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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Prepared by:
Phillips Preiss Shapiro Associates, Inc.
Planning & Real Estate Consultants
MJB Consulting

Prepared for:
Roosevelt Island Operating Corporation

October 2009
ROOSEVELT ISLAND MAIN STREET RETAIL STUDY
ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

TABLE OF CONTENTS

I. Executive Summary 1

II. Study Objectives 5

III. Methodology 7

IV. Existing Conditions 9

V. Main Street Principles of Success 21

VI. Roosevelt Island’s Main Street 25

VII. Market Analysis 29

VIII. Recommendations 39

IX. Conclusion 45

Appendix 47

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Photo credits:
Cover image: www.bing.com/maps
Historic map, page 4, and The Smallpox Hospital, page16 and Roosevelt Tramway image, page 18: Images of America: Roosevelt
Island; Judith Berdy and the Roosevelt Island Historical Society, Arcadia Publishing, 2003.
Grand Central Terminal image, page 40: http://commons.wikimedia.org
Myrtle Avenue shopping image, page 23: http://www.myrtleavenue.org
Proposed Roosevelt Tramway Redevelopment, page 18: RIOC
All other photographs: PPSA

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I. Executive Summary

Toward a Cycle of Success on Main Street

The original vision of Roosevelt Island was the creation of a diverse, mixed-income, self-contained planned community on an
island in the heart of New York City. Many aspects of the original plan have been fulfilled. As the Roosevelt Island General De-
velopment Plan and Ground Lease from the City of New York approach their 40th Anniversary, Roosevelt Island is a growing
and diverse neighborhood with incredible views, unparalleled open spaces and a unique transportation system.

However, Roosevelt Island’s retail sector has struggled from the start. As a result, the “excitingly urban” Main Street envisioned
in the General Development Plan has yet to materialize. In fact, 66% of residents cite “poor shopping options” as the Island’s
greatest weakness.1 In recent years, a new “town center” has emerged in Southtown where Duane Reade, Starbucks and other
retailers are taking ground floor spaces in new residential buildings with nicely landscaped public spaces. The Island’s growing
population represents a renewed opportunity for Main Street retailers. However, without a significant improvement to Main Street,
there is a real threat that the center of the Island’s retail and civic activity will permanently shift to the Southtown area, leaving
behind more empty storefronts on Main Street.

Based on the feedback received throughout the study, stakeholders and residents alike overwhelmingly want Main Street to be the
primary commercial and civic center of Roosevelt Island. In order to realize this vision, intervention is urgently needed to reverse the
history of failure on Main Street. Given Roosevelt Island’s spending power and consumer priorities and preferences, there should be
at least several successful and well-liked neighborhood-serving establishments that can be established on Main Street. Indeed, many
of the convenience-oriented retail categories, including deli, grocery, drycleaners and hardware store, are already represented. However,
there is general dissatisfaction among residents about the quality of service, appearance and product offerings of those existing es-

1 According to a survey of residents conducted as part of the study. The survey results are detailed on p. 26.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

tablishments. Simply put, there is a mismatch between retail supply and consumer
demand. The solution to
the Main Street problem
Other findings of this report include: is not just a matter of
adding more retail.
• Roosevelt Island residents do just 12% of their shopping on the island.

• The existing retail mix on Main Street is failing to capture the new market opportunities afforded by the island’s growing af-
fluent market.

• Main Street suffers from several design flaws.

• Residents have a very negative attitude towards Main Street.

• Roosevelt Island is gaining affluent residents while maintaining its economic and ethnic diversity.

• Cultural and athletic activities bring thousands of visitors to Roosevelt Island each year, but this translates to very little
spending on Main Street.

• The most desired new retail uses from residents on Roosevelt Island are a bakery, a restaurant, a green grocer, an ice
cream shop, a pizzeria and fish store.

• There is sufficient demand to support at least a small-format green grocer, a bakery, another sit-down restaurant and a
quick-service food and beverage establishment.

It should be stated at the outset that the Roosevelt Island market is somewhat unconventional as its commercial space is regulated
by a public authority, the Roosevelt Island Operating Corporation (RIOC) and therefore subject to the provisions of the Public
State Authorities Act.2 A significant part of RIOC’s public purpose is to maintain and operate the Island’s neighborhood infrastruc-
ture, which would include Main Street. There are benefits (e.g., site control) and burdens (e.g., restrictive and lengthy leasing
processes) associated with public authority governance, but there is no question that retail success is achievable within this reg-
ulatory framework.3 The main challenge is how to craft a balanced tenant solicitation and leasing process – in compliance with
the Public State Authorities Act – that utilizes the control vested in the public authority to provide a sufficient supply of quality
retail stores to serve its residents.

The public purpose in providing a sufficient supply of neighborhood-serving retail stores on Roosevelt Island is clear. In an urban
environment, neighborhood retail can generate local jobs; encourage entrepreneurship; promote healthy eating through the pro-
vision of fresh food options4; reduce traffic/transit congestion and carbon emissions associated with traveling to purchase con-
venience goods outside the neighborhood; stimulate other complementary beneficial uses, such as cultural establishments; and
promote a unique local character and sense of place. In the case of Roosevelt Island, successful retail would also generate rev-
enues for the RIOC which could be channeled back into services for residents and financial assistance for developers and mer-
chants during tough economic periods. On the other hand, a dearth of neighborhood-serving retail stores results in fewer local

2 The Roosevelt Island Operating Corporation was created in 1984 as a public benefit corporation charged with maintaining, operating and devel-
oping Roosevelt Island. It began operations in 1986.
3 Grand Central Terminal, also operated by a public authority, provides an example of a thriving retail environment subject to the same regulations
as Roosevelt Island. This case study is detailed on p. 40.
4 The City of New York has recognized the adverse effects on quality of life and health associated with poor quality grocery options. See “Going
to Market: NYC’s Neighborhood and Supermarket Shortage,” a study published by the Department of City Planning in April 21, 2008. [available
online at http://www.nyc.gov/html/dcp/html/supermarket/index.shtml]

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job opportunities, more traffic and congestion on local roads and


subways, consumer spending outside of the community, a lack
of synergy necessary to create an active mixed-use environment,
unhealthy eating habits, aesthetic blight and a generic “any-town-
USA” environment. For Roosevelt Island, this would also mean
a loss of revenues. Therefore, any regulatory obstacles which
prohibit the advancement of this public purpose should be im-
mediately reexamined.

The solution to the Main Street problem is not just a matter of


adding more retail. Rather, the emphasis of this report is on im-
proving quality rather than simply adding quantity, and utilizing
strategic marketing in place of haphazard or virtually no real mar-
keting efforts, and targeted rather than dispersed and ineffective
physical improvements. This report focuses on identifying the
missing pieces or strategies that will unleash latent market forces
and sets forth a sound and realistic plan to implement those
strategies. The overall aim is help Main Street realize its potential
as the true Town Center of Roosevelt Island.

Specifically, the report recommends six major interrelated inter-


vention strategies to set a new life for Main Street in motion:

• Create a public/private partnership to lease and/or help


manage Main Street.

• Pursue specific streetscape interventions and create ap-


pearance standards and design guidelines for Main Street
retailers.

• Revive the Roosevelt Island Chamber of Commerce to be


the steward of Main Street success.

• Re-organize existing non-profit uses to maximize available


marketable space, and cluster appropriate non-profits into
space more suitable to function.

• Make Good Shepherd Plaza the “town square” of Roosevelt


Island.

• Create a “Gateway to Main Street” at the southern entrance


point to Main Street.

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II. Study Objectives

The thrust or purpose of this Study is to provide answers to the following eighteen questions:

1) What is the appropriate retail square footage required for Roosevelt Island’s population size and market?
2) What are the basic retail products and services necessary for a community like Roosevelt Island?
3) What are the most marketable spaces on Main Street?
4) Are there spaces that are more suitable for particular retail services or products (for example, a restaurant); are there retail
services or products that require particular spaces which Roosevelt Island cannot/should not accommodate as presently
configured (for example, an OTB Parlor or the type of store that requires frequent deliveries and parking)?
5) What retail products and services do the residents desire?
6) What retail products and services do the residents want to exclude from Roosevelt Island?
7) What do residents believe was the cause for past retail failures on Roosevelt Island – particularly the fish store, bakery and
pizzeria?
8) What do the residents think of the quality of service, products and presentation of retail stores and services on Roosevelt
Island presently?
9) What are the space needs (both from the viewpoint of use and needs) of the non-profit organizations presently on Main
Street?
10) How suitable are their present spaces?
11) What would be the most suitable spaces for accommodating the non-profit organizations on Roosevelt Island?
12) What services and facilities can be shared by the non profit organizations to make them more efficient and reduce their in-
dividual space needs (for example, sharing conference rooms and copying facilities)?
13) How can the retail dollars for Main Street merchants be captured from visitors that already presently frequent Roosevelt Is-
land, but don’t shop on the Island?

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14) How can more visitors be attracted to Roosevelt Island to spend retail dollars on the Island?
15) What basic “way finding” and other signage should the RIOC require, install or employ?
16) What other aesthetic modifications to Main Street are recommended?
17) What minimal standards should the RIOC impose on its merchants regarding the quality of service and shopping experience
at their stores?
18) What additional questions need to be asked and answered so as to improve the quality of the Main Street retail experience
of residents, merchants and visitors?

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III. Methodology

The findings and recommendations presented in the report are based on the following sources:

• Initial discussions with the RIOC representatives


• Resident surveys
• Feedback from Study Advisory Committee members
• Past retail and development studies
• Site visits to document retail inventory and conditions
• Independent economic and demographic data
• Research regarding existing, recent, and new development
• Data received from the RIOC
• Advisory Committee and internal workshops to synthesize information and determine issues and opportunities

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IV. Existing Conditions

Planning Context
For the first-time visitor, Roosevelt Island’s scale, character and layout is distinct and striking. Planned as a model, car-free and
self-sustainable community, the Island has a rich history, especially in regard to its urban planning and design history, its interesting
architecture, its walkable and pedestrian-friendly network of streets and walking paths, and its breathtaking views and numerous
open spaces. The Island is accessible by three transportation modes – car, train and subway – and via three “gateways” or
access points – the F Subway line, the Tram and the Roosevelt Island Bridge from Queens (see Figure 1). While the Queensboro
Bridge crosses over the Island to connect Manhattan and Queens, there is no direct connection to the Island via the Queensboro
Bridge. Those driving from Manhattan to reach Roosevelt Island must take the Queensboro Bridge from Manhattan to Queens,
then spend a ten-minute drive through Queens before accessing the Island from Queens via the Roosevelt Island Bridge.

Key to the Island’s assets is its enviable location. Surrounded by water on all sides, and an esplanade that runs the entire length
of the Island on both sides, the Island offers unparalleled views of New York City’s skyline and harbor. The physical shape of the
island, the waterfront, the scale of buildings, its historic elements, and open spaces all contribute to the Island’s unique urban
design character. The island is about 2 miles long and about 800 feet at its widest point (about two typical NYC block widths).
Therefore, its overall layout and form are linear. The Island is organized around its central north-south “spine” or Main Street
with residential buildings, retail uses, institutions (hospital, schools, churches etc), recreational areas and open spaces running
along the entire length. All of the retail, residential and commercial uses are on the north side of Queensboro Bridge, while the
Goldwater Hospital Campus, the landmarked Small Pox Hospital Ruins, the Strecker Lab and open spaces are to the south of
the Queensboro Bridge. Two important additions to the Roosevelt Island landscape, sure to attract tourists and visitors, are un-
derway as well. A 10 acre park at the Southern end, encompassing the Small Pox Hospital Ruin, broke ground this past May.
Furthermore, the FDR Memorial, designed by noted architect Louis Kahn more than 40 years ago, is scheduled to break ground
in the fall of 2009.

