RIOC Operations Committee Reviewing Roosevelt Island Capital Projects And Audit Committee Discussing Hudson Related Retail Profit Sharing Clause At February 27 Meetings

The Roosevelt Island Operating Corp (RIOC) Board of Directors Operations Advisory Committee and Audit Committee are meeting tomorrow, February 27.

According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Operations Advisory Committee of the RIOC Board of Directors will be held on Thursday, February 27, 2020 at 5:00 P.M. at RIOC’s Operations Office, 680 Main Street, Roosevelt Island, New York.

AGENDA:

Capital Projects Overview
Any Other Committee Business that May be Brought Before the Committee

You can follow the development stages of Roosevelt Island projects

Image From RIOC

Read more »

RIOC Board Of Directors Audit Committee Meeting Wednesday August 28 - Agenda Includes Presentation Of Proposed Budget For Fiscal Year 2020-21

The Roosevelt Island Operating Corp (RIOC) Board of Directors Audit Committee is meeting Wednesday, August 29. According to RIOC:

NOTICE OF THE AUGUST 28, 2019 MEETING OF THE AUDIT COMMITTEE OF THE ROOSEVELT ISLAND OPERATING CORPORATION BOARD OF DIRECTORS

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Wednesday, August 28, 2019 at 4:30 P.M. at the RIOC Administrative Office, 591 Main Street, Roosevelt Island, New York.
AGENDA:

1. Presentation of the Proposed Budget for Fiscal Year 2020-21.
2. Any Other Committee Business That May be Brought Before the Committee

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

RIOC's proposed budget for next year will show expected revenue, expenses and spending priorities for the Capital Budget.

An audio webcast of the Audit Committee meeting should be available soon thereafter.

RIOC's approved budget for current year (2019-2020) is here. 

We'll see if any of the newly appointed RIOC Directors have joined the Audit Committee.

Proposed Fiscal Year 2017-18 Budget On Agenda For Roosevelt Island Operating Corp (RIOC) Audit Committee Meeting Today - Projected Revenues Almost $28 Million, 7.6% Increase Over Previous Year

The Roosevelt Island Operating Corp (RIOC) Audit Committee is meeting later today.

Image From RIOC

According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Thursday, November 17, 2016 at 5:30 P.M. at the RIOC Administrative Office, 591 Main Street, Roosevelt Island, New York.

Agenda:

1. Discussion of the Proposed Budget FY 2017-18.

2. Any Other Committee Business That May be Brought Before the Committee

* * *

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

An audio web cast of the meeting will be available soon thereafter.

Revenue projections are as follows:

RIOC’s Proposed Budget FY 2017‐18 projects revenues of $27,969,000 and increase of $1,986,000 or 7.64% over the Approved Budget FY 2016‐17 amount of $25,983,000. 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 increase by $792,000 or 64.65%. This is mainly due to the projected construction of Southtown Building 8 and initial sales of co‐op apartments from Island House.

There is an aggregate increase of $1,044,000 or 9.42% in ground rent primarily due to escalations as specified in relevant ground leases and the projected construction of Southtown Building 8, which is expected to commence in April 2017. 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 $261,000 or 4.37%, due to over‐projection of the revenues in the FY 16‐17 budget.

Public Safety revenues are projected to increase by $70,000 or 3.71% due to contractual escalations.

Motorgate and metered parking revenues are projected to increase by $174,000 or 7.04%, mainly due to increased parking at Motorgate.

Interest revenues are projected to decrease by $57,000 or 34.97% due to the short‐term nature of investments and the current levels of interest rates.

Other Revenues is projected to increase by $209,000 or 13.23%. Most of the increase is due to Sportspark and field permit fees, commission on cellular telephone equipment, miscellaneous fees, and contributed rental income.

Click here for the full RIOC Proposed Fiscal Year 2017-18 Budget.

The Proposed Budget is expected to be approved during the December 8, 2016  RIOC Board meeting.

Roosevelt Island Operating Corp Board Of Directors Audit Committee Meeting Today For Presentation Of 2017-18 Budget - Open To The Public

The Roosevelt Island Operating Corp (RIOC) Board of Directors Audit Committee is meeting later today. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Wednesday, August 31, 2016 at 5:00 P.M. at the RIOC Administrative Office, 591 Main Street, Roosevelt Island, New York.

