The new chief financial officer (CFO) at the Battery Park City Authority (BPCA) is leaving, after less than six months on the job. Janet Ozarchuk has resigned from the Authority, “due to unanticipated family issues,” according to a press release.
In the same statement, BPCA president Shari Hyman said, “Janet may unfortunately be leaving BPCA, but she won’t soon be forgotten. Even in her brief time with us, Janet impressed with her energy, intellect, and dedication. While I’m very sorry to see her depart, I cannot dispute the primary consideration driving her decision — that of family. We thank her for her service, and wish her nothing but the best.”
Ms. Ozarchuk is quoted in this statement as saying, “I joined BPCA with the goal of effectively guiding the financial future of an incredibly successful organization. Over the past few weeks, however, it has become increasingly necessary to devote more and more of my time to personal matters. While I am disappointed to truncate my tenure at BPCA, I’m heartened by the caliber of professionals at work there for the residents and stakeholders of this great neighborhood, and I thank Chairman Mehiel, Shari, and the BPCA team for the opportunity to serve.”
These accounts are disputed by a source familiar with the situation, who asked not to be identified. This source alleges that Ms. Ozarchuk was forced out of the Authority as a result of internal politics. The abrupt departure by the senior official responsible for the more than $100 million of public funds that the BPCA collects and disburses each year is noteworthy in several respects. As recently as March 30, Ms. Ozarchuk appears not to have anticipated leaving the Authority staff anytime soon. On that date, she wrote a letter to the Broadsheet (in response to an article that detailed some aspects of BPCA finances), which closed with this passage: “about the ground leases, which run through the year 2069 as the article notes. BPCA is certain that the issue will be addressed well in advance of the lease expiration, and well in advance of anyone experiencing difficulty securing a mortgage. And for at least a portion of those intervening 52 years, I look forward to meeting many of you in service to this amazing community.” But Ms. Ozarchuck appears to have stopped coming to the BPCA’s offices within weeks of writing this letter, and a Authority spokesman says her last day on the agency’s payroll will be today (Friday, June 2).
The Authority has not responded to a request from the Broadsheet to confirm or deny that Ms. Ozarchuk has been asked to sign an agreement that would prevent her from speaking publicly about the circumstances of her departure.
The BPCA is now in the preliminary stages of planning a resiliency project, designed to protect to community from sea-level rise and future extreme weather events. This undertaking is estimated to cost several tens of millions of dollars. BPCA officials have insisted that funding it will require issuing new bond debt. But the timeline for an agency to offer new debt is usually about one year, under the most favorable conditions.
It appears unlikely that bond underwriting firms would be willing to begin the process of preparing a new debt offering until there is an experienced hand within the BPCA to manage it. This seems to suggest that any capital-intensive projects, such as the BPCA’s resiliency plan, will be unable to proceed until a new CFO is hired, and could not break ground until a year or more after that date, in order for debt to be issued.
On this point, Authority spokesman Nick Sbordone noted, “BPCA has in place an experienced finance team to ensure the continued financial stability of the Authority. In parallel, the search for a new CFO is underway. As to our ongoing work on resiliency measures, we are proceeding unabated to identify and implement measures aimed at preserving our thriving community against future storm-related damage. As noted previously, construction on these resiliency measures will not commence until a full funding plan is in place.”
Ms. Ozarchuk joined the BPCA as a replacement for Robert Serpico, who came to the Authority as its comptroller in 1986, eventually rising to oversee all BPCA financial operations. Mr. Serpico, who retired in December of last year, also became the Authority’s longest-serving employee, whose tenure bridged that of multiple governors, mayors, BPCA presidents, and Authority board members. As such, he functioned as a source of institutional memory and continuity with the BPCA. Whether Ms. Ozarchuk’s eventual replacement, who will be the Authority’s third CFO within the course of a few months, can fill such a role remains an open question.