“Everybody loves getting new windows,” says Steve Greenbaum, the director of management at Mark Greenberg Real Estate, discussing the mammoth window-replacement job that is only one of many projects under way at the Island House on Roosevelt Island. This 400-unit, three-building co-op is also currently replacing terrace doors and terrace railings, and applying waterproofing to the facade.
After that’s done, the co-op will put in new circuit-breaker panels, then redo the lobbies and hallways. Most of the money for these projects comes from a capital fund that was set up during co-op conversion talks with the sponsor. Greenbaum declines to give cost figures.
... I would like to let you know that Roosevelt Island is mentioned numerous times in the Museum’s upcoming exhibition Affordable New York: A Housing Legacy, which will open on September 17th. The exhibition traces over a century of affordable housing activism, documenting the ways in which reformers, policy makers, and activists have fought to transform their city.
To kick-off the exhibition, the Museum will host a symposium, “Affordable Housing: What about the Future?” at 5:30 pm on Thursday, September 17th. Speakers including Barney Frank (Former Congressman), John Banks (President of The Real Estate Board of New York), Rafael Cestero (President of The Community Preservation Corporation), Ron Moelis (CEO of L+M Development Partners Inc.), Richard Roberts (Managing Director of Red Stone Equity Partners), Ismene Speliotis (Executive Director of the Mutual Housing Association of New York), Saky Yakas, AIA (Partner at SLCE Architects), and Sam Roberts (Correspondent at The New York Times) will discuss subsidized housing as a way to achieve diversity, neighborhood stability, and, most importantly, as a critical investment in the city’s workforce into the 21st century.
We would be honored if the Roosevelt Island Residents Association would consider serving as an honorary co-sponsor for this symposium and the Museum’s subsequent series of public programs around the exhibition....
Ms Falk informed the RIRA Common Council of the invitation during its September 9 meeting.
RIRA Common Council members held a brief discussion expressing concerns about remaining Roosevelt Island affordable housing following exit from Mitchell Lama program by Roosevelt Island buildings - Rivercross, Island House, Westview and Eastwood/Roosevelt Landings.
Affordable Housing: What about the Future?
A Symposium
Thursday, September 17 at 5:30 pm at the New York Academy of Medicine
For over a century New York, the most expensive city in the nation, has also been a leading provider of affordable housing and a laboratory for innovative housing initiatives. In fact, more than 2,000,000 New Yorkers have market rate protection of some kind for their housing — an estimated total that approaches the size of the population of Houston. Mayor de Blasio’s Housing New York: A Five-Borough, Ten-Year Plan seeks to add or preserve 200,000 units. How, in the broadest terms, can New York City’s century old legacy of affordable housing be sustained? What will tomorrow’s solutions be and who will fund them? This symposium will bring together housing advocates, developers, community leaders, and city officials. They will discuss how to embrace subsidized housing as a way to achieve diversity and neighborhood stability, and, not least, as a critical investment in the city’s workforce into the 21st century. "Affordable Housing: What about the Future?" is the kick-off symposium of our upcoming exhibition Affordable New York: A Housing Legacy....
... loaded with parks and without a single traffic light, two-mile-long Roosevelt Island has turned into a refuge for city dwellers seeking breathing room and relative affordability. Yet they still get to live just one 90-second F train stop — or a picturesque tram-car ride — away from the Upper East Side.
Starbucks recently opened on the island, plus a big-box pharmacy, sushi restaurant and art gallery called Riva have all opened in the past few years. David Kramer, a principal with real estate development firm Hudson Companies, gushes, “This is not your grandmother’s Roosevelt Island anymore. And it didn’t hurt that Hillary kicked off her presidential campaign here.”
With 326 units of luxury residential rentals and condos soon hitting the market, Roosevelt Island is becoming increasingly alluring for disillusioned Manhattanites and arrivistes to the city. It just might be the new “It” neighborhood for people looking to boost quality of life without going broke. ...
After reading the article, one resident remarked:
... A bit lopsided view of our changing island. 90 seconds to manhattan on the F train ? Not recently....
... The seventh addition to the Riverwalk neighborhood, which is a co-developed venture by Related and Hudson Companies on Roosevelt Island, Riverwalk Point is a 266-unit rental building which began leasing last month.
“You’ve got great transportation access,” continued Schmidt, who admitted that it can sometimes be a challenge to convince home-seekers that the island is in fact a part of Manhattan....
... The 266 studio to two-bedroom rentals start at $2,550 with junior one-bedrooms rising to $2,800 per month. They are followed by one-bedroom/one baths which register at $3,125, and two bedroom/one bath which are $4,225.
The top offerings, a two-bedroom/two bathroom is available for $4,875 a month....
A new Riverwalk resident explains why she moved to Roosevelt Island with her family saying:
... it's our own little quiet piece of heaven....
I spoke with David Kramer last August 2014 at the topping out ceremony for Riverwalk Point (Building 7). Here's what he had to say about the new building construction, plans for a large percentage of affordable housing to be included in future Riverwalk building 8
... So far, 31 units have been gut-renovated and put on the market; 19 of them are sold. Of the 399 apartments in the complex, 160 will ultimately be purchased by outsiders; remaining units are being sold at insider prices to existing tenants or will stay as rentals....
It has been a long journey, at least a decade, but the Island House tenants are transitioning into the Affordability Plan that was envisioned long ago: some tenants will continue to be renters with strong rent protections for the next 30 years, some tenants will purchase their apartments at affordable rates. The Sponsor's offering plan was recently amended to offer a buy-out option...
