Investors in the project had recently indicated that they won't be able to move forward without city support
Developers behind Staten Island's ambitious New York Wheel have officially pulled the plug on the project, ending months of speculation about its future. Staten Island Advance broke the news of the development, which is a startling turn of events for a project that was once touted to usher a renaissance for the North Shore section of Staten Island.
For over a year now, the observation wheel project has been beset by infighting, construction woes, and more recently, legal troubles. The developer, New York Wheel LLC, was battling its former contractor Mammoet-Starneth on ownership of some of the Wheel's parts, and last month a court granted the developers an extension to hire a new contractor and show that it had enough funds to procure those parts.
However, two of the lead investors in the development—Lloyd Goldman and Jeffrey Feil—later expressed skepticism about the project moving forward without significant city funding. Both mayor de Blasio and the city's Economic Development Corporation had previously stated that project didn't seem like a sound investment for city funds.
The developers have already spent $450 million on the waterfront development. The cost of the project has also ballooned from the $250 million estimate first put forward six years ago, to over $1 billion at present. Meanwhile, several other developments have been transforming Staten Island's North Shore, including Empire Outlets, which is set to debut next month, and the residential development known as Staten Island Urby.
The parking garage that was built will remain, a spokesperson for the New York Wheel, told the Staten Island Advance, and offer parking for 950 cars. The project has also created pedestrian access to the waterfront along Bank Street.
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