Danah Alexander

This document details the Investment Guidelines and provides an Investment Report for the Battery Park City Authority. The guidelines establish comprehensive parameters, responsibilities, and controls for managing investment funds, with a hierarchical focus on legality, safety of principal, liquidity, and maximizing returns. Key areas include defining authorized investment securities, portfolio diversification strategies, and investment maturity limits. The document also outlines operating procedures, internal controls, qualifications for financial institutions, and rigorous reporting requirements, including an annual audit. Furthermore, it incorporates Environmental, Social, and Governance (ESG) investment principles, prohibiting investments in companies heavily reliant on fossil fuels while seeking to integrate other ESG factors into investment decisions. The accompanying report summarizes investment activities and performance for the fiscal year ended October 31, 2025.

The meeting agenda included the President's Report, reports from the Audit and Investment Committees, and updates on the North/West and South BPC Resiliency Projects. Corporate actions involved approving the Investment Report & Guidelines for the Fiscal Year Ended October 31, 2025, accepting Audited Financial Statements for the same fiscal year, approving the Prompt Payment Report and Policy, and approving the Proposed 2026 Procurement Guidelines and 2025 Procurement Report. Additionally, authorizations were sought to enter or amend contracts for webmaster services, construction administration, North Grid Electric Upgrades, community air and noise monitoring, resiliency cost management services, and authorization for an amended lease for commercial space at 200 Rector Place. A January 2026 Consent Agenda item involved authorizing a contract for International ILFI Net Zero Carbon Certification for Wagner Pavilion. The session concluded with a motion to conduct an executive session to discuss negotiations related to real property lease.

The Audit & Finance Committee meeting agenda included a call to order, the annual audit presentation by CBIZ, board recommendations, and a motion to adjourn. The audit results presentation covered the audit conclusion, which expected a clean/unmodified opinion on the financial statements for the year ended October 31, 2025, provided certain conditions like EQR review and management letter receipt were met. Key discussion points from the audit included a significant unusual transaction involving $18 million in misdirected ground rent and PILOT payments due to a cyber incident affecting a managing agent, though the Authority expects full recovery. The committee reviewed management's estimates and judgments concerning the OPEB liability (approximately $46.2 million as of October 31, 2025), depreciation of project assets, pension benefits, lease accounting, and the allowance for doubtful rents and other receivables (which decreased significantly to $4.9 million). The auditors noted no material weaknesses in internal control.

The Investment Committee meeting included a review of the fourth quarter investment report, a discussion of the economic overview, and the Federal Reserve outlook, as presented by external asset management firms. The committee recommended closely monitoring construction fund spending and pacing relative to contractor projections. Further discussion addressed security deposit investments, noting that lease requirements influence investment strategy, with plans to revisit the approach in coordination with future leasing strategy development. Additionally, measures taken to protect the portfolio against potential interest rate changes were explained.

The meeting addressed several significant items, including the approval of the minutes from the October 1, 2025 meeting. Parks Operations provided an update detailing successful summer activities, such as the reopening of Wagner Park, and outlining preparations for the winter season, including lawn closures and snow plan readiness. An update on the South Battery Park Resiliency Project noted the reopening of Wagner Park and progress on the Pier A Plaza and Pavilion construction. The Investment Committee reported on quarterly performance reviews with asset management firms, noting the Authority's substantial cash holdings. A major focus was the approval of the budget for Fiscal Year 2026, which projects increased revenue driven by PILOT assessments, increased expenditures for resiliency projects staffing, and sets the capital budget at $543 million, heavily allocated to resiliency efforts. Furthermore, the Series 2025 Bond Authorization was adopted to raise $700 million in long-term financing, supporting the 2025 Sustainability Bond Program. The Members also approved the spending authority for Fiscal Year 2026 Pre-Qualified General Contractor, Construction Manager, and Resiliency Advisory panels. Finally, an authorization was granted to enter into a Lease Amendment with Brookfield Properties to relocate the Authority's office space to the 15th floor of 200 Liberty Street, securing a larger footprint at a lower net effective rent per square foot.