New York Wheel Explained

New York Wheel
Location:Staten Island, New York City
Status:Stalled
Building Type:Ferris wheel
Capacity:1,440
Height:6301NaN1
Cost:2012 estimate: $230 million
2013 estimate: $330 million[1]
2014 estimate: $400 million[2]
2016 estimate: $590 million
2018 estimate: $900 million
Architect:Mammoet-Starneth LLC
Main Contractor:Mammoet-Starneth LLC
Developer:New York Wheel LLC
Coordinates:40.647°N -74.0783°W

The New York Wheel was a proposed 630feet Ferris wheel to be located in the St. George neighborhood of Staten Island, New York City, next to the Empire Outlets retail complex.

The project was announced in 2012 as part of an effort to make St. George a tourist attraction. It was canceled by investors in September 2018 after New York City mayor Bill de Blasio refused to endorse selling city bonds to finance what he called a risky speculative project that was supposed to be entirely privately funded.

Proposals to build a smaller New York Wheel were being discussed in May 2019, but these were officially cancelled in February 2023.

Planning

Announcement

In October 2008, developer Meir Laufer rode the London Eye and met with its lead engineer. He established a business relationship with them to bring a wheel to New York. On September 27, 2012, then-New York City Mayor Michael Bloomberg and then-New York Wheel CEO Richard Marin announced a deal to build the wheel at the St. George Waterfront District.[3]

Delays

Construction of the wheel was supposed to run from early 2014 to 2015.[4] [5] It was pushed back several times. In April 2013, it was reported to be July 4, 2016.[6] [7] On June 12, 2013, construction was approved by Staten Island Community Board 1,[8] [9] and on October 30 it was also approved by New York City Council, with construction to start in early 2014[10] and a grand opening planned for 2016,[11] but as of October 2014, construction was planned to start in early 2015 with an opening date for early 2017. On December 11, 2014, state economic development officials excluded the proposal from a list of 824 projects selected for state funding under a regional economic development program, saying it would not provide the overall economic benefit needed to qualify, however a spokesman for the project said it would continue to move forward.[1] By August 2016, the Ferris wheel was estimated to open in early 2018,[12] [13] [14] and by March, the proposed completion date was late 2019.[15]

In January 2016, The Real Deal, citing mounting lawsuits by infighting members, ran an article skeptical about the project: "Is the New York Wheel spinning out of control?"[16] In July 2017, the design and construction teams were fired[17] [18] and construction was postponed indefinitely.[19] The following month, New York Wheel LLC announced that it planned to engage American Bridge Company as the new contractor.[20]

Instead, the developers filed for bankruptcy in Delaware in December 2017.[21] As part of the bankruptcy agreement, developer New York Wheel LLC and contractor Mammoet-Starneth agreed to find funding by September 5, 2018, with the proviso that the project would be canceled if funding was not found before that date.[22]

Cancellation

In May 2018, the developers of the New York Wheel were given a last chance to obtain funding for the project. Per a ruling in Delaware bankruptcy court, the developers had 120 days, or until September 5, to find funding.[23] However, on September 7, 2018, it was announced that the New York Wheel would not receive $140 million in city funding.[24] [25] The delays caused concern among EB-5 visa investors, who would lose their visas if the project was not constructed.[26] [25] An amendment to the bankruptcy court's ruling gave the developers a final 120-day extension to look for funding. If the developers did not get funding by January 2019, the project would be canceled and no further funding extensions would be given.[27] At the time, the developers were spending $400,000 a month to store the parts for the New York Wheel.[28] On September 21, 2018, mayor Bill de Blasio said that the now-$900-million project would not receive a bailout from the city because it was too risky to support the project with bonds. As such, the city would not support tax free status for a $380 million bond sale to complete the project.[29] Investors refused to proceed with construction without city support, and stated that it would allow the parts for the Ferris wheel to be auctioned off if the city did not provide funding.[30] Subsequently, investors decided to cancel the project.[31] At this point, investors had spent $450 million on the project.[32] The official announcement of the project's cancellation was made the following month.[33]

However, the developers never terminated their lease with the city, which was still ongoing through November 2021. According to the lease agreement, the developers were to pay the city annually $1 million in rent, plus interest. though these would be deferred. By December 2018, the deferred payment amounted to $2.3 million.[34] In May 2019, it was announced that the developers were seeking new investors for a smaller wheel on the site, and that the NYCEDC was in talks with potential investors.[35] [36] [37] In August, the Staten Island Advance reported that Wheel investors and EB-5 visa investors were "actively pursuing a smaller project more like the London Eye."[38]

In February of 2023, the Staten Island Advance reported the NYCEDC sent CanAm Enterprises, which is a sponsor of EB-5 regional center projects, a notice of lease termination on February 2 effectively ending any further development of the NY Wheel. The NYCEDC will now issue a request for proposals (RFP) for a new different project to be built on the site.[39]

Design and construction

The designated designer and manufacturer was Mammoet-Starneth LLC, which had team members who worked on the London Eye. The New York Wheel was to have 36 passenger capsules (which were to be built by the Dutch company VDL Groep[40]), each carrying up to 40 passengers, and a total maximum capacity of 1,440 people per ride. Bloomberg's office has expected up to 30,000 passengers per day and about 4.5 million per year.