... Our attorney Stuart Saft, who has literally Written The Book on coop conversion law, has helped guide use through the process with extensive knowledge, skill and effective negotiation. Our government entities, RIOC, ESDC, and DHCR (Rich McCurnin) have collaborated on this Affordability Plan and have created a template that can be used to preserve affordable housing in other Mitchell-Lama building complexes throughout the City and the State....
What if we told you that in as little as 90 seconds, you could be transported to a place where the noise and crush of Midtown Manhattan seem a world away? And if we told you that in that place, the perfect home was waiting just for you: filled with serenity, flooded with light, and resplendent in luxurious detail? And if this home could be yours for prices starting in the low $300’s? Presenting Island House on Roosevelt Island.
... Completely Renovated Studios to 4-Bedroom Co-op Apartments. Island House is a collection of homes with room to grow and space to breathe, with classically modern architectural detailing and unexpectedly luxurious fixtures and finishes.
Here, reinvented for the 21st century, a number of spacious, richly detailed homes are poised to enter the market for the very first time. Built during a time when ten-by-twelve was a bedroom, not a living room, Island House is a co-operative community with 24-hour doorman. These sun filled apartments have wide plank oak flooring, stainless steel kitchen appliances, spa-type bathrooms and crown molding throughout.
Many have truly spectacular views of the East River and Manhattan skyline.
Additional features include: *Quartz, granite marble finishes *Luxurious master baths *Generous built in closets *Access to fitness center and 20-meter lap pool *All Viking kitchen appliances *Wide plank oak flooring in walnut stain *All new insulated sliding windows. Roosevelt Island is experiencing a remarkable transformation, and Island House is your chance to own a little bit of heaven just 90 seconds from Manhattan.
This incredible proposition at Island House offers a lifestyle you may not have thought was possible in New York City: a tranquil oasis with instant access to the best of Manhattan, at amazing starter price.
I believe these are sponsored owned units and not those of current residents.
Roosevelt Island's Island House rental building exited the Mitchell Lama program in September 2012. As reported October 20, 2012 by former Roosevelt Island Operating Corp (RIOC) Acting President and current General Counsel Don Lewis:
... We are very pleased to note that, as result of several years of negotiations, Island House, a 400-unit affordable housing development on Roosevelt Island, will continue to remain affordable to its residents for the next 30 years. The Island House deal is historic in nature and marks the first successful conversion of a State Mitchell-Lama rental to affordable home ownership as a solution to a market-rate exit from Mitchell-Lama. Without the State’s intervention in extending affordability, apartments within Island House, a development at the threshold of leaving the Mitchell-Lama program, would have been allowed to be rented at market rates, severely affecting residents.
Under the Island House Affordability Plan, Island House, constructed in 1975 as one of the first four modern housing developments on Roosevelt Island, will exit the Mitchell-Lama program. The Affordability Plan, however, protects all current tenants by allowing them to remain in their apartments with future rent increases calculated in a manner similar to rent stabilized apartments. Rent protection will remain in effect for 30 years. The owner of Island House will apply to convert the building to Co-Op ownership. If the conversion is approved, current tenants will be offered the option to purchase their apartments at below market prices.
The Affordability Plan was initially drafted and agreed upon by the Island House owner and tenants. The Plan was later approved by a multi-agency working group that included: RIOC, which administers operations on Roosevelt Island; New York State Homes and Community Renewal (HCR), the State’s housing agency, which administers both the Mitchell-Lama program and the State’s rent laws; and Empire State Development (ESD), which in 1969, as the Urban Development Corporation, first leased the land under Island House from the City of New York. The Affordability Plan was the result of several years of negotiations among the agencies, the Island House Tenants Association, and owners’ representatives....
Island House is currently in the process of converting to a Condop (Co-op for residential units and condo for commercial units) under a non-eviction Affordability Plan.
It has been a long journey, at least a decade, but the Island House tenants are transitioning into the Affordability Plan that was envisioned long ago: some tenants will continue to be renters with strong rent protections for the next 30 years, some tenants will purchase their apartments at affordable rates. The Sponsor's offering plan was recently amended to offer a buy-out option and extend the exclusive period 20 days (April 20) so that tenants could review the options (rent, buy-out, purchase). The Attorney General will review and declare the conversion plan Effective. At that point, tenants will finalize mortgages, with closings expected to begin in the summer, and the co-op board will be elected. As of today, over 50% tenants have indicated that they will purchase their apartments, so the co-op board will be tenant-controlled with the sponsor holding under 50% of the board seats.
Fortunately for Island House tenants, we have had productive working relationship over many years that has included some tough negotiation with our Sponsor/Owner, represented by David Hirschhorn and moving forward we anticipate collaboration to maintain and expand the quality of life for all Island House residents. Our attorney Stuart Saft, who has literally Written The Book on coop conversion law, has helped guide use through the process with extensive knowledge, skill and effective negotiation. Our government entities, RIOC, ESDC, and DHCR (Rich McCurnin) have collaborated on this Affordability Plan and have created a template that can be used to preserve affordable housing in other Mitchell-Lama building complexes throughout the City and the State.
Concurrently, Island House will be engaged in window replacement and energy efficiency program. The windows will be energy efficient and similar to the present windows that slide, and the exterior will have modern treatments that update the faded yellow panels. Island House will also pursue submetering and rent reductions. Island House learned many things from the failed submetering attempts at Roosevelt Landings (Eastwood). Most importantly, Island House tenants already pay their full electric bills within their rents, so any sub metering plan is about apportioning costs that the tenants already pay (and coopters will pay), not adding new costs.
The submetering plan, in cooperation with the Sponsor/Owner, will NOT mark-up the low bulk electric rates, incorporate various energy efficiencies, (and we intend to pursue a range of additional conservation options after conversion) and the rent reduction strategy is intended to be revenue-neutral with a special focus by everybody involved in ensuring cost neutrality for those who remain as tenants.