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While Main Street is the primary continuous north-south connection on the Island, there are visible and accessible east-west
connections. Main Street serves as a single “spine” for much of its length, but splits in two south of the Blackwell House and sur-
rounding the new Southtown development. Both ends of the Island – north and south – are distinguished by parks/open spaces
and the two large hospital complexes, and there are several more open spaces scattered throughout the Island.

The original buildings on Main Street, known as the WIRE buildings (Westview, Island House, Rivercross and Eastwood), are
built right up to the street wall with sidewalks and retail uses and/or arcades on the ground floor. The Brutalist-style architecture
characteristic of the late 1960s and early 1970s used in the design and construction of the WIRE buildings on Main Street is dis-
tinct. The buildings were designed by several different architects but are harmoniously tied together by urban design guidelines
set forth by two renowned architects of the time, Phillip Johnson and John Burgee, in the original General Development Plan.
The buildings generally step down towards the waterfront and provide a terrace-like effect along the river. At the same time this
design makes Main Street feel dark, giving it a canyon-like effect. The buildings are accented with red along window sills and are
characterized by ribbed block facades.

Roosevelt Island feels more like a small town within New York City rather than a neighborhood; it certainly has all the basic ele-
ments of a small town: a cobblestone Main Street with arcades, upper-floor residential uses above ground-floor retail uses, few
cars, and its own distinct schools, hospitals, and both large and small open spaces. The island also possesses a magnificent
collection of historic structures which are currently in various states of repair. However, unlike most small towns, there is no
central “Town Square” or central gathering space that is readily identified and used by the community.

Built Environment
The portion of Roosevelt Island which falls within the study area of this report consists of high-density multifamily residential
buildings with ground floor retail and community facility/non-profit space. As already discussed above, the WIRE buildings on
Main Street were designed in the Brutalist style, a modernist movement characterized by the use of exposed concrete and
minimal decoration. From an aesthetic viewpoint, Roosevelt Island’s Main Street is very different from a traditional Main Street.
This is both a blessing and a challenge. A typical historic Main Street is often eclectic, a product of different periods of construction,
which provides it with various architectural styles, colors and forms. Roosevelt Island’s Main Street is quite monotonous by com-
parison. However, as will be explained in the market analysis and highlighted in the recommendations which follow, there are
clear opportunities to enliven Main Street by introducing more color and light, as well as additional activity associated with pro-
gramming and activities.

The WIRE buildings form a narrow canyon-like environment along Main Street. The east side of the street is characterized by a
semi-enclosed arcade that runs along the ground floor of the Eastwood buildings. The corridor provides protection from the
blustery winter weather, but it also has the detrimental effect of impeding the visibility of the storefronts from passersby on the
opposite side of the street and in some cases to pedestrians in the arcade itself, due to poor lighting and signage. Signage for
most of the stores has been placed on the exterior of the corridor facing the street. On the west side of the street, the storefronts
in the Rivercross, Island House and Westview buildings form a stepped pattern that follows the curvature of the street.

Residential Buildings in the Study Area5


The main residential buildings, running from south to north within the Study Area, are as follows:

1. Rivercross, the only Cooperative Housing Corp. on the island, is regulated under the Mitchell Lama program by the New
York State Division of Housing and Community Renewal (DCHR). It is comprised of 377 co-op units.

2. The former Eastwood building, whose name was changed to Roosevelt Landings in winter 2009 following its purchase
by Urban America, is comprised of ten interconnected buildings. It contains 1,003 rental apartments, including 283 for the

5 Listed by geographic location from south to north.

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Figure 1: Access and Connections on Roosevelt Island

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elderly and physically challenged. The property’s Mitchell-Lama status expired in 2006.

3. Island House, the first building to open on Roosevelt Island. It contains 400 Mitchell-Lama rental apartments. It has an
indoor swimming pool which is closed.

4. Westview, comprised of 361 Mitchell Lama rental apartments. It contains an indoor swimming pool. The building was de-
signed by Sert, Jackson & Associates.

5. Manhattan Park, which contains 1,107 rental apartments, consists of four market-rate buildings and one federally-subsidized
222-unit building for seniors and low-income families (Section 8). It contains a large auditorium and an outdoor swimming
pool. The complex was designed by Gruzen, Samton and Steinglass.

The residential buildings in the study area generally contain some open space/community space component in the rear courtyard,
including playgrounds, basketball courts and an outdoor amphitheater.

Urban Design Challenges


The design and layout of Main Street presents certain physical barriers to allowing the retail sector to fulfill its potential. First, the
glass storefronts and glass partitions along Eastwood’s semi-enclosed arcade generate so much glare that it is virtually impossible
to see into the stores from across Main Street. Dirty windows exacerbate this problem. The general dirtiness of the glass is a
common complaint from residents and merchants. Moreover, the recessed entries to the storefronts inside the corridor are dark
and uninviting. It should also be noted that from the southernmost entrance point near Blackwell House, a clear end-to-end view
of Main Street is obstructed by the dogleg shape of its spine. In fact, approximately just one-half of the length of Main Street is
visible entering from either the north or south ends of the corridor. Little or no retail signage is visible from the entrance points at
Blackwell Park and at Motorgate. The lack of visibility from end-to-end is somewhat constraining as it makes the retail stores in-
visible to new visitors to Main Street and also discourages them from venturing onto the street.

In general, buildings in the study area are in fair condition. This is primarily due to the relatively recent construction of Main
Street’s buildings (1970’s for WIRE buildings and 1990 for Manhattan Park). Overall, however, Main Street is in need of a beau-
tification and improvement program. Numerous storefronts are in poor repair and the majority of the storefront exteriors and the
store spaces themselves are quite dated and in need of renovation, not to mention dirty. In fact, a majority of the respondents
to the Main Street survey indicated that one of key reasons they do not shop in stores is because they are “dirty and unclean.”6

Ground Floor Uses


The majority of the buildings along Main Street are mixed-use with retail/institutional spaces (many of which are vacant) on the
ground floor, and residential uses on the upper stories (see Figure 2). Although perceived as the center of commercial/retail
activity, only one-third of the 42 storefronts along Main Street are retail or commercial in nature, as evidenced by the following
makeup:

• 14 Retail spaces
• 13 Lobbies/residential
• 10 Non-profit/community
• 5 Vacant spaces.

To make matters worse, with the exception of the ground floor uses in Rivercross and Island House, the majority of the ground
floor retail and/or institutional spaces can only be accessed via arcades (as shown in Figure 3). The arcades typically alternate
with glass panels in every other bay. While the arcades add an interesting feature to Main Street and allow apartments to overlook

6 The survey is further explained on p. 26.

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Figure 2: Square Footage of Ground Floor and Second Floor Spaces

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Figure 3: Arcades on Main Street

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Main Street directly – typical of most Main Streets – the glass


panels contribute to this poor visibility due to glare and dust, and
block any direct view of the stores from outside. The storefronts
in Rivercross and Island House have an interesting geometry as
the façades are articulated with stepbacks (in plan) defining each
storefront separately and creating pocket plazas along Main
Street.

Open Space
Any description of Roosevelt Island is incomplete without men-
tioning its recreational/open spaces. The Island has virtually
every type of passive and active open spaces (both private and
public) that a community of its size could need or desire. These
include but are not limited to community gardens, lawns, parks,
plazas, promenades, soccer fields, basketball courts, baseball
fields, picnic areas, and many more – unlike just about any other
neighborhood in New York City. Many of the open spaces are
programmed for special events, festivals and other activities throughout the year, but are particularly active during summer.
Though some of the spaces are “park-like,” none are technically “parks” as defined by statute. They are maintained by the RIOC,
rather than by the New York State and New York City Parks Departments.

While most of this open space is public, there are some privately-owned open spaces and recreational facilities on the Island.
Many of the residential complexes have swimming pools.7 Internal courtyards with amphitheaters, auditorium spaces and
private/semi-private terraces are prominent features. The Island has several public open/recreational spaces such as Capobianco
Field at the northern end of Main Street, the Chapel of Good Shepherd plaza at the center, and Blackwell House Park and Play-
ground to the south. In addition, all the “WIRE” buildings along Main Street have central courtyards with seating, lawns, trees
and amphitheater, which provide an almost private or semi-private enclave between Main Street and the promenade. The prom-
enade has seating, trees and a continuous bike/walking path that runs along the perimeter of the Island connecting almost all
recreational/open spaces. This is one of the Island’s great assets, providing amazing views of the bridges and the skylines of
both Manhattan and Queens. There are several pathways which physically connect Main Street to the promenade, but the prom-
7 Island House (closed), Rivercross and Westview have indoor swimming pools; Manhattan Park and Octagon have outdoor swimming pools.

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enade is largely visually disconnected from Main Street as it is obscured by the residential buildings and other built features.

Roosevelt Island boasts a regular calendar of events and activities in the open spaces located throughout the island. These
include concerts at the Firefighter’s Field, outdoor movies during the summer, fireworks viewing in Southpoint Park, junior tennis
programs at Octagon Park and Roosevelt Island Day, which is held every June in the Good Shepard Plaza.

Some of the major destinations on the Island are located towards the two ends away from Main Street – Lighthouse Park, Octagon
Park to the north and the FDR Memorial park (planned), historic Small Pox Hospital and Strecker Lab structures, Sportspark and
the RI Racquet Club to the south. Several visitors and residents just go directly to these destinations, completely missing or
avoiding the “Main Street” experience and its retail/commercial uses.

The following is a comprehensive list of all major recreation/open spaces and parks on the Island, starting at the northern end
and moving south (see Figure 4):

• Lighthouse Park – seating areas, lawns, barbeque and picnic spaces


• Octagon Park – regulation size soccer/sports field, 200 community gardens, picnic and barbeque areas, six tennis courts
and a baseball diamond
• Capobianco Field – Little League baseball/softball field, handball, paddleball and basketball courts
• Blackwell House Park and Playground – parks, playground, seating, basketball courts
• Meditation Steps along waterfront
• Pier – seating, landscaping
• Firefighter’s Field – sportsfield, outdoor events
• Riverwalk Commons – landscaped lawn, seating areas
• Sportspark – sports complex with indoor swimming pool, squash courts, basketball courts
• Tennis and Clubhouse – tennis courts, clubhouse
• Southpoint Park – park with “green rooms” and “wild gardens” (under construction)
• Franklin Delano Roosevelt Memorial Park – park with seating, landscaping (The project is approved and scheduled to break
ground in Fall 2009 proposed).

New / Proposed Development


The most significant trend on Roosevelt Island is the recent addition of market-rate residential units. These have been developed
in two areas: the Octagon in the Northern section of the Island and Southtown, which is located around the transit stops. Southtown
buildings 5 and 6 are almost complete. Three more buildings are planned, awaiting improvement in market conditions. New res-
idential developments will not be on Main Street. This completes all of the development contemplated in the amended General
Development Plan. If there is not a significant change on Main Street, it will be difficult to attract existing and new Southtown
and Octagon residents to the street.

