Wheel of misfortune: New York Wheel project now “indefinitely delayed”

Developer said the contractor failed to meet design and construction deadlines

TRD New York /
Jul.July 13, 2017 01:15 PM

The Ferris wheel in Staten Island no longer goes round and round. The New York Wheel developer fired the project’s design and build team Mammoet-Starneth, in a move that puts construction of the project on hold indefinitely.

The developer claimed in court filings that Mammoet, the Netherlands-based company whose team helped build the London Eye, failed “to meet multiple design and construction deadlines,” the Staten Island Advance reported. New York Wheel says Mammoet’s delays has caused them $16 million in damages and $20 million in lost profits because of the delays. It has withdrawn its request for injunctive relief from the court and a demand that Mammoet be required to keep working on the project. New York Wheel is now looking for other contractors to complete the project.

Work on the Ferris wheel ground to a halt in May after Mammoet walked off the St. George job site, stating that the soil could not support the project’s giant legs.

The firing is yet another major blow to the $600 million project, whose investors include CEO and former Bear Stearns executive Rich Marin, Eric Kaufman, Meir Laufer, Jay Anderson, Lloyd Goldman and Joseph Nakash. They settled a legal dispute over their equity stakes in December.

A spokesperson for New York Wheel said that terminating the agreement with Mammoet means high costs and “court assistance” will be needed for the project’s completion.

An analysis by The Real Deal last year found the financial projections for the Wheel in its first year of operations to be wildly higher — $127 million in revenue — than was first suggested in 2011, at $21 million. [Staten Island Advance]Miriam Hall


Related Articles

arrow_forward_ios
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

Vishaan Chakrabarti on a Manhattan real estate market without private cars

Vishaan Chakrabarti on a Manhattan real estate market without private cars
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?
Social Construct CEO Ben Huh, The Real Deal's Hiten Samtani and Social Construct cofounder Michael Yarne

The REInterview: Social Construct’s founders on making multifamily construction an assembly line

The REInterview: Social Construct’s founders on making multifamily construction an assembly line
2870 Ocean Avenue in Sheepshead Bay (Google Maps)

Chetrit firm to acquire Sheepshead Bay development site

Chetrit firm to acquire Sheepshead Bay development site
Alexandria Real Estate Equities founder Joel Marcus and Alexandria Center for Life Sciences (Getty, Google Maps)

Life-sciences sector proves safe haven for landlords

Life-sciences sector proves safe haven for landlords
123 West 23rd Street and Adam Neumann (Google Maps; Getty Images)

Adam Neumann, Jeff Dagowitz get $75M refi for Chelsea dev site

Adam Neumann, Jeff Dagowitz get $75M refi for Chelsea dev site
22-15 31st Street (Google Maps)

Supermarket signals demise as Target eyes Astoria

Supermarket signals demise as Target eyes Astoria
270 Park Avenue (Google Maps; iStock)

City planning through a pandemic

City planning through a pandemic
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...