Agenda:

1. Presentation of the Proposed Budget FY 2017-18.

2. Authorization to Enter into Contract with EFPR Group, CPAS, PLLC for Independent Auditing Services.

3. Any Other Committee Business That May be Brought Before the Committee.

* * *

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

An audio web cast of the meeting will be available soon thereafter.

RIOC Audit Committee To Discuss Proposed Fiscal Year 2016-17 Budget Tuesday November 3 - Plans Spending Over $30 Million On Roosevelt Island Capital Infrastructure Improvements And Repairs

Image From RIOC

The Roosevelt Island Operating Corp (RIOC) Audit Committee is meeting tomorrow. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Tuesday, November 3, 2015 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

Agenda:


Discussion of the Proposed Budget for Fiscal Year 2016 – 2017
Any Other Committee Business That May be Brought Before the Committee

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

An audio web cast of the meeting will be available soon thereafter.

A copy of the Proposed RIOC Budget for Fiscal Year 2016-17 is here.

According to Pages 1-2 of the Proposed 2016-17 RIOC Budget:

RIOC’s Proposed Budget FY 2016‐17 projects revenues of $25,983,000, an increase of $618,000 or 2.44% over the Approved Budget FY 2015‐16 amount of $25,365,000. 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 ground rents, residential fees, 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 additional revenues ("Other Revenues"). Other Revenues mostly consist of FEMA reimbursements and permitting fees collected for activities that take place in the Sportspark sports facility, as well as permitting fees collected for outdoor field activities.

There is an aggregate increase of $336,000 in ground rent primarily due to escalations as specified in relevant ground leases. In addition, RIOC projects that the construction of Southtown Building 8, which is expected to commence not later than 2017, will result in ground rent of $598,000, which is budgeted for FY 2017‐18 in the 10‐year revenue forecast. Furthermore, projections for Rivercross and Westview are based on current level, however both projected ground rents are expected to increase.

Residential fees are projected to decrease by $96,000. This is mainly due to a projected decrease in transactions fees from Southtown Buildings condo sales as a result of reduced turnover.

Tramway revenues are projected to increase at approximately 3% or by $183,000, due to increased activities on the Island, primarily as a result of the Southtown 7 and Cornell developments; and increased visitorship to the Four Freedom State Park (“FFSP”).

Motorgate and metered parking revenues are projected to increase because of an increase in parking rates. And, commercial rents are projected to increase because of escalations in the terms of the commercial leases.

Other Revenues is projected to decrease by $36,000. Most of the decrease is due to $175,000 in FEMA reimbursements, projected to be paid in FY 2015‐16. Except for the decrease of FEMA reimbursements, other components of Other Revenues, which consist of Sportspark and field permit fees, commission on cellular telephone equipment, and miscellaneous fees, are projected to increase by $139,000.

Expenses

Personal Expenses

RIOC’s Proposed Budget FY 2016‐17 projects personal expenses of $11,105,628, an increase of $481,916 or 4.54% over the Approved Budget FY 2015‐16 amount of $10,623,712. The projected increase is due to proposed additional staffing to support elevated capital and operating activity, as well as salary increases in accordance with New York State’s Division of Budget allowance. The projected increase in personal expense is necessary for RIOC to fulfill its statutory mission to “plan, design, develop, operate, maintain and manage” Roosevelt Island.

The Island is currently experiencing an economic boom in real estate with the development of Southtown Building 7, as well as the development of the multi‐billion dollar Cornell campus site. 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 and projects to spend $30,186,000 on capital projects in the FY 16‐ 17...

Click here for the full RIOC 2016-17 Proposed Budget.

RIOC Audit Committee Meeting Today, Operations Advisory Committee September 8 - Roosevelt Island 2016/17 Proposed Budget, Current Projects, Infrastructure And Cell Antennas On Agenda

Image From RIOC 2015/16 Approved Budget

The Roosevelt Island Operating Corp (RIOC) Audit Committee is meeting today. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Thursday, September 3, 2015 at 5:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

Agenda:

Review of the Proposed Budget for Fiscal Year 2016 – 2017
Any Other Committee Business That May be Brought Before the Committee

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

RIOC's Operations Advisory Committee is meeting Tuesday, September 8. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Operations Advisory Committee of the RIOC Board of Directors will be held on Tuesday, September 8, 2015 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

AGENDA:

Review of Current Projects
Discussion of Core Infrastructure on Roosevelt Island – Power, Gas, Telecom, Water
Discussion of the Cell Antenna License Amendment with Verizon Wireless
Discussion of the Cell Antenna License Amendment with Sprint
Any Other Committee Business That May be Brought Before the Committee

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

Audio web casts of the meetings will be available soon thereafter.