We look forward to completing the transition to the Affordability Plan by late summer or fall this year."
More information available on the Island House privatization and affordability plan at this June 2012 post which includes video explaining the plan from May 27, 2012 Island House Tenants Association meeting.
Roosevelt Island's Island House rental building exited the Mitchell Lama program in September 2012. As reported October 20, 2012 by former Roosevelt Island Operating Corp (RIOC) Acting President and current General Counsel Don Lewis:
... We are very pleased to note that, as result of several years of negotiations, Island House, a 400-unit affordable housing development on Roosevelt Island, will continue to remain affordable to its residents for the next 30 years. The Island House deal is historic in nature and marks the first successful conversion of a State Mitchell-Lama rental to affordable home ownership as a solution to a market-rate exit from Mitchell-Lama. Without the State’s intervention in extending affordability, apartments within Island House, a development at the threshold of leaving the Mitchell-Lama program, would have been allowed to be rented at market rates, severely affecting residents.
Under the Island House Affordability Plan, Island House, constructed in 1975 as one of the first four modern housing developments on Roosevelt Island, will exit the Mitchell-Lama program. The Affordability Plan, however, protects all current tenants by allowing them to remain in their apartments with future rent increases calculated in a manner similar to rent stabilized apartments. Rent protection will remain in effect for 30 years. The owner of Island House will apply to convert the building to Co-Op ownership. If the conversion is approved, current tenants will be offered the option to purchase their apartments at below market prices.
The Affordability Plan was initially drafted and agreed upon by the Island House owner and tenants. The Plan was later approved by a multi-agency working group that included: RIOC, which administers operations on Roosevelt Island; New York State Homes and Community Renewal (HCR), the State’s housing agency, which administers both the Mitchell-Lama program and the State’s rent laws; and Empire State Development (ESD), which in 1969, as the Urban Development Corporation, first leased the land under Island House from the City of New York. The Affordability Plan was the result of several years of negotiations among the agencies, the Island House Tenants Association, and owners’ representatives....
Island House is currently in the process of converting to a Condop (Co-op for residential units and condo for commercial units) under a non-eviction Affordability Plan.
Last night, January 22, Island House residents interested in purchasing their Roosevelt Island apartment listened to a mortgage presentation by Amalgamated Bank Vice President Eric Ruskiewicz.
Here's what happened.
Part 1. Discussion of
20% down payment in two parts (10% at March 31 contract date and another 10% at closing date which is not yet known - speculation is June/July 2015),
Interest Rates,
Locking Interest Rates,
Closing Costs
issue regarding errors in names on apartment lease and
pre-approval letters.
Part 2. Discussion of:
Locking Interest Rates,
Amalgamated Bank fully committed to mortgage lending at Island House,
Island House Ground Lease,
Commitment Letters,
Documents needed for mortgage application,
Credit Scores,
Amalgamated Bank keeps their mortgage loans and does not sell to secondary market.
Part 3. Discussion of:
Bringing lawyer to closings,
No minimum number of units in building need to be purchased in order to close on apartments,
What happens when building ground lease expires (Not known),
Apartment appraisals.
Part 4. Discussion of:
Down payments,
Meaning of pre-approval letter,
Locked in interest rate,
Application information,
Home Equity Loan on Island House apartment not allowed and
Mortgage discount for opening account at Roosevelt Island branch.
Part 5. Discussion of:
No Pre-payment penalty,
Allocation of principle and interest payment,
Non taxable income counted higher on application and
Credit checks.
More information on the Island House exit from Mitchell Lama program and Affordability Plan at this June 2012 post.
Are you interested in obtaining a mortgage for a Roosevelt Island apartment? Rivercross Co-ops and Riverwqlk Condos are currently for sale. Maybe someday soon the Island House and Westview privatization will become a reality and you can buy an apartment in those buildings too.
Join us at our free Mortgage Seminar
Thursday January 22 at 7 PM
Roosevelt Island Branch
619 Main Street
New York, NY 10044
Amalgamated Bank's Vice President Eric Ruskiewicz held a prior mortgage seminar last July 14. Here's what happened.
Part 1 - Introduction to the seminar including discussion of Home Equity Line of Credit (HELOC) products and Interest Rates.
Part 2 - Discussion of down payment, fixed and variable rates, appraisals, points, application process and individual Roosevelt Island building financing requirements.
Part 3 - Fixed and Variable rate loans, credit reports and credit scores, Fannie May and Freddie Mac Loans. Mr Ruskiewicz noted that Amalgamated Bank does not sell the mortgages it makes in the secondary market but holds on to the mortgage for the life of the loan.
I hope everyone had a healthy and happy New Year's, is sticking to their resolutions and enjoying 2013! Roosevelt Island certainly had an eventful 2012, highlighted by the opening of Four Freedoms Park, exciting progress on Cornell’s Tech campus plans, the historic Island House Affordability Plan, and many collaborative and successful community events. We will remember the devastation of Sandy, but also our community’s resilience and generosity in the aftermath. With much to look forward to in 2013, RIOC continues to work diligently to make it yet another prosperous year for Roosevelt Island.
New Bus Stop Location by the Tram
As you likely know, we have moved the Tram West bus stop from its previous location near the Roosevelt Island Historical Society kiosk back to its original location just outside the entrance of the Tram Plaza, by the Tram Ramp. We believe the new stop will be more convenient for passengers since they will no longer need to hurry down the hill from the Tram to catch the bus by the kiosk. I would like to say a special thank you to Cy Opperman, RIOC's Transportation General Manager, for spearheading the efforts to get this done.
