NY Wheel is officially dead
Months of speculation about the New York Wheel’s eventual outcome abruptly came to a close on Oct. 23 when project developers announced plans for the embattled attraction are officially dead.
“After years of planning, the developers of The New York Wheel announce, with great disappointment, that the dream of building a world-class attraction in Staten Island will unfortunately not come to fruition,” Cristyne Nicholas, spokesperson for The New York Wheel wrote in a statement issued to the press. “We are grateful for the support of the residents of Staten Island, the Borough President and Council Members, the unions, construction workers, tourism leaders, and the Staten Island Advance for their steadfast support for the creative cornerstone of the redevelopment of the North Shore which would have created thousands of jobs and millions of dollars of economic growth for Staten Island and New York City.”
Construction of the doomed, privately funded landmark, which has been in the works for more than five years, was halted in May 2017 after a highly publicized feud began over project delays and work payments between the New York Wheel’s developer and the project’s contractor, Holland-based Mammoet-Starneth. The contractor was fired, counter lawsuits were filed and Mammoet- Starneth declared bankruptcy in December 2017, listing monthly storage payments for Wheel parts at $700,000 in court documents.
A standstill period of 120 days was granted, allowing New York Wheel to find another contractor for the project. But with no public money earmarked for what Mayor DeBlasio has called an “expensive, speculative project” and estimated costs for the project skyrocketing from $250 million to $999 million, local officials justifiably feared that the 630-foot, partially completed attraction would soon be abandoned.
On Sept. 7, when Mammoet-Starneth submitted a proposed amendment to the original 120-day standstill settlement agreement – extending the deadline for getting the project back on track until January 2019, investors were still clinging to hope, imploring the city to support a $380 million bond sale. That amendment was approved on Sept. 21, giving the developer a little more than three months to hire a new contractor to complete the project.
The amendment also stated that no additional extensions would be granted beyond that January deadline, and if no termination event occurred in one month’s time, New York Wheel would waive its right to ownership of Wheel components by Oct. 23 at which time those parts could be auctioned. That date ultimately sealed the project’s fate.
“The developers of The New York Wheel are proud to have delivered a state-of-the art, modern, 325,000 square-foot garage structure, providing up to 950 deeply discounted commuter parking spaces, a turnaround area for 12 motor coach buses, and the MTA Railroad Right of Way decking to connect the site to Richmond Terrace, allowing pedestrian access to the waterfront along Bank Street that was previously shut off to the public,” Nicholas’ statement continued.
“We sincerely thank the people of Staten Island for joining us in believing in this important project and urge the City to think big and dedicate the site to tourism development that will help to support the Empire Outlets, the Richmond County Bank Ballpark — home of the Staten Island Yankees — and the rich cultural institutions that line the North Shore of Staten Island.”
Joe Ferrara, a principal of BFC Partners, the real estate developer responsible for the construction of Empire Outlets, did not speak directly about the Wheel’s demise when questioned about what effect the now defunct attraction would have on his own retail project. But he did remain positive about the North Shore’s future.
“We look forward to seeing millions of visitors enjoy an incredible shopping and dining experience at Empire Outlets after it opens this coming spring as New York City’s first and only outlet center,” he said in a statement. “Our studies show that Empire Outlets is now poised to become one of the nation’s top outlet centers — and fast-growing interest in Empire Outlets from international tourism officials has shown that Staten Island’s revitalized North Shore is already becoming a world-class destination.”
Other Staten Island officials remain hopeful the Wheel might receive yet another chance. The day after the news of the Wheel’s dissolution broke, the Staten Island Economic Development Corporation circulated an electronic newsletter to various recipients with the subject field “Time for Team Two.”
“There’s an old saying on Staten Island — ‘You always want to be the second person to own the restaurant because the equipment, tables and chairs are already bought and paid for. All you have to do is run it,’” the email correspondence began beneath a rendering of the structure.
“Now that the NY Wheel project (Team One) is officially dead, it’s time to move forward with a second RFP and let Team Two get it done right,” the newsletter continues.
The SIEDC, which has been a major cheerleader of the Wheel and its lasting impact on the borough since day one, went on to detail, with photo evidence, the massive foundation pour that has already been completed and the bases for the world’s second tallest observation wheel that are already in the ground.
“Team Two will have less expenses ($400 million already invested) and will have learned from Team One’s mistakes (contractor, agency delays, community support),” the email continues. “What are the other choices? The entire complex was designed to have a major international attraction, draw tourists off the Ferry, take a spin and then hopefully spend money at the Outlets, Lighthouse Point, Richmond County Bank Ballpark and the St. George Theater. Building something there without the same vision devalues the entire complex.
“This is a once-in-a-lifetime opportunity to build something meaningful that can positively brand the borough,” the email concluded.