Future RIOC Public Purpose Funds Process And 2015-16 Budget Subject Of Roosevelt Island Operating Corp Governance And Audit Committee Meetings December 3

Pile Of Money Image From Passive Income Genius

As reported last October 29:

Since at least 2008, the Roosevelt Island Residents Association (RIRA) has been tasked by the Roosevelt Island Operating Corp (RIOC) to evaluate applications and make recommendations to RIOC for the allocation of approximately $100 Thousand annually in Public Purpose Funds to Roosevelt Island non-profit organizations....

and:

... Question have been raised recently whether RIRA will continue with its role of making Roosevelt Island Public Purpose Funds recommendations to RIOC....

At that time, RIOC President Charlene Indelicato replied to my question about the future role of RIRA in the Public Purpose Funds process noting:

We have not finalized the method of distribution as yet but be assured it will be in accordance with all applicable laws, rules and regulations.

We may learn more about the future process for distribution of Roosevelt Island Public Purpose Fund later this week.

According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Wednesday, December 3, 2014 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

AGENDA

Discussion of Public Purpose Funds Approval Process

Any Other Committee Business That May be Brought Before the Committee

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

More on Roosevelt Island Public Purpose Funding process from previous post.

During October 22 RIOC Audit Committee meeting (full audio web cast here) Ms. Indelicato and RIOC CFO Frances Walton acknowledged that Public Purpose funding was included in the upcoming 2015-16 RIOC Budget.



Also, the RIOC Board Of Directors Audit Committee will be meeting this week. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Wednesday, December 3, 2014 at 4:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

Agenda:

Discussion of the Proposed Budget for Fiscal Year 2015 – 2016
Any Other Committee Business That May be Brought Before the Committee

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

As reported last November 6:

According to RIOC's Proposed Budget (Page 1)

Revenues

RIOC Proposed Budget FY 2015‐16 projects revenues of $25,365,000, an increase of $2,225,000 or 9.62% over the Approved Budget FY 2014‐15 amount of $23,140,000. RIOC generates most of its revenues from long‐term ground leases to developers of housing projects on the Island....

More information on the RIOC Proposed 2015-16 Proposed Budget from previous post and from the full RIOC Draft Budget.

Audio web casts of the Governance and Audit Committee meetings will be available soon thereafter.

Roosevelt Island Operating Corp Audit Committee Meeting Today On Proposed RIOC Budget For Fiscal Year 2015 -16

According to the Roosevelt Island Operating Corp (RIOC):

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Wednesday, October 22, 2014 at 4:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

Agenda


Review of the Proposed Budget for Fiscal Year 2015 - 2016

Any Other Committee Business That May be Brought Before the Committee

NY Empire State Development Corp Chief Financial Officer Frances Walton To Be Appointed CFO Of Roosevelt Island Operating Corp - Subject To Approval At January 23 Board Of Directors Meeting

As reported Monday, January 13:

The Roosevelt Island Operating Corp (RIOC) has been without a Chief Financial Officer (CFO) since September 2013. Later today, the RIOC Board Of Directors Audit Committee will meet to discuss the position of CFO in executive session which is closed to the public.

It appears RIOC has found a new CFO subject to approval by the full RIOC Board Of Directors. According to Item 1 of the January 23 RIOC Board Of Directors Meeting Agenda:

...1- Appointment of Frances Walton to the Position of Chief Financial Officer and Vice President for Financial Affairs of the Corporation (Board Action Required)...

Ms. Walton is currently the CFO of the NY Empire State Development Corp (ESDC). According to the ESDC:

Frances Walton is the Chief Financial and Administrative Officer of Empire State Development (ESD). She has almost 30 years of experience in public administration and the financial services industry. Her broad range of expertise includes strategic planning, capital financing, debt management, credit enhancement, asset management, real estate and capital project analysis, budgeting, cash management, banking, treasury operations, administration, human resources management and management information services.

Since 1997, Frances has directed all financial functions including financing and debt issuance on behalf of the Corporation, its subsidiaries, Job Development Authority, and LDCs aggregating approximately $10 billion. She directs the Treasury function, Controller/Accounting, Portfolio Management, Contract Administration and Subsidiary Finance, Loans and Grants, Real Estate & Project Finance programs...

Ms. Walton's full bio is here.