Roof Replacement at Good Shepherd Community Center
We are pleased to note that the installation of the beautiful new slate shingles atop the Good Shepherd Community Center is complete. The building was designated as a historical landmark in 1975 and the original slate material is fitting for such an important Island site.
Motorgate Renovations
Our renovation project at the Motorgate parking garage is underway. The extensive renovations are twofold: waterproofing on the third and fourth floors will prevent leaks onto the lower levels; meanwhile the installation of new LED light fixtures on each floor and the stairwells will increase visibility. The LED lights are environmentally friendly, as well as more durable and cost efficient than the outdated incandescent lights. The project will require certain parking disruptions and we will provide advanced notice concerning the same.
RIOC on Twitter and Facebook
For the latest information about news and events on Roosevelt Island, follow RIOC on Twitter @RIOCny and visit our Facebook page at www.facebook.com/RIOCNY.
I just attended the dedication ceremony for Four Freedoms Park, and both the Park and the ceremony were simply magnificent. It was an absolute pleasure to have Tom Brokaw as a Master of Ceremonies and hear President Bill Clinton, Mayor Michael Bloomberg, Governor Andrew Cuomo and Ambassador William J. Vanden Heuvel address the captivated audience. The Four Freedoms Park team, the RIOC Board of Directors and RIOC staff all did an outstanding job in working cooperatively to get this done. I encourage the community to take the opportunity to see the Park on Saturday, October 20, which is Roosevelt Island Residents’ Day at the Park, featuring an Open House for resident preview from 10:00 am to 3:00 pm.
We are very pleased to note that, as result of several years of negotiations, Island House, a 400-unit affordable housing development on Roosevelt Island, will continue to remain affordable to its residents for the next 30 years. The Island House deal is historic in nature and marks the first successful conversion of a State Mitchell-Lama rental to affordable home ownership as a solution to a market-rate exit from Mitchell-Lama. Without the State’s intervention in extending affordability, apartments within Island House, a development at the threshold of leaving the Mitchell-Lama program, would have been allowed to be rented at market rates, severely affecting residents.
Under the Island House Affordability Plan, Island House, constructed in 1975 as one of the first four modern housing developments on Roosevelt Island, will exit the Mitchell-Lama program. The Affordability Plan, however, protects all current tenants by allowing them to remain in their apartments with future rent increases calculated in a manner similar to rent stabilized apartments. Rent protection will remain in effect for 30 years. The owner of Island House will apply to convert the building to Co-Op ownership. If the conversion is approved, current tenants will be offered the option to purchase their apartments at below market prices.
The Affordability Plan was initially drafted and agreed upon by the Island House owner and tenants. The Plan was later approved by a multi-agency working group that included: RIOC, which administers operations on Roosevelt Island; New York State Homes and Community Renewal (HCR), the State’s housing agency, which administers both the Mitchell-Lama program and the State’s rent laws; and Empire State Development (ESD), which in 1969, as the Urban Development Corporation, first leased the land under Island House from the City of New York. The Affordability Plan was the result of several years of negotiations among the agencies, the Island House Tenants Association, and owners’ representatives.
Halloween Parade & Extravaganza
We are pleased to announce that the annual Roosevelt Island Halloween Parade & Extravaganza will be held on Saturday, October 27, 2012. The parade will begin at 12:00 pm at Blackwell House and end at Capobianco Field. It will feature games, rides, magic shows and live entertainment. All activities are free of charge. In the event of rain, the extravaganza will be held inside PS/IS 217. Participants are strongly encouraged to dress in costumes.
Our last Island event, the Fall for Arts Festival, was a smashing success with over 2,000 people in attendance! We would like the Parade & Extravaganza to be just as successful (if not more), and hope to see you there!
According to the Roosevelt Island Operating Corp (RIOC)
PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will be held on Tuesday, September 18, 2012 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.
AGENDA
1. Chair's Motion for Executive Session to Review and Discuss Proposed Modifications to the Ground Lease for Island House;
2. Any Other Committee Business That May be Brought Before the Committee.
It appears as though the Island House Ground Lease Extension and Mitchell Lama privatization exit is about to proceed since this item # 7 has been added to the RIOC September 20 Board of Directors meeting agenda
Authorizations Related to Amendment to Island House Ground Lease
Below is the September 20 RIOC Board Agenda.
AMENDED AGENDA
SEPTEMBER 20, 2012 MEETING OF
THE ROOSEVELT ISLAND OPERATING CORPORATION
BOARD OF DIRECTORS
THE MANHATTAN PARK COMMUNITY CENTER,
8 RIVER ROAD, ROOSEVELT ISLAND, NEW YORK
5:30 P.M.1
I. Call to Order
II. Roll Call
III. Approval of Minutes
1. July 30, 2012 Board Meeting (Board Action Required)
IV. Old Business
V. New Business
1. Presentation of the Proposed RIOC Budget for FY 2013-2014
2. Authorization to Amend License Agreement with the New York City Police Department Transit Bureau K-9 Unit (Board Action Required)
3. Authorization to Amend the Contract for Construction Management Services for Oversight of the Aerial Tramway Modernization Project with LiRo Engineers Inc. (Board Action Required)
4. Authorization to Enter into a Contract with Streetline, Inc. for Roosevelt Island Smart Parking Program (Board Action Required)
5. Authorization to Enter Into a Contract with Meli Contracting Co., Inc. for Westside Waterfront Sidewalk Reconstruction Project (Board Action Required)
6. Authorization to Enter Into a Contract with Scientific Electric Co. Inc. for Lighthouse Park Lighting & Electric Restoration Project (Board Action Required)
7. Authorizations Related to Amendment to Island House Ground Lease (Board Action Required)
8. President's Report 9. Committee Reports
a. Audit Committee
b. Governance Committee
c. Operations Advisory Committee
d. Real Estate Development Advisory Committee
10. Public Safety Report
VI. Adjournment
Reported previously that a proposed Island House Ground Lease Extension agenda item had been removed from the Roosevelt Island Operating Corp (RIOC) July 29 Board of Directors meeting and asked:
That question remained unanswered but modifications of Roosevelt Island building's ground lease are back on RIOC's agenda this week. The proposed Island House Ground Lease extension as well as the proposed Ground Lease modifications for Southtown Building 7 -9 are on the Agenda for RIOC's Real Estate Committee meeting this coming Friday. The meeting will be held in Executive Session which means that the public will not be able to attend the meeting. According to RIOC:
PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will be held on Friday, August 10, 2012 at 3:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.