The wheel was expected to create 400 construction jobs and 700 full-time jobs. Four large pedestals for the wheel arrived on site in November 2016.[41] Legs for the wheel arrived in spring 2018.[42] Following the announcement of the Wheel's cancellation in late 2018, the completed portions of the wheel (namely its legs, drive towers, and capsules) were auctioned in January 2019.[43]

Parking garage

The New York Wheel public parking garage opened on August 12, 2016. Planned to accommodate commuters using the Staten Island Ferry, this waterfront garage originally accommodated 820 vehicles, expanding to 950 spaces upon completion of construction.[44]

External links

Notes and References

  1. Web site: Bloomberg's S.I. Ferris wheel plan drops off economic plan. Glenn. Blain. December 12, 2013. NY Daily News. April 11, 2016.
  2. Web site: Borough Spotlight - All Boroughs - NY1 . www.ny1.com . 17 January 2022 . https://web.archive.org/web/20140516144418/http://www.ny1.com/content/news/borough_spotlight/207758/betting-on-the-big-wheel--ny-wheel-ceo-brushes-off-doubts-about-his-project . 16 May 2014 . dead.
  3. Web site: Ferris Wheel Eyed for Ferry Terminal. Eliot. Brown. June 26, 2012. WSJ. April 11, 2016.
  4. Web site: September 28, 2012. World's tallest observation wheel to tower over New York. Traveller. April 11, 2016. dead. https://web.archive.org/web/20120929234508/http://www.smh.com.au/travel/worlds-tallest-observation-wheel-to-tower-over-new-york-20120928-26p7a.html. September 29, 2012.
  5. News: Goldman . Henry . World's Biggest Ferris Wheel Will Anchor Staten Island Complex . Bloomberg.com . September 27, 2012 . Bloomberg . September 27, 2012.
  6. Web site: Wheeler-dealer SI Ferris lawsuit. Marsh. Julia. April 3, 2013. New York Post. April 11, 2016.
  7. Web site: Staten Island outlet mall planned near New York Wheel to include Nike, Adidas, Coach. SILive.com. Randall. Judy L.. April 25, 2013. April 11, 2016.
  8. Web site: June 12, 2013. Staten Island Ferris wheel approved by community board. WABC TV. June 12, 2013. live. https://web.archive.org/web/20131102092202/http://abclocal.go.com/wabc/story?section=news/local/new_york&id=9136040. November 2, 2013.
  9. News: Massive Ferris wheel gets board approval . Casey . Tolan . NY Daily News . June 12, 2013.
  10. Web site: Project Schedule | Official Site of the New York Wheel . May 21, 2014 . dead . https://web.archive.org/web/20140521163845/http://newyorkwheel.com/project-schedule/ . May 21, 2014 .
  11. Web site: October 31, 2013. Giant Staten Island Ferris wheel approved by city council. WABC TV. October 31, 2013. live. https://web.archive.org/web/20170629082737/http://abc7ny.com/archive/9307475/. June 29, 2017.
  12. Web site: Staten Island's observation wheel pushes opening date to 2018. Sugar. Rachel. August 17, 2016. Curbed NY. December 3, 2017.
  13. Web site: Farinacci. Amanda. August 8, 2016. New York Wheel Project on Staten Island Also Bringing New Activity to Brooklyn Waterfront. NY1. December 3, 2017.
  14. Web site: First ride on New York Wheel pushed back to April 2018. Tracey. Porpora. August 15, 2016. Staten Island Advance. August 16, 2016.
  15. Web site: If the shoe fits: Crocs takes space at Staten Island discount mall . Crain's New York Business . Geiger . Daniel . March 21, 2018 . September 11, 2018.
  16. Web site: Is the New York Wheel spinning out of control?. The Real Deal New York. January 25, 2016. Katherine. Clarke. January 20, 2016 .
  17. Web site: Wheel of misfortune: New York Wheel project now "indefinitely delayed" . The Real Deal New York . July 13, 2017 . September 11, 2018.
  18. Web site: Wachs . Audrey . Construction on Staten Island's giant Ferris wheel may finally begin again . Archpaper.com . May 22, 2018 . September 11, 2018.
  19. Web site: Porpora . Tracey . NY Wheel project indefinitely delayed after firing contractor . Staten Island Advance. July 13, 2017 . September 11, 2018.
