After 2 1/2 Years Of Review, NY State Attorney General Approves Roosevelt Island Westview Building Affordability Plan - Former Mitchell Lama Building Will Begin Coop Conversion, Current Residents Can Buy Apartments On Average of $246 PSF, Or Remain As Renters

On a regular basis over the last 2 1/2 years,  Roosevelt Island Westview 

residents have been asking about their building's privatization and affordable co-op conversion plan status, expressing frustration 

at not getting any information from the building ownership or the Westview Task Force, purportedly representing the residents:

 I am a tenant at the Westview. Although the deal on the building's privatization has been reached 2 years ago, nothing happened since then. And we get no info on the process from anyone..

Early Saturday morning April 3, the Westview Task Force answered with an email announcing

Friends, Neighbors, Westview Residents,

Great News!

We are very pleased to inform you that the NYS Attorney General has accepted the Westview Affordability Plan allowing Westview to proceed with conversion of the building.

In the coming weeks, the Sponsor plans to distribute the approved Offering Plan (aka Black Book) to all tenants.

Once the Black Book is available our attorneys will provide a summary of the approved Plan.

We also plan to schedule Q/A sessions (virtual and/or voice) regarding the Plan and next steps.

It has been a long wait for everyone and we are thrilled to share this news with you today.

Thank you to all for your patience and support.

On Monday, April 5,  David Hirschhorn, the managing member of Westview's ownership, confirmed acceptance of the offering plan by the NY State Attorney General. 

                       Image Of Mr Hirschhorn Conferring With Then RIOC President Susan Rosenthal During June 2018 Westview Town Hall

 Mr Hirschhorn issued this statement on behalf of the Westview ownership:

Perched atop the East River on Manhattan’s Roosevelt Island, coop apartments in the 19-Story, 360 unit Westview Apartments will soon be offered for sale. The New York State Attorney General has just accepted the offering plan for filing allowing sales of these much anticipated coop apartments to proceed. “We are extremely pleased to now be able to move forward with the sale of these apartments to both our existing tenants, who have so patiently awaited this day, as well as to new individuals and families looking for reasonably priced highly customized renovated apartments on Roosevelt Island,” says David Hirschhorn, managing member of the developer, WV Preservation Partners, LLC,

Westview was one of four original Roosevelt Island buildings that were developed in the 1970s as part of the New York State Mitchell-Lama program providing affordable housing for middle income residents. In 2018, Westview withdrew from the program – the last of the island buildings to do so. “We are very appreciative of the tremendous effort and support that we received from our State partners, including the Governor’s Office, the Division of Housing and Community Renewal, the Roosevelt Island Operating Corporation and Empire State Development, without whose participation in this public – private partnership the conversion of Westview and the preservation of affordable housing would not have been possible,” said David Hirschhorn.

In 2015, the same developer successfully converted Island House, Westview’s sister property next door; it was extremely well-received by both existing residents and outside purchasers.
As in Island House, Westview will offer existing tenants the unprecedented opportunity to purchase their apartments for well below market prices or, for those tenants who elect not to purchase, they will be able to continue to rent their apartments with rent increases based on the RGB increases (although the apartments are not rent stabilized).

“Buyers looking to experience Manhattan's best kept secret will soon have the opportunity to purchase fully renovated units with high end finishes and unparalleled Manhattan views on Roosevelt Island – only 90 seconds to the East Side. Its like living in your own private park,” says Alyssa Brody of the Development Marketing Team (alyssa@devmarketingteam.com). A limited number of similar residences are immediately available at Island House.

I asked Mr Hirschhorn:

Have there been any changes to the Affordability Plan since agreed to by owner and residents?

He replied:

No material changes, other than that I have more grey hair now.

 Roosevelt Island resident and real estate agent Kaja Meade adds:

This has been a long anticipated outcome. 

Co-op living is real investment in community. Roosevelt Island has peaked a lot of interest from off-island buyers lately, and if that can benefit Westview sellers that have been waiting through this process, than that's great. 

It's also exciting that new co-op owners, that are able to buy their own units, will enjoy the benefits of ownership. Roosevelt Island has a deep community history, and folks continuing to rent in Westview will hopefully enjoy building improvements and shareholder vested interest in a great new co-op.

As reported July 23, 2018, the NY State Department of Homes & Community Renewal (DHCR) approved the terms of the Westview Affordability Plan as detailed in this memo of support to the Roosevelt Island Operating Corp (RIOC):

Executive Summary

The decision to be made is whether the State (ESD, RIOC, and HCR) should take the necessary steps to approve an affordable home ownership conversion plan for Westview on Roosevelt Island. The Plan provides for current tenants to be able to purchase their apartments at below market value with non purchasers receiving guaranteed rent protections. In approving the Plan, the State will need to extend the Ground Lease as follows: an increase in effective annual ground to $325,000 escalating by 10% every 5 years through 2048 and then 4% annually through 2068.

The reasons to support the Plan are as follows:

• Preservation of Mitchell-Lama(s) (M/L) as a housing resource is a priority policy initiative;
• Non-purchasing tenants will have annual rent increases limited to a formula based on % of AMI tied to NYC Rent Guidelines Board rates
• Non-purchasing tenants will face an initial 6.16% increase (the first at Westview since 2009), down from an initially proposed 14.8% increase
• Residents are being offered to purchase apartments at approx. 30% of market value with limitations being imposed on re- sales; rent protections tied to RGB guidleines are guaranteed for non-purchasers;
• Income restrictions for new purchasers based upon the statutory M/L formula;
• Sponsor contributions and flip tax proceeds fund a substantial capital reserve fund;
• Substantial flip taxes on affordable units help keep project affordable;
• The Plan is overwhelmingly supported by the Westview tenants, with 92% of those voting in favor of the Plan (73% of the apartments voted);
• The Plan is supported by local elected officials, including AMB Seawright and MBP Gale Brewer;
• All of the above vs. the owner exercising the option to buyout of the M/L program and transition Westview to a market rate rental or coop likely forcing a significant number of families to relocate
• Sponsor will deposit into a special fund $3.6 million for Tenant Association expenses and other building related items as may be jointly approved by the Board of Directors of the Corporation and the Sponsor.

Background

Westview is a 361 unit Mitchell-Lama rental housing development on Roosevelt Island. In 1969, the City of New York leased Roosevelt Island to the Urban Development Corporation (UDC) for a period of 99 years. A master development plan, later amended, for the creation of a mixed income community was implemented. UDC (now known as ESD) thereupon entered into subleases with the four housing companies developed under the M/L program, Westview being one of them. The Westview sublease (hereafter referred to as the “Ground Lease”) expires in 2028.

Mitchell-Lama Law/Voluntary Dissolution

Westview is organized pursuant to Article II of the Private Housing Finance Law (PHFL); Section 35 of the PHFL allows a M/L housing company to voluntarily dissolve (buyout), without the consent of the Commissioner, upon prepayment of its mortgage after twenty years from the date of initial occupancy. Westview is currently eligible to voluntarily dissolve. Of the 282 State M/L(s) originally constructed, 133 have bought-ought of the program.

Starting with the Spitzer Administration, a policy initiative was developed to aggressively pursue the preservation of M/L companies as an affordable resource, and these efforts have been greatly expanded upon during the Cuomo Administration. In the case of Westview, we engaged the owner, David Hirschhorn, to discuss the possibility of a conversion to a Business Corporation Law (BCL) cooperative (but with long-term affordability restrictions) modeled on the cooperative regime implemented as part of the 2012 buyout of Westview’s sister property, Island House, from the M/L program. Mr. Hirschhorn has agreed to such an approach, and the current Plan under consideration is the product of our negotions with him and his subsequent agreement to proceed on such basis.