AGENDA
1.Chair’s Motion for Executive Session to Review and Discuss:
a. Proposed Modifications to the Ground Lease for Island House;
b. Proposed Modifications to the Ground Lease for Southtown Buildings 7, 8 and 9; and
2. Any Other Committee Business That May be Brought Before the Committee.
More information on Island House Ground Lease Extension/privatization efforts available here. No additional information available on Southtown Ground Lease modification other than Hudson Related has previously announced plans for developing building 7 in early 2013 and:
... Southtown 7,8 & 9 – as noted in the budget for the past two years, the development of Southtown 7, 8 & 9 will have a significant impact on the future cash flow of the Corporation. The developer, Hudson/Related (HR) holds an option to develop the site that expires on December 31, 2012....
Below is the Agenda for today's Roosevelt Island Operating Corp (RIOC) Board of Directors Meeting. The Ground Lease Extension for Island House was originally on the Agenda for this meeting. According to this July 26 notice from RIOC:
We note that “Authorization to Enter Into Amendment to Ground Lease with the North Town Phase II Houses, Inc. (Island House)" has been removed as we are working to finalize the necessary agreements.
Not know at this time how the removal of Island House Ground Lease Extension Agenda Item from tonight's RIOC Board Meeting effects the privatization/affordability plan for Island House's exit from Mitchell Lama program.
Here is the Agenda for tonight's RIOC Board Meeting.
AMENDED AGENDA
JULY 30, 2012 MEETING OF
THE ROOSEVELT ISLAND OPERATING CORPORATION
BOARD OF DIRECTORS
THE MANHATTAN PARK COMMUNITY CENTER,
8 RIVER ROAD, ROOSEVELT ISLAND, NEW YORK
5:30 P.M.1
I. Call to Order
II. Roll Call
III. Approval of Minutes
1. June 28, 2012 Board Meeting (Board Action Required)
IV. Old Business
V. New Business
1. Presentation of the FY 2011-12 QTR1 Procurement Report
2. Intentionally Omitted
3. Authorization to Enter into a Contract with Nelson & Pope Engineers & Land Surveyors, PLLC for the Bus Garage
and Warehouse Renovation Project (Board Action Required)
4. Authorization to Enter into a Contract with Meli Contracting Co. Inc. for Restoration of the Steel Boat Sculpture
(Board Action Required)
5. Authorization to Enter Into a Contract with Quintal Contracting Corp. for Motorgate Ramp Drainage Improvements
(Board Action Required)
6. Authorization to Enter Into a Contract with Quintal Contracting Corp. for Pothole Repairs (Board Action Required)
7. President�s Report
8. Committee Reports
a. Audit Committee
b. Governance Committee
c. Operations Advisory Committee
d. Real Estate Development Advisory Committee
9. Public Safety Report
VI. Adjournment
The RIOC Board Meeting will commence following a public comment period. The public comment period is not part of the meeting.
Image of Roosevelt Island Boat Prow
The Roosevelt Island boat prow could certainly use some restoration and graffiti removal.
According to the Roosevelt Island Operating Corp (RIOC):
PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will be held on Thursday, July 19, 2012 at 6:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.
AGENDA
1. Review and Discussion of Mobile Food Vendors' Activity During the July Open Access Trial, and Recommendation on Permit Terms Effective Thereafter;
2. Consideration of Modifications to the PierNYC Permit;
3. Chair's Motion for Executive Session to Review and Discuss Proposed Modifications to the Ground Lease for Island House; and
4. Any Other Committee Business That May be Brought Before the Committee.
have been great additions to Roosevelt Island. I hope RIOC allows Mobile Food Trucks to continue operating on Roosevelt Island public streets just as mobile food trucks operate in other NYC neighborhoods - without having to pay additional fees to RIOC. At the very least, continue the current experimental policy of waiving $345 monthly fee to encourage La Bella Torte and Eddie's Pizza to stay and to provide incentives for other Mobile Food Trucks to join them on a rotating basis to serve the hungry for choice and variety Roosevelt Island community.
has been a wonderful amenity brought to a formerly underutilized public waterfront space on Roosevelt Island for this summer with BBQ provided by John Brown's Smokehouse and seafood from Santos Seafood Shack.
Do the modifications being considered materially change the terms of the Waterfront Concession RFP that was issued by RIOC for the permit?
Thank you.
Have not received a response from RIOC.
It would be great if other types of food were allowed to be served at Pier NYC such as those offered by the Mobile Food Trucks as well as other existing Roosevelt Island restaurants.
The Island House Ground Lease Agenda Item is in executive session so public will not be able to attend. More information on Island House privatization and Ground Lease available at this previous post.
Last Friday, I learned that the Roosevelt Island Rivercross Tenants Corp. Board Of Directors decided to leave the Mitchell Lama Program under a market rate plan. Yesterday, I asked the Rivercross Board and Roosevelt Island Operating Corp (RIOC):
I understand the Rivercross Tenants Corp Board advised the Rivercross Shareholders last Friday that the Board has decided
to exit the Mitchell Lama program under a market rate plan,
to file a Notice Of Intent to leave Mitchell Lama with DHCR and
to submit an Offering Plan to the NY State Attorney General for review.
