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New York Wheel Developers Reach Agreement, Rekindling Hope for Troubled Project

New York Wheel Developers Reach Agreement, Rekindling Hope for Troubled Project

Submitted by jhartgen@abi.org on

The developers of a 630-foot observation wheel planned for Staten Island have agreed to help pay for storage of some of the contraption’s giant parts while the project sits idle, according to court documents filed on Friday, Crain's New York Business reported. New York Wheel is hoping to create one of the hemisphere’s tallest observation wheels along the St. George waterfront on land owned by the city. The goal is to entice visitors to the borough’s north shore with views across the harbor and a new mall and entertainment complex next door. But a dispute with the wheel’s former contractor, Mammoet-Starneth, has ground the project to a halt and bled into a Delaware bankruptcy court. Mammoet-Starneth, which is seeking chapter 11 protection, said it must pay $700,000 a month to store the wheel’s parts at the Brooklyn Marine Terminal. To cover those expenses and pay creditors, the firm is seeking to auction off parts of the wheel, including four legs it values at $9 million.