The new development of Southpoint Park, the FDR Memorial


and the stabilization of the romantic ruins of the Smallpox Hos-
pital, originally designed by James Renwick, represent a tremen-
dous opportunity to draw more visitors to the island. However,
under current conditions there is simply no reason why any of
those visitors would ever set foot on Main Street. Seizing this
opportunity will require immediate action to satisfy residents and
visitors as well as to seriously compete with Southtown retail.

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Figure 4: Destinations and Open Space on Roosevelt Island

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Redevelopment of the Aerial Tramway (the first urban mass transportation tram in the world, built in 1976), slated to start in
March 2010 and to be completed within 6 months, promises to increase the number of tourists/visitors coming to the Island as
well. The current tram, which is 33 years old, carries approximately 2 million passengers per year. While most are regular com-
muters, the tram is considered a tourist attraction and appears on the itinerary of many tour groups, both foreign and domestic.
The modernized tram, which will include state of the art innovations and green technology should prove to be an even greater
draw as the status of the Roosevelt Island Aerial Tramway is restored as the most modern form of urban mass transit in the US,
a position it originally occupied when first installed in 1976.

Community Activities
Civic engagement is a hallmark of the Roosevelt Island community. The Roosevelt Island Residents Association (RIRA) is perhaps
the largest and most active civic entity on the island. Other prominent organizations include the Roosevelt Island Historical
Society, the Main Street Theater and the Roosevelt Island Parent Teachers Association. The following list represents a sample
of the cultural and seasonal events and activities sponsored by Roosevelt Island organizations – each of which represents an
opportunity to establish synergy with Main Street:

• Summer concert series • Earth Day


• Summer movie series • Black/Hispanic/Women’s History Months
• Roosevelt Island Garden Club • Halloween parade
• RIVAA gallery shows and events • Little League parade
• Art installations (e.g., Encampment) • Fourth of July Fireworks
• Roosevelt Island Historical Society Walking Tours • Book Club (hosted by library)
• Main Street Theater shows • Fall for Arts
• Roosevelt Island Day • Winter Tree Lighting.
• Health and Fitness Day

The RIOC should continue to look for opportunities to host major events that could attract a citywide audience. The central
location of the island along with its unique history, views and open space make it a prime candidate for such activities. Main
Street partnerships and initiatives could potentially leverage the civic engagement activities to help improve the street. Partnerships
could include those with Municipal Waterfront Alliance, Open House New York, links with Socrates Sculpture Park and the Noguchi
Museum; annex of The SculptureCenter, and the Public Art Fund.

Demographics
Roosevelt Island is an economically and racially diverse community of approximately 14,000 people. The median household in-
come of Island residents is $57,196. The median age is 42.3 years. 48.9% of the residents are white; 23.7% are African-American,
15% are Asian, and 11.1% are Hispanic.8

8 Claritas 2009 data.

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The addition of market-rate units in Southtown and the gradual


Figure 5: Jobs on Roosevelt Island10
expiration of Mitchell-Lama controls on the original WIRE build-
ings have attracted more mixed-income families to the island. Health Care and Social Assistance 2,943 87.50%
Administration & Support, Waste 122 3.60%
Real Estate and Rental and Leasing 108 3.20%
Roosevelt Island residents spend about 28% of their income on Arts, Entertainment and Recreation 63 1.90%
housing. This is identical to Manhattan overall (28%) and slightly Retail Trade (adjusted) 55 1.60%
Professional, Scientific
less than Queens (32%).9 and Technical Services 22 0.70%
All Other Jobs 89 2.60%
Island employees
Another important component of the Roosevelt Island community Figure 6: Where Island Residents Work
is the worker population. Roosevelt Island has approximately
Manhattan 2,282 71.60%
3,000 health care jobs at the hospitals. Three hundred and
Queens 215 6.80%
eighty-four (384) people (11.4% of total) who work on Roosevelt Kings (Brooklyn) 144 4.50%
Island also live on Roosevelt Island. Based on fieldwork con- Westchester 102 3.20%
Nassau 79 2.50%
ducted in preparation of this report, it is apparent that the US Suffolk 72 2.30%
Census Bureau’s data, which includes both full-time and part- Bronx 69 2.20%
Bergen (NJ) 33 1.00%
time jobs, fails to capture all retail employment on the Island. For
Hudson (NJ) 29 0.90%
instance, while Census data indicates just 15 retail jobs on the Essex (NJ) 15 0.50%
entire island. It is estimated that Gristedes employs as many as All Other Locations 145 4.60%

15 people on its own. Assuming that each additional active busi- Source: US Census Bureau
ness (13) employs an average of 3 total employees, the total
number of jobs just within Main Street’s current retail sector is
Figure 7: Where Island Workers Live
more likely around 55.
Queens 1,062 31.60%
Manhattan 846 25.20%
Most people who work on the Island commute from Queens. Kings (Brooklyn) 395 11.70%
Only around 20% of Island employees commute from Manhattan. Bronx 303 9%
However, there are also workers who commute from as far as Nassau 262 7.80%
Bergen (NJ) 136 4.00%
Bergen County, NJ and Westchester County, NY. Westchester 77 2.30%
Richmond 61 1.80%
Suffolk 55 1.60%
Visitors Hudson 47 1.40%
The Roosevelt Island Operating Corporation has limited data on All Other Locations 118 3.50%
how many tourists and visitors come to the island each year. A
Source: US Census Bureau
study of tram ridership conducted in December 2008 to January
2009 revealed that approximately 50 tourists/visitors, including
school groups, visited the island via the tram each day. This obviously does not include those visitors traveling by subway or car.
It is likely that daily visitors would significantly increase during the warmer summer months. The Roosevelt Island Historical
Society had about 13,000 people stop by its visitor center from May 2008 until the end of the year.11 Overall, it seems reasonable
to assume that approximately 30,000 to 40,000 people visit the island each year.

9 US Census Bureau, American Community Survey


10 Source: US Census Bureau, LED Origin-Destination Data Base, 2006. The employment data used in this application are derived from payroll tax
(Unemployment Insurance) payment records maintained by each state. The states assign employer locations, while workers’ home locations are
assigned by the Census Bureau using data from multiple Federal agencies. Age, earnings, and industry profiles are compiled by the Census Bu-
reau from a state’s records and are supplemented with other Census Bureau source data. Final compilations and confidentiality modeling are
performed by the Census Bureau.
11 Interview with Judith Berdy, President, Roosevelt Island Historical Society, February 26, 2009.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

V. Main Street Principles of Success

It is worthwhile to examine “main street” retail guiding principles and best practices, and determine whether these can and should
be applied to address Roosevelt Island’s Main Street concerns. A healthy “main street” is an indicator of a healthy community.
In the best examples, “main street” embodies the particular values of a community – it is what makes a neighborhood unique.
For example, its local foods and customs, arts and culture communicate its identity and instill a sense of pride in its residents.

A successful main street encourages an active day and nighttime (not necessarily 24/7) environment where people can enjoy
restaurants, entertainment and civic events, in addition to simply shopping for daily needs. The synergy between these uses
has direct economic benefits and also provides “eyes on the street” to encourage a well-lit, safe and inviting place. A resident
who attends a concert or visits an art gallery might also have dinner along Main Street. Civic spaces such as the town hall, the
library and post office provide community meeting spaces, and provide another opportunity to capture dollars from local residents
who visit these institutions and from employees who work there.

A successful Main Street also possesses a strong sense of place. As retail centers have, in the decades following World War II,
increasingly moved away from downtowns, suburban shopping environments are often characterized by a “nowhere America”
feel, where one is unable to find any reference to the character and values of the local community. Typically, a shopping environ-
ment in suburban Phoenix does not look all that different from a shopping environment on Long Island. In short, these retail en-
vironments lack a sense of place. Even in New York, the rapid increase in national chain retailers in certain urban shopping
environments has had similar effects. As an example, the plethora of national bank chain locations in the East Village and other
New York neighborhoods has arguably eroded longstanding elements of the local retail fabric. Ultimately, these trends could in-
crease the value of traditional Main Street arrangements like Roosevelt Island because people are rediscovering the vibrancy of
Main Streets with an authentic and unique sense of place.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

There are six aspects to a vital and active Main Street:

1. Retail and Mixed-Uses – The most successful downtowns, Main Streets, and
A successful Main Street
neighborhood retail corridors contain some component of service-oriented retail
possesses a strong sense
for its residents, a variety of restaurants and entertainment uses, and a varied col-
of place.
lection of unique and locally-owned shops. A typical Main Street retail offering em-
phasizes quality over quantity. In other words, where a mall may be attractive due to the sheer quantity of its retail offering, Main
Street typically provides a smaller selection of quality stores that are specifically targeted to the residents and visitors/tourists.

2. Civic Presence – Historic Main Streets and even more recently developed suburban Main Street/Town Centers tend to include a
library, post office or other civic use to function as an anchor of the street. Roosevelt Island is fortunate in this regard, because the
library is truly the most beloved location on Main Street. Surveys indicated that residents view the library as among the best “store-
fronts” on the island. The island also contains a post office. However, unlike many prototypical downtown Main Streets, Roosevelt
Island’s post office is not really a presence on Main Street. In addition, the RIOC offices, which are located in the same place since
their inception, are tucked away in space unsuitable for offices. As a government entity, the RIOC offices should be located in a
more central and visible location, with space for community meetings and conferences. With its growing staff, it would add to the
civic presence on Main Street.

3. Arts/Cultural/Entertainment Uses – The cultural arts and entertainment have played a major role on Main Streets across America
– particularly in the revitalization efforts that have taken place since the 1980s. Arts and culture activities, events and cultural des-
tinations serve the needs of the local community, but, even more importantly from a commercial perspective, can also make Main
Street a regional destination. Roosevelt Island has on occasion been in the spotlight on the cultural calendar. However, most at-
tendees arrive by Tram or subway and never set foot on Main Street. The 2007 “Encampment” art installation drew several thousand
visitors and, more recently, an improvisational art group, brought by Southtown marketers, performed in Southpoint Park, engaging
hundreds of visitors and residents. Fourth of July has in the past brought 4,000 visitors to view the fireworks from the southern tip
of the island. Those fleeting moments in the cultural arts spotlight offer a glimpse into the tremendous potential to solidify the island
as a regional destination for such exhibits, activities and events. Sustaining and growing this component of the community will be
key to the future success of Main Street. Even more important will be drawing those visitors from the Tram and subway station to
Main Street.

4. Vibrant Public Space – Main Streets typically include some space that facilitates social gathering and interaction. The most typical
examples are town squares or public parks. On Roosevelt Island, the Chapel of the Good Shepherd courtyard space has tremen-
dous potential to function as the true center of Roosevelt Island and it often fulfills its potential. While Roosevelt Island Day is a
wonderful use of this space, there are few other such events throughout the year. Clearly, it has been underutilized to date.
According to survey responses, residents like the courtyard and see the potential for greater usage. However, the most important
aspect of a Main Street’s public realm is the street itself. Making Main Street a more pedestrian and bike-friendly environment and
enhancing its attractiveness should be a key goal for Roosevelt Island.