Is that true?
If so, does either the Rivercross Board or RIOC Board have any comment to make for a post I am preparing for Roosevelt Islander Online? Also, how does the Rivercross Board and RIOC Board anticipate Rivercross exiting Mitchell Lama under a non affordable market rate plan will effect the Rivercross Ground Lease with Roosevelt Island Operating Corp (RIOC) particularly in view of the recent Island House proposal to exit Mitchell Lama under an Affordable Plan approved by DHCR?
I intend to publish post on subject tomorrow. Please let me know if anyone intends to comment on this issue?
Thank you.
The Rivercross Board responded yesterday by providing a memo which was distributed to their shareholders on July 13 explaining the reasons they are seeking to leave Mitchell Lama under a market rate plan emphasizing that the Board is also following a parallel Affordability plan. An excerpt of the memo follows
In other Roosevelt Island Mitchell Lama news, Island House privatization and Ground Lease Extension will be on the Agenda for July 19 RIOC Real Estate Committee:
... 3. Chair's Motion for Executive Session to Review and Discuss Proposed Modifications to the Ground Lease for Island House;...
On May 27, the Island House Tenants Association (IHTA) held a meeting at the Good Shepherd Community Center
with tenants to discuss the privatization/affordability plan and answer questions from residents. In addition to the IHTA Board, Roosevelt Island Assembly Member Micah Kellner, NY State Homes and Community Renewal (DHCR) Assistant Commissioner Richmond McCurnin and IHTA attorney Stuart Saft were in attendance to answer questions.
After an introduction by IHTA Chair Graham Cannon, Assembly Member Kellner gave a brief review explaining to the Island House residents that the Mitchell Lama program was coming to an end and the question is how it will end so that the residents of Island House can remain in their homes either under an affordable plan for home ownership or remaining as renters.
Mr. Kellner then introduced DHCR Assistant Commissioner McCurnin who stated that not a single Mitchell Lama building exiting the program has been saved from going market rate through a home ownership conversion such as the one proposed and agreed to for Island House. If the Island House privatization and affordability plan succeeds, it will be unprecedented said Mr. McCurnin. Also, Mr. McCurnin emphasized that the plan is a result of a great deal of compromise and that everybody is not going to like every single provision but that if this privatization/affordability plan is not accepted, the alternative is market rate housing. Many current Island House tenants would not be able to afford remaining in their homes if a market rate housing plan was instituted.
Here's a video excerpt from the beginning of the meeting (full video of meeting is below).
SUMMARY OF THE ISLAND HOUSE PLAN FOR PRESERVATION OF AFFORDABLE HOUSING AND WITHDRAWAL FROM THE MITCHELL-LAMA PROGRAM (THE "AFFORDABILITY PLAN")
Please find attached the Island House Plan for Preservation of Affordable Housing and Withdrawal from the Mitchell-Lama Program.
This is the final version of the Plan,* negotiated and agreed by the owner, DHCR, RIOC, the Empire State Development Corporation, and the Governor's office, that we voted for in September 2009 and by which we "signaled the owner, DHCR and RIOC to move ahead with a ground lease extension and preparation of the offering plan".
We are very pleased with the outcome. As many others have noted, at a point where the owner has the absolute right to withdraw our building from Mitchell-Lama and charge market rents, this is a plan that protects tenant purchasers and continuing renters at affordable levels that will allow us the security of remaining in our homes for many decades to come.
The purpose of the Affordability Plan is to provide a structure for the withdrawal of Island House from the Mitchell-Lama Program on terms that will preserve Island House as an affordable housing project for both existing tenants and future occupants.
The key elements of the plan are as follows:
RIOC will extend the Island House ground lease until 2068 — we anticipate by July 31 2012 — for the sole purpose of implementing the Affordability Plan.
Following that vote by RIOC to extend the ground lease, Island House will withdraw from Mitchell-Lama Program and immediately enter the Affordable Rental Program (similar to New York rent stabilization) outlined and required by the Plan. All tenants will initially continue as renters to be covered by the affordable rental program while the portion of the plan allowing tenants to purchase their apartments is submitted to the New York Attorney General as an Offering Plan by the owner (the "Sponsor").
Once the ground lease has been extended by RIOC, the Sponsor will submit the Offering Plan (the "Red Herring") to the New York Attorney General. The Attorney General will first review the plan then require additional answers and disclosures from the Sponsor before accepting the plan for filing. The Sponsor will then send the final Offering Plan to the tenants and each tenant will have an exclusive period to determine whether or not to purchase his/her apartment.
Under the Offering Plan, Island House tenants will be able to purchase their apartments at a discount of approximately 65% off the market price. The price of each apartment will be based upon the number of shares in the cooperative apartment corporation allocated to such unit.
Under the agreement, the aggregate value of all apartments in the coop ($90,252,162) was determined by using an average price of $198 per sq. ft. times the aggregate saleable residential area of 455,819 sq. ft. (exclusive of terraces and balconies). Based upon this aggregate valuation (exclusive of terraces and balconies), the per share price is $164. Shares are assigned to each cooperative apartment based upon a standard formula for Adjusted Apartment Area and relative value, taking into account location, view and height.
For those Island House residents who do not wish to purchase their apartments, they may remain as tenants for the next 30 years under a rental program mirroring rent stabilization with increases based on the same increases provided to New York rent stabilized tenants (plus a surcharge of no more then 5% for those at higher income levels as outlined in the plan).
