one is chosen by a government entity (RIOC, of which we have some influence) and one is chosen by a private entity (master lessee, of which we have no influence).

- Roosevelt Island is intended to be an economically diverse community. This is very different from most other communities. As Mr. Shane pointed out, we have a nail salon whose rent is $45/sq-ft in Southtown and a nail salon whose rent is $15/sq-ft in Roosevelt Landings with clienteles for both. In the master lease process, it might easily be economically viable to replace the $15/sq-ft nail salon with another service at $22/sq-ft (which is unaffordable by the nail salon). The outcome is: businesses and services lost for a lower economic segment are replaced by businesses and services for a higher economic segment. This is what normal "free market" economics do and, normally, some kind of out-of-market entity (e.g., government) is necessary to reduce this imbalance. Essentially, this is the argument that our current merchants are making.

- The storefronts could be rented right now with leases subject to the master lease, which is how it is done in shopping malls, but the RIOC Board does not want to do that. They say that will reduce the value of any master lease RFP process. This makes no sense: either your investment horizon is short-term, in which case you only care about the 10,000 sq-ft available, which is so small it is of little interest; or you care about the long-term, i.e., when big spaces like Gristede's become available in 2032, in which case the tenants rentable within 90 days are not your investment concern.

- What happens when the master lease doesn't work? For example, what if residents are really really unhappy with the outcome. The only way to unwind the deal is litigation or concessions, which will cost the Island (and a future RIOC Board). This is an all-lose situation and the RIOC Board has not said how they will handle this.

The RIOC Board is unwilling to permit a hybrid: lease storefronts now (could be done in 90 days) with leases subject to the master lease, meanwhile work through community concerns. As RIRA's Vice President Ellen Polivy said regarding the 2008 Island referendum question on a master lease, "I don't think we literally meant that [it had to be a master lease], what we wanted was the storefronts rented right away". About two months ago, RIOC Board Member Jonathan Kalkin said that merchants would be able to rent as soon as June. June has come and gone. It appears that Mr. Shane's predictions seem to be more accurate. After all, he is a real estate attorney that has worked with many commercial properties over the years.

I think experience is important. For example, When RIOC Board member Mr. Mike Shinozaki talks about operations, it is clear that his background brings vital experience to RIOC's efforts. For the Real Estate committee, there is nothing inherently wrong with a insurance agent, a grade school teacher, and a pediatrician being involved, but if this were any other organization that weren't so close to home, one would say "Gee, given the experience of your committee and the fact that you have a real estate attorney whose done commercial properties, I think I'd like to hear his point, too". And I've heard that two independent studies, including one by DHCR, recommended against the master lease process. So that's the point here: the board seemed to be upset that it was important to hear Mr. Shane's point of view, and it was important for these and other differing points to be discussed within the community (which the RIOC President chose to do, but the Real Estate committee declined).

Minimally, the RIOC Board needs to interact with the community and they should start by showing us what the RFP drafts look like. Had present resident board members not been on the RIOC Board, as outsiders they would have demanded: you should share this with the community. Although there were some initial bumps in the road, RIOC's Rosina Abramson's approach to have RIRA provide a Blackwell Park Committee produced the best outcome: (1) it satisfied RIOC's needs, (2) it satisfied the developer's needs, (3) it satisfied the residents' needs. The RIOC Board should choose the same approach, which will benefit everyone.

5. RIOC Board fires President Steve Shane. [Preface: These are my personal comments, RIRA has not yet met to discuss this, so I don't know their opinions.] At the Roosevelt Island Reunion on Saturday, the reporter who did the Newsweek article 30 years ago was doing a follow-up on Roosevelt Island and she was looking for juicy dirt to report. In that discussion, I was quoted as saying "I think Steve Shane has been the best RIOC President we've had in the past 15 years". On Monday, I found out his board was going to fire him. Considering the number of disagreements I've had with Mr. Shave over the years, you'll probably find it odd that I was strongly supportive of Mr. Shane continuing in his role.

