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 hereRIOC 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.
16 comments :
Ah, so the Child School got the 2nd floor of 504 Main through HR and not though the RIOC. All problems solved now, right? I still don't understand, though, what was so inappropriate about the fundraising letters.
At a public meeting in October, David Kramer was asked about possible uses for the second floor of 504 that would be compatible with the first floor being used by the NYPL. He mentioned a co-working or shared office space. He DID NOT mention a performing arts center, although Ferrera's interest in the space for that purpose was common knowledge.
Soundproofing or not, students, teachers and guests traipsing up and down stairs does not sound (pun intended) compatible with a first-floor library.
In December, Ferrera told at least two residents a lease is imminent. Here it is April and no lease.
As for the letters, they went to organizations that get money from RIOC. He serves on the RIOC Board. He votes to approve money, for example Public Purpose Funds, to go to these organizations.
In other circumstances, like elected officials, this is called "pay to play," meaning if you support my political campaign or my charity, I will help you get business from the government.
In this case, it might appear to some that buying a $175 ticket to The Child School fundraiser might facilitate a certain RIOC Board director approving their receipt of RIOC funds.
I am sorry but is there any organization on RI that does not get money from the RIOC? I think this is way overblown and there is really absolutely nothing to see. But then, I rarely subscribe to conspiracy theories and give people and organizations a benefit of a doubt. So far, neither Dr. Ferrera nor the Child School have shown foul play. Oh, and I am a bit biased because there are disabled children involved and we should all applaud what he is trying to do. I am very sure the reason why he's on the RIOC board is because he has this school in his heart and would like to integrate the resources the island has to offer with the resources the school has to offer. If this was all about a grab for resources, by all means, kick him out. It doesn't look nor smell that way, though.
Delivering the 2nd floor of 504 Main to the CS shatters residents' trust that Kramer "would do the right thing" in leasing properties. Do residents now understand why Kalkin's cockeyed Master Lease plan was absolutely wrong for RI? Shane understood it - and Shane of course is as they say history. Short-changing the Library is just the beginning. Soon, all of your favorite, affordable, or free establishments on Main St will be kicked out because they can't pay the high rent Kramer demands - to be replaced by glossy outposts of chain stores. For all who backed Kalkin and the "activist, elected" Board - I suppose you are now satisfied in your effort to banish the poor, and usher in an extension of Southtown into Northtown via Main St, thus upping Main St real estate values (read: the price of coops in Rivercross). The "progressive, elected" Board could give a hoot about the Library and so forth - as long as their apartment values rise, they are quite satisfied.
The Child School is the most worthy tenant for that space.
Is "worthy" the appropriate measure? It seems that - with the limited space available - RIOC has an important duty to ensure that our retail space is put to the most productive (and valuable) use.
We can agree to disagree here. Personally, this is nothing I would fight over because I would support the Child School in this 100%.
The child school may be the best tenant for that space. As you say, the Child School is a wonderful organization. But, Mr. Ferrera has (either through accident or intention) opened himself up to questions of impropriety and self-dealing. In his position - knowing that there will be people who question everything he does - it would be wise to take a cautious, transparent and inclusive approach to RIOC business. The easiest way for him to blunt criticism is to do better for the island and the corporation than anyone else responsible for its operation.
Personally, I have a hard time accepting statements that solicitations were sent by mistake. It may have been a mistake to send them without considering how they could be received, but names and addresses didn't magically appear on letters that fell into a mailbag. It was similarly unwise to not mention involvement in an organization presenting to a committee.
Further, Mr. Ferrera is (or has) attempted to negotiate for space at Island House for his business, while also participating in closed-door RIOC negotiation sessions about the same lessee. People could be forgiven for raising questions about what information he learned in those meetings if Child School ends up with space there too. As I understand, the broken and unused pool space at Island House might have made decent theater space as well, without sacrificing space with Main Street frontage for a use that doesn't particularly benefit from same.
It seems to me that Kramer et al are not any doing any better than RIOC did in attracting tenants. Am I the only one here who would prefer even a branch of a chain to an empty storefront?
Depriving the Library of the 2nd floor means the new library (whenever it is built out) will still be a small library with no meeting rooms or rooms for programs/presentations. You can thank Mr. Ferarra for this. We have waited something like 30 years on this island for a decent-size library, where not everybody is shoved into a cramped space, a library with at least one room for presentations/classes/meetings. Mr. Ferarra already has tons of space throughout Northtown in the form of his various school outposts. He does not need this space, which was basically earmarked already for the library, for the CS. We know the library is not currently in a position to build out the new library, and Ferarra took advantage of this situation to pounce. We can also ask why didn't Kramer lease the entire former Lillie's school space to the CS - both floors of 504? This would have best suited Kramer's pocketbook and the CS desire to expand. Either way, with this move, that is, with Kramer giving part of the space that was set aside for the library to the CS, both Kramer and Ferrara will henceforth be in the doghouse as far as RI is concerned.
Reality is that the NYPL will not be able to maintain a bigger branch on Roosevelt Island anytime soon. Instead of wishing and hoping let's just use that space for something else and just as important (it not more).
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