The Affordability Plan

The major provisions of the agreed upon Affordability Plan are as follows:

• The term of the Affordability Plan is 30 years.
• Insider prices on average of $246 per sq. ft. (market price of $816 per sq. ft.)
• Initial resale price by purchaser – $492 per sq. ft. (increasing annually by 7.5%) The first $6 million of flip tax proceeds will be deposited into the Apartment Corporation’s Reserve Fund account. Therafter, the next flip tax proceeds will be distributed a) 50% to the Sponsor, up to the difference between the Reserve Fund contribution, and the Local Law 70 Reserve Fund contribution, and b) the remaining 50% shall be deposited into the Apartment Corporation’s Reserve Fund account. All flip tax proceeds thereafter shall be deposited into the Apartment Corporation’s Reserve Fund account.
• A flip tax equal to 60% of the gross profit for the first two years, declining by 5% per year to 30%, then declining by 2% per year to 22% through year 30 will be assessed on insider first time sales
• Future purchasers must meet income qualifications for admission based upon the M/L statutory formula of: “[Max. Income for Admission = 7X or 8X (depending on family size) the annual carrying charge + 6% of equity]”
• Non-purchasing tenants will receive annual rent increases equal to the then 1 year RGB increase plus a % based upon income as it relates to AMI; for households with an income at less than 200% of AMI, the annual increase cannot exceed 7.5%.
• Sponsor will fund a $6 million reserve fund for specified capital improvements. 
• Spsonsor is permitted to sell up to 45% of units at market.

RIOC

Regarding RIOC’s ground rent payments, an agreement has been reached on an annual ground rent payment beginning at $325,000. In total, there are three (3) revenue sources being used to generate payment under the ground lease: a) a direct ground rent payment of $325,000 escalating at 10% every 5 years through 2048 and then 4% annually through 2068; b) a 5% capital event fee on all sponsor sales (capped at $1,500,000); and c) a 1% transfer fee on all re-sales.

While the negotiated ground lease terms are less favorable than what RIOC had sought based on its appraisal of the land (and admittedly represent a lower percentage of notional value than was achieved as part of the conversion and exit from the M/L program of Westview’s sister property, Island House, in 2012), the negotiated Westview lease terms nonetheless represent in whole dollar amounts a reasonable improvement over what was achieved at Island House ($236,000 per year) in 2012, and constitute a critical and necessary component of the grand bargain being struck with the owner that is enablingWestview to remain affordable for renters for 30 years and to offer affordable  first-time homeownership.

Discussion

Other than the 2012 conversion of Island House, there has never been a successful conversion of a State Mitchell-Lama rental to affordable home ownership (a NYC supervised M/L, West Village, has been successfully converted). The difficulty encountered is the need to satisfy the goals of both the owner and residents, while maintaining affordability. On the one hand, the owner is being asked to leave some money on the table (it has been pointed out that, in this case, the owner’s profit potential is somewhat limited by only 10 years remaining on the existing ground lease) by offering the sale of units at 30% of market. From the perspective of those tenants considering purchasing, they are being asked to make a fairly significant investment and not only must determine whether the additional monthly cost is affordable but whether the potential return justifies making the investment. Also a factor for the tenants to consider is the owner’s right to exit the Mitchell-Lama program and operate the property as a market rate rental which likely will cause a significant number of families to have to relocate.

In sum, we are attempting to achieve a balance as to the owner’s and tenants’ interests and, once having done so, incorporate additional restrictions so that affordability for future residents and non-purchasers is being achieved.

Summary and Recommendation

To summarize, an agreement has been reached among the involved parties to offer an affordable home ownership opportunity to Westview tenants while preserving long-term affordability for those who choose not to buy and instead continue to rent. Further, an agreement has been reached to extend the Ground Lease between RIOC and the property owner, a necessary action to implementing the conversion. The agreement was successfully negotiated with the knowledge that a failure to do so would result in Westview’s withdrawal from the M/L program and it becoming a market rate rental.

The structure of the conversion plan – insider pricing, flip taxes, resale prices, capitalized reserves, and regulated rents, etc. – negotiated between the owner and the Tenant Association representatives – was presented to the tenant body and received overwhelming support. Also, future ground rent payments through the end of the extended lease term have been settled upon between the owner and RIOC, which effectively reach market levels during the post-affordability term. We view the agreement in its entirety as successfully achieving the State’s goal of preserving Mitchell Lama housing as an affordable housing resource and recommend you support the Plan.

Here's video of the July 23. 2018 RIOC Board Meeting approving the Westview affordability plan.

Roosevelt Island Westview Building Residents Frustrated At Getting No Status Update On Affordable Coop Conversion Offering Plan - Ownership And Tenants Task Force Reply Process Will Be Completed Soon

On a regular basis over the last several months Roosevelt Island Westview Building

 residents have asked about their building's 

                                                                                 Image From 2018 Westview Town Hall

privatization and affordable co-op conversion plan status, expressing frustration at not getting any information from the building ownership or the Westview Taskforce representing the residents:

 I am a tenant at the Westview. Although the deal on the building's privatization has been reached 2 years ago, nothing happened since then. And we get no info on the process from anyone....

Last week, I followed up on earlier inquiries asking Westview ownership representative David Hirshorn about:

... the status of Westview privatization and concerns of residents that they have not been informed about the current status of privatization efforts. Can you provide any details as to the current privatization status of Westview, when it may be completed and what are any obstacles holding it up... 

Mr Hirshorn replied:

While I am limited in what I can say about a pending offering, I can say that the offering plan process in every conversion or new development throughout the State involves the sponsor submitting draft materials to the Attorney General’s office and the AG’s office reviewing these submissions, asking questions and issuing comments – what the AG’s office refers to as “deficiencies.” The Westview process is no different than the process in every offering, except that in complicated offerings such as Island House and Westview, the process can be longer than in a more typical cookie cutter offering. Once the AG is satisfied with the submission, they issue what’s called an “acceptance letter” which means that the sponsor is then authorized to issue the Black Book. At that point the selling process begins. We successfully completed this same process in Island House and I am confident that we will soon complete the Westview review process too.

I certainly understand residents’ frustration with how the long the process has taken as I too look forward to moving forward. For those residents who do not intend to purchase their apartments, the Black Book does not change how their rent will be determined or the other terms and conditions of their rental. All of that is set forth in the Affordability Plan that they received at the time of withdrawal from the Mitchell Lama program – several years ago – and is the same as what is currently in effect and has been in place since withdrawal.  

We are now in the final stages of the offering plan process. Because the laws governing communications to residents during an offering process are severely limited, it is understandable that some residents are frustrated and concerned that things have stalled. However, this is not at all the case and the affordability terms for both home ownership and residents who continue to rent, remain unchanged from what was negotiated. Just as we did in Island House, we have and continue to work in close partnership with the Westview Taskforce and their attorneys, in moving forward with the offering. We look forward to continuing to work closely with Task Force leadership who were strong advocates for the Westview residents (improving upon the original affordability plan) and now pulling on the same oar with us as Westview moves into the next phase --homeownership. 

