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New York Wheel Dispute Headed to Last-Minute Mediation

Thursday, October, 4, 2018

The dispute concerning those involved in the construction of the New York Wheel will attempt a mediation session to determine if the building of the structure is still an option. The Wheel would be a 630 feet tourist attraction that would be located at the St. George Waterfront.


Currently, the developer and the former contractor, Mammoet-Starneth, have created a proposed amendment to their original agreement that would extend the standstill period into early 2019 when the project could get back on track. That motion for request that amendment to be granted by the court was filed in Delaware Bankruptcy Court recently and would give the developer the final date of January 7, 2019 to hire a new contractor to complete the project. No further extensions would be permitted beyond that date.


Included in the extension is the waiving and release of the New York Wheel from its right to the ownership of wheel components and parts. They would also not receive any money from the sale of those parts. To date, the developer has been paying for storage of the parts needed to construct the wheel.


Additionally, the amendment would allow for the New York Wheel to have a meeting with an independent financial expert to review the progress the developer has made in obtaining alternative financing. The original cost of constructing the wheel was estimated to be $250 million, but that amount has since grown to $580 million. The developer has not yet stated how much is needed to bring a new contractor on board the project.


The project still has hope for moving forward, depending on the outcome of the upcoming mediation.