We remain optimistic about a deal because, at the end of the day, both sides understand that a timely transfer to affordable tenant ownership is the only viable option. An affordable transfer to the tenants allows the State to demonstrate real results for its policy objectives and provides Mr. Lucido the opportunity to realize a return on his investment without years of protracted struggle.

First and foremost, we take Mr. Shane at his word when he says that transferring Island House to affordable tenant ownership is a top priority for him, DHCR, and the Spitzer administration. We applaud his leadership. Mr. Shane understands better than anyone that his tenure on Roosevelt Island will be measured by his success in getting these deals done and that the timeline for that success is measured in months, not years.

Mr. Shane is fully aware that the residents of Island House, through their elected representatives, have worked long and hard for a fair, equitable and affordable deal that recognizes the needs of the current middle-income tenants of Island House while providing opportunities for future affordability for new residents. He knows that, at the end of the day, the residents of Island House will not accept a situation where their futures are held hostage to a broader State agenda that might take years to resolve. Mr. Shane is an experienced lawyer and savvy politician who knows that the residents of Island House, our sister buildings, and the Island in general are a powerful and effective political force who have a track record of successful activism when their interests are disregarded by the appointed leadership at RIOC.

Mr. Lucido knows that his options in terms of reselling the building are limited and the State has said it will excecise all its options to protect the tenants. It’s important to point out that Mr. Lucido, to his great credit, has been enormously supportive of tenant ownership, which leads us to believe that both sides ultimately recognize the need and value of reaching agreement on terms of transfer.

We believe that the price differences separating Shane and Lucido on Island House, while significant, are bridgeable and that there is enough flexibility and, hopefully, good will on both sides to make this happen.

While we continue to urge both sides to reach an agreement on sale price, our role is clear – making sure we are ready to move ahead, fast, when the State and Lucido agree to terms. That’s why, since March, we have been developing and refining a comprehensive, detailed proposal that we believe is flexible enough to accommodate the terms agreed between Lucido and the State and the core interests of the tenancy.

Working closely with our real estate consultants, CPC (Community Preservation Corporation) – whose expertise is recognized by every party at the table – and in consultation with DHCR, we have developed a number of very sophisticated models/projections that allow us to meet all these goals. We are actively working with a very supportive senior team at DHCR to refine the details and attain their endorsement.

The State has made it clear that any plan must include provisions for future middle-income renters and/or buyers to be able to afford to live in Island House. We couldn’t agree more with this worthy goal, and our financial models show that we can make it compatible with ensuring that current residents who choose to rent are protected and those who choose to buy (thus providing the financing and cashflow for affordability) have the ability to build equity over time.