On January 9 Susan Arbetter of WCNY's Capital Pressroom tweeted:

Source: Frances Walton, Chief Financial and Administrative Officer of Empire State Development since 1997, is being replaced by @NYGovCuomo
— Susan Arbetter (@sarbetter) January 10, 2014

Ms. Walton was also the President of the Brooklyn Arena Local Development Corp (BALDC), a NY State entity formed to issue bonds for the Forest City Ratner Atlantic Yards (Barclay Arena) project.

Image Of Ms. Walton (on right) Being Interviewed About BALDC From Atlantic Yards Report

Forest City Ratner is the Master Developer for the Cornell NYC Tech Roosevelt Island campus.

Roosevelt Island Operating Corp Without Chief Financial Officer Since September 2013 - RIOC Audit Committee Meeting Today To Discuss

The Roosevelt Island Operating Corp (RIOC) has been without a Chief Financial Officer (CFO) since September 2013. Later today, the RIOC Board Of Directors Audit Committee will meet to discuss the position of CFO in executive session which is closed to the public. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Monday, January 13, 2014 at 5:15 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.
Agenda:
1. Chair’s Motion for Executive Session Regarding the Chief Financial Officer Position;
2. Any Other Committee Business That May be Brought Before the Committee

RIOC has undertaken a complete overhaul of senior management during the last 18 months beginning with the still unexplained departures of its President in September 2012 and Vice President Of Operations in December 2012 and then followed in 2013 by the departures of the head of Engineering, Public Safety Department Director and CFO.

Currently only the positions of RIOC President and Interim Public Safety Department Director have been filled.

According to RIOC (Page 3)

... Proposed Budget for FY 2014-15 eliminates the position of Vice President/Chief Operating Officer and replaces it with the position of Vice President/Compliance Officer to facilitate RIOC’s compliance with the applicable statues, regulations, rules, policies and procedures...

and (Page 3):

...Engineering & Maintenance – as discussed in the Capital Projects section below, there are many major capital projects that are budgeted for the next 2 years. An engineering firm, Hill International, was engaged in FY 2014 to provide consulting services to oversee these projects. These services are expected to continue and budgeted for in FY 2015....

Without A Chief Financial Officer, Roosevelt Island Operating Corp Audit Committee Meeting Today For Presentation Of 2014 -2015 Budget

According to the Roosevelt Island Operating Corp (RIOC):

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Wednesday, September 11, 2013 at 5:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.
Agenda:

Initial Presentation of the RIOC 2014 - 2015 Budget

Chair’s Motion for Executive Session to Discuss Personnel Matters

Any Other Committee Business That May be Brought Before the Committee

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

Sincerely,

Roosevelt Island Operating Corp Advisories Group

An audio web cast of the meeting will be available soon thereafter.

It will be interesting to see how RIOC puts together the 2014-15 Budget without a Chief Financial Officer as part of its Executive Staff. As reported August 30:

More Senior level management upheavals at the Roosevelt Island Operating Corp (RIOC). Chief Financial Officer Steve Chironis

Image of RIOC CFO Discussing RIOC 2011-12 Fiscal Year Budget At December RIRA Meeting

will no longer be working at RIOC after today....

and:

... Mr. Chironis was RIOC Chief Financial Officer since 2008. He was a competent professional respected by the Roosevelt Island community but without a political "rabbi" for support at RIOC. He will be missed...

Here's the RIOC approved budget for 2013 -14.

Roosevelt Island Discretionary Spending Subject Of Today's RIOC Audit Committee Meeting - Also Will Discuss Personnel Matters But In Executive Session Closed To The Public

 Image From RIOC

According to the Roosevelt Island Operating Corp (RIOC):

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Wednesday, August 28, 2013 at 5:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

Agenda:

Discussion of Discretionary Spending Guidelines

Chair's Motion for Executive Session to Discuss Personnel Matters

Any Other Committee Business That May be Brought Before the Committee

Will find out what RIOC considers to be "discretionary spending".

An audio web cast of the meeting will be available soon thereafter.

Body Cameras For Roosevelt Island Public Safety Officers On Agenda For RIOC Operations Committee Meeting Today - Are Body Cameras A Good Idea?

The Roosevelt Island Operating Corp (RIOC) Operations Advisory Committee is meeting later today. The sole Agenda Item is a presentation on the use of body cameras for Public Safety Officers. According to RIOC

PLEASE TAKE NOTICE that a meeting of the Operations Advisory Committee of the RIOC Board of Directors will be held on Monday, March 11, 2013 at 4:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

Agenda:

1. Presentation from TASER on Axon Flex Body Cameras

***
The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

More on the use of body cameras by Modesto California police officers in this video.



