New York Wheel, the long awaited Staten Island attraction, faces yet another major impediment. Last week, the project’s developer fired its design and construction team, Mammoet-Starneth, delaying the project indefinitely. The developers are now searching for other contractors to complete the project.
The developer claims Mammoet failed “to meet multiple design and construction deadlines,” the Staten Island Advance reported. The delays have reportedly cost $16 million in damages and $20 million in lost profits. As per court filings, the New York Wheel has withdrawn its request for injunctive relief and a mandate that Mammoet keep working on the project.
The delays will not only impact Ferris wheel fans, but may prove devastating for its financiers, particularly EB-5 investors. Project investors include New York Wheel CEO Rich Marin, who is a former Bear Stearns executive, Eric Kaufman, Meir Laufer, Jay Anderson, Lloyd Goldman and Joseph Nakash. Another $206 million in funding comes from 429 EB-5 investors from regional center Canam Enterprises. Those loans mature in February 2021.
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