Let me be clear, I think the RIOC Board made a serious mistake. Mr. Shane had approximately six months left in his term with the present governor. There are many major projects that need to be completed in the next 4-6 months, including the tram project that is a month behind schedule, the park work and memorial work at Southpoint, the privatization efforts for the three remaining Mitchell-Lama buildings (disclosure: I am the corporate secretary for the tenant association in the one of those buildings.) While there might have been other times for the board to assert itself (such as the wasteful dual-tram approach that could have saved us $10 million), this was the wrong time and for the wrong reason.

Given the risk of completing these efforts (including the inevitable litigation/mediation that will come from the tram delay), it seems foolish to lose the knowledge base of a key executive who was central to all of this. I checked the minutes of the RIOC Board meetings since January 2009 and I can find no actual impropriety or violation of the board's directives. If the RIOC Board really felt they needed to be clear about their direction, they could have adopted a specific board resolutions, but they chose not to -- until then, Mr. Shane had a fiduciary responsibility to report the truth, which he did. It seems that it was all about a personality issue, which is fine for clubs of teenagers, but not for corporate governance of a state public benefit corporation. The personal (non-business) aspect of this was clear: after the board forced his retirement in executive session, they then asked him to leave the table in the board meeting because board members "felt uncomfortable" with him being there. The RIOC Board looked like a bunch of amateurs, not serious executives. After Mr. Shane left, they then had a public beauty contest where the CFO and VP of Operations were treated as children: a face-off, including each describing the other's strengths and weakness. It was disgusting and non-professional. I, like many others in attendance, thought: Why couldn't you have discussed this in private? Why do you force your CFO to explain in public why he himself might not be good for the job of Acting President/CEO? Amateurs -- not a criticism of their lack of real estate experience, a criticism of their lack of professional courtesy.

Part of why Mr. Shane fired was his willingness to tell the truth to us on the master lease process. This is not a McChrystal moment (who was clearly disrespecting his boss), this was a RIOC Board that didn't want him to interact with the community to hear differing perspectives. At the RIRA Town Hall Meeting, it was clear that there was dissatisfaction with the RIOC Board and they wanted to express it.

Mr. Shane caused some friction elsewhere in privatization: the nature of exiting Mitchell-Lama housing for three of the remaining buildings is determining a variety of things, including how much profit tenants and building owners will make as the buildings become market-rate. (Note: Exiting Mitchell-Lama is essential for the survivability of all three buildings and keeping their present tenants; I have consistently supported privatization.) Considering the significant potential self-dealing conflicts of interest when a majority of the resident members of the RIOC Board are all effected by this pecuniary interest, you can see that Mr. Shane had to walk a fine line while satisfying his corporate obligations. Mr. Shane has said, which is completely proper for his role, he wanted to preserve affordable housing (post conversion), he wanted to make sure the owners and tenants would not walk away with obscene profits (which might put him on the front page of the New York Times), and he wanted to make sure that the Island's finances would improve long term (possibly to the detriment of the owners' and tenants' profits). A very tough job for Mr. Shane, but he seemed to be making steady progress.

I think this is an important moment in the Island's drive for self-governance. Some well-known advocates of self-governance believe that firing Mr. Shane is the pinnacle of our self-governance effort. I have been a strong supporter of self-governance and continue to be. However, if we really want people to respect the Island's ability to govern, then we cannot be of the mind "everything from Albany is Bad, everything by Island residents is Good". We have to demonstrate that we have better thinking, honesty, fairness, and transparency about Roosevelt Island. Which means that we need to feel free about being able to criticize your own neighbors on their mistakes — that is what will make us better, not a blind demonstration of power; and not blind support of board members just because they are our neighbors and we elected them. At the next RIOC Board election, hopefully some of those residents who expressed their unhappiness about the present RIOC Board will become candidates and remind voters that they won't make the same power grab, will have more executive management experience, and will be more cooperative about interacting with their constituents. Let the public decide.

Goodbye Mr. Shane. Thank you for reorganizing RIOC to be a much better organization that responsive to the Island; for reducing the prior "bunker mentality"; for giving us the experiment of elected resident members to the RIOC board (who just thanked you by firing you); for insisting upon a better Public Safety Department (which has improved substantially); for your many conversations (although we weren't always in agreement). I still stand by my statement "You're the best RIOC President we've had in the past 15 years" and it is our loss that you could not finish your term.

7. Upcoming RIRA meetings. The next meeting is on September 15 at 8:00 p.m. in the Good Shepherd Community Center; future meeting is October 6. Have a great summer!