WNYC reported on the proposed use of body cameras by the Roosevelt Island Public Safety Department:

Roosevelt Island is planning to put body-mounted cameras on their public safety officers.

This follows an incident in January in which a 20-year-old man was allegedly beaten by the officers, and years of what residents say is excessive use of force by their public safety department....

and:

... But Eugene O’Donnell, a professor of police studies at John Jay College, says that what works for some police departments might not be the right solution for Roosevelt Island.

“Probably the only thing you’d be offering with a camera is a chance to stop gross abuses and misconduct rather than creating a culture where courtesy and service and professionalism were at the center of what was going on,” said O’Donnell. “So it’s sort of...in my view, the backward approach to a problem.”

O'Donnell says recruitment, training and oversight are the first things that need to be addressed for Roosevelt Island’s Public Safety Department....

Click here for the entire WNYC article and listen to report below.



More on Public Safety body cameras and brutality allegations from previous posts.

An audio web cast of the Operations Committee meeting will be available soon thereafter.

Following the Operations Committee meeting, the RIOC Audit Committee will meet. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Monday, March 11, 2013 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

AGENDA

1. Discuss Development of a Written Policy Governing the use of RIOC's Discretionary Funds
2. Any Other Committee Business Which May be Brought Before the Committee

An audio web cast of the Audit Committee meeting will be available soon thereafter.

UPDATE 9:30 PM -  According to Taser:

Testimony is Interesting. Video is Compelling.

Improves behavior of all parties during police interactions.

Reduces false complaints and lawsuits by accurately capturing video from the officer’s perspective.

Saves time and increases efficiency – officers spend more time on patrol with automated workflows that reduce administrative workload.

Pre-event video buffer yields the greatest reduction in complaints and lawsuits when actions leading up to the incidents are recorded.

Low light recording best shows what the human eye actually sees.

Enhances public trust and creates safer communities at a lower cost.

Below is the Roosevelt Island Body Camera presentation by Taser's Josh Isner to RIOC Operations Advisory Committee earlier today.

Part 1



and Part 2.

Update On Roosevelt Island Development Bond Debt - RIOC Has No Obligation To Repay Original Bonds To NY State According To RIOC Audit Committee Chair

Image of Bond Debt From Painependant

In previous posts last November, Roosevelt Island Residents Association (RIRA) Planning Committee Chair Frank Farance questioned whether there were long term bond obligations owed by the Roosevelt Island Operating Corp (RIOC) to agencies of the State of New York. Mr. Farance wrote:

In the prior issue of the WIRE and on the Roosevelt Islander Blog, my letter suggested as much as a $400 million liability for RIOC. I was wrong. I've looked into the supporting paperwork and it appears that almost a BILLION dollars are due to UDC (Urban Development Corporation, now named Empire State Development Corporation - ESDC). According to the Revenue Allocation Agreement of August 3, 1988:...

Roosevelt Island Operating Corp (RIOC) Board Member and Audit Committee Chair Howard Polivy answered Mr. Farance:

There are some very basic misunderstandings in Mr. Farance’s recent letter to the Wire. Let’s start at the beginning. The New York State Urban Development Corporation (UDC) was conceived in 1968 primarily to build state-subsidized housing projects. UDC is now doing business as Empire State Development Corporation (ESDC).

The bond debt belongs with ESDC, not RIOC. By statute, RIOC cannot take on any debt....

Roosevelt Island resident Trevre Andrews followed the discussion between Mr. Farance and Mr. Polivy and asked Mr. Polivy:

Dear Mr. Polivy,

I appreciate the information you provided to the Roosevelt Island blogger but I believe we need some more clarification particularly in light of the numerous failing municipalities across the country and questionable financial practices that continue to be ongoing inside and out of New York City. The issue of the island budget is immensely important to homeowners and residents on the island and without our scrutiny and attention to detail many of us are not convinced there are enough checks and balances on RIOC and the state to give everyone a clear picture of the finances.

If the bond debt used to develop the island doesn’t belong to RIOC why is RIOC making any effort to pay it back?

Can you direct me to where I would find the specific terms of the bonds used to improve the island?