While any offering involves a lengthy process, Westview is an unusually complicated structure with an enormous amount of documents needing to be reviewed and processed. The Attorney General’s Office has been a great partner in this process and has been diligent and timely in their review. While the COVID shutdown certainly has not helped, I am confident that together with tenant association counsel, we and the Attorney General’s Office will soon be able to conclude the offering plan process culminating in a Black Book.

And received this Westview Task Force update last week too:

Dear Westview Tenants, 

The Westview conversion is moving forward and in progress. 

The Affordability Plan has been submitted to the NYS AG for approval and Sponsor and AG are currently working to resolve remaining outstanding details. 

Our lawyers are involved to ensure that agreed upon terms outlined in the Affordability Plan and approved by Westview tenants remain unchanged. 

 This is the normal process for a conversion plan to go through similar to the process IH went through before us. 

The past 6 months have been challenging for everyone and our conversion approval delayed as a result. 

We are disappointed with the slow pace of discussions between the Owners and NYS AG but remain hopeful that the remaining outstanding details will be resolved soon. 

Additionally, the Taskforce has been instructed by the AG's office not to comment on timing of the Black Book as these discussions are still ongoing. 

We can only confirm that the approval process is in progress and moving forward. 

The remaining work to be done is between the Sponsor and AG and out of our hands. At this point in the process we are all tenants, in it together, and waiting for good news. 

We hope this update is helpful and hope to have more news to share soon. 

Thank you for your patience and continued support. 

Please take good care, stay healthy, stay safe. 

Westview Taskforce

Read more about the Westivew Ground Lease extension, exit from Mitchell Lama Program and Affordability Plan at this 2018 post.

Roosevelt Island Westview Building Ground Lease Extension On RIOC Board Meeting Agenda Tonight - Here Are The Details On Mitchell Lama Exit And Resident Affordability Plan

On July 18, the Roosevelt Island Operating Corp (RIOC) Real Estate Development Advisory Committee met in Executive Sessioin (closed to the public) to discuss the Westview building

ground lease negotiations. As reported that evening:

Following the Executive Session, I spotted RIOC President Susan Rosenthal on Main Street. I asked what happened at the meeting. Ms Rosenthal replied:

Board meeting has been scheduled for Monday...

Translation, a Westview agreement has been reached and will be voted on at Board meeting on Monday.

More details on the Agreement coming soon.

Here are the details.

 It looks like the Westview Affordability Plan, Privatization and Ground Lease Extension will be approved at this evening's RIOC Board meeting. Among the items on RIOC Board Agenda for meeting tonight is:

III. New Business
1. Authorizations Related to Amendment to Westview Ground Lease (Board Action Required)

Below is RIOC CFO Kimberly Quinones July 20 Memo in support of the Westview Ground Lease Amendment to the RIOC Board of Directors:

EXECUTIVE SUMMARY

At its July 23, 2018 meeting, the Board of Directors of RIOC will be asked to consider approval of an amendment (the “Amendment”) to the 1973 ground lease (“Ground Lease”) with NorthTown Phase III Houses, Inc., the owner of Westview (the “Owner”). Approval of the Amendment would enable the Owner to pursue an affordable home ownership conversion plan for Westview (“Affordability Plan”). The Affordability Plan provides for current tenants to be able to purchase their apartments at below market value with non-purchasers receiving guaranteed rent protections. In approving the Affordability Plan, RIOC will need to extend the Ground Lease with increases for Tax Equivalency and Ground Rent payments as provided in the Amendment. Prior to approving the Amendment, the Board will be asked to approve certain environmental findings. Proposed Board resolutions adopting the environmental findings and approving the Amendment are attached.

PROPOSED AMENDMENT

The Proposed Amendment would modify and extend the existing Ground Lease between RIOC and the Owner governing a Mitchell-Lama building with 361 residential rental units (“Westview”). Although the Ground Lease is not scheduled to terminate until 2028, certain changes in circumstances merit the proposed Amendment. The Owner seeks to exit the Mitchell Lama program, as is its right under the State’s Private Housing Finance Law, and pursue a cooperative and condominium conversion (the “Conversion”). The Owner also seeks to refinance the mortgage on Westview. In order to accomplish these goals, the Owner needs to extend the term of the lease. RIOC seeks to preserve affordable housing, consistent with its mission and statutory purpose.

RIOC has worked with the Owner and the Empire State Development Corp. of N.Y. (ESD) the New York State Division of Housing and Community Renewal (HCR) to develop a plan that balances the parties’ goals. In exchange for an extension of the Ground Lease at a below market ground rent, the Owner has agreed to maintain Westview as an affordable housing complex for a period of 30 years pursuant to the Affordability Plan. In exchange for affordability protections, the expiration date of the Ground Lease will be extended from January 31, 2028 through December 22, 2068, and the ground rent payable to RIOC will be less than a full market ground rent unencumbered by the Affordability Plan for a lease term through 2068. In addition, the Amendment will allow RIOC to remain in occupancy of its current office space for a period of up to five (5) years, with no rent being payable by RIOC for the first three years. Finally, the Amendment will permit the Owner to refinance its existing mortgage at advantageous rates so it can make necessary capital improvements to Westview.

AFFORDABILITY PLAN HIGHLIGHTS

The Affordability Plan provides that for the next 30 years at least 55% of the 361 residential units, (199 units) will either be affordable restricted price cooperative apartments or affordable rental units. Affordable cooperative apartments will give existing tenants the opportunity to purchase at a substantial discount while restricting resale prices and instituting income limitations upon subsequent purchasers. Tenants who do not purchase apartments will be provided with rent increases tied to the “Rent Guidelines Board” increased by 6.16% plus a 0% to 5% add-on depending on the tenant’s income. Tenants who do not purchase their units will be provided subsidized rent for as long as they remain up to the next 30 years.

Please note that the cooperative Conversion will require the approval of the NYS Attorney General’s Office. In the event of non-approval, the building will convert to an “Affordable Rental” whereby at least 55% of the residential units will be provided subsidized rents as described above for the next 30 years.

As detailed in the attached Affordability Plan, the Sponsor is required to make an up-front capital contribution to the building’s Capital Reserve Fund.

GROUND RENT HIGHLIGHTS

Under the Amendment, the effective starting annual ground rent would be $325,000 (an increase as Westview does not currently pay ground rent), and would increase by 10% every 5 years during the 30 year affordable period, and thereafter at 4% per year. The ground rent amount is supported by an appraisal of the leasehold encumbered by the Affordability Plan. The ground rent was structured in order to keep cooperative maintenance charges to a minimum. Ground rent will be comprised of three components: Base Ground Rent (paid by the Lessee); Transfer Resale Fees (paid by the shareholders upon re-sale); and Capital Event Fee (referred to as Sponsor Transfer fees in the Amendment) (paid by the sponsor on initial sales). The NPV of the projected estimated revenues comes to approximately 30% of appraisal. The appraisal was performed by Jerome Haims, a highly respected appraiser with many years’ experience with public/private New York real estate. In addition, a Valuation Letter was also obtained from Newmark Knight Frank.

TAX EQUIVALENT PAYMENTS (TEP) HIGHLIGHTS

The Amendment provides for a ten (10) year phase-in of Tax Equivalent payments to market rates for units being sold or rented at market, provided that for the first thirty years, the Tax Equivalent Payments for market rate apartments will be based on 80% of the market based tax equivalent payment. Thereafter, the Equivalent Payments for market apartments will increase to 100% of market based TEP. On July, 2018, the Empire State Development Corp. of N.Y. (ESD) approved the TEP provisions in the Affordability Plan and gave its consent to the ground lease extension.

