The Towering Questions of Building 9
A Deal That Demands Scrutiny
Southtown's Building 9, standing tall and unmistakably larger than its predecessors, is not just another addition to Roosevelt Island—it’s a symbol of a troubling trend. The developers, Hudson Companies and Related Companies, may tout the building’s contribution to the island’s housing stock, the reality is murkier, misaligned with community needs.
Here’s the hard truth: Building 9 is larger, more profitable, and more impactful than originally planned. How could this be? The renegotiation of terms to accommodate this massive structure is shrouded in secrecy, with little evidence that the community or the island’s infrastructure benefited meaningfully in return.
Understanding Taxes on Roosevelt Island
Unlike most of New York City, property taxes on Roosevelt Island don’t go directly to the city. Instead, the island operates under a system of Payments In Lieu of Taxes (PILOTs), negotiated between building owners and the Roosevelt Island Operating Corporation (RIOC). Taxes are added to your rent or maintenance payments. These funds are intended to support island operations, infrastructure, and maintenance.
However, the PILOT system introduces a layer of opacity. Developers often negotiate favorable terms, locking in reduced payments for years under the guise of stimulating development. When these agreements expire, as is the case for 405 and 425 Main Street, the burden shifts. Property owners or renters may face increased costs as the buildings transition to full tax payments.
This structure affects property values and affordability:
For Renters: Expiring abatements can lead to rent hikes as landlords pass on increased tax obligations.
For Owners: Once taxes are fully implemented, investor interest in units may dwindle, opening the door for more tenants to purchase their homes. While this could strengthen community ownership, it also introduces uncertainty for current owners and potential buyers.
For the Community: The lack of transparency in tax agreements raises broader questions: shouldn’t tax rates for each building be public record? Or should taxes remain secret deals, fostering a misalignment between what residents pay and undermining trust? Without clear guidelines and guardrails, RIOC risks creating an uneven playing field that erodes community cohesion.
Building 9, with its size and profitability, begs the question: are its PILOT terms more favorable than they should be, and who ultimately pays the price when developers reap the rewards without reinvesting in the community?
Who Really Benefits?
Hudson and Related have marketed Southtown buildings as “luxury living” on Roosevelt Island, but let’s call these what they are: glorified closets. Apartments are small, prices are high, and affordability is often a thin veneer for tax credits and compliance.
Meanwhile, glaring infrastructure issues across the island go unaddressed. Residents are all too familiar with potholes along Main Street, persistent water overflows on the Queens-facing pathway, and, of course, the still-closed Elinor Pier. These visible failures suggest that RIOC is prioritizing shiny new developments like Building 9 over fixing what’s already broken.
And while developers profit from these so-called luxury buildings, the community bears the brunt of the neglect. Building 9’s outsized footprint and profitability benefit Hudson and Related far more than the island’s residents, who see little return in the form of improved infrastructure or public amenities.
Infrastructure Under Siege
If the financial and operational implications of Building 9 raise concerns, its impact on Roosevelt Island’s already strained transportation system is undeniable. With 357 new units, many of them likely housing commuters, the F train and Roosevelt Island Tram will face even greater strain.
The F Train: The subway is already packed during peak hours, with residents often unable to board during morning commutes. Adding more riders without increasing train frequency is a recipe for daily frustration.
The Tram: While iconic, the tram has severe capacity limitations. Residents rely on it as an alternative to the subway, but with Building 9’s additional population, the wait times will only grow worse.
The AVAC System: Roosevelt Island’s aging automated garbage system, which transports waste via pneumatic tubes, will face additional strain from the increased waste generated by a 357-unit building. Already burdened by decades of use, the AVAC system’s capacity to handle this added load without significant upgrades remains a pressing concern.
And while it’s true that Building 9’s proximity to these transit hubs means its residents may not rely on the local bus system, the buses will still feel the financial strain. Where is the funding to maintain and improve bus services when contracts continue to give favorable terms to developers? RIOC’s financial strategy must balance new developments with sustainable infrastructure investment—or risk leaving the community stranded.
RIOC’s Accountability Gap
At the heart of this issue lies the question: what role did RIOC play in facilitating Building 9’s expansion? As the island’s governing body, RIOC is supposed to act as a steward for its residents, balancing development with community well-being.
If the renegotiation of Building 9’s terms did not include commitments to alleviate transportation stress, fix critical infrastructure like Elinor Pier, or invest in community-wide improvements, then RIOC has failed to protect its constituents. Transparency should not be optional when decisions of this magnitude are being made.
Roosevelt Island Deserves Better
Building 9 could have been a model of responsible development. Instead, it feels like yet another example of corporate interests trumping community needs.
Roosevelt Island is more than just a canvas for developers to profit from—it’s a home, a community, and a unique space in New York City’s urban fabric. The neglect of its infrastructure and disregard for its residents’ concerns threaten to erode the qualities that make this island special.
It’s time for residents to demand better—from RIOC, from Hudson and Related, and from anyone else who claims to have the island’s best interests at heart.
Editor’s Note
The Roosevelt Island Lighthouse reached out to the Roosevelt Island Operating Corporation (RIOC), Hudson Companies, and Related Companies for comment on this article. Emails were sent on January 2, 2025, with a response requested by January 13, 2025. Dialogue with RIOC began close to the publication date. Should any updates or statements arrive, this article will be updated accordingly.
A thorough history and analysis of the robust dealmaking that occurs below the beautiful serenity of our island. Residents are blissfully unaware or running on overwhelm from daily life. Beautiful serenity comes at a price and the blissfully unaware better get cracking on being actively informed or the bliss will disappear. Remember there are more of us than there are of them.