“Discussion on an Extension of the Master Lease. The Master Lease extension will affect us all in the coming years. The Master Lease expires in 2068,” Paul Krikler wrote of the topic under discussion at tonight’s CB8, Roosevelt Island Committee meeting. In this case, 40 years is much less than you think.
by David Stone
The Roosevelt Island Daily News
The Master Lease
In 1968, a debt-ridden, politically scrambled New York City did the right thing. Rising above the graffiti-scarred mess, it made a deal with the state that turned over development of the most sought-after property in the five boroughs: Roosevelt Island.
New York plunged millions into infrastructure while constructing the WIRE buildings, a nesting canyon for affordable housing away from the urban noise. They also built the Tram and, later, the subway. FDR Four Freedoms and other parks evolved out of the master plan.
While there have been – and still are – serious bumps in the road, the neighborhood arising from the Master Lease is widely considered among the best in New York.
Why 40 years ain’t much…
What happens 40 years from now, when the Master Lease expires, doesn’t keep me or many of my neighbors awake at night. But the 2028 date, which leaves four decades to go, matters because it’s critical for future development.
“The Master Lease expires in 2068 and financing for buildings and apartments can get difficult as lenders need to see at least 40 years clear on the lease,” Krikler, Roosevelt Island’s representative on Community Board 8, tells us.
Hudson-Related recently struggled with financing for Southtown Building #9 for that reason. A financially robust corporation had trouble for no other reason. Because future needs are unpredictable, the need for a fix becomes more urgent today.
And by fix, we mean either a Master Lease renewal or ceding Roosevelt Island back to the city, an outcome nobody seems to want.
A discussion of the issues takes place tonight at 6:30. RIOC Deputy Chief Counsel Gerrald Ellis will sort it out. The meeting will be streamed here: https://www.cb8m.com/event/29095/, and there will be a question and answer period.
Beyond the Time Frame: What Matters Now
Because it takes forever and a day to pull together legislation as complex as this potential deal, discussions have already begun. These are ultimately critical because, beyond financing concerns, the details of how Roosevelt Island is governed for the next 140 years are up for grabs.
Real estate interests will be as feverish as they were in 1968. Packing in more construction where parks now welcome residents and friends will be on the table.
On the public side, making changes that bring greater democracy for residents as well as more accountability for RIOC is a now project.
Roosevelt Islanders need to learn as much as they can today and dig their heels in for the battles ahead. A political miracle happening once is no guarantee that it will happen again. We could be sucked up like any other overcrowded neighborhood in New York – or preserve the uniqueness making up an exceptional foundation.
AVAC: Where the Pipe Curves
This is the final installment in my notes from the December 2nd, Operations Advisory Committee meeting, following “An Emergency, Apparently” and “Rust Is Funny Until It Isn’t”.
