Things aren’t looking good for Staten Island’s New York Wheel.
In May, there was hope that the stalled project would be resuscitated, after developer New York Wheel LLC and the former contractor, Mammoet-Starneth, came to an agreement following months of litigation. However, a recent decision made by Mayor Bill de Blasio and the New York City Economic Development Corporation could seal the fate for the beleaguered project.
Developers were hoping to receive a $140 million cash infusion from the city to get the 630-foot observation wheel back on track, however, the has announced that public funds will not be used to advance the project.
“Despite many recent conversations with the Wheel developer, we remain convinced that public funds are too scarce and valuable to be leveraged for this venture,” an official with the New York City Economic Development Corporation told New York 1.
The decision to not support the New York Wheel reportedly stemmed from the analysis of similar projects in cities like Berlin and Bejing that ultimately failed, along with developers of the New York Wheel unsuccessful attempts at securing traditional funding, reports NY1.
The cost of the project has skyrocketed from $250 million when it was proposed in 2012 to $999 million. Developers and contractors involved in litigation have until September 11 to determine if they will continue with the project or not.