Staten Island’s costly New York Wheel attraction has received one final lifeline in order to get itself back on track, the Staten Island Advance has learned. A deadline between the developer and the former contractor, which was supposed to come to an end in September, has now been extended to January 7, 2019.
This latest agreement between New York Wheel LLC and former contractor Mammoet-Starneth extends what’s known as the standstill period. During this time, the developer will have the chance to find a new contractor. It will also have a chance to show Mammoet-Starneth that it has enough funds to purchase the New York Wheel’s parts through auction—the ownership of the parts has been one of the main sources of dispute. The new agreement stipulates that there will be no more extensions past January next year however.
The 630-foot tourist attraction on Staten Island’s North Shore was dealt a major blow last week when the city decided to pull funding from the project because it was deemed a risky investment. City officials later said they were still open to discussions with the New York Wheel team once they had sorted out their financial situation, according to the Staten Island Advance. Due to its legal troubles, the cost on the Wheel has ballooned from $250 million when it was announced six years ago to nearly $1 billion, according to one estimate.