Roosevelt Island Grog Liquor Shop Auction Tomorrow - RIOC Real Estate Committee Meeting Today On Main Street Master Leaseholder & Tennis Club License

Roosevelt Island Grog Shop Seizure Sign on Window

Several readers have pointed out that an auction of the former Roosevelt Island Grog Shop's contents will be held on Tuesday. From Caspert Autioneers and Appraisers:

RETAIL LIQUOR STORE -By Order of New York State Department of Taxation & Finance-

Auction Date: Tuesday, 06th of April 2010 @ 11:00 am (Inspection 10:00 am)

Place of Auction: ROOSEVELT ISLAND WINES & LIQUORS, INC., 605 Main Street, Roosevelt Island, NY

Auction Details: Fine Red & White Wines & Brand Name Spirits Such As Voldka, Whiskey; Brandy & Cognac, Together With a Computerized Register System & Security System Will Be Offered at Public Auction!

Roosevelt Island Operating Corp. (RIOC) President Steve Shane reported on the status of the Grog Shop (Item 10):

Grog Shop: The New York State Department of Taxation & Finance has shuttered the Grog Shop for non payment of franchise and sales taxes. I have been in touch with the attorney representing the estate of Archie Seale and have referred to him the several inquiries as to possible new store operators. If they can make a deal for assignment of the existing lease, could reestablish the operation after getting State Liquor Authority licensing approvals. We are well aware of the loss of an important service establishment and will do everything possible to facilitate a favorable resolution for Island residents.

At 5 PM this afternoon, there will be a meeting of the RIOC Board's Real Estate Advisory Committee. The Agenda items include the proposed Main Street retail master lease. From RIOC:

PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will be held on Monday, April 5, 2010 at 5:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York. The Committee will meet to:

1. discuss with Jones Lang LaSalle Americas, Inc. the RFP for the Main Street retail master lease;
2. receive an update on the Grog Shop lease status; and
3. review the Roosevelt Island Racquet Club license agreement.

Before any attempt is made to assign the Grog Shop's lease, it might be prudent to see how that might impact any potential Master Lease Agreement.

Also, glad to see the RIOC Board members are looking into the Roosevelt Island Racquet Club license agreement. Back in earlier 2007 post, I wrote about what appeared to be a questionable deal by RIOC to extend the Racquet Club License Agreement from 2031 to 2048 for no apparent beneficial reason to RIOC and which a reader characterized as being fishy.

Image is from supersubsonic.com

For instance, how much is the License fee paid to RIOC by the Tennis Club? The 70,000 square foot Roosevelt Island Racquet Club is paying $225,000 annual license fee as well as a potential additional $60 -70,000 in percentage rent.

Compare this deal RIOC negotiated with the Roosevelt Island Racquet Club to a recent one NYC Parks Department completed with the Sutton East Tennis Club just across the River on 59th and York Avenue. From the NY Times City Room Blog:

... According Mr. Scolnick, the Parks Department would receive 35 percent of the revenue from September through April, with a guarantee of at least $2.5 million over the next eight years and 25 percent of the revenue for the rest of the months, with a guarantee of approximately $16 million over the same period....

At the time RIOC was negotiating the License Extension to the Roosevelt Island Racquet Club I asked Mr. Shane:

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?

Mr. Shane replied:

Other racquet clubs not relevant. We have ours. The property is devoted to recreational purposes in the GDP but unusable as "open" space because of the shower of auto parts from the bridge and is already under license to 2031, now as extended.

Needless to say, it might be an interesting RIOC Real Estate Advisory Committee meeting this afternoon.

More on the Roosevelt Island Racquet Club License Agreement available here.

An audio webcast of the meeting will be available on the RIOC web site within 2 business days.