RIOC Budget Approval, Public Purpose Funds Authorization & Funds For Youth Center Program Among Items On Agenda For December 19 Roosevelt Island Operating Corp Board Of Directors Meeting

The Roosevelt Island Operating Corp (RIOC) Board of Directors will meet 5:30 PM Tuesday, December 19 at the Cultural Center (548 Main Street). Among the items on the Agenda are

• Approval of the Proposed RIOC Budget for Fiscal Year 2018-19,
• Authorization of Expenditure of Funds for Roosevelt Island Youth Program,
• Authorization of Expenditure of Public Purpose Funds for Fiscal Year 2017-18  

Prior to the start of the RIOC Board meeting, there will be a public comment period. Sign up here to speak at the meeting.

The RIOC Proposed Budget reports rescheduling the start of Southtown Building 8 and 9 construction to April 2018 and July 2019 respectively.

The RIOC Budget also includes projected payment of over $23 million from NY State for the Cornell Tech project.

Image From RIOC

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

Revenues

RIOC’s Proposed Budget FY 2018‐19 projects revenues of $51,203,000 a increase of $23,234,000 or 83.07 % 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 April 2018 and July 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 $23,541,000 or 194.17% 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 decrease due to the cost for the joint marketing campaign between RIOC and Hudson Related Retail LLC.

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.

Also (Page 4-5):

The Proposed Budget FY 2018‐19 projects capital improvements in the amount of $41,560,000, an increase of $7,591,000 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 $35,450,000, 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 $19,975,000, an increase of $8,660,000 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....

... For the Tramway, the Proposed Budget FY 2018‐19 projects expenditures in the amount of $7,050,000, an increase of $1,025,000 over the Approved Budget FY 2017‐18 amount of $6,025,000. The increase is mainly due to the projected Tram‐Long‐Term overhauls to maintain it in good operating condition.

Click here for the 2018-19 Proposed RIOC Budget.

Below is the full RIOC Board meeting Agenda for tomorrow with links to supporting materials for each Agenda Item.

AGENDA

DECEMBER 19, 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. October 19, 2017 Board Meeting (Board Action Required)

IV. Old Business

V. New Business

1. Approval of the Proposed RIOC Budget for Fiscal Year 2018-19 (Board Action Required)

2. Authorization to Enter into License Agreement with Crown Castle NG East LLC for Fiber-Based Telecommunications Network on Roosevelt Island (Board Action Required)

3. Authorization to Enter into Contract with Hardesty & Hanover, LLC. for Roosevelt Island Aerial Tramway Engineering Consulting Services (Board Action Required)

4. Authorization to Enter into Contract with Specialty Construction Systems Inc. for the Helix Ramp and Flat Plaza Repairs (Board Action Required)

5. Authorization to Amend the Contract with Major Systems Mechanical Corp. for the Boiler Installation and Heating System Improvements at Sportspark (Board Action Required)

6. Ratification of Amendment of Contract with Langan Engineering and Environmental Services, Inc. for Design and Engineering of the Southpoint Park Seawall Reconstruction Project (Board Action Required)

7. Authorization to Enter into a Supplemental Long-Term Electricity Supply Agreement with the New York Power Authority (Board Action Required)

8. Authorization to Amend the Contract with Teamsters Local 210 (Board Action Required)

9. Authorization of Expenditure of Funds for Roosevelt Island Youth Program (Board
Action Required)

10. Authorization of Expenditure of Public Purpose Funds for Fiscal Year 2017-18 (Board Action Required)

11. Approval of Schedule of 2018 Meetings of the Roosevelt Island Operating Corporation Board of Directors (Board Action Required)

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