September 29, 1999
Supplement to The WIRE of 9 October 1999

Partial transcript of
RIRA Legal Committee Fund-Raising Meeting
September 29, 1999

Jump to:
    RIRA VP Joan Christianson
    Attorney Jeffrey Glen
    Question/Answer segment
        End
Patrick Stewart (President of Roosevelt Island Residents Association): It behooves us as the citizens of this community to make sure that development is done in a way that benefits the people of this community and the people who will live in this community, not just the developers. ...

It is a very necessary thing for us as members of the community to understand what's happening, what's proposed to happen, and what we can do to make it either better for us, or stop it. Sometimes communities have to stop things from happening. ...

We are well-known as being a very feisty bunch of people, and personally I am very proud of that. People say, "Don't fiddle with those people on Roosevelt Island because if you do you will certainly get in trouble." Again, as you all know, Jerry Blue was here for three years and three days. Jerry Blue was able to accomplish nothing. Why did he not accomplish anything? Because we wouldn't let him accomplish anything. What he was trying to do was not for the benefit of this community, it was for the benefit of developers and Jerry Blue. Now we have a new President of the Operating Corporation who, in my view, is a more reasonable, far more intelligent, far more businesslike person.

Don't misunderstand, however. He has pretty much the same agenda that Jerry Blue did. That is to develop this Island. As you all know Southtown has been given the go-ahead, and we believe that is a very positive thing for this community. That will add 5,000 people, which will take us up to 13.5, which is 2,5 short of the maximum amt of 16,000 that has been planned for the community. There are other developments. The 31 story eldercare [building], Southpoint, two 26-story hotel towers and ancillary services and such, a possible residential building for Octagon Park, and the mini-schools.

Interestingly enough, the mini-schools were really the most contentious of all of these things, and I think personally, that speaks to the community. The community said, "We do not want that because we are being asked to give up more than we're getting." So the planning and development committee of the Operating Corporation, which Joe Lynch put into effect last February, voted against the second story of the mini-schools, and that will go to the Board and if all goes well the Board will vote against that. Again, that shows you the power of the people on this Island. That's what we have, the people.

Joan Christianson: On April 7 of this year, your Residents Association Common Council overwhelmingly passed a resolution to establish a legal fund dedicated to representing the Island against unwanted development. By early May, we drafted a resolution to create a legal committee, choose its chairperson, me, state its purpose and define its parameters. You, the community, responded by contributing almost $10,000 with another $10,000 in pledges. You did this virtually without anyone asking you to, because you knew how much was at stake. We're here tonight to ask you to do it again.

It took until August to fine-tune the resolution, and it was passed overwhelmingly by the Common Council in a vote taken by telephone. It states the purpose of the Committee as follows:

  • To retain counsel to represent the interests of the residents of Roosevelt Island regarding the development projects including, but not limited to, Southpoint, Southtown, Eldercare, mini- schools and Octagon Park, and other defined issues as deemed appropriate and necessary over time and in accordance with the RIRA resolution of April 7, 1999.

  • To insure that the State and developers adhere to the provisions of the General Development Plan and the Master Lease including the provisions that the Island be a mixed income community and protect open spaces.

The Resolution goes on to state that the Committee shall be composed of Island residents, both Common Council members and non-members, will interview law firms and then recommend their choice to the Common Council, and will work with that firm to þdevelop and execute a strategy.þ The Committee is obliged to report to the Common Council and to seek approval of all significant disbursements of funds. The Resolution then lists the initial steps necessary to create a Legal Fund and authorizes the Committee to raise and account for the money.

We were fortunate to find a firm already familiar with our situation. In fact, they have been working since last spring on legal questions pertaining to Southpoint on behalf of another client. In addition, Mr. Glen is married to Rosina Abramson, former president of RIOC, and has followed Island events for years. In other words, they came into the process up-to-speed and firing on all cylinders. The Common Council voted their approval of De Forest & Duer just two weeks ago, and now we're seeking your approval in the form of your financial support. We have negotiated a retainer fee within the amount already raised, and covering all the planned development of the Island. But clearly, we need a war chest to cover the extra hours, contingencies, motions and other expected but currently unforeseen events, possibly including litigation, that are sure to arise.

