Main Street Image Of Roosevelt Island Is The Village From Glark
As reported last Tuesday, the Roosevelt Island Operating Corp (
RIOC, a NY State Public Benefit Corporation) is now out of the business of landlord to the commercial retail stores on Roosevelt Island's Main Street:
Just received word that the Roosevelt Island Main Street Master Leaseholder Agreement between the Roosevelt Island Operating Corp (RIOC) and Southtown developer Hudson/Related was signed earlier today. According to Hudson Principal David Kramer:
We finally signed the Master Retail Sublease today.
Can we all shout out one big
Hallelujah right now?
I asked the
Hudson Related team:
Do you have any comment to make for Roosevelt Islander Blog regarding the signing of the Roosevelt Island Main Street Master Leasehold Agreement?
In particular can you describe what next steps Hudson Related will be taking regarding community input for the future of Main Street Stores, the type of new tenants Hudson Related will be seeking out, what will happen to existing tenants and any other information you care to share with the Roosevelt Island community.
Hudson Principal David Kramer replied:
We're going to start immediately surveying the entire island with an online retail survey.
We've assembled a design team with Rogers Marvel Architects in the lead to propose upgrades for the streetscape, storefronts, signage and street furniture.
We've hired Winick to solicit interest and respond to inquiries.
We look forward to conducting public meetings to get feedback from the community after Labor Day.
We hope to start signing new tenants for the vacant spaces; a realistic time frame is for new tenants to be in place by early next year.
Here's the online survey. Please get the word out
www.surveymonkey.com/s/RooseveltIslandRetailSurvey2011
Mr. Kramer added:
We're going to enforce the current leases and work with the retailers to improve the retail corridor for everyone.
Hey, Gristedes, do you hear that about enforcing current leases? Better start making improvements in your Roosevelt Island store. The other current tenants too.
Below is a picture of
Mr. Kramer pointing towards the future of Roosevelt Island with his Hudson Related team as they began a tour of Roosevelt Island several weeks ago. It's now up to Hudson Related to demonstrate that they can make the long sought improvements to the Main Street retail corridor that residents have been waiting for so long.
Take the
online Main Street Retail Survey and tell Hudson/Related what you would like to see happen on the new Roosevelt Island Main Street. (If possible, please send your comments to the Roosevelt Islander Blog as well so your ideas can also be shared with the rest of the community).
I asked
former RIOC Director Jonathan Kalkin to comment. Mr. Kalkin proposed the Master Leaseholder idea
way back in 2007 and diligently worked to make it happen despite persistent opposition from former RIOC President Steve Shane.
From Mr. Kalkin:
Main Street retail has been a problem for decades, and it was one of the first things I tried to work on as a resident and then as a board member. The Retail Master Lease is proof that an idea can come from a resident and be approved by the Residents Association, move to the board, and become a solution that is mutually beneficial for the government and private business. This secures the present revenue stream for RIOC and shares profits above that, benefits the community with a competitive and vibrant retail environment, and takes government (and the long and onerous RFP process that goes with it) out of the business of retail management for the Island.
There will also be significant investment in the spaces to make them look great for tenants and for the community. However, to be especially successful, I recommend that you go to your favorite off-Island stores and restaurants, and tell them that Roosevelt Island is finally ready to rent stores. The more of you who reach out to entrepreneurs and businesses that you love and bring them to the Island, the better the choices we will have in the future.
This plan will not only bring jobs and money into our economy, but Hudson-Related has significant retail experience, and the success of Main Street Retail helps promote the completion of the final buildings of Southtown. That will bring significant revenue for RIOC, which can help secure our promise of long-term affordability for the buildings in Northtown and help pay for our infrastructure and operational needs going forward. It also makes us attractive for a world class university.
Many on the RIOC staff and board worked tirelessly to see this completed and they should be commended for their hard work. Make no mistake, this is our turning point, and a great example how community ideas and democracy can make a difference. Roosevelt Island is place of beauty, strength and determination and I look forward to seeing it live up to its potential.
RIOC issued this press release today:
This week the Roosevelt Island Operating Corporation (RIOC) and Hudson Related Retail LLC (HRR) executed a 30-year net sub-lease for over 35 storefronts located throughout Roosevelt Island.
