In the April 8 WIRE, RIOC President Herbert Berman states that "self-sufficiency is not an option, but a mandate." He invokes those magic words to justify leasing deals that RIOC has made or is considering, including the one with Dunkin’ Donuts.

I know of no law, rule, regulation or court order that requires this Island to be "self-sufficient." Indeed, this Island, like Governor’s Island (which will be developed without housing) incurs extraordinary costs that make it difficult, if not impossible, to reach that goal. For example, unlike the rest of the City, the Island must maintain the Tram and repair the seawall; it has to also maintain Motorgate, the Chapel and Blackwell House; it also collects garbage via the AVAC system. There is only so much that it can charge residents to cover these costs; a lot must come from its lease payments for ground rent and PILOTs or equivalents to real estate taxes. The Island is not part of New York City’s budget, where costs can be spread over a much larger tax revenue base.

While RIOC officials like to claim they manage the Island efficiently, that is not what the recent State Senator Brodsky’s report found. It found mismanagement, cronyism, padded payrolls and bonuses, and a bureaucracy closer to Kafka than to Peter Drucker’s "Essential Principles of Management."

Current RIOC officials also like to boast that the Island has become self-sufficient through their efforts, but this is based on counting "one-shot" revenue deals (such as leasing Southtown land for full up-front payment of all ground rents due under 62-year-long leases) and on deferring capital and maintenance needs.

In fact, it was understood from inception that the Island’s true costs would exceed its revenues and that it would take subsidies from taxpayers to maintain the Island infrastructure and attract many of its diverse residents, some disabled, subsidized, and seniors living on fixed incomes.

The idea that the Island must be self-sufficient is not a "mandate" as Mr. Berman asserts, but simply a "policy" goal. However, the implications of this "policy" are significant: it drives RIOC into deals that produce one-shot revenue boosts, not necessarily good for the long-term health of the Island. It may also result in fast-food chains like Dunkin’ Donuts, which can pay higher rents, being given leases despite their adverse impact on other vendors here and upon the general character of our Main Street. Thus, at risk is the long term value and attraction of this small-town community, which can easily be sacrificed by the focusing on the mantra of "self-sufficiency."

Robert Chira

The contributor is an attorney practicing law in Manhattan