ENVIRONMENTAL REVIEW

Counsel has advised that the Proposed Amendment is a Type II action under the State Environmental Quality Review Act (“SEQRA”), and therefore does not require environmental review. However, as a conservative measure and for the avoidance of doubt, RIOC staff has worked with outside environmental counsel to prepare the attached Short Environmental Assessment Form and addendums (“SEAF”) to assess any potential environmental impacts that may result from the Proposed Amendment. Based on the SEAF, I recommend that RIOC conclude that the Amendment and implementation of the Affordability Plan will not have a significant adverse impact on the environment. Copies of the SEAF and a proposed negative declaration for Board approval are attached.

RECOMMENDATION
I believe that, in keeping with RIOC’s corporate mission of promoting Affordable Housing on the Island if economically feasible, the proposed ground lease extension accomplishes this and I recommend its approval....

Also, NY State Department of Homes & Community Renewal (DHCR) memo to RIOC in support of the Westview Affordability Plan.

Read more »

Roosevelt Island Westview Ground Lease Extension On RIOC Real Estate Committee Meeting Agenda Today - When Will Agreement Be Reached On Exit From Mitchell Lama And Privatization?

During the June 28 Roosevelt Island Town Hall meeting with elected officials (full video of Town Hall here), Roosevelt Island Westview residents were hoping to receive some answers about

the status of the building's exit from Mitchell Lama program

and privatization efforts including extension of building's ground lease from the Roosevelt Island Operating Corp (RIOC)

as Westview building owner David Hirschorn and RIOC President Susan Rosenthal conferred

in the back of the room at Good Shepherd Community Center.

No answers were given during the Town Hall meeting other than all necessary parties were working diligently to reach an agreement. Westview residents left the meeting very frustrated with the lack of answers.



We may soon have some answers. Later today, the RIOC Real Estate Advisory Committee is meeting to discuss extension of the Westview building ground lease.

However, the meeting is in Executive Session, closed to the public.

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 Wednesday, July 18, 2018 at 5:30 p.m. at the RIOC Administrative Office, 591 Main Street, Roosevelt Island, New York.

Agenda:

Chair’s Motion for Executive Session to Discuss the Westview Ground Lease Negotiations

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

Both RIOC and the Westview Building owner declined to comment on status of negotiations. The Westview Task Force, representing building residents, issued this statement yesterday:

From what we know, significant progress has been recently made between New York State agencies and Westview Owners in connection with the revised Westview Affordability Plan. We anticipate receiving a copy of the Plan for review and remain hopeful that our ground lease will be extended and mortgage refinanced before the end of July.

Stay tuned for updates.

UPDATE- 7:35 PM - Following the Executive Session, I spotted RIOC President Susan Rosenthal on Main Street. I asked what happened at the meeting. Ms Rosenthal replied:

Board meeting has been scheduled for Monday...

Translation, a Westview agreement has been reached and will be voted on at Board meeting on Monday.

More details on the Agreement coming soon.

UPDATE 7/19 - RIOC Public Information Officer Alonza Robertson reports:

Based on the decisions made at the REDAC meeting last night, a meeting of the full RIOC Board of Directors has been called for Monday at 5:30 p.m. Among the items on the agenda include a vote on the Westview Ground Lease amendment.

Assembly Member Rebecca Seawright adds:

I commend Westview's residents for their patience and perseverance as this process is carried out. We look forward to a productive meeting of RIOC's Board of Directors on Monday. My office stands ready and able to assist residents during this transition.

Report From RIOC President Susan Rosenthal - Roosevelt Island July 4 Celebration Ticket Distribution/Security, Tram Cabin Service, Helix Repair, Tram Elevator, Public Purpose Applications, Cooling Center & Westvew Privatization

Roosevelt Island Operating Corp (RIOC) President Susan Rosenthal reported to the June 25 RIOC Board of Directors meeting (video of full meeting will be available here) on the following subjects.

• July 4 Fireworks celebration at FDR Four Freedoms Park, Cornell Tech campus and Southpoint Park - Tickets for viewing Fireworks at FDR Park will be made available to Roosevelt Island residents one day in advance of the General Public.
• There will be more security this year with NYPD and private security. Every person will have to go through check points. Total security from Roosevelt Island Bridge to FDR Park.
• Southpoint Park activities will include Bounce houses, Giant Slides, Inflated Obstacle Course, 5 food trucks, plenty of toilets
• Both trams cabins will be running by July 4.
• Both sides of Helix will be open by July 4
• Tram Elevator project has started with fencing placed in Manhattan Tram Plaza area
• Public purpose applications will be available in July
• Roosevelt Island cooling centers will be open during day and evening until 10 PM.
• Westview privatization - diligently working on trying to resolve open issues - Board may be called back during the summer to approve an agreement

Here's Ms. Rosenthal's report.

RIOC President Susan Rosenthal Community Report On Roosevelt Island Infrastructure, Westview Privatization, Rivercross Ground Lease, Sportspark Renovation, Tram Station Elevators, Ambulance Service, Youth Center, Beacon Child Center, Helix Repair, Motorgate Striping, Radar Speed Signs & More

Roosevelt Island Operating Corp (RIOC) President Susan Rosenthal reports to the community:

The position of Public Information Officer (PIO) was recently created by the Roosevelt Island Operating Corporation (RIOC) to increase communication between us and our residents, to create a basis for a natural exchange of information and ideas. RIOC understands the absence of relevant up-to-date information creates a sense of disempowerment, mistrust and frustration. We are working to change that. We’re learning the more accurate information about our work that we share with the island community, the more we will work together for the common good.

I hope you will try to get to know RIOC’s newest officer Alonza Robertson (alonza.robertson@rioc.ny.gov).

I’m often e-mailed, phoned and stopped on Main Street by residents, community leaders and business owners asking about the who, what, when, why or how RIOC is going to do something they believe we should. Often my answers seemingly disarm preconceived notions that RIOC is an indifferent political oligarchy. This President’s Message column is a means of me providing you information before the questions even are asked.

Let’s increase this dialogue so RIOC can continue improving our service to you.

NYS Budget $25 Million

With the passage of the State of New York’s FY 2018 State Budget two weeks ago, RIOC will receive a $25 million payment to supplement its existing capital infrastructure improvement program.

The payment is the tangible result of a unique 2013 land-swap agreement - regarding a 2.62-acre parcel to help facilitate the Cornell-Tech campus development - between the State and RIOC. The money, according to the budget law, “is to be used in support of the comprehensive, multi-year capital program for capital improvements on Roosevelt Island.”

RIOC plans to add the funds to its existing five-year $40-million major improvements schedule, an aggressive plan that works to immediately address aging island infrastructure and public facilities that have had neither improvements nor significant repairs since their original construction 40 years ago.

Some of those capital improvement items include: the 59th Street tram station elevator construction, island-wide seawall railing replacements, Southpoint Park seawall construction, repairs to the AVAC sanitation system, Sportspark and youth center renovations, Motorgate parking garage repairs, Blackwell and Al Lewis playgrounds renovations, and Octagon and Firefighters field improvements.

Motorgate

I recently received some questions from the Roosevelt Island Residents Association (RIRA) about existing parking space and traffic striping issues in the Motorgate parking garage.

Although it has yet to be announced, RIOC has finalized a Request for Proposals to repair concrete spalls and expansion joints, re-waterproof all surfaces, and redo striping at the southern end of the garage facility.