The Division of Housing and Community Renewal (DHCR) will continue to supervise the property to insure that the terms of the Affordability Plan are adhered to.
Owner contributes $9,600,000 to building improvements and reserves.
Owner pays $4,500,000 in transfer fees to RIOC
Ground Lease and Tax Equivalency Payments for affordable units remain low during the 30 year affordability period and thereafter phase into a market level tax payment. (Along with flip tax revenue, this will greatly enhance affordability by keeping monthly costs. in addition to mortgage, as low as possible.)
After a tenant has made his or her initial purchase of the apartment under the Offering Plan, in order to balance both the investment risk taken by the tenant and provide for affordability for future generations, tenants will be able to resell their apartments at an initial resale price per share of $328 (twice the initial per share offering price to tenants), plus costs of any improvements. This price will be allowed to increase by 7.5% per annum. After the initial sale by the Sponsor to the current tenant, tenants may only sell their apartments to people with incomes under the formula described in the Affordability Plan.....
Among the questions asked by the Island House residents during the meeting was:
will a single person living in a multi bedroom apartment be able to buy their apartment,
if you decide not to buy what happens to the price of your rent,
what is the amount of flip tax on future apartment sales and will there be a windfall in profits for sellers,
You Tube Video of Island House Affordability/Privatization Meeting (Part 1)
You Tube Video of Island House Affordability/Privatization Meeting (Part 2)
Following the meeting I asked Assembly Member Kellner if there were any outstanding issues remaining with the Roosevelt Island Operating Corp (RIOC) extending the ground lease on Island House with the current building owner. Mr. Kellner replied that there were no outstanding issues to his knowledge. I sent an email the next day asking RIOC President Leslie Torres:
After the Island House Meeting last night on their privatization/affordability plans, I asked Assembly Member Micah Kellner if there were any outstanding issues remaining regarding the ground lease extension being sought by the building's owner from RIOC.
Mr. Kellner replied that to his knowledge there were no outstanding issues remaining for the ground lease extension.
From RIOC's perspective, is it true that there are no issues remaining to be agreed upon for the Island House Ground Lease extension?
Thank you.
Have not received a response back from RIOC.
RIOC's discretion in granting the ground lease extension for the building is a key component in the affordability plan negotiations. Without the ground lease extension, the building owners would find it very difficult to finance exiting Mitchell Lama. It's going to be very interesting to see how this all plays out and how it impacts privatization/affordability of the other remaining Roosevelt Island Mitchell Lama buildings - Rivercross Coop and Westview rental.
Now, the owners of Roosevelt Island other Mitchell Lama rental building, Westview, have given notice of their intent to leave the Mitchell Lama program. According to the Westview Task Force (WTF), the Westview owners anticipate negotiating an affordability plan with the WTF over the next few months and will submit an affordability plan to the tenants, Roosevelt Island Operating Corp (RIOC) and NY State agencies within the next 30 days.
... justification and rectification of the estimated 20 vacant apartments. Also an explanation on why "internal apartment transfers" have been frozen....
Roosevelt Island's Assembly Member Micah Kellner provides some additional details on Island House Privatization with this Press Release:
“The Island House Affordability Plan signifies the next generation of affordable housing on Roosevelt Island and it should be used as a template for other Mitchell-Lama conversions throughout New York State,” said the Assembly Member. “This deal ensures affordability for all Island House residents and I am proud to have played a vital role in making it a reality. I will sleep well at night knowing that tenants will be able to keep their apartments – whether they own or rent – for years to come.”
“Our focus throughout this long process has been on maximizing affordability and protection for every tenant so that any tenant who wishes to stay in Island House, either as a buyer or renter, would be able do so,” said Graham Cannon, Chairman of the Island House Tenants Association. “We are delighted with this outcome. This is a very important breakthrough for the tenants of Island House. I especially recognize the efforts of our elected officials – especially Assembly Member Kellner and Councilmember Jessica Lappin – who played such a critical role in moving this forward.”
“The Affordability Plan is the culmination of many years of hard work among all of the stakeholders and was made possible only through the willingness of those involved to work cooperatively toward achieving a delicate balance among competing interests,” said David Hirschhorn, the General Partner of the ownership group.
The plan provides the following:
Island House residents will be able to purchase their apartments at a discount of approximately 65% off of the market price.
For those Island House residents who do not wish to purchase their apartments, they may remain as tenants for the next 30 years and will be protected under a rent stabilization- like program.
The Division of Housing and Community Renewal (DHCR) will continue to supervise the property to insure that the terms of the Affordability Plan are adhered to.
Owner contributes $9.6MM to building improvements and reserves
Owner pays $4,500,000 in transfer fees to RIOC
Tax Equivalency Payments for affordable units remain low during the 30 year affordability period and thereafter phase into a market level tax payment
During the 30 year affordability period, Island House residents (and future owners) may resell their apartments but are limited to the amount they can charge and are required to pay a significant portion of their profit back to the building, as well as a 1% fee to RIOC
Roosevelt Island Operating Corporation (RIOC) will receive substantial additional ground rents upon the expiration of the affordability period.
Under the Public Authorities Law, a 90 day notice letter was filed by RIOC on April 27, 2012. The closing of the Affordability Plan is scheduled for July 31, 2012.
The offering portion of the deal must still be submitted to the Office of the New York State Attorney General for acceptance of the cooperative offering plan.
More information on the Island House privatization as well as RIOC's 90 day notice letter available at prior post. I have asked RIOC to comment on the plan but have not received a response. Questions regarding the Island House privatization and affordability plan remain including from this reader:
What will this mean for those not currently residents of Island House but interested in moving there? Will the current wait list for rentals be converted to a waitlist to purchase, or will be there a new mechanism for filling future vacancies?