Now, I'd like to have Jeff Glen introduce his firm and give you some background about their strengths, their experience and their plans to help us maintain some control over the Island's development. Then, we'll try to answer some of your questions.

Jeffrey Glen: We are really pleased that we are going to be representing the Common Council of RIRA (the Roosevelt Island Residents Association) and therefore all the residents of the Island in their whole general approach to assuring that the development that will occur out here is in keeping with the Master Plan and in keeping with the needs as articulated at the turn of the century by those who you who live here.

DeForest and Duer is the third oldest firm in the City, founded in 1842. The firm's strengths over the years have been principally in not-for-profit representation. We represent St. Luke's-Roosevelt, a lot of the work at Columbia Presbyterian, a lot of the work in the not-for-profit development in the City...

We are a firm of 24 lawyers, essentially all partners from various backgrounds. I was head of litigation for New York City. Bob Cook (who will advise RIRA on non-litigation development issues) was at Brown and Wood. What you get is partner representation.

As we see our role, it's in two areas and we hope not a third. The role is to advise the residents of the Island on issues that pertain to the Island development. That may mean technical land use work; for example, there will be Environmental Impact Statements [EIS] coming up in the future, for sure, although there was an EIS on that at one point. Southpoint, if there is a Southpoint [will involve] technical work, but there will also be work that affects development in a somewhat oblique but necessary way. For example, when more development is proposed for this Island, it will necessarily impact on the traffic patterns that currently exist. This is a small environment. The spill-over effects are something that developers tend to ignore, and government often overlooks. We are acutely aware of those issues. It is a small environment, and people have to look at it in a large context. We are also very experienced in the economics of development. Building out here on Roosevelt Island has certain advantages and certain disadvantages...

In my view, the best representation of community groups is to tell you what the parameters within which development must occur, and then for the group to handle the politics. The power is with the people who are involved in the process. It is true that developments are affected and can be changed and halted by litigation. It's expensive. Invariably, the government is on the other side because it's part of the development. That means that their lawyering comes free. You cannot go dollar-for-dollar against the government and big developers. What you have to do is pick your issues and hit them carefully.

Let's take Southpoint as an example. We all know that in the GDP (General Development Plan) Southpoint is designed to be parkland -- the Roosevelt memorial and the possibility of some kindred ancillary uses. It is not designed in the Master Plan to have two 26-story in it. I start from that premise: that we are preserving the original goals in our work on Southpoint. Do you need to anticipate litigating Southpoint? I hope not. The goal is to stay out of court. We will, of course, tell you if we believe things are marching along that can only be stopped by bringing a lawsuit. We will advise you what kind of a suit can be brought, estimates on cost, what your chances are, but our hope is that we'll never have to get there.

...

As far as what we do with you, it's what you ask for. We have a retainer situation for two reasons -- so that you have a call on our time, and if you want us to come out here to give you advice, we're here. If there is a hearing on something and you want to have counsel at the hearing, we here for you. Secondly, and really very important, because you're here for the long haul, you now have one of the city's primary development firms that can only work for you in the context of all the development of Roosevelt Island.

We are single-mindedly your lawyers on this stuff.

[Responding to question from Jose Baca:]

Patrick was saying is that one of the things you want to keep here is the [demographic] mix. Is it a good idea to permit some luxury, or not, in, for example, the Southtown project? Is the mix that a particular developer comes with the right mix for the present residents? If a consensus forms that there is too much or too little, or not enough planned parking or too much...

[Responding to question from Linda Heimer:]

It is our experience that if our role is to prevent a particular proposed project -- if you're trying to stop something from happening -- one thing that's very important is not to jump in too early. If you jump in too early, several things happen. The first things is that if the government believes that it is engaged in a process, and you attempt to stop it before it's gotten anywhere, you can guarantee that your legal fees will be astronomical, because the inertia of the governmental process is to let things continue. Hopefully, at the end of the day they die of their own weight. That happens frequently. But to attempt to come in early when you don't have a huge war chest is probably not a good tactic.

[Second,] It is extraordinarily unlikely that any development for Southpoint or for Octagon Park could proceed anywhere without a full EIS. Can't guarantee it. But the law of New York is quite good that what's called "major impact" requires a full EIS. Surely the Marriott project requires one. Under both the RIOC statute and the State environmental statutes, there is a fairly elaborate set of public hearings which precede the production of any EIS.