  20. News: Porpora. Tracey. August 11, 2017. Exclusive: NY Wheel to hire Las Vegas High Roller contractor. Staten Island Advance. December 19, 2017. en-US.
  21. Web site: Wall Street Journal . Scurria's Take: New York Wheel Contractor Lands in Bankruptcy . Scurria . Andrew . December 13, 2017 . September 11, 2018 . subscription.
  22. Web site: Deal could restart stalled NYC Ferris wheel tourism project . NY Daily News . Associated Press . August 30, 2018 . September 11, 2018 . dead . https://web.archive.org/web/20180911044807/http://www.nydailynews.com/newswires/new-york/deal-restart-stalled-nyc-ferris-wheel-tourism-project-article-1.3987323 . September 11, 2018.
  23. Web site: Porpora . Tracey . Exclusive: NY Wheel strikes major deal; will it save the project? . Staten Island Advance. May 8, 2018 . September 11, 2018.
  24. Web site: Walker . Ameena . Staten Island's New York Wheel won't get city funding . Curbed NY . September 7, 2018 . September 11, 2018.
  25. Web site: Denial of NY Wheel funding has Chinese investors' families reeling . Spectrum News NY1 | New York City . September 8, 2018 . September 11, 2018.
  26. Web site: Small. Eddie. New York Wheel delays could spell disaster for project's EB-5 investors . The Real Deal New York . July 21, 2017 . September 11, 2018.
  27. Web site: Porpora . Tracey . Embattled NY Wheel: Court motion outlines last shot at mediation . Staten Island Advance. September 8, 2018 . September 11, 2018.
  28. Web site: NY Wheel to continue to pay $495K for storage of wheel parts. Porpora. Tracey. April 7, 2018. SILive.com. October 24, 2018.
  29. Web site: De Blasio: No bailout for Staten Island Ferris wheel project . New York Post . Calder . Rich . September 22, 2018 . September 23, 2018.
  30. Web site: Porpora . Tracey . NY Wheel: Without the city, 'it's not going to happen' . SILive.com . September 21, 2018 . September 23, 2018.
  31. Web site: Investors scrap Staten Island's giant Ferris wheel . ABC7 New York . September 21, 2018 . September 23, 2018.
  32. Web site: Grant . Peter . Effort to Bring Observation Wheel to New York Nears Futility . WSJ . September 21, 2018 . September 23, 2018.
  33. Web site: A 630-Foot Ferris Wheel Meant to Boost Staten Island's Image Is No More. McGeehan. Patrick. October 23, 2018. The New York Times. October 24, 2018.
  34. Web site: Exclusive: NY Wheel must pay to restore site, according to lease. Porpora. Tracey. 2018-12-14. silive.com. en-US. 2019-05-30.
  35. Web site: Sources: Investors trying to partner with large corporation to build smaller NY Wheel. Porpora. Tracey. 2019-05-29. silive.com. en-US. 2019-05-30.
  36. Web site: Farinacci. Amanda. May 28, 2019. NY1 Exclusive: NY Wheel Could be Built in Scaled-Down Form. www.ny1.com. en. 2019-05-30.
  37. Web site: Staten Island's doomed Ferris wheel could be revived in a smaller form. Plitt. Amy. 2019-05-29. Curbed NY. 2019-05-30.
  38. Web site: Sources: Smaller NY Wheel plan 'more than just talk'. Porpora. Tracey. July 1, 2019. silive.com. August 20, 2019.
  39. Web site: Exclusive: Any hope of a smaller NY Wheel is now dead; NYC terminates lease. silive.com. February 3, 2023. March 22, 2023.
  40. Web site: March 23, 2016. VDL scores mega order New York Wheel. VDL Groep. April 11, 2016. dead. https://web.archive.org/web/20160404075924/http://www.vdlgroep.com/?news/2490372/VDL+scores+mega+order+New+York+Wheel.aspx#.VwIe3i-l3BA. April 4, 2016.
  41. News: Exclusive video: First parts of 'New York Wheel' arrive on Staten Island. June 26, 2016. ABC7 New York. en-US. November 14, 2016.
  42. Web site: 500 Ton Legs for the New York Wheel on Staten Island, World's Tallest, Arrive in Brooklyn . October 5, 2016 . Young . Michelle . Untapped Cities.
  43. Web site: Auction date for New York Wheel parts has been set. Porpora. Tracey. December 3, 2018. silive.com. December 13, 2018.
  44. Web site: New York Wheel parking garage opening is delayed. Porpora. Tracey. June 2, 2016. silive.com. August 16, 2016.

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