"We at the Roosevelt Island Operating Corporation are very much looking forward to working with Hudson Related to revitalize Main Street on Roosevelt Island, " said RIOC President and CEO Leslie Torres. The agreement is retroactive to August 1, 2011.
The net lease includes both guaranteed rent and a 50/50 net profit split between HRR and RIOC, after HRR's invested capital plus interest is returned. HRR has also agreed to make substantial capital investments within the first five years of the lease to improve the retail corridor on Roosevelt Island’s Main Street. David Kramer of Hudson Related Retail LLC said, "Hudson/Related is excited to oversee the operations and development of the Roosevelt Island Main Street retail corridor. We envision a new experience for customers and pedestrians alike and look forward to working with Rogers Marvel Architects to create a vibrant retail environment."
HRR was selected through a Request for Proposals (RFP) process based on their economic proposal, their commitment to address the needs of all of the retail space, and the strength of their program to turn around and improve the island retail sector for all residents, workers and visitors on Roosevelt Island.
About The Roosevelt Island Operating Corporation
The Roosevelt Island Operating Corporation of the State of New York (RIOC) is a public benefit corporation and a political subdivision of the State of New York. Since 1984, RIOC has been responsible for realization of the 1968 Roosevelt Island General Development Plan (GDP). RIOC’s authority to implement the GDP stems from a 99 year lease from New York City to New York State for the development and operation of the 147 acres comprising the former Welfare Island, located in New York City’s East River. For more information, please visit www.rioc.ny.gov.
About Hudson Related Retail LLC.
Hudson/Related Retail LLC is a joint venture between two New York City based development companies, The Hudson Companies, Inc. and The Related Companies LP. These two companies have been partners on Roosevelt Island since 1997 when they were designated to develop 2,000 apartments on Roosevelt Island. Together, the joint venture has completed Fireman's Field, a combined soccer and baseball field on the island, followed by 6 residential buildings, a town square called Riverwalk Commons, and 8 retail stores. The housing has included staff housing for Memorial Sloan Kettering Cancer Center, Weill Cornell Medical College and NYU. Market rate housing has included condominiums at Riverwalk Place and Riverwalk Court as well as rental housing at the newly completed Riverwalk Crossing.
After receiving the Press Release, I inquired of RIOC President Leslie Torres and Mr. Kramer:
The press release states that Hudson Related has agreed to make substantial capital investments to improve Main Street over the next 5 years.
How much money has Hudson/Related agreed to invest per the Master Leaseholder Agreement?
Also what is the interest rate referred on capital investment that must be returned prior to the 50-50 net profit split mentioned in the press release.
What is
known about the deal so far is:
... a 30-year lease on Main Street's approximately 100,000 square feet, Hudson-Related would guarantee RIOC the existing revenue it collects from the Main Street stores (about $900,000) and split any additional income and Hudson Related would invest capital in the physical appearance of Main Street...
More on the Roosevelt Island Main Street Retail Master Leaseholder process from
these previous posts.
UPDATE 6:10 PM - In response to my question regarding the amount that Hudson Related has agreed to invest in capital improvements to Main Street and the interest rate agreed to prior to the 50-50 split, Mr. Kramer replies:
$2.7M
9%
UPDATE 8/30 - According to RIOC President Leslie Torres:
... Hudson/Related has already begun speaking with residents and community leaders about possible ideas for renovation. They issued a survey to island residents that should conclude in early September and has already garnered an enthusiastic response from over 1,000 residents. While opinions have varied, most people would like to see the addition of retail spaces including a new bakery, an Asian restaurant, a health food store, and a wine/liquor store. Other suggested additions include a new bank branch, book store and yoga/pilates studio. Hudson/ Related is currently talking with potential vendors, many of whom have expressed interest in opening new retail stores. They will continue to collect feedback to make sure that the wants and needs of the community are well represented.
In the meantime, developers are working with architects to discuss improvements to Main Street with the concept of creating a bright, vibrant new look. Some of the ideas in discussion include new lighting and signage for the streets along with new street furniture, bike racks and benches for convenience. This should make the area more appealing to look at and easier to navigate. In addition, developers are working with contractors to cleanout old stores in anticipation of the renovations.
The revitalization of Main Street will be an on-going process but residents can expect to see improvements throughout 2012 with initial construction beginning in the spring....