The RIRA President's message is also published as the RIRA column in the 7/3/10 Main Street WIRE.

Organic Market Wholesome Direct, Subway Sandwich Shop and Island Spirit Wine Store Sign Leases For Roosevelt Island's Main Street Says Wall Street Journal - Also Child School Takes 504 Main Street Second Floor For Arts Center

 Image From Diabetes Mine

According to today's Wall Street Journal, Hudson Related has signed 4 new leases for Roosevelt Island's Main Street:

... New tenants include organic market Wholesome Direct, a Subway sandwich outlet and Island Spirit, which will be the only wine store on the island. The Child School is opening a 7,000-square-foot fine-arts center on an upper floor, which will include art, music, drama and dance studios.

A Gristedes grocery store that has been on the island for more than 20 years is also being remodeled. The grocery will be the guinea pig for a new concept for Gristedes, in which the store will also include boutiques, such as an organic market and a sugar-free market.

"This is going to be a new concept that we're experimenting with on Roosevelt Island," said John Catsimatidis, the owner of Gristedes. "We do reasonably well, but we could do better." 

Click here for entire Wall Street Journal article.

Stay tuned for more.

UPDATE 10:45 AM - Received this press release from Hudson Related:

Hudson Related Retail LLC, a joint venture between real estate development firms The Hudson Companies and Related Companies, today announced new retail leases, architectural  and streetscape improvements, and lease renewals that  will revitalize the Main Street retail corridor and bring new amenities to Roosevelt Island. Retail demand has outpaced supply in recent years as the Island has experienced population growth in newly constructed residential buildings and with anticipation of the new Cornell campus. 

David Kramer, a principal with The Hudson Companies said, “We are excited to announce the inaugural set of new leases and continue to bring additional amenities to Roosevelt Island and revitalize Main Street. These new retail tenants will bring much-anticipated and desirable services to the local community of 14,000 residents which, until now, had very few dining options on Main Street.  Residents will now have even greater option to shop, dine and relax without leaving the Island and we look forward to sharing additional tenant news in the near future.”

Retail leasing activity includes new tenants and renewals, including:

·         Island Spirts, a new wine and liquor store will open at 605 Main St. The island has been without a wine store for several years.
·         Wholesome Direct, a gourmet and organic natural food market at 530 Main St.
·         Europan Bakery Cafe at 503 Main St. will offer fresh gourmet foods, beverages and baked goods.
·         Subway Sandwich at 513 Main St. will offer sandwiches for breakfast, lunch, and dinner.
·         The Child School is opening a 7,000 square foot fine arts center at the upper floor of 504 Main St, which will be complementary space to the School’s other existing facilities on Roosevelt Island and will include art, music, drama and dance studios.

Hudson and Related also looks forward to two longstanding tenants renewing their leases:

·         Trellis Diner, a Roosevelt Island community institution, will have a ten year lease and is planning architectural and general improvements to the store.
·         Gallery RIVAA, at 527 Main St., will continue serving the community with arts events and gallery shows.

Additional transactions are also in the works for the next retail phase of leasing:

·         Hudson/Related and the New York Public Library have been pursuing capital funding necessary to create a new, state-of-the-art library branch on the ground floor of 504 Main Street.
·         The leasing team has been receiving offers for additional stores such as ice cream/candy; additional restaurants, florist and green desk office leasing.
·         Hudson/Related hopes to attract a pet store operator to the island as well as a frozen yogurt store.

"For too long, Main Street has been a ghost town, forcing Roosevelt Islanders to travel far and wide for the simple amenities most New Yorkers take for granted.  The innovative public private partnership between the Roosevelt Island Operating Corporation and Hudson/Related that resulted in the retail master lease is revitalizing Main Street, giving Roosevelt Islanders great new shopping opportunities right outside their front door,"  said Assembly Member Micah Kellner (D - Upper East Side, Yorkville and Roosevelt Island) who played a key role in shaping and implementing the new retail master lease.

“Roosevelt Islanders have been clamoring for better shops and amenities for years. This makeover is a huge step forward and will help create a vibrant shopping corridor on Main Street,” commented Councilwoman Jessica Lappin.

