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February 24, 2007

 
Whose Responsibility?

Merchant activities in Northtown have long been made complicated by the way retail leasing was set up on Roosevelt Island.

While the residential buildings are privately owned, RIOC handles the ground-floor retail space.

So what happens when, in an apartment somewhere above, a bathtub overflows or a pipe breaks, and a store is being flooded, ruining a ceiling and merchandise?

Good sense would seem to suggest that, immediately after moving merchandise out of harm’s way, a merchant should contact someone close to the source of the leak – Housing Management in the case of Eastwood – and ask for attention to the source of the trouble.

Next step? Repairs, presumably. RIOC says any necessary repairs are the responsibility of the commercial tenant. A commercial tenant might reasonably take the position that costs should be covered by the responsible party at the source of the leak, or the apartment renter’s insurance carrier. But to get at that tenant, a merchant would need the cooperation of the building owner or manager, both to identify the source and to get information about the responsible party.

Even if building management somehow bears responsibility because of (for example) aging and failing pipes, the commercial tenant has no contractual relationship with the building management and might have difficulty collecting.

A reasonable person might guess, then, that a merchant would turn to his landlord – RIOC – and ask for assistance in getting some settlement or cooperation from somebody connected to the source of the problem. But RIOC (and the lease) says that the commercial tenant is responsible.

The commercial tenant then has to ask himself a question that might be framed this way: Should I spend [fill in dollar amount] to get this repaired? And he might answer, I don’t have a lease on my space, so I could be kicked out shortly after making such an investment. Anyway, the same problem could happen again and again. A number of merchants who’ve left Roosevelt Island, and a number still here, have been through that difficult reasoning.

Commercial tenants without leases, afraid of losing their hard-built businesses and especially if they have trouble with the local language, are loathe to annoy a landlord.

When residents ask, Why don’t the Island’s merchants fix up their places?, the answer may lie not just in RIOC’s failure to grant lease renewals to the merchants, but also in the odd structure of relationships established when New York State leased this Island from New York City and went into the business of creating and running a community.

 

The Main Street WIRE
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