The New York Wheel gets another lifeline

Development team has until then to hire a new contractor for the projec

TRD New York /
Sep.September 10, 2018 05:30 PM

The embattled New York Wheel now has until early 2019 to get the project on track.

The Wheel’s developer and former contractor hashed out a new deal which would give the development team an absolute deadline of Jan. 7, 2019 to hire a new contractor to finish the project, according to the Staten Island Advance. As a part of the amendment, which was filed in Delaware Bankruptcy Court on Friday, no party will be allowed to seek an extension beyond that deadline.

It would also give former contractor Mammoet-Starneth the rights to the Wheel parts as long as no “termination event” takes place before Oct. 23, potentially ending a longstanding dispute between them and the development team. However, the team would be allowed to take part in an auction of the parts if it proves it can afford to purchase them.

Mammoet-Starneth walked off of the New York Wheel site last year in May and was fired soon after. The two parties reached an agreement this May that gave them a Sept. 5 deadline to figure out how to move forward with the project, but this was later pushed back to at least Sept. 11.

The amendment also allows Mammoet-Starneth to finish its Chapter 11 bankruptcy proceedings.

A hearing on a motion to approve the new agreement between the New York Wheel developers and Mammoet-Starneth has been set for Sept. 21, according to a spokesperson for the New York Wheel. [SI Advance] – Eddie Small


Related Articles

arrow_forward_ios
From left: The Blau and Berg Company's Karine Blanc, TD and Partners' Nana Duncan and Lemor Development Group's Kenneth Morrison (Credit: Blauberg, TD+Partners and Lemor)

Black developers say partnerships aren’t always equal

Barney's at 660 Madison Avenue with Ashkenazy Acquisition Corporation's Daniel Levy (Credit: Getty Images, LinkedIn)

Barneys’ flagship Madison Avenue spot will stay open — but with a smaller footprint

(Credit: iStock)

It’s over for Barneys: Luxury retailer to be sold, stores closed

85 4th Avenue in Brooklyn (Credit: Google Maps)

New details of Boerum Hill’s next big project unveiled

TF Cornerstone president Frederick Elghanayan and 595 Dean Street (Credit: CityRealty, Google Maps)

TF Cornerstone’s Prospect Heights two-tower project unveiled

Assemblyman David Chiu and Gov. Gavin Newsom (Credit: Wikipedia and iStock)

California passes landmark rent control law

Forever 21 owes these five mall owners $20.9 million, bankruptcy court records show.

For mall owners like Simon, Brookfield and Vornado, Forever 21 bankruptcy signals more trouble ahead

SoftBank taps former Sprint CEO to fix WeWork, this borough could house Trump’s presidential library: Daily Digest

SoftBank taps former Sprint CEO to fix WeWork, this borough could house Trump’s presidential library: Daily Digest

arrow_forward_ios