RIOC Board Member/Child School Director Apologizes For Mistakes Not Disclosing Relationship With NY Rowing Association and For Fundraising Letter During RIOC Governance Committee Meeting Yesterday - Also Reports Lease For Theater/Auditorium At 504 Main Street To Be Signed In Next Few Days

The Roosevelt Island Operating Corp (RIOC) Governance Committee met yesterday (audio webcast of full meeting here). Among the items discussed were conflict of interest and disclosure requirements for RIOC Board Directors.

As previously reported, this issue was raised by the RIOC Governance Committee because of RIOC Director and Child School Executive Director Sal Ferrera's recent failure to disclose his relationship with the NY Rowing Association which was seeking a permit to operate a boating facility on Roosevelt Island and the distribution of a fundraising letter by the Child School to Roosevelt Island residents and organizations.

The discussion began with RIOC Director Margie Smith asking:

What exactly is considered a conflict of interest, what are disclosure requirements, who decides and where do we go from here

RIOC General Counsel Donald Lewis summarized the requirements stating:

 ... bottom line is it is a case by case examination...

and

... each director officer and employee of the corporation must endeavor to pursue a course of conduct which will not  raise suspicion among the public that he or she is likely to engage in acts of violating his or her public trust...

During the Governance Committee meeting, RIOC Director Sal Ferrera apologized and acknowledged his mistake in not disclosing his relationship with the NY Rowing Association. Mr. Ferrera explained that he did not think he needed to explain his relationship with the NY Rowing Association during the March 21 Operations Committee meeting because the intent of the proposal was for a pilot project and that no vote or Board Action was to be taken on the issue.

A question was then raised whether the NY Rowing Association had to be disqualified from the RIOC Request For Proposal for a rowing and kayaking facility because Mr. Ferrera spoke in their favor during a RIOC Real Estate Committee meeting. It was decided that RIOC would submit that question to the NY State Authorities Budget Office for resolution.

Mr. Ferrera also said that the Child School fundraising letter sent to Roosevelt Island residents and organizations was an error made by an employee. Mr. Fererra apologized for the fundraising solicitation letter and said it would not happen again. He noted that when he read the letter he was upset by it as well.

Here's the discussion.



Mr. Ferrera also reported that the Child School will sign a lease with Hudson/Related this coming Friday or the following Monday for the second floor of 504 Main Street to be used as an auditorium/theater with seating for 150. Mr. Ferrera indicated that the auditorium would have sufficient soundproofing so that it would not disturb the NY Public Library branch that may be located on the first floor of 504 Main Street some time in the future.



More on the future use of 504 Main Street from previous posts here and here.

UPDATE 6:25 PM - Mr. Ferrera writes:

I am writing in response to various individuals who have objected to a letter sent out from the Child School soliciting donations for the development of a performing arts center 504 Main. As some of your readers may know, 504 is building which has been never been tenanted since its construction in the 1970s . Unfortunately the letter erroneously referred to an amphitheater at 504 Main. The building will instead contain a small auditorium which will double as a theatre for our drama performances. Its seating capacity will be approximately 150. The space will also contain 3 classrooms that will focus on music ,dance and art. This new facility will be available to our community after school hours, the only cost will be for security (IF NECESSARY). Our construction plan includes sound proofing which should eliminate any disruption for the planned library on the first floor.

These individuals, have used the above letter as a pretext to question my ethics and raise the issue of conflicts of interest as a result of my serving on the RIOC board. As far as conflict of interests and the Child School is concerned, I do not as a matter of policy raise or propose any projects that will be solely beneficial to The Child School. A good example is the request made by the rowing group to build a temporary 80 foot floating dock under the Koch Bridge on RI. Yes, it will be accessible to the students of The Child School as well to all the interested residents that live on the Island. Yes, I also serve on the rowing groups not for profit board and that can be interpreted as a conflict which is why I have stood aside as the rowing group presented its proposal independently and in compliance with RIOCs stated policies and procedures. This project, along with 504 main, will benefit our community and in particular the children living on this island yet both projects are being used as a basis for various individuals to personally and wrongly attack my participation on the RIOC board.

My hope is that the vast majority of the residents on this island can see benefits of just these two projects and separate them from the real objectives of this small but very vocal group of individuals who refuse to accept my presence on the RIOC board as a result of my assignment by the Governor.