5. Preservation – Historic preservation is a key principle of virtually all successful Main Street programs. While Roosevelt Island’s
architecture may be somewhat quirky and much more contemporary in comparison to the typical historic Main Street, its buildings
are nonetheless deserving of a strong rehabilitation program. Roosevelt Island needs to instill in its merchants, residents and other
stakeholders a preservation ethic – not in the traditional sense of sprucing up or rehabilitating landmark-quality buildings, but in
pursuit of the sustainable ideal of keeping and improving what they already have. Like it or not (and there are residents on both
sides of the favorability spectrum when it comes to its architecture), the Brutalist architecture is there to stay.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

6. Manager/Coordinator – A vibrant, successful Main Street rarely develops organically. Rather, it is the product of the time,
planning and creativity of a “team,” typically comprised of a dedicated group of community members, with the general support
of residents, and led by a professional. In the best examples, Main Street is managed by some coordinating entity such as
the Chamber of Commerce or Business Improvement District, or a Friends of Main Street. To date, Roosevelt Island has
lacked such an effective entity to develop and then carry out a vision for improvement. Indeed, the creation of such a pro-
fessionally-led, effective organization is a key recommendation of this report.

Ultimately, success is derived from the synergy between these


Myrtle Avenue Brooklyn Partnership
(Brooklyn, New York) components. It need not excel in every aspect, but some ele-
ment of each is necessary. Synergy creates the vitality and
The Myrtle Avenue
Brooklyn Partnership support needed to nurture sustained growth. Based on the
oversees the economic success of other Main Streets, it is perhaps not surprising that
revitalization of Myrtle
Avenue in Fort Greene Phillip Johnson and the original planners of Roosevelt Island
and Clinton Hill, included a Town Center/Main Street in their vision. The follow-
Brooklyn. Its major ini-
tiatives include store-
ing section recounts the original intent of Roosevelt Island’s
f r o n t / f a ç a d e Main Street as described in the General Development Plan,
improvements, busi-
and provides an historical assess-ment of its performance in
ness retention serv-
ices, public art and light of the “main street” principles described above.
marketing programs.
The Partnership is
comprised of two enti-
ties, the Myrtle Avenue Revitalization Project Local Devel-
opment Corporation (MARP) and the Myrtle Avenue
Brooklyn Business Improvement District (BID), working
together to assist the small businesses located along the
avenue and improve the quality of life of the surrounding
neighborhoods. The Partnership boards of directors are
comprised of avenue merchants and property owners,
local business and community leaders, universities, not-
for-profits, and area residents. The Partnership has a full-
time staff of five individuals.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

VI. Roosevelt Island’s Main Street

In the typical “main street” revitalization scenario, a community can recall a time when Main Street was the vital center of civic,
economic and cultural life. Older residents regale planners with stories about the presence of enduring local retailers, such as
the barber, the grocer, the hardware store, the pharmacy, the post office, diners, bakeries, etc. Main Street was where people
worked, shopped and socialized. Then, as recounted in such movies as “Back to the Future,” after World War II, people moved
to the suburbs, Main Street declined and its charming historic architecture and vibrancy deteriorated.

Roosevelt Island, however, is different. The history of the Island’s Main Street actually begins during the period in which the pro-
totypical American Main Street was in decline. Main Streets across America were deteriorating and, in many cases, being re-
fashioned as pedestrian malls (e.g., Fulton Mall). Alarmed by this trend, the planners of Roosevelt Island envisioned a traditional
Main Street that would provide the backbone of a thriving and diverse community. Its architecture is not in the Italianate, Beaux-
Arts or Federal style, as one might see in a Norman Rockwell painting. Rather, Roosevelt Island’s Main Street is a product of its
time: a Brutalist adaptation with high-density multifamily residential buildings and a partially enclosed arcade.

According to the General Development Plan, Roosevelt Island was planned to include a Town Center area in which the majority
of its retail would be located:

“The Town Square will be focus for the Island life and, together with North Town, will contain commercial facilities
sufficient for the daily needs of New Community residents and persons working in New Community offices. Office
and retail space, community facilities, and public open space will be developed in and around the Town Square area.”

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

In reality, the “excitingly urban” Town Center, which would have been organized along an east/west axis in the vicinity of the
Blackwell House, never took shape. The Town Center was to have included two large public spaces, a glass-roofed retail arcade,
a 300-room hotel, and 200,000 sq. ft. of office space. In reality, the actual development of the island was a significant departure
from the vision of Johnson & Burgee. Instead of developing a Town Center with a centralized retail core, it was dispersed by
placing ground floor retail space in all of the residential buildings along Main Street.

Main Street has struggled since its inception. A variety of retailers have come and gone over the years, including a Bigelow phar-
macy, a fish store, a pizzeria, an Italian restaurant, a sports bar, a bakery/café and a cobbler. As early as 1977, the New York
Times was already reporting that Islanders “[spent] the three and a half minutes over the East River juggling shopping bags and
packages from Manhattan stores” before carrying “their purchases past 15 empty storefronts on the way to their apartments.” In
this respect, Island life has changed little over the past 30 years.

Survey of Residents
A survey conducted as part of this study indicates that the values and attitudes of residents towards Main Street are a key reason
for its persistent failure. Among the highlights of the survey are the following findings:

• Main Street retail is the island’s most glaring weakness in the eyes of its residents: 66% of residents cited “poor shopping
options” as one of the three worst things about Roosevelt Island. “Shopping quality” (12%) and “Gristedes” (10%) were
cited as the main culprits.

• The most frequently cited reason for shopping on Main Street was because there is “no alternative” (46%).

• The top three reasons residents do not shop on Main Street are 1) it is “dirty and unattractive” (31%); 2) the limited number
of stores/goods (44.1%); and 3) high prices (55%).

• The top 5 most frequented shops on Main Street are (in order of frequency), Gristedes, Trellis, the deli, the drycleaners and
the farmer’s market.

• The most desired new retailers on Main Street include the following:
– Bakery (50%)
– Restaurant (41%)
– Green grocer/new deli (32%)
– Ice cream shop (18%)
– A better grocery store (11%)
– Bar or lounge (11%)
– Pizzeria (11%)
– Fish store (10%).

• Residents would shop at Main Street stores given: 1) “better quality and cleaner” (79%); 2) a “better selection and variety”
(35%); and 3) “less expensive/better prices” (32%).

• Residents were also asked what they would change about Main Street. By far and away, the most frequent response was “clean
the exterior and the interior of stores” (75%). Other responses included “more stores” (24%), “improve overall streetscape” (18%)
and “more on-street parking” (8%).

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Overall, the survey seems to indicate that residents would increase the frequency and amount of shopping they do on Main Street,
provided improvements are made. These improvements basically fall in two areas: 1) new and improved retail stores; and 2) a cleaner
and more pleasant shopping environment, both in terms of the interior/exterior of each store, and the overall streetscape.

Existing Retail
In addition to the negative attitude of island residents towards Main Street is the fact that Main Street has struggled to overcome
some fundamental defects. Main Street, as Roosevelt Island’s heart, is malfunctioning. The problems are complicated but rooted
in two basic factors: the overall amount of retail space is too large for its population, and the size of the retail spaces themselves
are too large.

1. Amount of Space
There is simply too much retail space for a population of 14,000 people. A retail rule-of-thumb is that each resident of a diverse
mixed-income community such as Roosevelt Island would generate 20 sq. ft. of retail, of which no more than 10% to 20% is
local. This would mean Roosevelt Island residents could support between 28,000 and 56,000 sq. ft. of retail on the island. Main
Street alone has 41,405 sq. ft. of retail space – and with the addition of Gristedes (approx. 22,000 sq. ft.) and the retail in
Southtown (15,000 sq. ft.) the Island has a total of close to 80,000 sq. ft. of retail space. Furthermore, its isolation as an island
makes it difficult to draw a regional market. Currently, there is little reason for interaction between the island and the rest of the
city as its attractions have not been properly leveraged. Aside from potential increases in spending by tourists and visitors,
without a significant and sustained destination draw there is little reason to assume that Main Street retail can be supported by
anyone but the current residents and workers.

2. Size of Spaces
The footprints of many of the ground floor retail spaces are simply too large, averaging 1,953 square feet.12 “Mom and Pop”
merchants cannot afford the rents for such large spaces nor do they really need and have the ability to maintain the extra space.
By comparison, the footprint of the typical neighborhood retail storefront in the East Village in Manhattan is 500 – 1,000 sq. ft.

These two major problems have been perpetuated by an unhealthy relationship between merchants, residents and RIOC. Con-
versations with stakeholders revealed a cycle of failure: merchants complain about high rents; residents complain about the poor
appearance and level of service of existing retail; residents sometimes directly confront merchants; residents stop shopping on
Main Street; merchants fail to pay rent; vacant storefronts blight Main Street; and stigma and an atypical leasing process makes
finding new tenants difficult.

Overall, Roosevelt Island’s Main Street is currently in a suspended, dissatisfactory state. On the bright side, all parties appear
to be united in their desire to improve and support a revitalized Main Street; indeed, residents and other stakeholders want to
give Main Street a new life and establish it as the civic and commercial center of the island.

12 The following Main Street storefronts were included in the calculation: 619, 615, 607-609, 605, 599, 579, 567-571, 563, 559, 549, 523, 521, 513,
507, 503, 570, 568, 566, 564, 546, 544, 532, 530, 520.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

VII. Market Analysis

In order to understand Roosevelt Island’s spending power and consumer profile, demographic, income and spending data derived
from Claritas, Inc. PRIZM NE was utilized to establish a psychographic profile for Roosevelt Island’s trade area. Claritas uses
demographic data and information about consumer product purchases, lifestyles and media interests to classify households into
66 distinct demographic and behavioral segments. This classification system provides a description of each segment’s lifestyle
and shopping preferences.

In addition to the use of the Claritas psychographic profiles, an analysis of sales leakage data was undertaken. Leakage data
can help estimate the additional number of stores that can be supported in various merchandise categories. Such conclusions
are arrived at by comparing the amount of money spent by households within a particular trade area in a given category to the
actual sales of trade area business in the category, then dividing the existing leakage by average sales-per square foot and av-
erage square-foot-per-unit figures based on national averages for the type of shopping environment.

The following market analysis lays the groundwork for recommendations related to Roosevelt Island’s retail potential.

Demographics and Psychographics


From an economic viewpoint, Roosevelt Island is a tale of two markets. The first, dating from Northtown’s first phase and resulting
from the large stock of affordably priced Mitchell-Lama units in the original four WIRE buildings (Westwood, Island House, River-
cross and Eastview), contains significant numbers of low- and moderate-income households. The WIRE buildings contain ap-
proximately 697 households in Section-8 units. The average adjusted income of those households is $23,094. As a whole, about
27% of the households on the island have incomes below $25,000. However, it should be noted that at least 65 of those Sec-
tion-8 households are larger households with annual incomes over $50,000.13

13 Based on Section 8 income data provided by building managers to the Roosevelt Island Operating Corporation.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

The second market on the island consists of well-educated, well-paid households in the newer market-rate units in high-rise
buildings such as Manhattan Park, The Octagon and Riverwalk. The recent addition of those households has further diversified
the island market. According to 2009 data from Claritas, Roosevelt Island currently contains – on average – a more educated
and wealthier population than the average for New York City itself:

• 45.9% of the 25+ population has a B.A. or higher degree, compared with 27.4% citywide.

