Grannis says that important maintenance work is going undone, pointing out that RIOC is contractually obligated to care for the Island's non-residential structures.

"RIOC appears to be doing little more than crossing its corporate fingers and hoping for a windfall from afar to meet its financial obligations," Grannis writes in his March 15 letter. "What you and the agency should be doing is leaving no stone unturned, including seeking State assistance, to mitigate future costs and avoid future problems by not allowing the work needed today to go unattended."

Grannis lists a series of projects he considers critical:

 $6.2 million required for seawall work, listed in a still-secret Army Corps of Engineers report. About the report, Grannis writes, "It is my understanding that you have resisted accepting the final report presented to you by the Corps," and asks why, adding "Has RIOC taken any action regarding the eventual funding needed for this project?"

 Blackwell House. "You were hoping to receive funding... from the New York State Office of Parks, Recreation and Historic Preservation. What is the status of this request? If this agency does not fund the project, what are your alternative funding plans?"

 Chapel of the Good Shepherd. Pointing to 1995 estimates of $1.5 million in an engineering report, Grannis writes, "RIOC has not, to my knowledge, ever sought to raise a penny for this critical project either through the State or outside sources."

Grannis goes on, "...it would appear that you and the [RIOC] board are under the impression that somehow sufficient money can be found through private and non-governmental sources. The problem with this approach is that if you are wrong, these facilities will continue to deteriorate."

Subsidies for neither the Island's capital needs nor its operating expenses have not been in the State budget for several years, and while the Governor has not spoken publicly on the issue, he is known to feel the Island is, or should be, self-sufficient.

By deadline, Ryan had not received the letter from Grannis. A copy was supplied by The WIRE, but Ryan said he didn't feel he could comment before receiving the letter from Grannis.

The full text of the Grannis letter is reprinted below.

March 15, 2001
Mr. Robert H. Ryan
President and Chief Operating Officer
Roosevelt Island Operating Corporation
591 Main Street
Roosevelt Island, NY 10044

Re: RIOC's Capital Budget

Dear Mr. Ryan:

I am writing to inquire about RIOC's progress in securing funding for capital projects on Roosevelt Island, including repairs to the seawall, Blackwell House and the Chapel of the Good Shepherd.

This issue is of paramount concern to me and the Island's residents since, as you well know, you did not request nor did Governor Pataki provide, any financial support for RIOC's activities in his proposed state budget for FY 2001-02. Compounding my concern are your comments regarding the current Southtown development in Dennis Hevesi's column in The New York Times on Sunday January 14, 2001 (An Island With a History of Change Awaits Its Latest Transformation): "The feeling of this administration of RIOC is that the developer knows best and government should take a back seat."

While this statement was offered in relation to the Southtown project, it appears to me that it's a harbinger of the general belief by management and at least some of RIOC's board members that the private sector and free market forces have all the answers and that government assistance is not needed for meeting any of the Island's capital needs. The status of funding for the three capital projects listed above points up my concern with this approach.

According to the draft report released by the Army Corps of Engineers in February 2000, the approximate cost for the work needed on the seawall is $6.2 million. It is my understanding that you have resisted accepting the final report presented to you by the Corps. What are your reasons for this? Are you questioning the Corps' cost projections, the scope of the identified work or the phasing of its implementation? If any of these, please provide me with details. Recognizing that work of some magnitude is needed to ensure that the seawall will continue to protect the integrity of the Island's landmass, has RIOC taken any action regarding the eventual funding needed for this project?

With regard to the repairs needed in Blackwell House, you told me in our meeting last October that you were hoping to receive funding for this project via a grant from the New York State Office of Parks, Recreation and Historic Preservation. What is the status of this request? If this agency does not fund the project, what are your alternative funding plans?

RIOC's approach to the third project, the Chapel of the Good Shepherd, is one that I find particularly distressing. Armed with an engineering report from 1995 that estimated the cost of the work to be at least $1.5 million, RIOC has not, to my knowledge, ever sought to raise a penny for this critical project either through the State or outside sources. The only funding for addressing the Chapel's deteriorating conditions has come from the special appropriations now totaling $250,000 that I have secured in the past few State budgets for the New York Landmarks Conservancy to undertake this repair and restoration work. Obviously more than this is needed. Where do you propose to find it?

Based on your comments in the Hevesi article and elsewhere and your actions to date regarding at least these three high profile projects, it would appear that you and the board are under the impression that somehow sufficient money can be found through private and non-governmental sources. The problem with this approach is that if you are wrong, these facilities will continue to deteriorate.

Based on the City's lease with the State and the Island's General Development Plan, it is clearly the responsibility of New York State to maintain the Island's non-residential structures and general infrastructure. Not only does this not appear to be happening, but RIOC appears to be doing little more than crossing its corporate fingers and hoping for a windfall from afar to meet its financial obligations. What you and the agency should be doing is leaving no stone unturned, including seeking State assistance, to mitigate future costs and avoid future problems by not allowing the work needed today to go unattended.

I look forward to your prompt response to the questions posed herein and would appreciate your providing me with a list of all the capital needs you have identified on the Island. Please call me or Tony Morenzi if you have any questions regarding issues raised in this letter.

Alexander B. Grannis
Member of Assembly

copies:
RIOC Board of Directors
Joseph B. Lynch, NYS Division of Housing and Community Renewal
Hon. Carolyn Maloney
Hon. Olga Mendez
Hon. Gifford Miller
Matthew Katz, RIRA

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