SI wheel spins out of control
$300M over budget
The big wheel keeps on burning — through cash.
The cost of the New York Wheel project on Staten Island is nearing $600 million, more than $300 million over its original estimate.
The opening of the 630foot Ferris wheel on the St. George waterfront, initially slated for early next year, is now scheduled for 2018.
Problems getting funding for what is expected to be the world’s tallest Ferris wheel and a major tourist attraction contributed to the delays, said a source familiar with the project.
But the wheel got a boost last week when a legal battle was settled between the venture’s original investors and Wheel Estate LLC, the company that owns the majority of the project.
Eric Kaufman, who cofounded the Ferris-wheel project, had contended that the effort lacked a coherent business plan and that there were “cost overruns without explanation.”
The settlement terms were confidential.
Also last week, installation began at the site on four 100-ton pedestals that will hold the wheel’s 275foot-long legs.
The wheel will have 40 pods to take passengers on a 38-minute ride.
The $590 million project is “fully funded” and will be part of the redevelopment of Staten Island’s North Shore, said a New York Wheel spokeswoman.
It is located next to the planned Empire Outlets shopping mall, which is to open next year.