• 85.3% of the 16+ population work in white-collar jobs (21.3% management; 40.5% professional), versus 64.1% citywide.

• The median household income is $57,196, versus $46,939 citywide.

The economic and ethnic diversity of the island is supported by psychographic information culled from Nielsen-Claritas’ PRIZM
NE lifestyle segmentation database.14 Understanding the psychographics of a target market can be revealing. While demographic
data can help determine the social and economic characteristics of a population, psychographics delve deeper into the lifestyles,
attitudes and values of consumers. Information about their likes and dislikes can be invaluable in making determinations about
whether or not residents are likely to purchase a particular product or service.

Psychographically, the segment with the heaviest concentration on the island is a segment called “Money and Brains,” which ac-
counts for 31.25% of all households. These are older married couples, aged 45 to 64, with one teenage child. These residents
tend to be very well educated, earn high incomes (the median household income for this segment is $89,037), and have sophis-
ticated tastes.15

The next most prevalent is a segment called “Bohemian Mix” (19.90%). These are young, ethnically diverse, alternatively-minded
singles, couples and families, with decent incomes (the median household income for this segment is $54,237). About 17.89%
of the island population falls into the “Young Digerati” segment, which is characterized by young, ethnically diverse families who
are very well educated, earn high incomes (the median household income for this segment is $85,671) and have trendy sensi-
bilities.

About 14.18% of island households belong to the “Urban Elders” segment, which means that they are headed by ethnically
diverse widowers aged 55 and over, with poor educational backgrounds and low income levels (the median is $24,535). Another
16.75% fall into the “Urban Achievers” segment. These households tend to be young immigrants, aged 18 to 44, who arrived re-
cently and live alone or with large families, and who earn modest incomes (the median income is $35,409). These households

14 This proprietary system uses demographic data and information about consumers’ product purchases, lifestyles and media interests to classify
households into 66 demographically and behaviorally distinct segments. These are ascribed semi-humorous but quite descriptive monikers to
portray a flavor of each segment’s lifestyle, hence shopping, preferences.
15 Please see the Appendix for detailed description of each segment.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

are striving to move up the socioeconomic ladder. Many of these households were likely attracted to Roosevelt Island because
of its affordable housing supply.

Given the current plans for additional market-rate development in the Riverwalk complex, it is likely that the “Money and Brains,”
“Bohemian Mix” and “Young Digerati” segments will increase as a proportion of the island’s total households.

Additional Drivers of Retail Demand


Consumer demand on Roosevelt Island is not limited to the resident population. As noted, the worker and visitor populations
may present significant opportunities for capturing additional spending. However, there are several constraining factors that must
be acknowledged.

First, the 3,000 hospital workers – by far the largest employment sector on the island – are located at either end of the island,
Goldwater Hospital at the southern end and Bird S. Coler Hospital at the northern end. The hospitals offer some convenience-
and service-oriented retail on site – for example, a gift shop and cafeterias. Employees at these ends of the island do not pass
by, nor do they have any particular need to set foot on Main Street. Therefore, capturing hospital worker lunch spending on Main
Street, for instance, would likely require some targeted marketing outreach.

Secondly, it is important to note that these long-term care hospitals primarily serve patients with chronic diseases. The volume
and intensity of visitors at these types of hospitals tend to be significantly less than those hospitals focused on acute care, i.e.,
short-term inpatient services. As for the tourist/visitor population, it is acknowledged that most visitors and tourists prefer to walk
along the promenade to enjoy the views from the Island – rather than walking up Main Street. Again, there is currently little
reason or draw from Main Street to motivate them to visit Main Street’s stores. Due to the abundance of open space and active
recreation space, including Sportspark, the island attracts numerous athletic teams – both youth and adult – from across the
city.16 To date, very little effort has been made to attract this population to Main Street. While it is not possible to accurately
quantify the spending power of this population, it is reasonable to assume that there is a significant potential to capture at least
some additional spending related to post-game drinking and dining. A revived Chamber of Commerce or individual merchants
should aggressively market to this population with flyers, coupons and perhaps even modest sponsorships of individual teams.

Relevant “Site-Specific” Factors


Generally speaking, one should assume that, given its existing relationship to the rest of New York City, Roosevelt Island is
unlikely to emerge in the near future as a citywide retail destination, capable of drawing shoppers from across the river, from
places like Queens or Manhattan. As a result, retail demand will be largely driven by Roosevelt Islands’ residential base, sup-
plemented mainly by visitors and tourists, with perhaps a trickle of employees at the two hospitals.

16 These include tennis players, swimmers, baseball/softball teams, basketball teams, soccer teams, etc.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Furthermore, one can assume that, given the limited size of the Island market and the competitive threats posed by Manhattan
and the closest shopping areas in Queens, it is unlikely to emerge as a serious competitor for those “comparison” categories
(i.e., clothing, shoes, sit-down restaurants, bars, etc.) in which a large selection and concentration of offerings is typically necessary
– even among local residents.

Realistically, given the quantity and diversity of comparison shopping opportunities a short distance away in Manhattan or Queens,
a Roosevelt Island resident would almost certainly cross the river, where he or she would be able to find districts that offer not
just one or two possibilities but a critical mass of options in, say, clothes shopping or entertainment venues for a night out on the
town. That is unlikely to change.

With this being the case, the Island’s primary retail niche is in “convenience” goods and services catering to the every-day needs
of the residential base. Some additional opportunities do exist to capture some visitor/tourist dollars and also the hospital sub-
market (e.g., restaurants, groceries, pharmaceuticals, dry cleaning, etc.). Indeed, such categories account for an overwhelming
majority of the existing businesses there now.

Yet even this niche presents complications, due to the bifurcated market outlined above. Specifically, the well-educated, relatively
affluent contingent might look for different merchandise mixes and store environments than the lower- and moderate-income
households, thereby splitting the convenience demand into more than one type of store in the same retail category.

Furthermore, whereas the low- and moderate-income households tend to reside in the WIRE buildings located along Main Street,
the higher-income households, while located in Manhattan Park and to a lesser extent in Rivercross, Island House and Westview
are more concentrated in the newer Octagon and Riverwalk developments which are located a little further away north and south
of Main Street.

Given such a distribution, the retailers which cater primarily to this sub-market are most likely to be interested in a location close
to the subway and tram stations, where they can offer “pass-by convenience” to those living in Riverwalk as well as “rush-hour”
convenience to the Manhattan Park/Octagon residents who are likely commuting to/from their jobs in Manhattan via one of those
two transit modes.

They are less likely, on the other hand, to be drawn to an opportunity in Northtown. While that might offer greater proximity to
those living in Manhattan Park and Octagon Tower, Riverwalk residents have little reason to head in that direction (except, maybe,
to drive to Queens via the Roosevelt Island Bridge).

It is therefore not surprising that the more modern retailers, for example, Starbucks Coffee, Duane Reade and a higher-end
beauty salon – have clustered at Riverwalk, while the older and arguably less competitive operators have remained on Main

32
ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Street. Given the additional planned higher-income, market-rate residential de-


The Island’s primary velopment in Riverwalk (Buildings 7, 8 and 9), that bias is likely to grow stronger
retail niche is in over time.
“convenience” goods and
services catering to the This means that Main Street not only has to contend with the Island’s overall mar-
every-day needs of the ket limitations, but also finds itself somewhat out-competed as a retail location on
residential base. the Island itself. While Main Street might have been positioned as the dominant
retail center on the Island, Riverwalk appears to have become the preferred destination for most prospective retail tenants –
confirmed by the rent levels, estimated at $40-45/sq.ft. for Riverwalk as opposed to $15-20/sq.ft. for Main Street.

Moreover, as detailed in previous analyses, Main Street’s ability to attract high-caliber operators is further compromised by the
structural design of the high-rise buildings, particularly on the eastern side, where its recessed storefronts lack visibility, with the
windows and interiors only viewable from a dark and somewhat depressing covered sidewalk. To make matters worse, signage
appears to be over- regulated, with standardized fonts and letter sizes being too small and uniform, thus depriving tenants of an
important means of communicating their retail identities.

With a more traditional sidewalk/storefront arrangement, the western side of Main Street is somewhat more healthy, yet even
there, the signage, visual merchandising and overall visual impression of businesses like M&D Deli & Grocery, Roosevelt Island
Cleaners, Roosevelt Island Cards & Gifts and Trellis Restaurant does not project an image of a modern and dynamic retail cen-
ter.

These visibility and signage issues, combined with the high-rise architecture reminiscent of European urban renewal schemes,
results in a rather drab and stagnant retail environment. When this is added to a difficult leasing process as well as a checkered
history of business success, it serves to repel rather than attract potential new retail tenants.

Competitive Analysis
The competitive analysis focused on nearby business districts and shopping centers which are oriented to providing convenience
goods and services, and which are typically anchored by supermarkets and/or large-format drug stores. This competitive analysis
did not really incorporate competition for comparison goods, given the unlikelihood that Roosevelt Island would ever emerge as
a destination for that sort of shopping. Smaller convenience store clusters that lacked at least one of those two anchors were
also not considered as competition, as they are not considered to be large enough to warrant serious attention.

As noted, approximately 72% of island residents who work commute to Manhattan. There is no doubt that those residents do a
significant amount of their convenience shopping at drug stores, groceries and other retail establishments in Manhattan.

More affluent households will also buy groceries at or have them delivered from The Food Emporium at 59th Street and First Av-
enue on the Manhattan side (or, by 2012, most probably also from a new Whole Foods to be located at 57th Street and Second
Avenue). Alternatively, if they have access to an automobile, they might head to the relatively new Food Cellar & Co., in the
Queens West development on Long Island City, or shop for food and other items at the Costco Wholesale, at Vernon Boulevard
and Broadway. Alternatively, they might order from Fresh Direct, another convenient daily goods shopping option.17

For the mid-market shopper with access to an automobile, the most formidable competition to Main Street is the Broadway corridor in
Astoria. The Broadway Shopping Center, at the intersection with 21st Street, is anchored by an Associated supermarket and a Rite Aid
drug store, and also includes a Chase Manhattan bank. With its off-street parking lot, the strip is able to accommodate motorists.18

17 Food Emporium and Fresh Direct provide online grocery delivery services to Roosevelt Island. Interestingly, the very first deliveries ever made
by Fresh Direct were to island households (Roosevelt Island was the “test market”).
18 According to 2009 Claritas data, roughly 35% of island households have access to a car. Based on an analysis of car movements at the Motorgate
parking garage conducted by RIOC, about 50% of cars are used on a daily basis (most likely to commute to work) and about 80% are used once
per week (most likely for shopping excursions). Therefore, it can be assumed that about 1,200 households shop once a week off-island.

33
ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

A few blocks east, Broadway morphs into a typical outer-borough neighborhood shopping street, with a subway station, (N/W, at
31st Street), and a pedestrian orientation that draws heavy foot traffic. The focus is on convenience goods and services, with
anchor stores including a C-Town supermarket, a Trade Fair and a Rite Aid drug store. Two of those — C-Town and Rite Aid —
also provide off-street parking lots, enabling these businesses to also accommodate motorists.

