The Public Session that is held before the start of every Roosevelt Island Operating Corp (RIOC) Board Of Directors meeting was very interesting last night. Here's what happened.
Roosevelt Island Historical Society (RIHS) President Judy Berdy thanked RIOC and it's engineering department for restoring and opening to the public once again most of Good Shepherd Plaza and urging that the Good Shepherd Roof be replaced with a slate roof.
Nonno's Focacceria and
Riverwalk Bar & Grill owner Alphonse DiCioccio then expressed objections to mobile food vendors, such as the
recent Luke's Lobster and the Domino's Pizza car at the Farmers Market, being allowed to sell food on Roosevelt Island asserting that it was unfair to existing store owners who pay rent. This issue will be addressed at the next Real Estate Committee meeting to be held in a few weeks.
Roosevelt Island Residents Association (
RIRA) Planning Committee Chair Frank Farance followed and asked these question concerning
RIOC's finances which he has written about at
these previous posts.
Mr. Farance's written text follows:
December 14, 2011
Good Evening Mr. Chairman, Board Members, Madam President, and Staff
I am very concerned about RIOC's finances. At present it appears that RIOC owes approximately one billion dollars in debt and liability. Board Member Mr. Polivy, as Audit Committee Chair, has stated that RIOC does not plan on paying this down, and Mr. Polivy rationalizes why this debt/liability should not be on RIOC audited financials.
This really doesn't seem right. There will be 20 billion dollars owed in 2068. However, this can affect current residents now because of uncertainty about RIOC's paying back the money owed.
I've asked several questions, I will ask them again.
(1) When your Board Chairman and CEO signs a document on behalf of the Corporation that enshrines certain amounts owed as debt/liability, a defined interest rate, a schedule of payback priorities, and a method of payment, how does that signing transaction NOT show up on your audited financials?
(2) What policies does the board have for choosing which debts and liabilities show up (or not) on audited financials?
(3) What other RIOC debts and liabilities are not listed in RIOC's audited financials?
(4) Mr. Polivy states "When deducting all capital expenditures there are no expected excess funds to be shared through to 2068". Based upon the that statement, it is fair to say that, although the RAA1988 identified several priorities in revenue allocation and a UDC Account for depositing these revenues, it is the RIOC Board's position that it has no intent to pay back this debt/liability, right?
(5) Mr. Polivy states "RIOC's annual budget and financial statements properly restrict themselves to its own direct receipts, expenses, assets, and liabilities", but this RIOC debt/liability and revenue allocation, were signed by RIOC's Board Chairman and CEO. Under which financial documents would we expect to find this RIOC debt/liability if not its audited financials?
(6) Mr. Polivy states "So, bottom line, there’s no big groundswell of debt piling up ready to swallow up the Island". I've cited the provisions that point to the continued growth with interest. Considering that the RIOC Board does not intend to make payments towards these debts/liabilities through 2068, yet there is a well-defined interest rate on the unpaid debt/liabilities, I ask: Can you point to a provision in the document that stops the accrual of interest on the debt/liability? (Without citing that provision, the debt will be piling up, i.e., about $20 billion by 2068.)
(7) Can you state, in writing, that Roosevelt Island residents (now and in the future) will never be responsible for paying directly/indirectly on this debt/liability? If RIOC can assure us this will never affect us (in higher ground leases, rents, transfer fees, profit sharing, flip taxes, PILOT/tax payments, assessments, etc.), then it should stay so. I'm guessing that RIOC cannot assert that we will never have to pay for this debt/liability.
RIOC Chair Darryl Towns responded to Mr. Farance that RIOC CFO Steve Chironis will look over the questions and get back to Mr. Farance with answers. Later in the RIOC Board Meeting during the Audit Committee Report, RIOC Director Howard Polivy also indicated that Mr. Farance's questions would be answered.
RIRA President Matt Katz spoke about the saving of the Roosevelt Island Post Office, RIRA sponsored RIOC Board of Directors Nominee elections and improving communications between the RIOC Board members and the community.
Roosevelt Island resident Trevre Andrews spoke about the
Motorgate Garage, Motorcycle Parking, Public Access To
RIOC Information, Mobile Food Vans and appreciation for good things RIOC does.
Mr. Andrews provided these notes of his remarks:
I would like RIOC to seriously consider the following comments about their operations:
I am advocating for a more open information policy. While I believe RIOC has made strides is providing data I believe more could be done including:
-The regular release of red bus and tram ridership data
-the regular release of detailed psd data
While I don't fully understand the interaction of RIOC and the motorgate operators it seems RIOC has some leverage of its operations. The following problems exist at motorgate:
-restriping of the garage is controversial and does not improve the facility
-pricing of the garage is not optimizing the usage of space at motorgate, particularly motorcycle and short term parking.
-there are significant amounts of underutilized curb space at the island which could be used by motorcycles with little effort.
Many residents are concerned with the impact the Hudson lease will have on the farmers market and the ability of food carts to operate on the island. We are also unhappy with the pace at which storefronts are being filled. The agreed upon schedule was embarrassing and RIOC should apply pressure to speed up the schedule.
The recent handling of the food cart visiting the island was unacceptable.
There are still bicycle signs up indicating no overnight parking.
The implementation of the smart parking has been to slow and to expensive with little benefit.
What is the status of compensation for the tram construction delays?
Also, Brice Peyre from
Congresswoman Carolyn Maloney's office spoke about the Roosevelt Island
Post Office being saved from closing though I do not have video of that.
During the RIOC Board Meeting, RIOC Director and
Child School Executive Director Sal Ferrara described some of the events that occurred last Tuesday involving the
massive NYPD and Public Safety Department response to the possibility that a Child School student possessed a gun and threatened to use it.
You Tube Video Of RIOC/Child School Director Responding to Gun Threat Incident
Following the RIOC Board meeting, Mr. Ferarra explicitly denied that the student had a gun while on Roosevelt Island before his arrest by NYPD.
The
December RIOC Board meeting itself was mostly taken up with approving the
2012 -13 Budget, contracts for gasoline and oil, a RIOC Mission Statement, dates for future Board Meetings, Z Brick purchase allocations and a resolution facilitating 1/2 million dollar Federal Government Funding to the FDR Four Freedoms Park.
A web cast of the RIOC Board meeting will be available within a few days after the meeting.
You can sign up to speak at the next
RIOC Board Meeting Public Session here.