"We're excited about more shops and stores on Main Street. Island residents and visitors deserve a great shopping experience and the amenities that come with living in a thriving community.  We signed a master lease with Hudson/Related because we were confident they had the expertise to develop a vibrant commercial corridor and we're thrilled that we'll soon see the first results of this partnership," said Leslie Torres, President of the Roosevelt Island Operating Corporation.

Hudson Related has received commitments from Gristedes to commence architectural and in-store improvements to the Roosevelt Island store, which are expected to be completed by October, 2012.

John Catsimatidis, CEO of Gristedes, added, “We’re excited about Hudson/Related’s efforts to revitalize Main Street, and in that spirit, we’re about to undertake a major renovation of our store, which has been serving the island for more than 30 years. We’re looking forward to bringing more organic foods, fruits and vegetables to the island at everyday prices.”

Hudson Related is planning design improvements to the storefronts along Main Street, which include new lighting, signage, way-finding elements, and materials to freshen the look of the Main Street corridor, which has not seen any major renovations or improvements in nearly 40 years.

The transformation of Main Street continues the retail enhancements began by Hudson and Related several years ago with the creation of the Riverwalk community on Roosevelt Island which includes six residential buildings. Retail amenities at Riverwalk include the Duane Reade, Roosevelt Island Day Nursery at Riverwalk, the Riverwalk Bar and Grill and an adjacent bagel store and deli, Nonno’s Focacceria, Fuji East, Swan Nails, Prestige Cleaning and Valet and Starbucks.

Hal Shapiro, a Managing Director at Winick Realty, has been responsible for most of the leasing efforts on behalf of Hudson/Related: “The revitalization of the Shops on Main will bring a new energy to Roosevelt island for the residents, tourists and workers.”

The retail renaissance is taking place within the context of other significant improvements to the Roosevelt Island neighborhood including the opening of the Louis Kahn-designed FDR Memorial in October, 2012 and the start of the $2 billion Cornell/Technion Campus for the Applied Sciences.

“All of these factors will strongly reinforce the vitality of the new retail corridor. Studies have previously concluded that island residents spend $0.86 of every retail dollar off-island, and we are committed to changing that dynamic,” said Kimberly Sherman-Stamler, Vice President of Related Companies.

UPDATE 11:20 AM - The new retail stores and improvements on Main Street would not have been accomplished without the persistence and hard work of former RIOC Director Jonathan Kalkin who first proposed the idea of a private sector Main Street Retail Master Leaseholder way back in 2007. Mr. Kalkin should be thanked for his role in helping to bring about these new stores.

Latest Info On Roosevelt Island Main Street Retail, Hudson Related's David Kramer Gives RIOC Board And Residents Update On Leasing Progress - Another One Or Two Years To Fill All Currently Vacant Stores

On July 30, the Roosevelt Island Operating Corp (RIOC) Real Estate Advisory Committee (audio web cast of meeting here) received an update on Main Street leasing progress from Master Retail Leaseholder Hudson Related's David Kramer.
 

 Image Of July 30 RIOC Real Estate Advisory Committee Meeting (David Kramer On Far Left)

Earlier that day, it was reported here that Hudson Related signed a lease with an urgent care medical facility for the space occupied by the St Cabrini Thrift Shop.

Mr. Kramer began the retail update with a summary of progress to date including:

• the new urgent care facility,
• possible relocation of the Thrift Shop to a smaller space,
• the soon to open wine store,
• Trellis renovation to begin in the Fall (hopefully in September),
• looking for a new hardware store tenant,
• frustrated with pace of RIOC's renovating windows for Public Library at 504 Main Ground Floor,
• does not want to break up 2nd Floor of 504 Main Street for two tenants, seeking one tenant for entire floor,
• Gallery RIVAA partnering with Cornell NYC Tech to share space and costs and
• difficulty encouraging Southtown Riverwalk residents to walk north to shop on Main Street.

Here's Part 1 of Mr. Kramer's retail update.



Mr. Kramer then spoke about (Part 2) the waterfront concession at Eleanor's Pier, hoping to make it a more permanent concession for next summer and creating Roosevelt Island way finding signage



followed by questions (Part 3) from RIOC Directors about:

• a new bakery,
• pressuring Trellis to start renovation or evict them (Trellis is technically in default under its lease for not starting renovation yet. Hudson Related expects them to start renovation in the Fall).