In addition, there are isolated, automobile-friendly national retailers nearby in Queens, including the Costco at Vernon Boulevard
and Broadway, as well as a Staples and a Pep Boys at 21st Street and 39th Avenue.

The Trade Fair also anchors a small, roughly three-block, single-loaded retail stretch of 36th Avenue heading west from 21st
Street. Similarly, a small retail node is located at 34th Avenue/Crescent Street, whose tenants include a Walgreens and a Sov-
ereign Bank branch, although it lost its Pioneer supermarket. Neither of these districts, however, offers any real off-street parking,
leaving motorists with the challenge of finding much sought-after on-street spaces.

As noted, the overwhelming majority of Roosevelt Island households do not have access to an automobile and must rely on
mass transit for shopping trips. This leaves the mid-market shopper with few options. For example, the F train stops on the
Manhattan side in areas with an up-market skew and/or relatively limited convenience offerings (e.g. Bloomingdale’s, Rockefeller
Center, Herald Square).

RIOC operates a “Shopper’s Bus”, which departs at 10:30 a.m. on Monday and Tuesday mornings and that takes residents to
the Broadway Shopping Center, at the intersection of 21st Street and Broadway. This shopping center is also within walking dis-
tance of the Broadway business district. Once a month, the Shopper’s Bus travels to the Costco Wholesale store located at
Vernon Boulevard and Broadway, although given its infrequency, this service is primarily geared towards and used by more
elderly shoppers. While the “Shopper’s Bus” is an excellent service for those residents who utilize it, it clearly represents a major
source of leaked spending. The RIOC should consider strategies to shift some of this spending to Main Street. One idea would
be to eliminate the bus and provide coupons and other subsidies to elderly, disabled and low-income residents to encourage
Main Street spending.

In addition, the Q102 bus line provides direct access only to Janet Cole Plaza, in the middle of the Queensbridge Houses, on
41st Avenue between 10th and 12th Streets, which has just a small Associated anchor, as well as a number of vacancies. (The
Q102 also stops at the Broadway business district, at 31st Street, although it arrives there via a rather lengthy and circuitous
route).

The other freestanding retailers along 21st Street, the Trade Fair-anchored stretch at 36th Avenue and the small node at 34th
Street/Crescent Street, are not directly accessible via mass transit.

In terms of restaurants and bars, not only does Roosevelt Island have to contend with the countless possibilities in Manhattan,
but the Queens side also offers a number of somewhat up-market offerings, including a sizeable cluster on Broadway in Astoria
(e.g. Sac’s, Linn, Sanford, Broadway Station, etc).

Sales Leakage and Tenant Possibilities


Not surprisingly, given the proximity and accessibility of competitive shopping in both Manhattan and Queens, Roosevelt Island
leaks an enormous amount of retail spending. With resident expenditures aggregating to $151,135,243 and merchant sales to-
taling $17,627,860, the net outflow of retail expenditures from Island residents is $133,507,383, or 88%.19 Furthermore, there is
leakage in virtually every retail category. While the full 88% of leaked sales could not be recaptured, nevertheless there are
several niches in the retail market which could be recaptured by new retailers on Main Street.
19 Claritas Retail Opportunity Data. Claritas data is derived from two major sources of information. The demand data is derived from the Consumer
Expenditure Survey (CE Survey) which is fielded by the U.S. Bureau of Labor Statistics (BLS). The supply data is derived from the Census of
Retail Trade (CRT), which is made available by the U.S. Census.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Comparison Retail
As discussed before, the Island is unlikely to become a comparison-shopping destination, since such retailers – clothing stores
and shoe stores, for example – tend to prefer locations within already-existing clusters of similar stores. The population on the
Island is too small to support the emergence of a significant comparison shopping cluster. However, there are two possible con-
venience retail categories which could be supported by residents, as detailed below.

1. Home Furnishings
The one possible comparison retail niche that could be filled on Main Street is home furnishings, especially given the Island’s
dramatic residential growth since 2000 and going forward. There is already $3,842,910 of leakage in this category. While such
merchants are likely to prefer a location in the area of Bloomingdale’s on the Manhattan side which boasts a slew of furniture re-
tailers, a small “pop-up” store in this category may be worth pursuing in order to test the viability of such an establishment on
Main Street.20

2. Sit-down Dining
The one other “comparison” category of note that Main Street has the ability
to recapture is sit-down dining. Currently the magnitude of leakage in this
category is enormous – $6,538,461. Restaurants, of course, are often ca-
pable of drawing diners to “off-the-radar” locations. Given the marketing
challenges, it, may be difficult to imagine a noteworthy upscale restaurant
materializing on Main Street, unless, say, a celebrity restaurateur is already
a resident.

For this reason, neighborhood-oriented restaurants and bars are more


promising targets. In addition to Trellis, Fuji East arrived in 2008, and 2009
will see the opening of Riverwalk Bar & Grill. Neither of these are likely to
draw customers from beyond the Island, but this may not be necessary for
them to be successful. Given the high demand and convenience it offers
to residents, it would rely upon its proximity to Island residents, who would
frequent them based upon more impulsive, last-minute restaurant dining
rather than a more premeditated night out on-the-town.

Having said that, there would still seem to be a need, given the sensibilities and psycho-graphics of the resident base to project
a younger and more hip image in restaurant and dining options to cater to the younger, more contemporary, even stylish sensibility
of a large proportion of the Island’s residents.

Convenience Retail
In terms of convenience goods and services, the Island currently leaks 86% of its grocery expenditures, translating to $16,534,908
in sales. Generally speaking, a centrally-located business district should be able to capture 70% of the total expenditure in this
category, and arguably even higher in a neighborhood with such low levels of automobile ownership. Using this as a guide, the
Island should at least be able to support another smaller-format convenience retail or food store. Given the constraints with
market size and available real estate, the best hope would likely be some sort of green grocer, which could potentially be accom-
modated by one of the smaller available retail spaces on Main Street.

Gristedes is the only supermarket on Roosevelt Island and the most frequently visited retailer on Main Street.21 At the same time,
in a survey of residents, Gristedes received more negative survey comments about its appearance, service and merchandising
than any other retailer on the Island. In fact, when asked about the worst things on Roosevelt Island, 10% of residents specifically
20 A “pop-up store” is a temporary retail installation. Typically, retailers utilize this approach to establish a brand presence in a highly trafficked
location, explore a highly specific retail concept, highlight a specific product or test a new market.
21 Survey of Roosevelt Island residents.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

identified Gristedes, whereas most other answers were more


general in nature (e.g., “limited goods and services,” “limited ac-
cess to Manhattan,” etc.). Clearly, Roosevelt Island residents
have a negative attitude towards Gristedes, but at the same time,
because of convenience and a lack of alternative convenience
shopping, as many as 37% of residents shop there at least once
a week.

To complicate matters, Gristedes’ lease includes a 1,900-foot


ring-of-exclusivity within which certain restrictive covenants apply
to the size and types of grocery and food stores that would be
permitted. As a result, the RIOC is limited by what types of stores
it could bring to Main Street. Given that the market analysis in-
dicates there is significant gap on Main Street for additional gro-
cery and specialty food stores, the question is what do the
restrictive covenants of the Gristedes lease preclude, or rather,
what food stores, both in terms of type and make-up, are not pre-
cluded by the lease?

The Gristedes Lease


A careful reading of the lease’s restrictive covenants (at Article 43)
makes it clear that no other supermarkets, defined as “a retail es-
tablishment 3,500 square feet or more which uses its premises pri-
marily for the retail display and sale of food products and, secondly,
other merchandise customarily sold in supermarkets in the City of
New York,” is permitted on Roosevelt Island, (other than in the area
of the Island known as South Town)*. Thus it is clear that any store
which primarily sells food and is over 3,500 square feet in size would
be precluded on Main Street.

Beyond the exclusion of supermarkets, the restrictive covenants


cover other type of food stores that may be located within a 1,900 feet radius of the Gristedes premises. Stores which devote more
than 600 square feet of space, or more than 30% of its sales area, or which receive 15% or more of its annual revenues, from the sale
of fresh foods (i.e. uncooked fruit, vegetables and meat) from self-service display cabinets, and discounted milk, beer and soda, are
precluded within this 1,900 foot radius. In addition to this restrictive covenant, is a further covenant that would appear to overlap with,
but would be less restrictive than the above covenant, which is as follows: a food store which has more than 33.3% of its sales area,
or derives more than 33.3% of its annual sales from these same food items (fresh foods, discounted milk, beer and soda.) are also
precluded from locating within the 1,900 feet radius.

Finally, the restrictive covenants make it clear that the restrictions would not apply to stores which sell kosher food (“in accordance
with rabbinical law”).

Convenience Retailers That Are Possible


The question is therefore, what types of stores which primarily sell food, but which are less than 3,500 square feet, are permitted
to be located within the 1,900 feet radius of the Gristedes store on Main Street?

* Even in South Town, Gristedes would have the right of first refusal on a lease for a supermarket.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

First, if a store sells fresh food – fruit, vegetables, and/or meat - that is not contained within or sold from a self service display cabinet, it
is not precluded from being located within 1,900 feet of Gristedes. This would appear to provide a fairly significant opportunity, but
beyond supermarkets, even most smaller grocery stores and specialty food stores today do sell mostly from self service display cabinets
– irrespective of whether the fresh food is unpackaged or pre-packaged. Only stores in which such fresh foods are dispensed by store
employees as opposed to self-service, would be permitted. There still may be a few types of retail food establishments, such as some
specialty butchers, who operate under such conditions, but even most specialty meat stores do have a number of self service cabinets
with pre-packaged goods from which customers can help themselves, rather than be helped by a store employee. Other examples of
retailers in this category would include Cosi and Pax, which may be described as “sandwich and salad bars,” and various fast-food es-
tablishments.

Secondly, it would appear that the restrictions both in terms of store area and annual revenues would not apply to full price milk, beer
and soda. However, the term “discounted” is not defined in the lease, and therefore is subject to interpretation. By industry standards,
the very sale of milk, beer and soda by a supermarket may be characterized as “discounted,” even if it turns out that the actual sale
prices are no different than the price at a liquor store, or deli or another type of specialized retail store which sells the same items.
However, it may be possible that where a retail store clearly sells these items at full prices, like a drug store, or a deli, or a convenience
store, that the calculation of such area and revenues could be excluded from the calculations subject to the restrictive covenant because
such prices are typically full price as opposed to “discounted.”

Third, kosher food items are clearly permitted and not precluded by the Gristedes restrictive covenants.

Probably the most pertinent questions relate to retail stores which do sell either or both fresh food from self service cabinets, and/or milk,
beer and soda. Also, what potentially could be characterized as at “discounted prices”? Which of these types of retail stores can be
located on Main Street within 1,900 feet of Gristedes? Using the more conservative of the two restrictive covenants (the 600 square
feet or 30% of sales area restriction and the 15% or greater annual sales restriction), the following are the types of retail food store that
may be possible on Main Street.

A food store of 2,000 square feet could devote up to 600 square feet of its space to fresh foods sold from self service display cabinets
and discounted milk, beer and soda, provided annual sales of these items accounted for less the 15% of its total revenues. The same
type of food store, of only 1,000 square feet in size could only devote 300 square feet of space to such items, and again sales revenues
from these same items could not exceed 15% of annual sales. A food store of 3,499 square feet – the maximum size possible under
the “competitive supermarket ” restrictive covenant cited earlier - would also be restricted to 600 square feet (or only ±17%) of its space.