I believe that if a well-informed and powerful citizens group, such as this, makes a substantial contribution in the public hearing process of the EIS, two things will happen. One is you may actually get things changed because the developer may see that it's easier to buy these people off than to fight them. A second possibility is that if you articulate the positions well and the EIS that comes out does not incorporate it, you've created a good litigation tool. You may well decide that the first thing to spend any substantial money on in the Southpoint fight is an environmental consultant, not a legal consultant. Under Jerry Blue you couldn't make predictions about RIOC. But if they run like a moderately rational agency, I do not believe they will attempt to avoid the open hearing process. It's in their statute, it's in the environmental statutes. I can't overemphasize the importance of having a well-articulated position at those hearings, because when hearings are given to the public you've got to use them. You can't avoid them. But you don't need to have me stand up and say it. In fact, lawyers are the worst possible people to talk at hearings, because everybody knows they're mouthpieces. I don't think the cost of that is going to exceed the retainer.

We have undertaken for six months to work for you for $600 a month, on the assumption that roughly 20 hours of work will occur if there's no litigation and no hearings in the first six months. I believe that is unlikely that you'll exceed the kind of target we're looking at. You are not hiring us to engage in a litigation at this point. I don't have to spend ten hours a day taking depositions of the Jerry Blues of the world. What you want now is the answers to a series of fairly pinpointed questions. For example, let's assume that a motion is calendared for the RIOC Board to have RIOC direct the potential developer of Southpoint to retain within 60 days experts to start an EIS -- RIOC tells the developer to move faster. You will probably at that point want to ask me, "Is this the time for us to seek an injunction?" At which point I will spend an hour looking at that problem and give you some advice on it.

Second example: Let's assume that a set of hearings is convened by RIOC into the general question, "Is it time to take a new look at the GDP?" We have a series of different possibilities coming on, should we take a generic look at the GDP? That would be something where you would probably want some counseling as to how to respond to that kind of a global inquiry coming from government. ... That probably would take us ten hours... how to present your positions on a large-scale hearing thing. We do not believe that there is any substantial likelihood that some process will begin in the very short term that will lead to a final designation of a developer for Southpoint. We think you're looking well down the line on that. It's also not at all clear from an economic viewpoint that anyone genuinely wants to go ahead with the kind of money they're talking about. The push hasn't been moving.

How much will things cost if litigation hits the fan? The kind of lit that typically comes up in land use starts out generally with an application by a community group to stop something from happening, because typically developers get the go-ahead from government. And they don't have to sue anybody. ItQ's that you have to try to stop it. There is virtually no cost to our doing the legal research on that because over the last ten years we have done so much of that work that we have probably done every case in the area that would be coming up. The question is how much does it cost for you to get your lawyers cranked up to go into court to try and get that initial injunction? You're probably looking at a minimum of $10,000 and a maximum of $30,000, if that kind of thing happens. I don't anticipate that kind of problem coming up for at least a year or so. It may never come up. If it does, that's what you're looking at. If it does, you'll have weeks, if not months, of lead time to decide whether you actually want to spend your money on this kind of thing. You'll have the benefit of our advice to say, "Here are your chances of initial success, and ultimate success," which may be two very different things. [For example...] Here's the cost to slow it down so you can start mobilizing the community...

[Responding to question from Shirley Margolin:]

