Scraps from ill-fated New York Wheel will go up for auction next month

Posted On Mon, December 10, 2018 By

Posted On Mon, December 10, 2018 By In Staten Island

The project to build the would-be world’s tallest Ferris wheel in Staten Island was called off in October, after nearly a decade of delays and $450 million in investment. While the proposed 630-foot New York Wheel is officially dead, parts of the ill-fated attraction will go up for auction next month, the New York Post reported. Items up for sale include the wheel’s legs, valued at $9.2 million, and drive towers, for $3.3 million.

Construction of the project, which was being privately funded and had originally been expected to open in October 2016, was halted last May when the contractor, Mammoet-Starneth, walked off site over unpaid bills. The developer later filed a federal lawsuit that claimed halting work put the revitalization of Staten Island at stake.

As 6sqft previously reported, Mammoet-Starnet had attempted to auction about $68 million of the parts made for the wheel as it was costing them $700,000 per month to store them. The bankruptcy court ordered the New York Wheel to pay nearly $2 million in storage costs.

If there are multiple bidders, the auction will take place on Jan. 16 in Delaware-based law offices of Richards, Layton & Finger, the Staten Island Advance reported. Bidders who show they have the money to purchase the parts must submit a bid by Jan. 11.

Other items up for grabs include the wheel’s frame braces for $3.4 million, cable spokes for $4.4 million, and 36 capsules for $23 million, according to documents filed in Delaware Bankruptcy court. And 9,147 tons of steel could also be sold for scrap metal. A third party will oversee the auction and the courts will then determine whether Mammoet-Starnet will receive the proceeds from the auction, according to the Staten Island Advance.

The project was initially projected to cost $250 million, but the estimate jumped to nearly $1 billion, according to the city’s Economic Development Corporation.  The Wheel’s developers had asked the city to provide tax-exempt bonds to help get work restarted, but Mayor Bill de Blasio refused, saying that he didn’t think the project was economically viable.

[Via NY Post]


Tags :

Neighborhoods : Staten Island



Thank you, your sign-up request was successful!
This email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.