Mr. Kramer said that Hudson Related has not lost one deal because of asking for too much money and was willing to do a below market, loss leader deal, for the right tenant.



Mr. Kramer then took questions from residents (Part 4) about:

• the Public Library,
• flyers and "crappy stuff" on store windows,
• cleaning up the stationary store (Mr. Kramer says they may be moved to another space),
• desire of some for a pet store, ( H-R almost signed 2 different Pet Stores but it did not work out) and
• Main Street restaurants (Rivercross will not allow restaurants needing ventilation in building).

and (Part 5):

• Roosevelt Island Islamic Society seeking space at 504 Main Street Second Floor for Mosque and
• co-working space for second floor of 504 Main Street.

And then the meeting was over (Part 6).



Mr. Kramer said that he believes it will take another one or two years for the 4 -6 currently vacant store spaces to be leased.

 ... We're going to continue along at a semi-sluggish pace and then something is going to tip...

Mr. Kramer encouraged residents to be ambassadors for Roosevelt Island and to tell favorite retailers that Roosevelt Island was open for business. Mr Kramer emphasized that there will no longer be sweetheart deals for politically favored tenants but that new leases will be based upon "market transactions."

Why Can't Roosevelt Island Long Vacant Main Street Stores Find Retailers - Not Price Or Lack Of Foot Traffic But Scope Of Construction Work On Premises The Obstacle Says Hudson Related Representative

As reported last September, Roosevelt Island Main Street Master Retail Leaseholder Hudson Related hired Cushman & Wakefield as the new leasing broker to try and rent the long vacant Roosevelt Island Main Street stores.

Image Of Roosevelt Island's Vacant 503 Main Street

I asked Cushman & Wakefield leasing broker Michael Azarian for a current status update on the leasing of Roosevelt Island Main Street stores. Mr. Azarian replied last Friday:

We are actively pursuing tenant categories that will be amenities to the Residents of the island. Specific examples are:

• Casual Dinning
• Bakery
• Youth Facility/Child care/Day care/Youth instruction
• Spa and wellness
• Physical therapy
• Pet services
• Café/wine bar with light food
• Home improvement / basic home goods

We are making progress and continue to tour the island with tenants on a regular basis. We have received a proposal from an interested tenant who we are in the process of qualifying their stability. They fall in the above mentioned categories.

Tenants see that the Island is growing. They are curious to see how the Cornell Tech development will create points of sale for their businesses. Most tenants who are interested continue to conduct their due diligence visiting the Island at various hours of the day on different days of the week. Most interested tenants are service driven and have a personal connection to the Island either through friends, family or previous residential tenancy. 

The Roosevelt Island Residents Association (RIRA) Main Street Retail Committee met January 27 with Hudson Related representative Pedram Mahdavi for an update on Main Street leasing progress.

Mr. Mahdavi was asked by members of the RIRA Retail Committee to explain what the problem was in renting the Roosevelt Island Main Street stores. Mr. Mahdavi replied that it was not the asking rents for the premises nor the lack of foot traffic that was holding back potential tenants from signing leases. Mr. Mahdavi said the main hurdle expressed by potential tenants for signing new leases was the scope of construction work needed for the vacant spaces.

Mr. Mahdavi described potential Main Street retailers feedback received from Cushman & Wakefield 



A frustrated Roosevelt Island Historical Society President Judy Berdy said of Main Street that it:

 ... is so damn dead. There's no reason to tell people to come to Main Street...

Roosevelt Island Operating Corp (RIOC) Board Member Margie Smith was skeptical that store construction difficulties was the main obstacle to leasing the stores but she thought it was the lack of Main Street foot traffic as compared to other areas of NYC. Other residents noted that the Wholesome Factory Organic Market does very well and is always crowded. The question is what other types of stores will draw a crowd on Roosevelt Island?



Here's the full January 27 RIRA Main Street Retail Committee discussion with Hudson Related representative Pedram Mahdavi.

Part 1.



Part 2.



Part 3.



RIRA Main Street Retail Committee Chair Anne Kanninen summarized the meeting as follows:

1) It was recognized that only one lease was signed during 2015 (the Child Care Center)

2) A new realtor Cushman & Wakefield (C&W), was hired by Hudson Related in 2015.

