$400M already spent on NY Wheel that's been indefinitely delayed

STATEN ISLAND, N.Y. -- After a heated court battle, which resulted in the New York Wheel firing its designer and builder, the future 630-foot-high tourist attraction has used up all but $180 million allocated for the project.

And the New York Wheel still has to hire a new designer/builder.

After the Advance learned last week that the $580 million project -- funded by a conglomerate of private investors -- had been indefinably delayed, Cristyne Nicholas, NY Wheel spokeswoman, said more funding and court intervention would likely be needed to allow the project to push forward.

WHERE DID THE FIRST $400M GO?

Work completed at the site includes a new parking garage for more than 800 cars, and a terminal building is in the works. Parts for the Wheel -- such as the legs that were crafted in Italy -- have already been manufactured. And four pedestals, on which the wheel legs will sit, have been erected on site.

"Work continues on site with construction of a 325,000-square-foot garage (a portion of which is now open and operating), a 75,000-square-foot terminal building, landscaping of the site and green roof, improvements on Bank Street, and the Wheel foundation and the plinths for the Wheel, which were all completed back in January," said Nicholas.

HOW MUCH WILL A NEW CONTRACTOR COST?

While court documents say $145 million was the initial amount the NY Wheel was to pay Mammoet-Starneth, it's unclear at this time how much money will be needed to hire a replacement contractor.

When asked how the NY Wheel is going about hiring a new design/build team, Nicholas said: "The developer has identified viable options and is pursuing them with reference to completing the project."

When asked if there's enough money left in the funding pot to hire a new contractor, Nicholas said: "The developer is prepared to take all reasonable steps necessary to bring the project to completion."

THE LAWSUIT

NY Wheel fired Mammoet-Starneth LLC after the company failed "to meet multiple design and construction deadlines," said Nicholas.

The New York Wheel alleges it has suffered more than $16 million in damages resulting from Mammoet's delays, and $20 million in lost profits and other damages due to the designer's breach of contract.

Work on the Wheel was originally expected to be completed as of October 2016.

Initially planned to open at various times in 2017, the Wheel's roll out was re-scheduled for April 2018 before NY Wheel fired Mammoet-Starneth.

FUNDING DISPUTE NOT OVER

In terminating its agreement with Mammoet-Starneth, the NY Wheel wired the company $7.2 million. However, in court documents, the lawyer for Mammoet-Starneth, says this amount is insufficient.

The Advance has made numerous inquires to Mammoet-Starneth regarding the recent incidents involving the New York Wheel.

"Mammoet-Starneth is not commenting publicly on the matter at this time, but we kindly refer you to our legal filings from last week," said Theo Kroese, a Holland-based company spokesman.

Those filings include a letter from Mammoet-Starneth's attorney, Philip R. White,  to U.S. District Court Judge Jesse M. Furman: "At this juncture, suffice it to say we disagree with the entire substance of the NYW (New York Wheel's) proposed letter. NYW has been in default of its obligation under the DBA (Design Build Agreement) since January 2017 ..."

Said White: "What NYW's actions also mean is that this case returns to what it always was -- a garden variety construction dispute. Accordingly, we respectfully submit that the case should now proceed in the ordinary course with the next meaningful event being the DBT's (Design Build Team) filing of a responsive pleading and/or motion."

With a dispute about final payment still at hand between Mammoet and the NY Wheel, Furman scheduled a pretrial hearing for Aug. 15 at 11 a.m.

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