The developers of the stalled New York Wheel project, the proposed 630-foot attraction on Staten Island, have agreed to fork over $460,000 to cover storage costs for some of the structure’s parts, according to court documents.
A dispute between the the developers and the project’s former contractor, Mammoet-Starneth, delayed the ambitious project, which is being built on city land on the St. George waterfront, Crain’s reported.
The projected cost of the wheel has continually increased, most recently ballooning to $590 million — more than twice the initial estimate.
The developers fired Mammoet-Starneth in July, and construction has been shut down since.
The design-and-build firm is in the in the midst of a bankruptcy proceedings in a Delaware court, and is seeking to auction off parts of the wheel in order to help pay creditors. They told the court they’re paying $700,000 a month for the storage of the parts at the Brooklyn Marine Terminal, including four legs valued at $9 million. According to the court documents, the wheel’s developers agreed to pay the $460,000 to cover this month’s storage costs and the two sides will enter mediation over other aspects of the bankruptcy.
The judge overseeing the case will decide next month whether the auction can move forward. [Crain’s] — Chava Gourarie