3) According to Mr. Mahdavi from Hudson Related (HR) they did not give any guidelines for the new realtor (Michael Azarian) and the the realtor receives his income only based on the signed leases.

4) HR is in charge of the Main St. properties and according to Mr. Mahdavi pays the leases from the empty spaces.

5) Union Medical will open at the end of February. The Child Care Center is currently operating on a limited capacity while waiting for the Department of Health inspection approval.

6) Trellis construction continues but, no specific estimation of the completion of the project was given.

7) All tenants on the Main St. are current with their leases.

8) It was asked what is the reason for the delays in leasing? Is it too high $/sf or something else? Mr. Mahdavi assured us that it is not the $/sf but declined to give us the amount while mentioning that the there is always a range for negotiation for the price. The delay in Union Medical was caused by the utility company.

9) Mr. Mahdavi told us that there has been several client visits on the island looking for the available spaces, some have come even several times but, no commitments so far. One problem appears to be the unfinished interior spaces. HR provides the basic infrastructure consisting of water, gas electricity and heat but there will be a start up investment consisting of finishing the interior floors, walls, doors, lightning, cabinets etc.

10) We were told that the companies the realtor tries to attract to the island include a hardware store, some kind of food related store, possibly a pet store and a diner/bakery/coffee shop

11) It was mentioned that Trellis had a very important function for the community. Residents had their social/professional, connections/meetings there. The community needs some sort of diner/coffee shop ASAP. It was mentioned by a participant of the meeting that the new Trellis when it is completed will become a white table cloth restaurant thus with much pricier menu. The question remains is Trellis ever going to be able to fill in its neighborhood diner function again?

12) There will not be any food operators this summer on the Southtown river front and even the food trucks, according to Mr. Mahdavi, were not profitable.

13) Other issues:

The benches on the Roosevelt Landings side are wrongly positioned and unkept. HR is responsible for their maintenance. Mr. Mahdavi did not show any interest in relocating the benches. (A simple thing to understand this issue is, do you want your back to face a door in your office? Try it, does it feel comfortable? or do you rather face the door? That feels more comfortable, right? Same thing with the benches, your back is facing the street where all the activity happens. For humans it feels more comfortable to protect your back.)

The longstanding issues of the missing direction signs was taken up again without any resolution.

The Catholic Church which,will take the floor above the new library space, is still in the drawing board. There will be no thrift shop, possibly some other kind of arrangement.

There was a complaint of the liquor store using ugly looking cardboard pieces on its window facing the Main St. Mr. Mahdavi will contact them.

Summary:

Year 2015 achievements: Child Care Center lease.

We have to start operating in a better way and we surely can. I am suggesting that we start setting goals in each of our quarterly meetings and then we discuss in the meetings how to reach them and divide the work among us.

Our first goals are:

I simple direction signs, contact with RIOC

II bench maintenance, contact HR

III flower pots on the arcade, contact Roosevelt Landings

These are very small goals but, when achieved, will give us energy to tackle bigger ones.

The January 28 RIOC Board Of Directors meeting public session including a discussion of Main Street retail as well.

RIOC Director Michael Shinozaki said that despite the slowness in leasing Main Street Stores by Hudson Related, the process is much better than it was when RIOC controlled the retail space.



So, if you're a retailer with a great idea for a Roosevelt Island Main Street business, contact Cushman & Wakefield's Michael Azarian.

We want you. We need you. Please.

Gristedes Considering Bankruptcy & Latest On Roosevelt Island Main Street Retail Revitalization - Master Leaseholder Hudson Related Listening To Resident Concerns and Town Hall Retail Meeting On October 20

Roosevelt Island Gristedes Image From Roosevelt Island 360

The NY Post and Gothamist both recently reported that Roosevelt Island's favorite (cough,cough) supermarket chain, Gristedes, may consider entering bankruptcy. According to the NY Post:

This billionaire is crying poverty.

Gristedes owner John Catsimatidis has threatened to shutter the supermarket chain if he can’t renegotiate terms of a $3.5 million wage settlement with his workers.

The once -- and possibly future -- mayoral hopeful recently told a judge that “Gristedes is suffering” due to the weak economy and last year’s bankruptcy of grocery giant A&P and its Food Emporium chain....