Here's how the EIS works, in a nutshell. A lead agency is designated by the government. In this situation it would be odd if RIOC did not designate itself to be the lead agency. Under the lease and the GDP it is 80% likely that any development at Southpoint would require a modification of the ground lease and a modification of the development plan, and if so, it is 90% likely that if RIOC didn't ask the City to join them in that process and you asked me to sue them, we would win that particular little piece of litigation. But I don't think they're going to do that. I don't think they're going to try to cut the City out, because politically, it's just too nutsy to do. Assuming that RIOC decides that it wishes to go ahead to enable something to happen at Southpoint, it will initiate an EIS process, and it can do it 2 ways. In theory, the government can do it itself. [But] It is extremely unlikely that RIOC would get an appropriation from the legislation to do its own EIS. Consequently what is very likely is that if RIOC continues to stay in bed with the Jamal operation (which proposed the twin-tower hotel for Southpoint), they will invite them to initiate an EIS process with making RIOC the lead agency, meaning that's where the material comes to. The City's role in that will be as a resource, not as a player. The various city agencies that operate on the Island will be contacted in the EIS process and will give their input. The City may well decide it has a view. But it may simply be a resource in the process. If the EIS does not consider the effect of modifications in the lease and the GDP, I believe it would be rejected by anybody looking at it. Consequently it's very likely that the Mayor's office and the City Planning Commission will be asked for their views on the environmental impact of various types of changes in the lease and GDP. How long would that process take? Minimum, six months, maximum, probably ten. At the end of the process a large number of volumes of unreadable and uncarryable stuff gets dumped on the desk of somebody over at RIOC and that the is the proposed or preliminary EIS. Then there's another hearing process. I suspect that the city planning commission would give comments on the preliminary EIS.

What's the role of the Land Use Committee of the City Council or the Council per se? It's probably the role that they want to take. There is nothing in the environmental impact process that says the local political power must participate or can't participate. It's really what they want to do. By the time this all happens we're going to have a new Mayor. Is it going to be good, bad, or neutral from your viewpoint of what should happen at Southpoint to get your local council people involved at the EIS level or do you want to hold them back? My general feeling on this is that the time to pull the politicians out is when they are trying to change the lease. But that may change. So, in a nutshell, I think the City Planning Commission will be involved as a resource. I think they will probably comment. The Police Department, the Fire Department, the Sanitation Department will give their input to any EIS and that's going to be important impact on this Island because of the geography. There are things that we would raise. For example, "Have you asked the Corps of Engineers for their view?" That's always a good bunch to ask because they are really slow at doing anything.

[Responding to a Mark Ponton question about Southtown:]

I don't know whether the Southtown that is about to be built is considered a major modification or a minor modification under the law. If somebody were to ask me, "What do you think is the point of vulnerability on Southtown?" the first thing that I would look at is to see whether whatever changes occurred from the plan that was approved by the Board of Estimate fall within the concept of major modification. Because if they do, it raises a very interesting legal point (and "interesting" always means delay), which is, "Does the City Council take up where the Board of Estimate left off when they got rid of the Board of Estimate?" If RIRA wanted to attempt to stop Southtown (and I must say until you mentioned it, nobody has said that to me), if that were the position, the initial place I would look at is whether there was an appropriate process in changing whatever was changed from the Board of Estimate approval, and the one thing I can be absolutely sure about is that, six years later, something's been changed. That's where the legal vulnerability would be. But to start that kind of an action you have to be very convinced that you're willing to carry it through to the highest court in New York State, because you can be guaranteed that if you win [in a lower court], the government will appeal, and once the government appeals, it's as if you hadn't started. because under the rules, government filing a notice of appeal essentially wipes out the lower court decision; you start again at the higher level. ... Construction usually doesn't start because the banks won't fund it in that situation, but it's not a legal issue, it's because you can't get the economics. Having said all of that, knowing nothing about Southtown, I have no idea if you want to do something seriously or not, I have never seen a major project in the City of New York that was the subject of litigation that didn't have at least a six-month delay simply by bringing the case. It's just the way the world works.

[Responding to question from Graham Cannon:]

Let me answer that in a way that is really direct and cruel. Unless RIRA wants to pay me to look into that, for me to shoot from the hip on how to mitigate traffic impact on a plan I haven't read, is not what a lawyer should do. What I would do, sir, because time is really important on the Southtown thing, if there is a substantial body of people within the RIRA community that want to have a hard look taken at whether the Southtown that's being built can be improved, I think that's something you should do very quickly, and then, come to us if you want to do it and we can start talking about what it would cost you.

If you have identified a problem which is not fully analyzed in the existing EIS, which is now, I think, six years old, because of changes in the plan, in theory you could go to court to see if a judge agrees that it's a sufficiently major change to require an updating of the EIS. So the answer is, there is a legal process available to you. Whether it's applicable in this situation, I can't begin to tell you.

[Responding to question from Jose Baca:]

...If you know what you're talking about, and you say, "This design is foolish," what you may be able to do is make them take a "hard look" at your position. But if they do so and then disagree with you, that's democracy.

[End of partial transcript]
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