Our Capital Planning and Projects team has reviewed the scope of work with the Motorgate engineering consultant. We expect to issue that RFP by April 30.

Upon the bid approval, by the RIOC Board of Directors, of the winning contractor, the work will commence on floors 3, 4, and 8, which is Phase 1 of the total project. The repairs will be conducted in two phases, as to not overly disrupt the garage’s ongoing operation. Each phase is estimated to cost about $5 million; the work duration for each phase will be shared once the contract has been awarded.
RIOC’s plan also includes new signage.

In the meantime, we’ve recently replaced and installed 13 new closed-circuit TV surveillance cameras at the garage to bolster our efforts, in addition to regular PSD patrols, to keep you and your parked vehicles secure.

Sportspark Renovation

RIRA also recently asked us to review their report and ideas for the Sportspark renovation project. While we have more plans to solicit community input on this project, we first should update you on the plan’s current state.

The first Sportspark RFP, set to be released by mid-June, is for design services and biddable documents only; not for physical renovation (that will be addressed in a subsequent RFP). Once we have a firm in place, then we will engage you, and the RIRA committee (and utilize our Cornell community study on possible programs) to receive your input and ideas on the renovation.

Members of our staff have reviewed the information RIRA provided, of which a majority involves facility concerns that we are aware of and agree should be addressed with the design.

We recognize RIRA is excited about the project and so are we. We look forward to working together. I will share additional updates as the project moves along.

Did you happen to notice the new outdoor basketball backboards and hoops installed this week at Capobianco Field, Blackwell Field and Sportspark?

HELIX Repair Update

The first lane demolition of the Helix is about 70 percent complete. Now uncovered we’ve found that the top of the structural slab is in much worse condition in some areas than we anticipated. That deterioration was caused by insufficient maintenance and inspection in addition to much heavier truck loads traveling the road than what the Helix was originally designed for.

We have also hired an additional traffic engineer to review our existing traffic control plan during the Helix construction and to present their findings and/or recommendations to the RIOC Board and community.

24/7 Ambulance and NYPD Patrol Vehicle

You should also note that RIOC Public Safety Department Chief Jack McManus has successfully lobbied the New York City Police Department and NYC Office of Emergency Management to station an NYPD patrol vehicle and FDNY ambulance on the Island 24 hours-a-day during the HELIX construction period meant to allay concerns about potential emergency response times due to Helix construction traffic.

When additional emergency response vehicles are dispatched to the Island, PSD is safely expediting their entry and exit by freezing all Helix traffic, in both directions, to accommodate those vehicles.

We also appreciate several island businesses – Gristedes, Coler Memorial Hospital, Cornell Tech and the Department of Environmental Protection – for their cooperation working with PSD in safely coordinating deliveries coming from oversize tractor trailers until after 3:30 p.m. every day.

Manhattan Tram Elevators

The permits for the Manhattan Tram Plaza elevator project were awarded earlier this month and construction work will begin soon. As I mentioned in my last column, two new aesthetically-improved glass elevators – that are more efficient and ADA accessible - are being built to replace the existing elevators.

The project – which we will execute with minimal impact on the Tram’s operation - is expected to last a year.

Radar Speed Signs

Radar speed signs, also known as driver feedback signs, are designed to slow down speeding drivers by alerting them of their, speed. They are being used across the country and in the past week, you might have noticed that two have been installed here on Roosevelt Island; one near Coler Memorial Hospital and the other near the Cornell Tech loop. The signs are mobile and can be moved to different locations throughout the Island as needed.

We remind everyone that the Island-wide speed limit is 15 miles per hour. Please slow down; speeding is hazardous to yourself, other motorists and pedestrians. Island speed limits will be monitored and enforced by the Public Safety Department.

Southtown 8 & 9, Rivercross Arbitration Settlement and Westview Ground Lease

RIOC’s Real Estate Development Advisory Committee met on Tuesday, April 3 to discuss all three of this agenda items. I know many of you anxiously await the details of the settlement and lease agreements of which I am not at liberty to currently discuss. I do encourage you to attend our next full RIOC board meeting Wednesday, April 18, at 5:30 p.m. in the Cultural Center Theatre.

Though its required environmental impact study is not yet complete, I thought I should share some additional details about the Southpark 8 and 9 residential towers, located immediately north of the Ed Koch Queensboro Bridge along Main Street on the island.

Building 8 will consist of a 21-story residential tower, 227-feet-tall with 341 affordable units.

Building 9 will consist of a 28-story, about 287-feet tall mixed-use building with 300 market-rate units and 7,000 square feet of commercial office space.

Building 8 is expected to be completed and operational by March 2020, while Building 9 is expected to be completed and operational by March 2022.

Youth Center Update

We’re making more changes at the Roosevelt Island Youth Center.

Our objective, since assuming management of the center’s operations March 5, is to develop the center, and its programming, into something that parents, students and staff could all enjoy.

Two weeks ago, RIOC posted new guidelines, which we intend to enforce, to keep the facility safe, supervised, alcohol and drug-free. Parents and older teens will no longer be able to roam the facility unsupervised; “sign-in” and “sign-out” and appropriate behavior policies have been drafted and will be enforced. I’ve linked the complete set of new rules to this letter and email. Please review these with your children, and explain that these changes should be viewed as improvements.

I am happy to announce that Erica Spencer-El, a long-time RIOC community relations manager has been promoted to Director of Community Affairs and the youth center will be one of her new management assignments, in addition to oversight of Community Relations and Island-wide events. More details on additional staff and programming additions, the scheduled renovation of the center and RIOC’s efforts to create a youth soccer program will be forthcoming.

Additionally, RIOC is proud to announce that we’ve waived all field usage fees to allow for the Child Center Beacon at 217 in partnership with the Roosevelt Island Center for Community Development and the Reviving Baseball in Inner Cities to relaunch the Roosevelt Island Little League for ages 5 – 13 at no cost to participants. I encourage you to join and enjoy your child playing in the league’s 10-game season. Learn more and sign up here.

As we also announced previously, we are making island residents and organizations’ field and room requests priority when booking space for our outdoor fields and indoor facilities, according to availability. Capobianca Field will remain open year-round with no permit required. The 440 square-foot Lighthouse and 320 square-foot Blackwell rooms in the Cultural Center are also available free of charge with only a certificate of liability required to make a reservation. Please visit our website, rioc.ny.gov, to see availability for all our recreation and community spaces.

Beacon/Child Center

In response to several parents’ concerns about the Child Center Beacon program here on the Island, we recently invited the program’s senior vice president and the City of New York’s associate commissioner for Youth and Community Development (which funds the Beacon program) to meet with a small group of Roosevelt Island parents.

It was a positive meeting and our parents vented their frustrations about the new Beacon program. We discussed the timeline of the Beacon’s expanded programming including potential summer camps, improved parent/program staff communications, and staffing ratios, among other things. Another informational meeting will be scheduled to discuss their improvements by the end of this month.

Sign-up for the latest Roosevelt news advisories, upcoming meetings and facility availabilities by visiting our new website, rioc.ny.gov. And, remember I want to hear from you; email our PIO, alonza.robertson@RIOC.ny.gov, with your questions or concerns!

Roosevelt Island Rivercross Arbitration Settlement, Westview Privatization & Southtown Riverwalk Buildings 8 & 9 Development On April 3 RIOC Real Estate Committee Meeting Agenda - In Executive Session Closed To The Public

Very important Roosevelt Island real estate issues

will be discussed tomorrow, April 3, during the Roosevelt Island Operating Corp (RIOC) Real Estate Advisory Committee. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will now be held on Tuesday, April 3, 2018 at 5:30 P.M. at the RIOC Warehouse, 680 Main Street, Roosevelt Island, New York.

