The RIOC Board of Directors passed resolutions Thursday morning reaffirming its earlier decision to go forward with the development and to transfer primary interest in it from Becker and Becker, the architects and original developers, to the Multi-Employer Pension Trust (MEPT), which becomes the developer of record.

The substantive effect of the Board's new actions on the project, however, was to remove a requirement, present in its earlier resolutions, that "legislative permission" be gotten for the project.

Assemblymember Pete Grannis has taken the position that the 2002 Roosevelt Island Open Spaces law effectively forbids the project by the way it defines open spaces and parkland. RIOC's outside counsel, Steven Kass, advised the Board that the law would not have to be changed for the project to be legal - and informed the Board that permission of the State Attorney-General had been obtained.

In effect, the vote put Grannis and the RIOC Board in a head-to-head confrontation over the meaning of the 2002 law. The only Board member voting no on the project was Mark Ponton, a Rivercross resident.

But the RIOC Board is sensitive to the possibility of litigation over the project. During the meeting, through comments and questions to Kass, Board Chair Mary Beth Labate of DHCR and others took pains to point out, first, that the successful construction of the project could mean some $11 million in income for the Island and, second, that litigation could cost RIOC as much as $500,000 in legal costs and the expense of delays.

In advising the Board, Kass said, "You have been able to secure the consent of [the Departments of] Parks and Recreation and Historic Preservation... In addition, you have the consent of the [State] Attorney General and the [State] Controller under the environmental control bond act. With those 3 approvals, the conditions referred to in your August 30 resolution have been satisfied, and it would appear there is no further requirement for legislative consent. [The project is] also in compliance with [Chapter] 493 [of New York State law], because it is designed to do exactly what that law anticipated - to restore the landmark and further the public use of the area around it."

Kass then added, in response to a question, "There's no question that litigation would be expensive, and it would make it more difficult for you to use the proceeds of the project" for Island projects. "The arrangements do contemplate an escrow of initial payments due under the lease, during any period prior to or during litigation. During the pendency of litigation we contemplated that MEPT will require arrangements which hold those funds in escrow. It's not just the litigation expenses that you would not be able to use [for other purposes], but [also] the funds in escrow could not be used by RIOC."

There is a limited period of time, triggered by the Board vote, during which parties of interest can take action against the planned development. That's a four-month window, after which Article 78 suits can no longer be filed.

After the Thursday morning session, Board member Leo Kayser spoke about the potential for litigation, on the record, with The WIRE.

"Any litigation would be for nought," Kayser said. "We got Steve Kass's opinion on the record today, but I'll make myself available to talk to anybody who might be contemplating a lawsuit. I'd like to do that before they go into a lawsuit.

"It'll cost us at least $500,000 if there's litigation [because] once we sign this, we're going to be obligated - bound in good faith - to defend it. The litigation contingencies have been placed in the contract, but those litigation contingencies amount to real money coming out of what would otherwise be available for capital improvements here on the Island.

"If I can save everybody a lot of grief and expense, I'd like to use my good offices to do that."

Kayser, who is a practicing attorney, said he was speaking with The WIRE with the knowledge of RIOC President Herbert E. Berman.

"I'd like to find out what people expect to achieve by litigation," Kayser said. Are they single-mindedly set on opposition, or are they interested in other things on the Island? I'm not going to make any assumptions that people are acting out of malevolent motive. But if we could find a way to find out where people's constructive interests lie, so that the money doesn't leave the Island and go into lawyers' pockets - if we could do things to make sure this money stays here, that would be a positive, constructive outcome."

During the Board meeting, resident Board member David Kraut also put himself on the record as wanting to avoid legal action. "I understand the exposure - that money that would go to litigation could be used to fix streets." He described the Octagon as a "historic" opportunity, and called it "brilliant adaptive reuse," adding, "It's implicit that the Board understands its liabilities. The income [from this project] will go to upgrading the capital situation on the island - the seawall, the streets... and it also provides housing, adaptive reuse in saving an important landmark structure, creating construction jobs, and it provides a park. These things all have to be considered."

Labate said that 39 percent of the income from the Octagon project will go toward items in RIOC's capital plan. "There will most certainly be money in the budget to do capital projects that have priorities for the residents. But every dollar we spend on litigation is a dollar taken out of the pockets of Roosevelt Island residents."

Also...

At Thursday morning's meeting of the Board of Directors of the Roosevelt Island Operating Corporation (RIOC), corporation President Herbert E. Berman said the roadway near Manhattan Park will be repaired in the near future. Berman and RIOC Engineer Vincent Kopicki said that the City Department of Environmental Protection (DEP) had been reluctant to admit that water-main problems were the cause of roadway depressions, but had recently agreed they were contributing to the problems there.

"We have to wait for DEP to be ready to do repairs," Berman said. "When they are ready, we'll repair the roadway."

In other news from Thursday's Board session:

. The Board approved a grant of Public Purpose funds for election machines for the RIRA election November 2, though with the caveat that it is the last time RIOC will appropriate such funds for the elections. (Public Purpose funding is normally intended as "seed money," with organizations and projects expected to find other sources after a first grant. RIRA has had four Public Purpose grants for election machines.

- The Board approved reinstatment of a plan under which some RIOC staff can "sell back" vacation time for cash.

- Berman reported that, for now, openings of the Roosevelt Island Bridge have ceased.

- He said that work on the spiral access ramp has been completed.

- Engineer Vincent Kopicki reported that waterproofing work will be undertaken soon to seal the elevator shaft at the north end of Motorgate, so that elevator repairs may be done without danger of flooding putting the work in jeopardy.