{UPDATE 9/22 -  Had a telephone conversation with Gristedes Chairman John Catsimatidis who emphatically stated that Gristedes is not considering in any way going into bankruptcy. Mr. Catsimatidis was very pleasant and emphasized that if there are problems with the Roosevelt Island store he wants to know about it. Will have more on this later.}

Back to the original story from 9/21.
Many Roosevelt Island residents over the years have expressed the fervent wish that the Roosevelt Island Gristedes be replaced with another supermarket. If Gristedes does go into bankruptcy, that may present an opportunity for new Main Street landlord Hudson/Related to bring in another Roosevelt Island supermarket operator.

One of the benefits of having Hudson/Related as the new Master Leaseholder and operator for the Roosevelt Island Main Street stores instead of the Roosevelt Island Operating Corp (RIOC) is that, unlike RIOC, Hudson Related has the expertise and ability to enforce lease provisions that Gristedes and other current tenants may not be complying with and evict them if legally feasible.

What's the latest on the Roosevelt Island Main Street retail situation? Hudson/Related took over Main Street retail operations from RIOC in August. Hudson/Related representatives have been meeting with  residents and store owners recently including a September 15 meeting with Roosevelt Island Residents Association (RIRA) President Matt Katz, Island Services Committee Chair Aaron Hamburger and Planning Committee Chair Frank Farance. I asked the RIRA meeting participants to comment on the meeting.

According to Mr. Katz:

The Roosevelt Island Residents Association has arranged a Town Meeting to supplement the retail surveys distributed throughout the Island by the Hudson Company. The purpose is to offer residents an opportunity to meet with the Master Lease holders and to engage in a conversation as to what kind of shopping and restaurants we want and how to make our retail corridor more attractive. We have set Thursday, October 20 at 7:30 p.m. for this important meeting, which will be held in the main sanctuary of the Good Shepherd Community Center. This forum may be the only opportunity for the Roosevelt Island community to share their needs and preferences with the developers and we hope for a large turnout.

Matthew Katz

President, RIRA

Mr. Hamburger added:

We had a very good meeting with Dave Kramer and Andrew Jackson. Basically, Dave talked about his concept of making Main St the vibrant center of our "village".

We didn't get any details, just his general thinking. We did help him plan a community meeting which will probably occur in late October. We're having troubling scheduling  at Good Shepherd - they seem all tied-up every Tuesday & Wednesday evening . 

Anyway, the meeting will likely start with a power-point presentation by Hudson-Related, then thrown open for the questions, comments, etc. from the public.

and Mr. Farance:

Matt Katz (RIRA President), Aaron Hamburger (RIRA Island Services Chair), and I (RIRA Planning Committee Chair) met last Thursday with David Kramer and Andrew Jackson.  Mr. Katz had called the meeting so we could plan for community meetings on the Retail Master Lease effort.

Here's some of the key points discussed in the meeting:

- Mr. Katz would call for a town meeting (since scheduled for October 20, 7:30 PM at the Good Shepherd, 543 Main Street) where the community could provide input.  We agreed that Mr. Kramer would "set the stage" with his own Powerpoint presentation to inform the community of his ideas and plans.  (Note: A similar approach was taken with Hunter College and Public Safety in prior town hall meetings.)
- There was a lively discussion on the removal of the windows in the arcades in Eastwood and Westview.  I made the point that the arcade, and the weather protection afforded by the windows (rain, snow, wind), is REALLY important to Northtown residents.  I think Mr. Kramer now understands this.  Regardless, Mr. Kramer will have to get permission from the building owners to do some of his refurbishment work.  I pointed out the residents have a close relationship with the owners of each building (Westview, Island House, Eastwood have tenants associations; Rivercross is a co-op), so Mr. Kramer will need their support if he wants to make changes.

- Mr. Kramer envisions the merchants all paying "market rates".

- Mr. Katz noted that the mom-and-pop operations have been more connected with the community, while the chain stores don't really participate.  Mr. Hamburger disagreed with this perception.  Mr. Kramer said he's OK with mom-and-pop operations as long as Roosevelt Island is their third or fourth store, not their first store.

I've asked for the raw data from the survey so we can do other analyses.

