Roosevelt Island: Goodbye Eliot, Hello David

Eliot Spitzer during his gubernatorial campaign stopped at Roosevelt Island’s Church of the Good Shepherd and promised change. Island residents excited at the chance of keeping a Republican Governor out Albany were eager for Spitzer’s message of better days. Residents voted in large numbers for Spitzer evidencing their desire for change. During this last year we saw the ouster of Herb Berman and installation of Spitzer appointee Stephen Shane as RIOC CEO and President and we expected / hoped that Spitzer would respect our election of RIOC Board nominees.

We know little as to what soon to be Governor David Paterson thinks about Roosevelt Island and the issues that concern us most including transportation concerns, privatization, among others. We voted for Paterson as part of a Spitzer / Paterson ticket. To my knowledge Lt. Governor Paterson only has step foot on Roosevelt Island once last May during a photo op with Mayor Bloomberg regarding the Verdant Power water turbine project in the East Channel of the East River behind Gristedes.

It is still way too early to know whether Roosevelt Island will be left alone or whether DHCR Van Amerongen will even be able to submit the elected slate of RIOC Board Nominees or how this new administration will look upon the various privatization efforts of the buildings here on Roosevelt Island. We will simply have to wait and see.

Rivercross Tenants Re-Take First Vote Today Towards Privatization

Today from 7:00 am through 8:30 pm this evening, Rivercross Tenants are being asked to take the first step towards Privatization of their cooperative building and to leave the Mitchell-Lama program. This vote is now the official first vote in the process after DHCR cancelled the earlier December 2007 “second” vote claiming the 1996 “first” vote was stale . The Coop Board is actively behind this vote and all signage distributed to tenants strongly urges a positive vote authorizing the Board to notify the DHCR that the building is taking the first steps towards investigating “privatization”.

There are tenants on both sides of the issue whether privatization is the right course for the building at this time. I will admit, as a Rivercross resident shareholder, I can see arguments on both sides and I will also admit but for the Mitchell-Lama status of the building I could not afford to buy into the building at FMV prices.



If the vote is positive the Board will begin the process to put together a business plan (the "black book") with all financial data as to how the conversion would be effected and how the building would be supported once it leaves Mitchell-Lama. A second vote is then required on this plan and this is what the Board states is the "real vote" as that vote would be to officially privatize or not. Tenants are fully aware that this process of even getting to the second vote is not a cheap one and the Board will incur substantial fees before such vote takes place. These costs are another issue of contention between the resident factions in the building.

Major issues to be addressed by the "Black Book" include coverage of the FMV tax equivalency bills which would now be imposed fully by the ESDC as well as the negotiation to extend the ground lease on the building which currently only extends out only 20 years.

Assembly Member Kellner Confirms ESDC FMV Real Estate Tax Bills Rescinded

In a press release issued today Assembly Member Micah Z. Kellner (65th AD) confirms that ESDC Chairman Patrick Foye has rescinded the FMV real estate tax equivalency bills issued to Island House, Rivercross and Westview.

ESDC's decision puts a greater burden now on the Rivercross Privatization Committee as that buildings anti-privatization tenants will claim that the state no longer has a loaded gun to their heads and other avenues might be worthy of exploration regarding securing financing for capital projects and other issues. Pro-privatization tenants will still argue that the building has a right to leave the Mitchell-Lama program and that they expect that their plan is worthy of exploration which is all the upcoming vote is really for next week. But even such exploration has a price and it is expected to cost a few hundred thousand dollars to go through such a process.

A few excerpts of the Assembly Member's press release are as follows:

"ESDC has decided to rescind the tax bills sent last September to Westview, Island House, and Rivercross and to continue to allow the buildings to receive their tax exemptions as long as they remain in the Mitchell-Lama program. I’m glad to see, after six months of playing keystones cops, that the administration has finally come to its senses and rescinded this unfair tax bill."

“I could never understand how the administration could argue that threatening to raise taxes was an appropriate tactic to bullying struggling tenants and shareholders into remaining in the Mitchell-Lama program. This was a dangerous game of chicken that could have gone horribly wrong, costing thousands of families their homes."

“Let’s not kid ourselves, this issue is far from settled and the devil is always in the details. As we go forward I will continue to monitor the situation to ensure that the ground lease amendments are negotiated in such a way such that retroactive, unfair taxes are never again a possibility that looms over the heads of Islanders.”

Rivercross Schedules 2nd Attempt at Privatization Vote

The Rivercross Tenants' Corporation has scheduled a new Privatization Vote for January 30, 2008 after its December 12, 2007 vote was cancelled by the DHCR. The rescheduled vote was announced to the Rivercross residents through a January 15, 2008 internal building memo.

DHCR claimed the Dec. 12th vote, which included votes by proxy, to be invalid. The Rivercross Board of Directors claimed that the proxy vote was valid as this was the second vote in a series that began in October 1996. DHCR invalidated the 2007 vote as reliance on the 1996 initial vote was stale.

The Privatization Committee has indicated that this vote is not the final vote but only one to authorize the committee to begin the paperwork to move forward towards privatization which does as part of the process notify DHCR of the building's intent. Once a "black book" is created which would be the final "plan" the residents would then post an actual vote on that plan. A percentage of Rivercross residents don't want to even begin this process based on their belief that all avenues have not been exhausted to solve the buildings financial needs without going the privatization route. The Main Street WIRE has covered the issues much more in depth than I can here and I encourage any reader to go the WIRE website to read the indepth coverage provided.

What I find interesting is the timing of the vote in light of DHCR Commissioner Van Amerongen's January 17th promise to get back to the Board within the week with information regarding the FMV ESDC tax bill which is in part pushing the Rivercross privatization process along. If the DHCR wants to be taken seriously the Commissioner better get back to Rivercross before the January 30th vote if the news is to have any impact on this rescheduled initial vote.

PressHD Publishes Additional RIOC Board Nominee Q&A Videos

PressHD published on-line this evening four additional videos of the RIOC Board Nominees at last week's Candidate's Night held at the Church of the Good Shepherd. Each of the videos is from the Q&A segment of the evening. Of the videos presented three deal with questions that I was not able to transfer to video on this blog previously: (1) Privatization (2) Main Street Vendors and (3) RIOC Board Meeting attendance.

The videos I posted on July 17th captured the candidates' responses to questions posed regarding (a) Maintaining Open Space (b) Rental of Open Space / Sports Fields and (c) Southpoint and the Louis Kahn designed FDR Memorial. It should be noted that my Southpoint video cuts off Dr. Grimm mid-response and the full responses of both Michael Carew and Fay Christian. My apologies again.

The PressHD videos are not complete videos of each Q&A session as each ran about 1 minute per candidate but the videos appear to capture the key comment(s) or thoughts of each candidate.

As very few of the candidates appear to be advertising their campaigns and positions other than Jonathan Kalkin these videos (my own and those of PressHD) are perhaps your only views of the full slate of announced candidates to date. The deadline for filng paperwork was this past Friday night January 18th and I am awaiting confirmation as to the final candidate list. As noted earlier written statements are expected to be printed in this coming week's WIRE.

According to Jonathan Kalkin's website he was interviewed by the NY Daily News so look for links and coverage of that story once it is published. As noted on his site this is encouraging to see that the main stream media is picking up on this election. It will add pressure to the Spitzer adminstration to live up to the expectation that our duly elected nominees will be submitted as the Governor's recommendations for speedy confirmation before the legislature/