Our Future at Water-Whitehall

A message to our community of members

It is with deep regret I that must inform you that June will likely be our last full month of operation at Water-Whitehall Plaza. As some of you know, we have been working for some time with the Department of Transportation and the City of New York to identify a clear path forward on selling sponsorships, which is our primary source of revenue. Unfortunately, a solution has not yet been generated and after this month, we will no longer be able to bear the financial burden of maintaining and operating this kiosk.

We will continue to operate as a normal until closure and a final date has not been set, but will likely be in early July. We are committed to providing you with the same quality of service and user experience until our final day — please do continue to reach out to us with feedback, issues or problems. We are here and will continue to be responsive.

We began the planning process with community organizations and Department of Transportation staff in late 2016, with engagement continuing throughout 2017 and 2018. Sponsorship revenue has always been the key part of our sustainability model. We understood the sensitivities of media in public space, and felt that we could create an experience that would fund our operations while remaining respectful to the Plaza. This was a key component in our approved operating model.

After launch, and after securing a contract for our first sponsor, we discovered that the City of New York lacked clear and definitive guidelines for sponsorship, which surprised us. In the absence of that framework, the City’s lawyers imposed subjective and unduly harsh restrictions on the makeup of marketing content on the kiosk.

Sponsors could only use images deemed “non-discript.”Product placement, trademarks and other visual elements were not allowed. Trademark branding colors (i.e Target’s red) were only allowed on a case by case basis. Taglines and catch phrases were also heavily restricted.

In October, shortly after opening, we lost our first sponsor after attempting to navigate the process with them.

Since that time, we tried to make it work. We approached over five hundred potential sponsors via two marketing agencies. Each time, the response was the same; we lacked clear guidelines, the framework was too restrictive, and the approval process too arbitrary. We also had reason to believe that the City and DOT would be able to clarify and streamline the sponsorship process, but this has taken far longer than we expected.

We tried to hold on. We let go of our staff and I personally took on responsibility for cleaning, maintenance and operations in order to save money. I depleted my savings in order to extend our runway, we cancelled planned upgrades to the facility, which included an integrated air pump, new exterior wrapping and seasonal plantings. We delayed launches in Brooklyn and Queens in the hopes of proving the model here, which would make it easier for us to secure future financing.

I was happy to make these sacrifices because I am deeply committed to our mission. Creating a network of secure cycle parking facilities in New York is the key to unlocking the transformative potential of bicycles. I believe embracing bicycles, and other forms of micro-mobility, will make our streets safer and more livable while helping to reduce the effects of climate change. The hardship was worth it because I love this city so much, and considered Lower Manhattan to be a natural launching point to building a comprehensive network.

But after many months of trying the reality is that our time has run out; we have not been able to secure the financing we need to operate this facility absent of a revenue stream.

In addition to investing nearly $100,000 in the facility, we also cover the monthly costs of cleaning, maintenance, repairs, rent and insurance, which can total more than $1,500. It’s just not possible for us to continue to cover these expenses without money coming in.

I suspect that this extended backstory matters very little to those of you who will be left without a critical transportation option, and I am deeply sorry. We are hoping for a miracle, but to not alert you at this point would be irresponsible. We held off on charging you our nominal $5 monthly fee as we knew this was a possibility.

I will never be able to forgive myself for not being able to find a way to preserve this inaugural location. I am so sorry.

Over the next few months we will shift our attention to planned launches in other portions of the metropolitan area, which are located on non-City owned property. We remain hopeful that we can find a long term solution with the Department of Transportation and the City of New York, and, perhaps, identify a means of returning to Water-Whitehall.

Although we had hoped for a better outcome, we would like to thank the Department of Transportation and the Alliance for Downtown New York for letting us pilot this solution in Lower Manhattan.

Many of you have gotten to know me personally during the past ten months. Please feel free to call me directly or email me personally at Shabazz@ooneepod.com with any further questions.

-Shabazz