City won’t use public funds to save the wounded New York Wheel

Developers had been seeking $140M in help from the city

TRD New York /
Sep.September 07, 2018 10:30 AM

A rendering of the New York Wheel overlayed with a rolling eyes emoji (Credit: Cosentini Associates and iStock)

Another day, another setback for the beleaguered New York Wheel.

The developers of the proposed observation wheel on Staten Island were seeking $140 million in assistance from the city to help get the project on track, but Mayor Bill de Blasio’s administration and the New York City Economic Development Corporation have decided not to use public money for it, according to the outlet New York 1.

“Despite many recent conversations with the Wheel developer, we remain convinced that public funds are too scarce and valuable to be leveraged for this venture,” an official with the NYCEDC told NY1.

The EDC was working with the developer over the summer to try steering the project in the right direction, but the agency soured on the project based on the developers’ inability to find traditional financing and several examples of similar proposals that failed worldwide.

The New York Wheel has been troubled for years, and issues came to a head in May 2017, when contractor Mammoet-Starneth walked off the job site and was subsequently fired.

This May, the developers and Mammoet-Starneth came to an agreement that would give them 120 days to come up with a way to move forward with the project or permanently end it. The deadline had been set for Sept. 5 but has been pushed back to at least Sept. 11. [NY1] – Eddie Small


Related Articles

arrow_forward_ios
Colliers’ Jay Hennick (iStock; Colliers)

Colliers’ profit rebounds

Colliers’ profit rebounds
JPM asset CEO Mary Callahan Erdoes and 605 Third Avenue (Getty; Google Maps)

JPMorgan eyes $600M valuation for Third Ave office tower

JPMorgan eyes $600M valuation for Third Ave office tower
(Getty, iStock)

Hundreds of storage units in New York heading to auction

Hundreds of storage units in New York heading to auction
KABR Group CEO Kenneth Pasternak and 85 Challenger Road in Ridgefield Park, NJ (Photos via KABR)

KABR sells New Jersey building for reported $60M

KABR sells New Jersey building for reported $60M
Gov. Andrew Cuomo and Mayor Bill de Blasio (iStock)

Manhattan theaters sue Cuomo, de Blasio over Covid restrictions

Manhattan theaters sue Cuomo, de Blasio over Covid restrictions
2055 Anthony Avenue and 1416 Ferris Place (Google Maps)

Ved Parkash picks up Fordham Heights apartment building

Ved Parkash picks up Fordham Heights apartment building
(Getty)

When the music stops: Guitar Center could file for bankruptcy

When the music stops: Guitar Center could file for bankruptcy
Abandoned malls are being turned into senior housing, giving planners a chance to rethink retirement communities (iStock)

Abandoned malls get new life as senior housing

Abandoned malls get new life as senior housing
arrow_forward_ios

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

Loading...