This is in response to your August 16, 2001 letter, and my telephone conversations to Mr. Morenzi of your office in response to your March 15, and April 12, 2001 letters concerning capital facilities on Roosevelt Island.

As I informed Mr. Morenzi, the corporation was awaiting the final version of the Army Corps of Engineers Seawall Report which we needed to complete a capital stabilization assessment and survey, and a comprehensive capital facilities management plan for the Island's facilities. Please note that the Army Corps of Engineers Seawall Report has only been received within the past few weeks. Accordingly, my staff is currently working on assembling the survey and plan for the Island's capital facilities.

This survey and plan addresses both the need for repair and upgrade, and the source and timing of funds to realize the program. In regard to each facility, a source of funds has been targeted, and in most cases affirmatively identified.

Essentially, this means that the capital facilities of Roosevelt Island are being pro-actively managed, and this plan will channel more funds into the Island's facilities and infrastructure than at any time since the original development of Roosevelt Island.

It is crucial to note that all of the funds targeted are from revenue streams generated by the business-like approach which now guides the corporation, not from direct State appropriations to RIOC that would increase the tax burden on the State's residents. Since you and I share a fiduciary responsibility to the people of New York State, I am sure you will agree that it is prudent to use funds which are independently available and thus do not drain the State's tax coffers.

Additionally, I am certain you will agree that the fact that State budget appropriations are not made to RIOC frees up State tax dollars which could be better used to educate our children, keep our streets safe, support senior citizen healthcare initiatives, and provide a wide variety of other public needs.

Finally, please note that much of the funds targeted are from private sources rather than public and, again, I am sure you see the wisdom of this approach.

The capital facilities management plan will be presented to RIOC's Board of Directors shortly for review and comment. After the RIOC Board has reviewed it, I will be glad to provide you with a copy of the plan and a briefing. At that time perhaps you would like to come out to Roosevelt Island to take the tour that I offered the last time we met.

Sincerely,
Robert H. Ryan
President/COO