Monday, March 1, 2010

EDC's bad Coney Island deal hosing taxpayers

From the City Pragmatist:

Just a brief note about City Hall’s announcement last week of its deal with Central Amusement International to develop 6.16 acres of land in Coney Island for two new amusement parks to be called “Luna Park at Coney Island” and the “Scream Zone.” Annual rent will be $100,000 for the first 10 years, with the city also expecting to receive “additional revenue derived from gross receipts from the amusement park.”

NYC’s Economic Development Corporation purchased this land in November, 2009 as part of a 6.9-acre, $95.6 million deal with Thor Equities—that’s $85.3 million prorated to the 6.16 acres being used for the parks.

Let’s do some math here: 43,560 square feet to an acre, times 6.16… about 270,000 square feet for the parks. $100,000 a year in rent divided by the square footage? That’s 37¢ per square foot, per year, the city’s charging CAI.

We’re all for Coney Island’s revitalization, and we’re firm believers in the importance of keeping NYC a world-class tourist destination, but we’d hope that City Hall could have cut a better deal for taxpayers than this one seems to be.


Anonymous said...

You can thank the "Great Mind" & the new NYC Finance Chair Domenic Recchia for this fiasco. He brokered the deal between the Mayor & Domenic's friend & buddy Joe Sitt of Thor Equities. You can imagine what's on the Recchia's " To Do List" for the next four years.

kingb said...

"world-class tourist destination"?


this place will always be a ghetto

faster340 said...

yeah everything is for the tourists. The hell with the residents right?

It was nice to go down to CI on a summer night for a Nathan's dog and a ride on the Cyclone... It's sad....