In a follow up E-mail with Mr. Kramer, I pointed out that Northtown and Southtown are different marketplaces with different clientele: China 1 has a $4 meal for kids, and Trellis has a $6 kids meal with drink and dessert, meanwhile a kids meal at the Riverwalk Bar and Grill is about $12 (with drink/dessert), and Fuji East is about $20-25 per person.  A good number of people I know (including from Southtown) don't/little patronize Southtown restaurants because of the higher prices.  Alphonse, Sal, and Jonathan are nice guys and I wish them well, I'm just pointing out that there are different markets and different price points.  In other words, we still need that $4-6 kids meal (or maybe we still need two nail salons).

Mr. Kramer responded with "As far as I'm concerned, there's a wide range of incomes throughout the entire neighborhood, and the retail mix should reflect that", and I think that is a fine response.  Mr. Kramer feels that higher rents would be offset by higher volume, which he hopes will come through his refurbishment of the Northtown retail area.  As a followup, I posed the following:

To Mr. Kramer: Just out of curiosity, would you agree that the steady state of businesses is reaching the right equilibrium of growing while maximizing profit?  Or said differently, if there is no growth potential, then all that is left is maximizing profitability ... money spent on anything else (e.g., fancy store windows) that doesn't add to growth or profitability is wasted money, right?  So when Jennifer Connelly's "Dark Water" was shot on Roosevelt Island [circa 2005] and they dressed us up as a "dump", some of that dumpiness is still present: the cleaners didn't change their store front from the dumpy one the movie crew painted on.  The cleaners made their fee from the movie, yet even a dumpy painting didn't diminish their business ... certainly the movie crew would have restored/refurbished it.  <-- supports my equilibrium comments, right?  My hunch is that there aren't many retail dollars to spend.  I would be happy to be proven wrong.  Good luck to you!

I haven't yet received a response from Mr. Kramer.  My sense is: the higher volume necessary to support the higher rents isn't there in Northtown.  Or said differently, if Mr. Kramer moved Riverwalk Bar and Grill to Northtown and spent as much money as Mr. Kramer wants to make its outside look fancy, do you think Riverwalk Bar and Grill would be doing the same level of business?  I don't think so because their present location is a positive factor in their business: Southtown residents can just as easily hop on the subway/tram to Manhattan or Queens.  Years ago, Manhattan Park residents grumbled that going to Northtown (Trellis, Pizza, Back Page Sports Bar) was just far away enough to discourage their patronage, yet when they moved into Northtown their patronage increased.

Anyway, the community should voice its opinion.  And the WIRE buildings' tenants associations will need to get active on negotiating the kinds of changes Mr. Kramer is proposing.

Below is video from September 19 RIRA Island Services Committee discussion with Mr. Hamburger, Katz and Farance reporting on the Main Street retail meeting with Mr. Kramer.

You Tube Video of RIRA's ISC Main Street Retail Discussion

I have been told that Hudson/Related is seeking $50 per square foot for new Roosevelt Island Northtown Main Street leases. I asked Mr. Kramer earlier today to confirm that but have not received a reply yet. Gristedes is currently paying $7 a sq. ft for more than 25,000 sq. ft. of space with a lease through 2032

I asked Mr. Kramer for permission to attend the meeting with the RIRA members so that I could report on it to the Roosevelt Island community. Mr. Kramer declined, stating that he wanted an open discussion and did not want those attending concerned that their comments would be made public. I then asked the RIRA members I knew would be attending if they objected to my presence at the meeting. Neither Mr. Hamburger or Mr. Farance had any objection but Mr. Katz did object to my presence because he did not want anything to "impede the free flow of ideas". So I was not allowed to attend.

I asked Mr. Katz:

By excluding the press from a meeting composed only of the RIRA President, and two RIRA committee chairs with Hudson for the reason that it may "impede the free flow of ideas" can only increase the public perception that something is being kept secret.

Is there anything you might say at this meeting that you are not willing to say in public? i doubt that and I doubt that applies to Frank or Aaron either.

Mr. Katz later wrote to me:

The discussion was frank and informative. I really think that it would have been less so had the press been present. Nevertheless, we discussed dates for a community Town Meeting in October, and I’m working to finalize a date. I’ll let you know just as soon as that’s accomplished.