RIOC Board Meeting Today - Agenda Items Include Proposed Budget With $23.8 Million Payment From NY State For Cornell Tech Campus And New Roosevelt Island Affordable Rental Housing Units

The Roosevelt Island Operating Corp (RIOC) Board of Directors will meet today, September 7 at the Cultural Center (548 Main Street). Among the items on the Agenda are:

• Southtown Riverwalk Building 8 & 9 development agreement (published story yesterday on affordable housing component of agreement) and
• Presentation of Proposed FY 2018-19 Budget,

Image From RIOC

According to the RIOC Proposed Budget Fiscal Year 2018-19 Page 1:

RIOC’s Proposed Budget FY 2018‐19 projects revenues of $51,563,000 a increase of $23,594,000 or 84.36 % over the Approved Budget FY 2017‐18 amount of $27,969,000. RIOC generates most of its revenues from long‐term ground leases to developers of housing projects on the Island. These leases specify the manner in which the ground lease revenues are derived, including amounts, timing, and escalation of ground lease payments, specifically residential fees, ground rents, and public safety fees. In addition, RIOC generates revenues from its Tramway transportation system, Motorgate parking garage, metered street parking, commercial leases, interest income, and other revenues. Other revenues mostly consist of permitting fees collected for activities that take place in the Sportspark sports facility, the Cultural Center, the Sports Fields, and third party construction on the Island.

Residential fees are projected to decrease by $534,000 or 26.47%. This is mainly due to two factors: (1) the rescheduling of the projected construction dates for Southtown Building 8 and 9 to January 2018 and May 2019; respectively, resulting in the deferral of Tax Equivalent Payments in the amount of $268,000 to the respective fiscal periods, and (2) the completion of the Island House Initial Sponsor Sales in FY 17‐18, resulting in the reduction of the projections for coop and condo sales transactions fees for FY 18‐19 in the amount of $221,000.

Ground rents are projected to increase by $23,851,000 or 196.73% due to the projected payment of the State’s contribution for Cornell. Furthermore, projections for Rivercross and Westview are based on current levels, however both projected ground rents are expected to increase.

Commercial rents are projected to increase because of escalations in the terms of the commercial leases.

Tramway revenues are projected to decrease by $233,000 or 4.08%, due to over‐projection of the revenues in the FY 17‐18 budget.

Public Safety revenues are projected to increase by $56,000 or 2.86% due to contractual escalations.

Transport/parking revenues are projected to increase by $510,000 or 19.28%, mainly due to the addition of 15 additional parking meters on the Island.

Interest revenues are projected to increase by $35,000 or 33.02% due to gradual increases in interest rates.

Other Revenues is projected to decrease by $98,000 or 5.48%. Most of the decrease is due to the provision of free usage of the Sports Fields to meet the recreation needs of the community residents...

and Pages 4-5:

... The Island is currently experiencing an economic boom in real estate with the projected construction of Southtown Building 8 and 9, the completion of phase 1 of the multi‐billion dollar Cornell campus site, and the evolution of the original residential complexes. These developments are the main drivers for the increased revenues and expenses mentioned above. RIOC is contractually and statutorily required to maintain infrastructure and provide adequate service to the Island to accommodate this growth. Accordingly, RIOC is in the midst of significant infrastructure and facilities repairs and improvements as outlined below.

The Proposed Budget FY 2018‐19 projects capital improvements in the amount of $34,885,000, an increase of $916,000 over the Approved Budget FY 2017‐18 amount of $33,969,000. The Proposed amount primarily consists of capital projects in the projected amount of $28,775,000, but also includes the capitalized purchase of equipment and vehicles in the amount of $700,000, as well as capital reserve and contingency in the amount of $5,410,000. Categories of projects include sports fields and parks, historic and landmark structures, infrastructure improvements, facilities and offices, special projects, and the Tramway.

For sports fields and parks, the Proposed Budget FY 2018‐19 projects improvements in the amount of $3,850,000, an increase of $3,350,000 over the Approved Budget FY 2017‐18 amount of $500,000. The increase is mainly due to the projected improvement of 504 Main Street Children’s Reading Park and Octagon Park – Field Renovation and Comfort Station Rehabilitation.

For historic and landmark structures, the Proposed Budget FY 2018‐19 projects improvements in the amount of $1,550,000, a decrease of $250,000 over the Approved Budget FY 2017‐18 amount of $1,800,000. The decrease is mainly due to the completion of most of the renovation of the Blackwell House in FY 2017‐18.

For infrastructure improvements, the Proposed Budget FY 2018‐19 projects improvements in the amount of $15,800,000, an increase of $4,485,000 over the Approved Budget FY 2017‐18 amount of $11,315,000. The increase is mainly due to the projected reconstruction of the Seawall – Southpoint Open Space Park.

For facilities and office improvements, the Proposed Budget FY 2018‐19 projects improvements in the amount of $7,725,000, a decrease of $4,070,000 from the Approved Budget FY 2017‐18 amount of $11,795,000. The decrease is mainly due to the deferral of the Motorgate Garage South – Restoration to FY 2021‐22....

Click here for the full RIOC Fiscal Year 2018-19 Proposed Budget.

Below is the full Agenda for RIOC Board meeting today.

AGENDA

SEPTEMBER 7, 2017 MEETING OF

THE ROOSEVELT ISLAND OPERATING CORPORATION BOARD OF DIRECTORS

THE CULTURAL CENTER THEATER, 548 MAIN STREET,

ROOSEVELT ISLAND, NEW YORK

5:30 P.M.[1]

I. Call to Order

II. Roll Call

III. Approval of Minutes

1. August 9, 2017 Board Meeting (Board Action Required)

IV. Old Business

New Business

1. Authorization to Amend Contract with Hawkins Webb Jaeger, PLLC for Engineering Consulting Services (Board Action Required)

2. Authorization to Enter into the Fifth Amendment of the Southtown Development Agreement (Board Action Required – Materials to Follow)

3. Presentation of the Proposed Budget FY 2018-19

4. Authorization to Enter into Contract with New York State Department of Transportation for Striping and Painting of Roosevelt Island Roads (Board Action Required)

5. Authorization to Enter into Contract with ThyssenKrupp Elevator Corporation for Good Shephard Community Center Elevator Modernization Project (Board Action Required)

6. Ratification of Task Order with New York Plumbing, Heating & Cooling Corp. for Emergency Work at Octagon Soccer Field Comfort Station (Board Action Required)

7. Authorization to Amend Contract with Regimental Contracting, LLC. for Installation of Water Fountains, Park Benches, Barbeque Grills and Picnic Tables at Roosevelt Island Parks (Board Action Required)

8. Authorization to Amend Contract with Architectural Preservations Studio D.P.C for Tram Station Platform Repair Design (Board Action Required – Materials to Follow)

9. Authorization to Amend Contract with GC Eng Engineering Associates, P.C. for Manhattan Tram Station Elevators Design (Board Action Required – Materials to Follow)

10. Authorization of Expenditure of Funds to Roosevelt Island Youth Program, Inc. (Board Action Required)

11. President’s Report

12. Committee Reports

a. Audit Committee

b. Governance Committee

c. Operations Advisory Committee

d. Real Estate Development Advisory Committee

13. Public Safety Report

VI. Adjournment

[1] The RIOC Board Meeting will commence following a public comment period. The public comment period is not part of the meeting.