Agenda:

1. Chair’s Motion for Executive Session to Discuss:

a. Rivercross Arbitration Settlement

b. Southtown 8 & 9 Environmental Assessment and Zoning Overrides

c. Westview Ground Lease Negotiations

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

The meeting will be in executive session, closed to the public.

There is no indication that I can find on the RIOC web site about this meeting.

Stay tuned.

UPDATE 3/3 - The agenda has been amended to have the Southtown discussion in public session.

PLEASE TAKE NOTICE that a meeting of the Real Estate Development Advisory Committee of the RIOC Board of Directors will now be held on Tuesday, April 3, 2018 at 5:30 P.M. at the RIOC Warehouse, 680 Main Street, Roosevelt Island, New York.

Amended Agenda:

1. Discussion of the Southtown 8 & 9 Environmental Assessment and Zoning Overrides

2. Chair’s Motion for Executive Session to Discuss:

a. Rivercross Arbitration Settlement

b. Westview Ground Lease Negotiations

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

Good News, But Fingers Still Crossed - Agreement In "Principle" For Roosevelt Island Westview Affordable Privatization Plan To Exit Mitchell Lama Program Says RIOC President - Terms Not Disclosed Yet And Status Of Retail Lease Renewal Unknown

As reported almost one year ago on March 28, 2017:

Six months after approving an affordability plan to exit the NY State Mitchell Lama housing program, residents of Roosevelt Island's Westview building are worried that no final agreement has been reached between the Westview building owner/sponsor (North Town Phase 111 Associates LP) and various NY State government agencies, including the Roosevelt Island Operating Corp (RIOC), NY State Homes & Community Renewal (HCR) and the Empire State Development Corp.

As of last week, there was no word about the status of Westview privatization.

A possible obstacle - the expiration in April 2018 of Westview retail space lease to RIOC which is subleased to Hudson Related as part of the Main Street Retail Master Lease.

Would the Westview building ownership renew the retail lease space to RIOC or,would  Westview ownership recover the space for themselves and to what extent does the retail lease negotiation impact the privatization negotiations?

In response to my question last Friday about the Westview Privatization status, a spokesperson for Roosevelt Island's NY State Assembly Member Rebecca Seawright replied:

Assembly Member Seawright continues to work with State Homes and Community Renewal (HCR) and the Westview Taskforce. A meeting is being held in the district office today with Westview Task Force leadership and HCR officials to discuss the status of negotiations.

I asked RIOC President Susan Rosenthal and HCR Commissioner RuthAnne Visnauskas:

... As far a the Roosevelt Island community knows, nothing more has happened regarding Westview Privatization since this March 2017 story describing stalled negotiations.

The Westview residents have no idea what is going on.

My understanding is that the latest element in Westview privatization is the upcoming expiration in April 2018 of the Westview ownership retail space to RIOC which is subleased to Hudson Related as part of the Roosevelt Island Main Street Master Retail Lease.

What impact, if any, does the Westview ownership retail lease renewal negotiation with RIOC have on the Westview Building privatization?

What is the current status of Westview privatization?...

Ms.Rosenthal replied on yesterday:

I know you reached out to HCR and are anxious to know the terms of the proposed deal.  As soon as we share the terms with the board members,  we will share them with you.  The good news: we reached a deal in principle and we are moving forward!

I asked David Kramer of Main Street Retail Master Leaseholder Hudson Related about the Westview retail space lease renewal:

... My understanding is that the lease has not been renewed yet.

If Westview retail lease with RIOC is not renewed, what impact will that have on the Master Retail Lease with Hudson Related which includes the Westview stores?

Also, what impact will that have on Roosevelt Island retail leasing efforts and those current Westview retailers that have lease terms past April 2018?

What is the annual rental revenue from Westview retail tenants and how much revenue does RIOC receive under the Master Lease from Westview retail tenants?...

Mr. Kramer answered:

I think there are 2 substantive issues if the retail sublease is not extended.

First, it's a big hit to RIOC. They earn most of the revenue from the Westview stores (we earn a percentage of the upside over time).  I'm not sure why anyone would want RIOC to have less recurring, annual money.

Second, I think there's a logic to the Master Lease having a greater point of view to help the island. Whether it's paying for the new way finding system, or holiday lights, we've tried to help all the retailers.

We've made plenty of non-economic choices, whether it's signing a lease with NYPL or working to keep RIVAA in their space that are good for the island but don't maximize profits.

Our JV pays them ground rent from the retail revenue plus profit participation ... it comes out to approx. 83% of net proceeds. So I don’t understand why the RIOC Board wouldn’t fight to retain that revenue source.

Westview building owner David Hirschorn declined to comment on the Westview privatization status or the retail lease renewal at this time.

The Westview Task Force sent this notice out last evening to residents:

Friends, Neighbors, Westview Tenants,

We are pleased to report that we met with HCR officials and representatives of our elected officials this past Friday.

We were informed that, after prolonged negotiations, the agencies (HCR, RIOC) and Owner are now on the same page regarding all terms related to the WV Affordability Plan. Details are expected to be formalized and released soon.

We will keep everyone informed as we learn more.

Thank you for your continued support.

Westview Taskforce Inc.

Below is an excerpt from a November 3, 2017 email from the Westview Task Force to HCR Commissioner RuthAnne Visnauskas supporting the return of Westview retail space to the Westview Building ownership (click text image for larger sized print).

Today, RIOC announced that the Real Estate Advisory Committee will meet April 3 in Executive Session (closed to the public) to discuss Westview as well as an apparent settlement of Rivercross ground lease arbitration. 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 Tuesday, April 3, 2018 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 Discuss:

a. Rivercross Arbitration Settlement

b. Southtown 8 & 9 Environmental Assessment and Zoning Overrides

c. Westview Ground Lease Negotiations

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

My understanding is that if the Westview retail space lease to RIOC is not renewed, the current retail tenants will have to renegotiate their agreements with Westview owner.

Roosevelt Island Westview Ground Lease Negotiations Stalled Delaying Building's Exit From Mitchell Lama Program - Residents Worry About Fate Of Affordability Plan, What's Going On?

Six months after approving an affordability plan to exit the NY State Mitchell Lama housing program, residents of Roosevelt Island's Westview building are worried that no final agreement has been reached between the Westview building owner/sponsor (North Town Phase 111 Associates LP) and various NY State government agencies, including the Roosevelt Island Operating Corp (RIOC), NY State Homes & Community Renewal (HCR) and the Empire State Development Corp.

As reported October 3, 2016:

The last remaining Roosevelt Island Mitchell Lama building, Westview,

took another step closer to privatization and exiting the NY State affordable housing program this weekend with the residents approving an affordability plan negotiated between their representatives, the Westview Task Force  (WTF) and building ownership....

and:

... The Westview Task Force added that the Affordability Plan has the support of local elected officials, NY State Homes & Community Renewal and the Roosevelt Island Operating Corp (RIOC). RIOC is expected to approve an extension of the Westview Ground Lease through 2068 during its January 2016 Board meeting....