To relate these provisions in more practical terms, we can review a few different and more concrete examples of the types of food stores
that would be permitted on Main Street within 1900 feet of Gristedes.

1. Certain type of food stores such as a delicatessen, a convenience store, a drug store, etc. that sells primarily food. However, only
small amounts of fresh food and milk, beer and soda could be located within this area, because in most cases the fresh foods sold
from self service display cabinets and discounted milk, beer and soda would account for less then 600 space or 30% of the store
area, and also would account for less than 15% of the store’s revenues. (The lease would obviously require this to be the case.)

2. A specialty food store, where merchandise is limited to primarily one or two types of categories that are not within the “fresh food”
or discounted category (i.e. discounted milk, beer and soda) would also be permitted. Examples include a specialty cheese shop,
a specialty seafood store, a bakery, a confectioner, etc, all of which might sell the restricted items such as soda, milk or even some
fresh fruit, vegetables or meat as well, but in such small quantities as to most likely fall outside the parameters of the Gristedes re-
strictive covenants.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

3. As indicated above, a green grocer or a butcher that sells or dispenses the food items primarily through store employee service
rather than through self service display cabinets, would also be permitted.

4. Likewise, a liquor store, either whose beer is not “discounted”, or whose sales area devoted to beer is within the area and revenue
parameters of the restrictive covenant, would also not be precluded.

5. Additionally, a store or premises of less than 3,500 square feet, but made up of multiple tenants which sells fresh food via employee
service, or which incorporates a substantial area devoted to primarily prepared foods and full price milk and soda, such as a farmers
market, would also be likely to fall outside these restrictions.

Conclusions
New retail tenants on Main Street should meet the following criteria:

- Retail that fills a “gap” in the market.


- Retail desired by residents (according to survey data).
- Retail permitted by the Gristedes lease.

Based on the above, the following types of retail would be appropriate for Main Street:22

1. Green Grocer
2. Ice Cream Shop
3. Specialty Cheese Shop
4. Seafood Store
5. Bakery
6. Pizzeria
7. Florist
8. Restaurant
9. Butcher
10. Home furnishings store.

It is highly unlikely that every storefront on Main Street will be occupied by a retail tenant. As noted, there is a mismatch between the
amount of commercial space on Main Street and the amount of retail that can be supported by island residents.

One final note: RIOC is provided with the necessary “legal ammunition” to ensure that certain products and services be made available
at Gristedes, and that the store provides a level of service commensurate with other supermarkets of its type.23 If Gristedes fails to live
up to these standards, the RIOC would be permitted to bring other tenants within the 1,900 feet radius to provide such products and
services. Per section 43.04, entitled “Certain Products and Services” of the Gristedes lease, in light of the non-competitive restrictive
covenants that are contained within the lease, the RIOC has the right to demand that Gristedes “implement changes and additions pro-
posed by the Landlord (RIOC) for the availability or improvement of certain products or services to be sold or offered” by Gristedes. If
Gristedes fails to comply with these demands, “the restrictive covenants under the lease shall not be applicable and Landlord may permit
other tenants who will agree to make such specific products or services available, but limited to those specific items only.” This provision
provides RIOC with some leverage in demanding that Gristedes provides additional services or products, or make such other improve-
ments that help to maintain a “viable community” and a balanced and diversified offering of retail products and services. If Gristedes
fails to do so, then the RIOC would be permitted to bring in other tenants to Main Street who are capable of filling such gaps, or meeting
the standard of maintaining a “viable community” on Roosevelt Island.

22 Provided these types of stores can operate within the parameters of the restrictive covenants of the Gristedes lease, as discussed above.
23 Specifically, the Gristedes located in downtown Scarsdale.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

VIII. Recommendations

A. Create a public/private partnership to lease and/or help manage Main Street.

The RIOC does not have the administrative or professional capacity to create a successful retail environment on Main Street.
This is due in large part to the extensive RFP process which is required pursuant to the RIOC’s status as a public authority. The
RIOC should follow the example provided by other public authorities in New York which have dealt with this same issue by en-
gaging retail professionals in the private sector. Private involvement in Main Street could utilize one of the three following basic
approaches:

1. The Master Leaseholder (the JFK Model): Under this arrangement, the RIOC would solicit proposals, as it did in 2005,
for a private takeover of all or some Main Street retail storefronts. Terminal 4 at John F. Kennedy airport is an example of
such an approach. In 1997, the Port Authority of New York executed a 25 year lease with Schipol USA and LCOR Incorpo-
rated for all retail spaces in the terminal. Schipol/LCOR sub-leases each space and manages the overall retail environment.

2. The Retail Manager/Consultant (the Grand Central Model): This model would allow the RIOC to maintain control over
Main Street, but the leasing process and management of the tenants would be handled by a private consultant(s). The ten-
anting of individual spaces, storefront design guidelines and maintenance standards would be based on an overall retail
master plan developed by the RIOC. The Metropolitan Transportation Authority’s partnership with Jones Lang LaSalle and
William Jackson Ewing is a good example of this arrangement. This example is highlighted on the following page.

3. The Hybrid Model: This model, which represents a combination of the first two approaches, would be based on a Retail
Master Plan created by the RIOC. The Retail Master Plan would identify specific categories of retail that make sense from
both a market and community viewpoint and, where possible, identify the potential locations of each. RIOC would then

39
ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Grand Central Terminal: How a Public Authority Achieves Re-


tail Success
Like Roosevelt Island, Grand Central Terminal is operated by a
public authority, the Metropolitan Transportation Authority
(MTA). From a market perspective, Roosevelt Island, a mixed-in-
come residential community, and Grand Central Terminal, a
major transportation hub in a premier Midtown Manhattan lo-
cation, share few similarities. However, an examination of the
retail management tools and processes employed by the MTA
at Grand Central is instructive. It demonstrates how a public
authority can leverage its planning powers to transform a dark,
dingy and distressed retail environment into an economically
productive, well-designed and lively gathering place.

The MTA functions as the landlord at Grand Central. However,


following a major restoration/redevelopment initiative in the
early 1990s, the MTA retained experienced retail professionals – specifically a retail management firm (Jones Lang
LaSalle) and a leasing agent (Williams Jackson Ewing) – to manage a detail-oriented leasing program in accordance
with its overall retail vision. A review of a recent RFP for retail space in the Terminal illustrates the rigorous selection
and evaluation process that the MTA utilizes in order to curate the entire retail experience.24 For instance, in addition
to a proposed rent, each respondent must submit a written description of the proposed store layout and floor/window
displays, a summary of its retail business experience, the financial qualifications and various details about the store
concept and marketing. Furthermore, each RFP is very clear about the specific type of retail (e.g., “retail sale of whole
coffee beans,” “non-national bakery,” etc.) envisioned for each space. These provisions are perhaps the most instruc-
tive portion of the Grand Central leasing model, as it illustrates the importance of establishing a retail plan with de-
tailed specifications for which types of retail are most desirable – and the specific locations for each. Overall, the
results have been a tremendous upgrade in merchandising, aesthetics and service.

In conclusion, the retail operation at Grand Central shows the importance of: (1) establishing a retail master plan that
delineates the types and locations for retail tenants; (2) the value of retaining experienced professional retail consult-
ants; and (3) the level of attention to detail that is necessary to create a successful and synergistic retail environment.
In this sense, the Grand Central leasing program is a model for how the Roosevelt Island Operating Corporation could
utilize its authority to attract neighborhood-serving retail establishments and make Main Street the true Town Center
of the island.

solicit proposals for a master leaseholder. The master lease agreement would contain stipulations about specific types of
tenants and locations are available based on the RIOC Retail Master Plan.

The RIOC has articulated a desire to continue to maintain some control over the tenanting and management of Main Street. As
such, the Grand Central model really makes the most sense. The problem, however, would be the costs associated with retaining
qualified private consultants. If retaining a consultant is not economically feasible, the RIOC should consider the feasibility of
pursuing the Hybrid Model. This would allow the RIOC to identify several specific uses that are: (1) desired by residents; and (2)
viable based on the market analysis in this report, and negotiate a master lease agreement with stipulations that the master
leaseholder must pursue tenants in those categories. Conducting a transparent RFP process, including an independent appraisal
of each space, for the overall management of Main Street would fulfill the requirements of the Public Authorities Act by securing
a fair market value for the master lease. The private firm would then be allowed to sub-lease the spaces, as long as the tenants
met the stipulations of the RIOC Retail Master Plan.

An alternative to engaging the private sector firms would be to hire a seasoned and highly-qualified real estate professional as a full-
time employee of the RIOC. This person would be charged with overseeing the implementation of the Retail Master Plan, including the
RFP leasing process, tenant relations, design standards and overall retail management.

Regardless of which public/private approach is chosen, the RIOC should adopt a retail plan. The following is an example of a relocation
scenario:
• Bar/restaurant or bakery at 503 Main Street, which is currently vacant. (2,030 sq. ft.)
• Food establishment(s) at 513/507 Main Street, which is currently occupied by RIOC Engineering and a chiropractor. (1,728 sq ft.)

24 Request for Proposals, Grand Central Terminal – Spaces MC-15, MC-30, MKT-23, and LC-43A, issued by the Metropolitan Transportation Au-
thority, January 7, 2009.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

• Green grocer in 526 Main Street, which is currently occupied by the library. (2,322 sq. ft.)
• Food establishments in 530-532 Main Street, which are currently vacant. (2,208 sq. ft.)
• Florist in 544b Main Street, which is currently vacant. (686 sq. ft.)
• Bookstore in 559 Main Street, which is currently occupied by Orphans International. (568 sq. ft.)
• Fitness/wellness studio in 568 Main Street. (505 sq. ft.)
• Restaurant/café in 591 Main Street, which is currently occupied by the RIOC offices. (1,780 sq. ft.)
• Clothing or housewares store in 615 Main Street, which is currently occupied by the Boy Scouts. (776 sq. ft.)

B. Pursue specific streetscape interventions and create design guidelines for Main Street retailers

It would be difficult to overemphasize the relationship between improvements in the overall aesthetics of Main Street and the
success of its retail. Design-related recommendations include the following:

• Create – and enforce – design and maintenance guidelines for all Main Street retail tenants
• Remove the glass panels from the arcade along the east side of Main Street. The panels are too difficult to keep clean and
negatively impact the visibility of the storefronts.
• Install additional lighting and retrofit existing lighting within the arcade.
• Repaint exterior facades to enliven the gloomy feel of the existing storefronts.
• Install public art in the larger spaces within the arcade.
• Install projecting signs on the exterior of each storefront. Signage fixtures could be uniform but logo, font, color and size
should be varied.

Also, it is unlikely that vacant storefronts will ever be completely eliminated from Main Street. The installation of temporary art
galleries in the storefront windows would be the best and least costly option to maintain a pleasant and attractive environment
on Main Street. This strategy is being utilized by many communities, especially now during the economic downturn.

A Merchants Fund which could supply matching storefront improvement grants of around $1,000 or using a single month’s rent
towards storefront improvements represent two possible implementation approaches for this recommendation.