Would residents who have bought condominiums on the island retain ownership after the RIOC lease of the island is up and if so what is their responsibility to pay off any remaining RIOC obligations?

Thank you, I appreciate your time in answering my questions.

Mr. Polivy responded to Mr. Andrews, Mr. Farance and the rest of the Roosevelt Island community in this message I received last Friday.

The debt created when Roosevelt Island was developed was issued by, and remains the responsibility of, the Urban Development Corporation (now ESDC, the Empire State Development Corporation). RIOC financial responsibilities to its related state agency, ESDC, are strictly limited, and specified in the Revenue Allocation Agreement. Specific "taxes" and "rents" are designated by mutual agreement to flow directly to ESDC and do not appear on RIOC's books. The only funds payable from RIOC arise as surplus after normal Operations are provided. This means that RIOC is, first and foremost, responsible to serve the development and operating needs of Roosevelt Island. Only after funds are not needed to serve its community operations is it permitted to send funds off to ESDC. Since no one can be sure that an operational surplus actually exists until after the responsibility to provide the enumerated community services is discharged, no net payments are anticipated until the Master Lease terminates.

RIOC, an independent political subdivision of the State of New York, does not have any portion of the original UDC debt. Since RIOC's limited responsibility to ESDC is contingent, both as to amount and timing, it does not appear on the balance sheet.

Howard Polivy
Member, Board of Directors, RIOC
Chair, Audit Committee

Links to the supporting documents are provided in this post.

A webcast of the most recent RIOC audit committee meeting is here.

UPDATE 12/13 - Audio webcast of RIOC Audit Committee December 7 meeting is below.

Roosevelt Island Operating Corp Audit Committee Meeting Today On Proposed RIOC Budget For Fiscal Year 2012 -13

Image of RIOC CFO Steve Chironis (Standing) Presenting Prior Proposed RIOC Budget At September 2010 RIRA Meeting

According to the Roosevelt Island Operating Corp (RIOC):

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Wednesday, December 7, 2011 at 4:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.
1.
AGENDA
Review of the Proposed RIOC Budget for FY 2012-2013.

More on RIOC's budget from previous posts and here is the proposed RIOC fiscal year 2012-13 budget. (You may not be able to access RIOC's proposed budget at the moment since I am told RIOC is experiencing web hosting problems at the time of this posting.)

An audio webcast of RIOC's Audit Committee meeting will be made available a few days after the meeting. That is assuming the web hosting issues do not affect the recording.

UPDATE 12/12 - Audio webcast of Audit Committee meeting is available here.

Who Owes The NY State Bond Debt Used To Build Roosevelt Island, Empire State Development Corporation (ESDC) or Roosevelt Island Operating Corporation (RIOC) - Not Us Says RIOC

Image of Bond Debt From Painependant

A previous guest post by former Roosevelt Island Residents Association President (RIRA) and current Planning Committee Chair Frank Farance raised an issue of the long term financial stability of the Roosevelt Island Operating Corp (RIOC): According to Mr. Farance's November 9 Post:

... there are some topics of real and long- term consequence that affect all residents. One topic is the long-term finances of the Island. Roosevelt Island was built in the 1970's with hundreds of millions in bonds. I've heard that as much as $400 million is due, of which RIOC's "profits" will pay it down....

Mr. Farance follows up on previous post with:

A BILLION DOLLAR MESS

In the prior issue of the WIRE and on the Roosevelt Islander Blog, my letter suggested as much as a $400 million liability for RIOC. I was wrong. I've looked into the supporting paperwork and it appears that almost a BILLION dollars are due to UDC (Urban Development Corporation, now named Empire State Development Corporation - ESDC). According to the Revenue Allocation Agreement of August 3, 1988:

• ... WHEREAS, in order to develop the Premises [Roosevelt Island] in according with such lease, UDC borrowed funds to finance construction of public facilities including without limitation, roads, sidewalks, sewer system, AVAC, water lines, schools, promenades, recreational facilities, a tram, parking garages, other parking facilities and other public facilities;
• WHEREAS, in addition, other funds have been advanced to cover deficits arising from the operation and maintenance of the Premises;
• WHEREAS, under chapter 899 of the New York Laws of 1984 (the "RIOC Act") UDC is required to assign the Master Lease to RIOC;
• WHEREAS, the RIOC Act provides, in pertinent part, among other things, that all revenues derived from the contracts, leases, agreements or instruments assigned to or assumed by RIOC pursuant to Section 6 Subdivision 2 of the RIOC Act be applied first to the payment of obligations assigned to or assumed by RIOC, as more fully provided herein;
• WHEREAS, the RIOC Act further provides the UDC and RIOC shall enter into such agreements and take such actions to permit UDC to recover the investment it has made in the Premises; ...