 Image of September 22 WTF Affordability Plan Informational Meeting

Roosevelt Island's NY State Assembly Member Rebecca Seawright supported the Westview affordability plan and had this statement:

... Westview is the last building remaining in the Mitchell-Lama program on Roosevelt Island and will exit with an affordability plan supported by Assembly Member Seawright. Seawright acted on the numerous concerns raised by her constituents and worked with public officials Congresswoman Carolyn B. Maloney, Senator Jose M. Serrano, Manhattan Borough President Gale A. Brewer, NYC Council Member Ben Kallos and New York State Homes & Community Renewal’s Commissioner James S. Rubin to ensure the affordability plan was fair for all. The proposed plan, which was overwhelmingly approved, protects Westview residents who chose to continue to rent rather than purchase. The affordability plan specifically protects residents on fixed incomes who simply cannot afford to purchase their apartments or pay market rent. At the same time, this is an opportunity for many middle income Westview residents to become first time home buyers at affordable purchase prices...

But, to date, the Westview building owner/sponsor and the NY State agencies have not reached a final agreement leaving the residents worried and the fate of their homes unknown.

I spoke with Westvew owner/sponsor David Hirschhorn about the current status of the Westview affordability plan and exit from the Mitchell Lama program. According to Mr. Hirschhorn:

The Affordability Plan is essentially a very detailed term sheet that sets forth all of the details for how Westview will withdraw from the Mitchell Lama Program and how it will operate following Mitchell Lama withdrawal. It is modeled on the Island House Affordability Plan and includes: (i) the purchase price to be paid by tenants who elect to purchase their apartments, (ii) the rent to be paid by tenants who elect not to purchase their apartments, (iii) the ground rent and transfer fees to be paid to RIOC, and (iv) the payments in lieu of real estate taxes to be paid to ESD.

Following the Island House template, the Westview Affordability Plan was the product of many years of negotiation and compromise between the Sponsor and the Westview Taskforce. DHCR was involved in every step of these negotiations and used its good offices to ultimately bring the parties together resulting in the Westview Affordability Plan Dated September 1, 2016 - FINAL. The agreed upon Final Affordability Plan was then overwhelmingly approved in a tenant referendum on October 3, 2016. The economic terms were carefully balanced and reflect substantial concessions; therefore, any change will have a ripple effect resulting in multiple changes. Its very complicated.

The sponsor and RIOC were to finalize the Ground Lease extension using the Island House Ground lease as the Westview template. The final approved Westview Affordability Plan provided for the same ground rent and the same transfer fees agreed to by RIOC in Island House to be incorporated in Westview. The Westview Affordability Plan actually states:

This Affordability Plan contemplates the execution of a formal Ground Lease Modification Agreement incorporating the terms of this Affordability Plan. The Sponsor and the New York State agencies agree to cooperate with one another in a good faith effort to prepare and execute such Ground Lease Modification Agreement (and the Sponsor-RIOC Sublease herein described) as expeditiously as reasonably possible.

All of this was supposed to have been completed by January 31, 2017 because effective February 1, 2017, the Affordability Plan provides that the purchase price paid by Westview tenants increases (with additional increases each month thereafter). The Sponsor deferred the February increase, but the March 1st increase is effective. The next increase will take effect April 1st.

I presume RIOC is evaluating whether it will proceed with the ground lease extension on which the Affordability Plan was based (the same as RIOC agreed to in Island House) and approved by Westview Tenants, or whether it will instead require a greater ground rent to be paid by the Coop (which would require that the monthly maintenance fees be increased that could result in the coop not being viable and thus the failure of the entire deal), and/or higher transfer fees from the Sponsor and tenants when apartments are sold. As noted above, any change in one provision beyond what was carefully negotiated, such as an increase to the Sponsor, would result in other changes, such as an increase in the purchase price to be paid by tenant purchasers.

Without a ground lease extension there cannot be a cooperative conversion and tenants would not be able to become homeowners. Remaining a Mitchell Lama is not an option and so Westview would become a market rate rental building. This would be a most unfortunate result.

All of the New York State agencies (RIOC, DHCR & ESD) need to finalize the Westview Ground Lease Extension substantially in the form that these same agencies signed for Island House. This could be done very quickly since the form is actually included in the Westview Red Herring which all of the agencies have had since its filing in 2015. ESD has already stated that they are prepared to move forward using the Island House documentation. So its really up to RIOC and DHCR as to whether they will proceed as provided in the Final Affordability Plan.

I am cautiously optimistic. I believe that RIOC and DHCR are carefully considering what is at stake and they are certainly aware of what was agreed to and the economic terms that everyone (tenants and sponsor) relied upon in compromising upon a final consensus back in September. I do believe they are working hard to make the Westview Affordability Plan a reality. It would be most unfortunate to now upset the apple cart. Island House was a smashing success and as the Sponsor, I would hope that we can replicate and bring that success to the Westview Tenants. Both the Sponsor and the Westview Taskforce desire to conclude the Westview Ground Lease Extension as originally contemplated without further price increases to the Westview Tenants. With interest rates rising, it would be good for the Westview Tenants to get this done very soon.

The Westview Task Force representing building residents issued this March 20 statement:

We were unpleasantly surprised and very disappointed that the effective date of the Westview Affordability Plan did not materialize at the end of January, this after the agencies assured us that a January effective date was achievable as long as we came to an agreement with the Sponsor and demonstrated Tenant support for the Plan. An overwhelmingly positive vote by Tenants was delivered at the end of September 2016 moving the Plan forward for final approval by the agencies.

We have not been provided with any specifics related to the new demands put on the Sponsor by the agencies and we are not part of any negotiations. Therefore, we are not in a position to comment on the status of such negotiations. We have, however, clearly expressed to the agencies and Sponsor our concerns with any potential outcome that might adversely affect the affordable preservation of our homes, and our position that any such adverse outcome would be unacceptable.

We remain hopeful that the affordability terms as of the promised January effective date will be retained and quickly approved by the agencies.

RIOC President Susan Rosenthal responded to my inquiry on status of Westview affordability plan and ground lease extension saying:

RIOC is working in concert with HCR and ESD to negotiate with the Owner. We remain hopeful that the parties will reach agreement. 

The last public statements by RIOC on the subject of Westview ground lease extension and affordability plan occurred during the October 13, 2016 Real Estate Advisory Committee meeting. RIOC President Rosenthal reported to the Committee:

We had a meeting with the Task Force at their request and we also had conversations with Hirschhorn before the vote and I indicated to both groups that we are having an appraisal.  It is very possible that the rent proposed by us will be higher than the Island House rent based upon the increase in market value and they should know that before going forward....

... We're not going to agree to an amount that's not based upon the market value....

RIOC Director Margie Smith added:

There's just so many variables. It is similar to Island House but certainly not the same building. There are so many issues that one building has and not the other one. We should have been involved all along in this, certainly before they voted....

Ms. Rosenthal replied:

HCR did not look at the affordability plan before the vote. ESD has not looked at the TEP payment before the vote. I'm not sure why it was done in this chronology.

Here's portion of the Real Estate Advisory Committee discussion



and the full discussion.



Information on the Island House Mitchell Lama exit here and Rivercross exit here.

Island House Mitchell Lama exit was under an affordability plan, Rivercross Mitchell Lama exit was a market rate plan.

There is currently an arbitration under way between RIOC and Rivercross regarding the Rivercross ground lease extension fee. Not currently known if the Rivercross ground lease extension arbitration effects the Westivew ground lease negotiations.

Westview residents are very worried.

