The
WIRE's 21st year

February 24, 2001

RIOC Board Scraps the Conversion of
Minischools to Luxury Condominiums
by Dick Lutz

The RIOC Board scrapped the MiniCondos at last week's meeting.

Full transcript of RIOC Board meeting

The action ends, at least for now, a long period of contention between the Board and residents.  Despite overwhelming resident opposition to the plan, the RIOC Board had voted final designation status even while some members expressed doubt that the developer could finance the project.

Whether resident opposition was a factor or not, the Board last week cited the failure of developer Diane Wilson of Corporate Realty Partners to provide satisfactory evidence of financing and other documentation.  Wilson has been watching the matter, however, and has had an attorney with her in all, or virtually all, of her recent appearances on Roosevelt Island.

Wilson had planned to add second floors to the minischools on the Island's west promenade.  The adverse effect on the views of existing residents, in perhaps 100 apartments, led to nearly unanimous resident opposition, in part, residents said, because they felt that the planned-community nature of the Island should preclude such intrusions.

To some, the plan to convert single-story minischools into two-story miniCondos had come to symbolize unwanted RIOC departures from the Island's General Development Plan (GDP) started under the three-year administration of RIOC President Jerome Blue, who left the job a year and a half ago.

There was no immediate indication of whether RIOC will again offer the minischools as a potential development site.

In the meeting, the matter was raised by Mary Beth Labate of the State Division of Housing and Community Renewal (DHCR), who chairs the RIOC Board meetings.  "There has been some discussion of rescinding the final designation that was given to Ms. Wilson," she said.  "She has had what many of us on the Board feel is ample time to come through with the financing package and that has not come into place at this point despite our urging and some representations that she had made."

After a brief discussion, Board member Leo Kayser moved to give Wilson "a formal notice of termination of whatever there is that needs to be terminated." During discussion another Board member, John Mannix, revealed that a recent letter from Wilson's attorney had indicated her intent to "bring in another developer-partner on the project" and that Wilson planned to announce that at RIOC's next Board meeting.  Mannix said that point in the letter "troubles me most."

Residents applauded as it became apparent the miniCondo project was about to bite the dust.

Resident Board member David Kraut, however, raised questions about "legal exposure," leading to a 15-minute closed executive session.  When the Board came back into public session, the description of its resolution had changed slightly, withdrawing the Board's "previous authorization" for RIOC President Robert Ryan "to enter into a final designation agreement with the developer." While the formality might reduce the possibility of a Wilson law suit to recover what she claims to have spent so far on the project, the message was clear: the Board has decided against her plan.  The vote was unanimous except for an abstention by Nancy Reuss, representing the State Office of the Budget.

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