We could not be more delighted than to send to you the attached letter that was sent by RIOC on Friday to the heads of the relevant State agencies and the leadership of the New York State Legislature.
Quite simply, it represents the agreement, after so many years, of all the State agencies, as well as Governor Cuomo, to the affordability plan and the protection it represents for the 400 families of Island House, that we voted on in September 2009. With the issuance of this letter (commencing the required 90 day notice of action under the Public Authorities Act), RIOC will now proceed with a vote to extend the ground lease for Island House allowing our building to exit Mitchell Lama (as the owner has the right to do) and to enter into the terms of the Affordability Plan. As the letter makes clear, if, for some reason, the New York Attorney General, when he reviews the Offering Plan, were to deny the conversion portion allowing tenants to purchase their units as outlined in the plan, then every tenant would be covered by the affordable rent program in the Affordability Plan for the next 30 years.
We understand that there will be many questions regarding what all this means and next steps. We are working to set up a tenant meeting as soon as possible with the key principals involved so as to provide the ability for as comprehensive a discussion as possible. We will send out a notice of that meeting shortly, but we didn't want to delay getting this letter to you.
Re: 90-Day Notice Letter under the Public Authorities Law Roosevelt Island Operating Corporation Property: 551-575 Main Street - Ground Lease Modification and Extension Tenant : North Town Phase II Houses, Inc.
To Whom It May Concern:
Pursuant to subparagraph (ii) of paragraph (d) of subdivision (6) of § 2897 of Title 5-A of the Public Authorities Law, this explanatory statement is being provided at least 90 days prior to the disposal of property by negotiation.
EXPLANATORY STATEMENT
As authorized by Title 5-A, § 2897 (6)(c)(v) and § 2897 (7)(a)(ii) of the Public Authorities Law, The Roosevelt Island Operating Corporation (“RIOC”) consistent with its purpose, mission and governing statute intends to dispose of property by negotiation not less than 90 days from the date of this notice.
The disposition at issue concerns a proposed modification and extension of an existing ground lease (the “Ground Lease”) between the Roosevelt Island Operating Corporation (“RIOC”) and North Town Phase II Houses, Inc. (the “Housing Company”), governing a Mitchell-Lama building with 400 residential rental units located on Roosevelt Island (“Island House”). The equitable owner of the Housing Company’s interest in the Ground Lease (North Town Phase II Associates, LP, referred to herein as the “Partnership”), has agreed to create and implement a program to maintain Island House as an affordable housing complex through conversion of the building into condominium and cooperative units (the “Conversion”), pursuant to a thirty-year affordability plan (the “Affordability Plan”) approved by New York State Homes and Community Renewal. In exchange for the affordability-based Conversion, RIOC intends to grant the Partnership an extension of the expiration date of the existing Ground Lease from January 31, 2028 through December 22, 2068.
In addition, the proposed modification and extension of the existing Ground Lease provides for below-market ground rent payable to RIOC -- approximately 48% less than a full market ground rent unencumbered by the “Affordability Plan” for a lease extension through to 2068. The below-market ground rent was negotiated in exchange for the Partnership not exiting the Mitchell- Lama program at market. As a result of this agreement, Island House will maintain affordable housing -- at least 65% of the 400 units -- for an additional 30 years. RIOC supports affordable housing as part of its mission and statutory purpose.
In the event the Conversion is not approved by the New York State Attorney General’s Office, the building will convert as an “Affordable Rental,” whereby 65% of the 400 units will be subject to rent increases using as a base those percentage increases given to rent stabilized apartments for 30 years. Under this scenario, the below-market ground rent will be approximately 58% less than full market ground rent.
RIOC will not publicly advertise for bids before granting the lease extension and modification. Since the purposes of this property disposition are within RIOC’s purpose, mission and statutory authority, RIOC is availing itself of the exceptions within the Public Authorities Law previously cited herein.
PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will be held on Wednesday, May 2, 2012 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.
AGENDA
1. Chair’s Motion for Executive Session to Review and Discuss:
a. Responses to RFP's:
i. RFP#12-27395 Operation of a Kayaking/Rowing Concession in the Eastern Channel off Roosevelt Island; and
ii. RFP#12-27396 Operation of a Waterfront Food Concession on the West Promenade of Roosevelt Island;
b. Proposed Modifications to the Ground Lease for Southtown Buildings 7, 8 and 9; and
c. Proposed Modifications to the Ground Lease for Island House.
The April 16, 2012 Wall Street Journal had an interesting article on Bronx Mitchell Lama Co Op City's efforts to privatize out of the Mitchell Lama program:
Co-op City, the nation's largest cooperative housing complex, is in discussions with federal, state and city housing officials to secure a new $600 million, low-interest mortgage that would likely keep Co-op City as part of a middle-income housing program for years to come.
Built in the late 1960s and early 1970s, the sprawling 15,000-unit Co-op City complex in the northeast Bronx has been known as a middle-class stronghold. Moderate- and middle-income families can buy units at discounts to market rates through a state program known as Mitchell-Lama....
Click here for the entire Wall Street Journal article.
Unlike Co-Op City, Roosevelt Island's Island House is a rental Mitchell Lama building though Roosevelt Island's Rivercross is a co-op which is exploring exiting Mitchell Lama through privatization.
Roosevelt Island is a mixed income, racially diverse waterfront community situated in the East River of New York City between Manhattan and Queens and is jurisdictionally part of Manhattan. The Roosevelt Island Tramway, which connects Roosevelt Island to the rest of Manhattan, has become the iconic symbol of Roosevelt Island to its residents.
The Purpose of this Blog is to provide accurate and timely information about Roosevelt Island as well as a forum for residents to express opinions and engage in a dialogue to improve our community.