UPDATE 4/11 - NY State Assembly Member Rebecca Seawright adds:

It is in everyone's best interest that Westview exit from the Mitchell Lama program ensures affordable housing for Roosevelt Island residents. We have come so far in negotiations, and I will continue to work with DHCR, ESD, RIOC and the Westview Taskforce to maximize the benefit for the residents. At this time, negotiations are still in progress and there is every reason to believe that the final plan will be affordable and fair for all.

New Roosevelt Island Ferry Station, Westview Ground Lease Amendment And Roosevelt Island Youth Center Renovations On Agenda For October 13 RIOC Real Estate Advisory Committee Meeting

Three important issues impacting the quality of life for Roosevelt Island residents will be discussed at the next meeting of the Roosevelt Island Operating Corp (RIOC) Real Estate Development Advisory Committee.

 Image of NYC East River Ferry Dock Rendering From NYC EDC

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 Thursday, October 13, 2016 at 5:30 p.m. at the RIOC Administrative Office, 591 Main Street, Roosevelt Island, New York.

Agenda:

1. Presentation of Proposed Roosevelt Island Ferry Station;

2. Update on Roosevelt Island Youth Center Renovation;

3. Discussion of Westview Ground Lease Amendment; and

4. 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.

Roosevelt Island Westview Building Residents Vote Overwhelmingly To Approve Affordability Plan For Withdrawal From NY State Mitchell Lama Program - Low Income Renters Protected By Increasing Purchase Price Says Westview Task Force Board

The last remaining Roosevelt Island Mitchell Lama building, Westview,

took another step closer to privatization and exiting the NY State affordable housing program this weekend with the residents approving an affordability plan negotiated between their representatives, the Westview Task Force  (WTF) and building ownership. According to this WTF email sent out Sunday October 2

Friends Neighbors, Westview Tenants,

We are pleased to announce the results of the Westview tenant vote to approve WESTVIEW A PLAN FOR PRESERVATION OF AFFORDABLE HOUSING AND WITHDRAWAL FROM THE MITCHELL-LAMA PROGRAM SEPTEMBER 1, 2016 – FINAL.

A total of 227 apartments voted

209 voted in favor

18 voted against

By an overwhelming majority, the Tenants of Westview have approved the Affordability Plan. This vote will allow us all to move forward towards a future with both rent protection and opportunity to purchase.

Thank you to all who participated in the vote.

The WTF stated their reasons for voting yes on the Affordability Plan in this September 29 email to building residents:

Friends, Neighbors, Westview Tenants,

Tomorrow, Friday, September 30th at 7:30pm, in the Westview lower community room begins an important vote that will affect ALL WESTVIEW RESIDENTS.

Everyone needs to vote! Please tell your friends and neighbors.

The Plan we are voting on contains provisions for both AFFORDABLE RENTS and OPPORTUNITY TO BUY. This vote is to accept or reject the Affordability Plan, not whether you plan to buy or not. Your decision to rent or purchase will come at a later date should the Plan be accepted.

If you want the RENT PROTECTION included in the Plan, vote YES.
If you want to PURCHASE your apartment as offered in the Plan, vote YES.

Voting YES for the Plan means:

1. Rent protection for existing tenants who chose to continue renting.
2. The opportunity to own your apartment at a heavily discounted price and build substantial equity.
3. The possibility of a buyout.
4. Complete funding of all present and projected major capital improvements.
Voting NO does not keep us in Mitchell-Lama and does not get us a better deal down the road. A NO vote means risking exit from Mitchell-Lama with NO Plan, NO real rent protection, NO ownership opportunity, NO buyout opportunities, NO funding for building repairs, only uncertainty and the risk of unregulated rents.

We encourage ALL tenants to vote YES!

We look forward to seeing everyone in the Westview lower community room on Friday, September 30th at 7:30pm to kick off the vote. Please make every effort to come as we need a quorum (at least 36 members) to start.

Voting will continue until 10pm on Friday, and again on Saturday, October 1st from 10 am to 3pm.

Ballots will be available at the voting location. If you are a designated proxy, please bring the completed Directed Proxy form to the voting location in person.

Thank you.

As previously reported:

Some Westview residents are very scared for their future and doubt they can remain in their apartments based upon what they understand about the proposed plan.

One long time Westview resident upon learning of the plan's approval said:

I am going to have to leave Westview somehow and Roosevelt Island.

I am so heartbroken. I can't express it.

I attended the Tuesday, September 22 WTF informational meeting.

 Image of September 22 WTF Affordability Plan Informational Meeting

The WTF Board members emphasized to residents attending the meeting that the Affordability Plan protects the lowest income residents who choose to stay and rent by increasing the price to purchase apartments from the Red Herring's $226 per square foot to the current price $246 per square foot.

Also, Westview rents, which have not increased in 8 years, will be raised 6.16% in the first year, followed by rates established by the NYC Rent Guidelines Board in subsequent years for those renters with incomes below the Area Medium Income. Rental apartments will not be subject to future electric submetering.

The Westview Task Force added that the Affordability Plan has the support of local elected officials, NY State Homes & Community Renewal and the Roosevelt Island Operating Corp (RIOC). RIOC is expected to approve an extension of the Westview Ground Lease through 2068 during its January 2016 Board meeting.

RIOC Acting President Susan Rosenthal has said previously:

RIOC is coordinating with NY State Homes & Community Renewal (HCR), Empire State Development Corp (ESD), tenants and the sponsor to be ready to renegotiate the ground lease when necessary.

This is a continuing story so stay tuned for updates as they occur.

UPDATE 7:15 PM - Roosevelt Island's NY State Assembly Member Rebecca Seawright issued this statement:

“Westview residents’ vote to exit from New York State's Mitchell-Lama housing program is a significant milestone in protecting tenants’ rights, in addition to signaling the end of a housing era on Roosevelt Island,” stated Assembly Member Rebecca A. Seawright of the 76th Assembly District which includes Roosevelt Island.

Westview is the last building remaining in the Mitchell-Lama program on Roosevelt Island and will exit with an affordability plan supported by Assembly Member Seawright. Seawright acted on the numerous concerns raised by her constituents and worked with public officials Congresswoman Carolyn B. Maloney, Senator Jose M. Serrano, Manhattan Borough President Gale A. Brewer, NYC Council Member Ben Kallos and New York State Homes & Community Renewal’s Commissioner James S. Rubin to ensure the affordability plan was fair for all. The proposed plan, which was overwhelmingly approved, protects Westview residents who chose to continue to rent rather than purchase. The affordability plan specifically protects residents on fixed incomes who simply cannot afford to purchase their apartments or pay market rent. At the same time, this is an opportunity for many middle income Westview residents to become first time home buyers at affordable purchase prices.

In a letter dated February 1, 2016 to Commissioner Rubin, signed by all the elected officials, Assembly Member Seawright, wrote:

Over the past several months, Westview residents expressed their concerns, especially senior citizens on fixed incomes, following a submission of an Offering Plan to the Office of the NYS Attorney General for the buildings known as Westview located on Roosevelt Island. We met with individuals and groups of constituents at our office, at their homes and attended tenant meetings. At our request, DHCR attorneys graciously met with Westview senior residents and listened to their concerns as well. On behalf of our constituents and Westview residents, please do not approve the revised Affordability Plan dated October 26, 2015 which includes a proposed initial rent increase of 14.9% as such a high increase it is not warranted.

“I am relieved and thrilled for residents who will continue to rent that their initial rent increase will not exceed 6.16% rather than the initial proposed rent increase of 14.9%,” Seawright said, “and at the same time the purchase price remains affordable for the residents who choose to purchase their homes.”