As of March 31, 1987 the Accrued Operating Deficit was $54,894,528 and the Public Facilities Debt was $117,462,448 (see PDF page 18 of the August 3, 1988 Revenue Allocation Agreement). In addition, another approximately $50 million operating deficit has accrued since the agreement. With an agreed upon interest rate of 5.74% per annum, the total due this fiscal year is $857 million. The annual interest is about $50 million (over $4 million a month), which dwarfs RIOC's $20 million in annual revenues. RIOC Board members frame this in wishful thinking (I Hope The State Doesn't Ask For Its Money), but this is a BILLION dollar Oops!, and it is off RIOC's balance sheet.

I'm sure we'd wish for ESDC to forgive the debt, but our billion dollar liability is their billion dollar asset and I'm not hopeful that ESDC (the State's flagship entity for economic development) is willing to take a couple black eyes when it might affect their ability to issue bonds (read: in ESDC vs. RIOC, I'm guessing RIOC loses).

As a former RIRA President, I complained loudly about the inadequacy of RIOC's 5-year budget and RIOC started providing 15-year projections, which had revealed significant risks and liabilities. Again, I ask RIOC Board members to disclose the true finances of RIOC and to explain their financial plans.

[Attached documents: #1 August 3, 1988 Revenue Allocation Agreement, which references the other three documents of July 21, 1988: #2 Assignment and Assumption Agreement, #3 Phase I Subleases and Revenue, #4 Other Agreements. Important Note: There are other records, I am awaiting a response from RIOC.]

In addition to being published in this Blog, Mr. Farance's statement was also published as a Letter to the Editor in the November 19 Main Street WIRE. Prior to publishing Mr. Farance's guest post, I asked RIOC:

Frank Farance has submitted the following article regarding the finances of Roosevelt Island Operating Corp. Mr. Farance asserts, based upon his review of certain documents described in his article, that almost a billion dollars are owed to the State of NY.

Is Mr. Farance correct? If not, can you clarify what is the current state of debt owed, if any, by RIOC to NY State or any of it's Agencies.

I understand this is a very important issue and am checking with you before publishing Mr. Farance's article. I plan to publish it on Friday. A comment from RIOC regarding the accuracy of Mr. Farance's article would be very helpful. If you do not wish to comment, please let me know that as well.

I received this reply from Howard Polivy, RIOC Board Member and Chair of RIOC's Audit Committee yesterday (Monday) afternoon:

There are some very basic misunderstandings in Mr. Farance’s recent letter to the Wire. Let’s start at the beginning. The New York State Urban Development Corporation (UDC) was conceived in 1968 primarily to build state-subsidized housing projects. UDC is now doing business as Empire State Development Corporation (ESDC).

The bond debt belongs with ESDC, not RIOC. By statute, RIOC cannot take on any debt. That’s why it’s quite properly not shown on our books. However, since the WIRE buildings were built with the UDC financing, it’s only reasonable and fair that any revenues derived from them would be split between RIOC and ESDC. Therefore, the RIOC Act requires a formal revenue allocation agreement exist that addresses how RIOC revenues should be split with ESDC. Part of that agreement requires that RIOC pass through PILOT payments (Payment in lieu of taxes) and gives ESDC a portion of the ground rent collected. RIOC has been doing that for the past 24+ years. Other income could/should theoretically be shared with ESDC but only after all other capital improvement payments have been deducted against operating incomes. When deducting all capital expenditures there are no expected excess funds to be shared through to 2068.

RIOC's annual budget and financial statements properly restrict themselves to its own direct receipts, expenses, assets, and liabilities.

So, bottom line, there’s no big groundswell of debt piling up ready to swallow up the Island. The board is not crossing its fingers and hoping the State won’t notice that RIOC owes them money. The board and RIOC staff is now, and has for the last 24+ years, been responsibly living up to its agreement with NY State.

RIOC Board Of Directors Audit Committee Meeting Today To Discuss Compensation - NY State ABO Issues Report On Public Authorities

The Roosevelt Island Operating Corp. (RIOC) Board Of Directors Audit Committee will be meeting this afternoon. ( A webcast of the meeting will be available soon thereafter.) According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Compensation Subcommittee of the Audit Committee of the RIOC Board of Directors will be held on Thursday, July 15, 2010 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

The Subcommittee will meet to:

1. discuss and make recommendations concerning the payment of formerly-authorized performance awards; and
2. discuss any other matters current and relevant to the subcommittee's mandate.

