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

Developer said the contractor failed to meet design and construction deadlines

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 It has withdrawn its request for injunctive relief from the court and a demand that Mammoet be required to keep working on the project.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
Queens Borough President Donovan Richards in front of Willets Point. (Office of Queens Borough President, WikiMedia / Jim.henderson)
Willets Point redevelopment finally moves ahead
Willets Point redevelopment finally moves ahead
Francis Greenburger of Time Equities (Greenburger via Michael McWeeney; iStock)
Rental-to-condo conversions drop 80% after 2019 rent law: report
Rental-to-condo conversions drop 80% after 2019 rent law: report
Klövern executive Peeter Kinnunen, GDSNY CEO Michael Kirchmann and 407 Park Avenue (Klövern, GDSNY, Google Maps)
GDSNY, Klövern add 407 Park Avenue to project footprint for $31M
GDSNY, Klövern add 407 Park Avenue to project footprint for $31M
City Council Majority Leader Laurie Cumbo and 840 Atlantic Avenue (Getty, Google Maps)
Atlantic Avenue project gets haircut — and is rejected anyway
Atlantic Avenue project gets haircut — and is rejected anyway
Close to 80 hotels with more than 13,000 rooms plan to open in 2021. (iStock)
Big year seen for hotel openings, despite few visitors
Big year seen for hotel openings, despite few visitors
Total size of New York construction sites is smallest since 2010. (Getty)
New construction projects off to slow start in 2021
New construction projects off to slow start in 2021
Protestors in support of street vendors gather in Hudson Yards on May 7, 2021 (Getty)
“More churros, less cops”: Vendors and Related face off
“More churros, less cops”: Vendors and Related face off
Andrew Yang (Getty, iStock)
Yang targets vacant lots with $900 million tax plan
Yang targets vacant lots with $900 million tax plan
arrow_forward_ios

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

Loading...