C. Revive the Roosevelt Island Chamber of Commerce to be the steward of Main Street success

Roosevelt Island’s Chamber of Commerce has been more or less inactive for several years. This report recommends reviving
the Chamber in order to: (1) allow Main Street merchants to become a driving force for improvements; and (2) to initiate and
oversee important new Main Street initiatives involving local youth and residents. The Chamber would work closely with – and
perhaps with the financial support of – the public/private partnership entity, with respect to the following activities:

• Initiate a “Support Main Street” marketing campaign.


• Create an “artist-in-residence” program to install exhibits and arts activities in the vacant storefronts.
• Encourage tenants to provide outstanding, free delivery service
– Employ Island teenagers to deliver groceries; to deliver takeout food to both residents and employees/patients at the
two hospitals on Main Street
– Encourage a new florist to deliver flowers to the hospitals; and to the extent successful, set up a concession at the
hospitals
• Encourage customer loyalty through innovative programs, such as
– Punch cards with discounts for frequent purchasers
– Roosevelt Island dollars – similar to “Green stamps”

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

– Special promotions for hospital workers (e.g., 10% discounts at certain stores or for certain services)
• Encourage Island’s youth population to do community service projects which physically improve or clean up Main Street
(e.g., painting; replanting, etc).

D. Re-organize existing non-profit uses to maximize available marketable space, and cluster ap-
propriate non-profits into space more suitable to function.

The relocation of several non-profit organizations from prime retail spaces on Main Street to less visible but nonetheless suitable
spaces would help set the stage for an improved retail environment on Main Street. Additionally, as in other successful Main
Street environments, it is important to enhance the presence of civic uses, such as the church, bank, library and post office. This
report offers the following relocation/reorganization scenario (see Figure 8):

• Move RIOC offices from 591 Main Street to 504 Main Street, which is currently vacant.
• Move the Library from 526 Main Street to 504 Main Street.
• Cluster the Boy Scouts, Orphans International and Batting Cage at 506 Main Street.
• The Thrift Store should be cleaned up and vastly reduced in size.
• Put retail tenants in the former Batting Cage space at 521 Main Street.
• Place food establishments in 507-513 Main Street, which are currently occupied by the RIOC Engineering Department and
by a chiropractor.

E. Make Good Shepherd Plaza the “town square” of Roosevelt Island.

The plaza area around the Church of the Good Shepherd is arguably the finest public space on Roosevelt Island. From an aes-
thetic viewpoint, it provides a unique historic (i.e., pre-General Development Plan) intervention in the 1970s era streetscape.
There is a clear opportunity to create a lively gathering place in this space. The Island’s open spaces and parks provide the
venues for most major events, but the church plaza should be the most often utilized option where possible, as opposed to other
public spaces. Programming such activities in the plaza would encourage more spending and activity on Main Street. This
report recommends the following steps in order to achieve this vision:

• Move the Farmer’s Market to Good Shepherd Church plaza (or the Blackwell Park plaza if truck parking and noise issues
are problematic in the church plaza).
• Incorporate an outdoor dining venue in the plaza. This could be a temporary kitchen or dedicated outdoor seating for all
Island restaurants from which diners could have their food delivered.
• Hold summer evening live music and/or theater activities in the plaza.
• Improve existing seating and add additional seating.
• Install an information kiosk in the plaza.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Figure 8: Reorganizing Scenario

43
ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

F. Create a “Gateway to Main Street” at the southern entrance point to Main Street.

The southern end of Main Street is currently lacking in activity, primarily due to a concentration of vacant or moribund storefronts.
As a result, residents from the new Riverwalk complex and tourists/visitors are dissuaded from setting foot on Main Street. To
reverse this situation, this report recommends the creation of a hub of activity – or “gateway” – at its southern entrance point.
This will require a focus on securing new retail tenants, establishing a strong civic presence, and installing attractive and welcoming
signage to brand Main Street as the “town center” of the Island.

The following uses would be established at the gateway:

• In addition to the existing RIVAA Gallery and hair salon, the west side of Main Street would contain (starting at the south
end moving north) a sit-down dining establishment, two specialty food purveyors and, if additional space is available, artist
studios.

• The relocated library would anchor the gateway to Main Street on the east side. The RIOC offices would move to the second
floor of the building, above the library.

A large “Welcome to Main Street”-type sign should be installed at the gateway. This would be supplemented by a few signs po-
sitioned close to the subway station/Riverwalk to encourage visitors, tourists and even Riverwalk residents to explore Main Street.

The adaptive reuse of the Blackwell House, one of the oldest and most significant historic resources on Roosevelt Island, could
bring additional activity to the open space area surrounding the gateway.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

IX. Conclusion

The foregoing report has revealed significant potential on Main Street for more convenience shopping – particularly in the grocery
and specialty food categories. However, the solution to the Main Street problem is not just a matter of adding more retail. In
fact, additional retail is probably not warranted unless Roosevelt Island – its residents, elected officials and merchants – addresses
four major obstacles:

• A negative perception of Main Street


• An unattractive and unclean physical environment
• Little reason for workers, visitors and tourists to explore Main Street
• Lack of administrative and professional capacity at the RIOC to manage the Main Street leasing process.

This report has set forth strategies to address each of these issues. Basically, it recommends six major interrelated intervention
strategies to set a new life for Main Street in motion:

• Create a public/private partnership to lease and help manage Main Street.


• Pursue specific streetscape interventions and create design and maintenance guidelines for Main Street retailers.
• Revive the Roosevelt Island Chamber of Commerce to be the steward of Main Street’s revitalization.
• Relocate existing non-profit uses to maximize available marketable space, and cluster non-profits appropriately into space
more suitable to their function.
• Make Good Shepherd Plaza the “town square” of Roosevelt Island.
• Create a “Gateway to Main Street” at the southern entrance to Main Street.

As Roosevelt Island approaches its 40th anniversary, it is an opportune moment to usher in a spirit of renewal on Main Street
and finally develop the excitingly urban and authentic central gathering place envisioned in the General Development Plan.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Appendix

Description of U.S. Census Bureau Employment Sectors


The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying
business establishments for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business econ-
omy. Roosevelt Island businesses employ people in the following sectors:

Health Care and Social Assistance: includes Ambulatory Health Care Services, Offices of Physicians, Offices of Dentists, Offices
of Other Health Practitioners, Outpatient Care Centers, Medical and Diagnostic Laboratories, Home Health Care Services, Other
Ambulatory Health Care Services, Hospitals Nursing and Residential Care Facilities and Social Assistance.

Administration & Support, Waste: includes Office Administrative Services, Facilities Support Services, Employment Services,
Business Support Services, Travel Arrangement and Reservation Services, Investigation and Security Services, Services to
Buildings and Dwellings, Other Support Services and Waste Management and Remediation Services.

Real Estate & Rental and Leasing: includes Offices of Real Estate Agents and Brokers, Activities Related to Real Estate, Rental
and Leasing Services, Consumer Goods Rental, Commercial and Industrial Machinery and Equipment Rental and Leasing, and
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works).

Arts, Entertainment and Recreation: includes Performing Arts, Spectator Sports, and Related Industries, Promoters of Performing
Arts, Sports, and Similar Events, Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures, Museums,
Historical Sites, and Similar Institutions, Amusement, Gambling, and Recreation Industries and Other Amusement and Recreation
Industries.

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Professional, Scientific and Technical Services: includes Legal Services, Accounting, Tax Preparation, Bookkeeping, and Payroll
Services, Architectural, Engineering, and Related Services, Specialized Design Services, Computer Systems Design and Related
Services, Management, Scientific, and Technical Consulting Services, Scientific Research and Development Services, Advertising,
Public Relations, and Related Services and Other Professional, Scientific, and Technical Services.

Retail Trade: includes Motor Vehicle and Parts Dealers, Furniture and Home Furnishings Stores, Electronics and Appliance
Stores, Building Material and Garden Equipment and Supplies Dealers, Food and Beverage Stores, Health and Personal Care
Stores, Gasoline Stations, Clothing and Clothing Accessories Stores, Sporting Goods, Hobby, Book, and Music Stores, General
Merchandise Stores, Miscellaneous Store Retailers and Nonstore Retailers.

Description of Claritas, Inc. PRIZM NE Psychographic Segments


Claritas, Inc. PRIZM NE data was used to approximate the psychographic profile for the primary trade area and for those within
a 10 minute drive of the development site. This proprietary system uses demographic data and information about consumers’
product purchases, lifestyles, and media interests to classify households into 66 demographically and behaviorally distinct seg-
ments. These are ascribed semi-humorous but quite descriptive monikers to portray a flavor of each segment’s lifestyle, hence
shopping, preferences.

Young Digerati are tech-savvy and live in fashionable neighborhoods on the urban fringe. Affluent, highly educated, and ethnically
mixed, Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques,
casual restaurants and all types of bars—from juice to coffee to microbrew. Among the lifestyle traits ascribed to this group are
the following:
• Shop at Banana Republic
• Go snowboarding
• Read Elle Décor
• Watch Independent Film Channel
• Toyota Prius

A collection of mobile urbanites, Bohemian Mix represents the nation’s most liberal lifestyles. Its residents are an ethnically di-
verse, progressive mix of young singles, couples, and families ranging from students to professionals. In their funky rowhouses
and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop, and mi-
crobrew. Among the lifestyle traits ascribed to this group are the following:
• Eat at Au Bon Pain
• Buy Spanish/Latin music
• Read The Economist
• Watch soccer
• Audi A4

Once known as the home of the nation’s yuppies, Young Influentials reflects the fading glow of acquisitive yuppiedom. Today,
the segment is a common address for younger, middle-class singles and couples who are more preoccupied with balancing work
and leisure pursuits. Having recently left college dorms, they now live in apartment complexes surrounded by ball fields, health
clubs, and casual-dining restaurants. Among the lifestyle traits ascribed to this group are the following:
• Shop at Express
• Buy rap music
• Read Vibe
• Watch Family Guy
• Mazda 3

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

Concentrated in the nation’s port cities, Urban Achievers is often the first stop for up-and-coming immigrants from Asia, South
America, and Europe. These young singles, couples, and families are typically college-educated and ethnically diverse: about a
third are foreign-born, and even more speak a language other than English. Among the lifestyle traits ascribed to this group are
the following:
• Shop at Rite-Aid
• Download music from web
• Read Latina
• Watch BET
• Toyota Yaris

American Dreams is a living example of how ethnically diverse the nation has become: more than half the residents are Hispanic,
Asian or African-American. In these multilingual neighborhoods–one in ten speaks a language other than English–middle-aged
immigrants and their children live in middle-class comfort. Among the lifestyle traits ascribed to this upper-middle income group
are the following:
• Shop at Old Navy
• Buy motivational tapes
• Read Black Enterprise
• Watch Telefutura
• Toyota Scion

The residents of Money & Brains seem to have it all: high incomes, advanced degrees, and sophisticated tastes to match their
credentials. Many of these city dwellers are married couples with few children who live in fashionable homes on small, manicured
lots. Among the lifestyle traits ascribed to this upper-middle income group are the following:
• Shop at Nordstrom
• Contribute to NPR
• Read Sunday newspaper
• Watch Wall Street Week
• Mercedes Benz E-class

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ROOSEVELT ISLAND MAIN STREET RETAIL STUDY

For additional information contact:

Phillips Preiss Shapiro Associates, Inc.


434 Sixth Avenue, Floor 5
New York, NY 10110
P: 212/475-3030

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