The newly formed NY State Authorities Budget Office (ABO) oversees NY Public Authorities of which RIOC is one of more than 700. The ABO issued it's first report earlier this month. According to the report:

The independent Authorities Budget Office (ABO) was created pursuant to the 2009 Public Authorities Reform Act (PARA). The ABO and the Act took effect on March 1, 2010. Prior to this date, the ABO existed for four years as the Authority Budget Office pursuant to the Public Authorities Accountability Act of 2005 (PAAA). From its inception, the mission of the ABO has been to make public authorities more accountable and transparent, and to act in the public interest consistent with their intended purpose. The ABO carries out its mission by: collecting, analyzing and disseminating to the public information on the finances and operations of state and local public authorities; conducting reviews to assess the operating and governance practices of public authorities and compliance with state laws; exercising its enforcement powers; promoting good governance principles through training, policy guidance, the issuance of best practice recommendations and staff assistance; and investigating complaints made against public authorities for non-compliance or inappropriate conduct.

Consistent with its original statutory powers and duties under the PAAA, the Authority Budget Office focused its initial efforts on collecting and analyzing standardized budget, financial, program and operating information submitted by public authorities, conducting 21 onsite reviews of the management practices of certain authorities and their compliance with state laws, and training the directors of public authority boards on their fiduciary responsibilities. The ABO will continue these efforts under PARA and exercise its additional oversight and enforcement power to assure the compliance of public authorities...

The ABO report mentions Roosevelt Island and RIOC 3 times.

• Page 16 - Public Authorities Reporting No Debt During 2009
• Page 17 - 2009 Staffing Levels of 165 total and
  
• Page 20 - number of 2009 Procurement contracts of 194

Below is the 2009 RIOC Annual Report
ABO Roosevelt Island 2009 Report

and budget through fiscal year 2011 submitted to the ABO.
Roosevelt Island ABO Budget Report

Additional and more recent financial reporting information is available at RIOC's web site.

The NY Times City Room Blog has more on the ABO report:

... New York’s public authorities racked up more than $17 billion in new debt in 2009 and many failed to comply with the reforms contained in the new law, according to the report released this month by the Independent Authorities Budget Office.

The $17 billion in new debt brings the total debt accrued by authorities to $133 billion, the report states. The largest contributors to the total debt are the Dormitory Authority, which accounted for more than $38 billion, and the Metropolitan Transportation Authority, which contributed more than $28 billion.

More than 140 authorities failed to provide budget reports to the Independent Authorities Budget Office and 175 did not provide annual reports, the report said....

RIOC Audit & Operations Committee Meetings Today - Motorgate Lights, Octagon Field, Public Safety, Red Bus,Southpoint,Tram & Outside Auditor On Agenda

The Roosevelt Island Operating Corp. (RIOC) Audit Committee and Operations Committee will be meeting later today. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Tuesday, May 4, 2010 at 4:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

The agenda for the meeting will be:
1. to discuss the selection of the outside auditors; and
2. any other such matter as may come before the Committee.

and:

PLEASE TAKE NOTICE that a meeting of the Operations Advisory Committee of the RIOC Board of Directors will be held on Tuesday, May 4, 2010 at 5:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

The Committee will meet to discuss:
1. Motorgate Lights (Demo);
2. Octagon Soccer Field;
3. Public Safety;
4. Red Bus Service;
5. Southpoint Park; and
6. Aerial Tramway Modernization Project progress.

An audio webcast of the meeting will be available soon thereafter.

RIOC Audit Committee Meeting Today To Review NY State Comptroller's Audit and Roosevelt Island Budget For Fiscal Year 2009-10

Audit Image From Courier Times

According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Thursday, December 3, 2009 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.
The Committee will meet to:

1. review RIOC’s response to an audit by the Office of the State Comptroller (“OSC”);
2. review the results of the OSC visit; and
3. receive an update on the FY 2009-10 RIOC budget.

The meeting will be webcast and available for live viewing and archived here.

The RIOC web site has more information on Roosevelt Island finances here as well as a Mid Year Financial Report for six months ending September 30 2009.

Previous NY State Comptroller audits involving Roosevelt Island are listed here.