Cost estimates ballooned out of control to $900M
The giant Ferris wheel planned for Staten Island’s North Shore (AKA New York Wheel) will not be completed. The cost estimates ballooned from an initial $250 million to around $900 million, according to the NYDailyNews.
Worth Noting: In September, investor Lloyd Goldman said the parts for the Ferris wheel were 93 percent complete, but not assembled. The city’s economic development corporation denied the sale of $380 million in tax-exempt bonds to fund the remainder of the project.
EB-5 fail: The project attracted 412 investors on a $206 million loan that was set to mature in 2021. This is a cautionary tale for foreigners when selecting a development project.