NYC transit yachts are broke

 

 Curbed

Hornblower Group, the San Francisco–based company that operates NYC Ferry, filed for bankruptcy yesterday, claiming it could not manage its roughly $1.2 billion of debt. One of its investors, the private equity firm Strategic Value Partners, agreed to acquire the company in a debt-for-equity swap that’s part of a larger restructuring, according to The Wall Street Journal.

Hornblower operates three primary divisions: an Australian company that seems to be doing well, a ferry and sightseeing division, and a luxury cruise division, American Queen Voyages. It’s this last unit, which mostly consists of old-timey paddlewheel riverboats, that Hornblower representatives in court said was the company’s “Achilles’ heel” that never recovered from the pandemic, according to Emily Lever of Law360. The company took on hundreds of millions of dollars in debt after its revenue dropped to $175 million in 2020 from $690 million just a year earlier.

Exactly how New York City’s ferry service fits into Hornblower’s restructuring is unclear. For now, CEO Kevin Rabbitt is adamant that service will not be affected, claiming the restructuring will allow Hornblower to eliminate debt unrelated to the ferry system while continuing “record growth across the five boroughs.” Indeed, a court filing described NYC Ferry as a bright spot in the company’s portfolio. Just last year Hornblower re-upped its contract with the Economic Development Corporation, the city nonprofit that oversees NYC Ferry, at $405 million over the next five years, with two optional three-year extensions. The EDC chose Hornblower despite a 2022 audit by comptroller Brad Lander that put the total taxpayer subsidy for ferry rides in 2021 at $12.88, nearly double the city’s previous estimate. (A 2019 study by the Citizens Budget Commission estimated taxpayers contributed ten times more to each ferry ride than each subway ride and, for a voyage on the ferry’s Coney Island route, taxpayers covered $24.75.) According to the EDC, the subsidy has since been reduced to $8.55 per ride.

Hornblower originally won the NYC Ferry contract in 2016 in a somewhat controversial deal. According to The City, Hornblower beat out a team of three local ferry operators, but Hornblower’s underbid came with a hidden cost. While the local operators had proposed using their own armada of water taxis, Hornblower asked taxpayers to front $232 million to buy 38 vessels and an additional $137 million at a later date for more boats. A spokesperson for the EDC at the time justified the arrangement, in part, by saying it was smart for the city to own its vessels — logic that flies in the face of the old adage that a boat is a hole in the water you throw money into.

 

EDC destruction of park space for new ferry landing gets kiboshed by CB

Queens Post 

Community Board 2 has rejected a city plan to demolish the existing ferry terminal at Hunter Points South Park and build a new dock about 300 feet away in front of the main boardwalk by the Oval.

The board voted against the project, in a 20 to 8 vote, at its monthly meeting Thursday via Zoom following a presentation of the plan by the New York City Economic Development Corporation (EDC), which oversees the city’s ferry routes.

The plans call for the construction of a large floating barge about 100 feet out from the boardwalk. Two boats would be able to dock at the barge with the EDC looking to begin construction in the fall of 2023.

The CB2 vote is merely advisory but sends a clear message to the city that the local board opposes the plan.

The board said it rejected the overall plan and objected to a new ferry landing being placed in front of the Oval. The vote came after board members and residents voiced fears of increased pollution spewing onto the Oval and that the new ferry landing structure — and its docked boats — may block the waterfront views.

The board’s motion added that the EDC and Army Corps of Engineers (ACE) – which is responsible for approving a permit for the project – should consider all the concerns of the community and be more transparent about the process.

In rejecting the plan, many board members said they were unhappy about the conduct of the EDC, saying the plan was essentially finalized well in advance of Thursday’s meeting and that the EDC had sought to limit its public engagement.

“What do we have to contribute to this discussion because it seems like you have it all wrapped up already,” Lisa Deller, CB2 2nd Vice Chair, said to the EDC representatives. “This is kind of like window dressing to come to the Community Board because it’s not a real dialogue.”

Thursday’s presentation was the first time the EDC had presented its plans publicly, although it met with CB2’s Transportation Committee in June to discuss the project. It also notified Councilmember Julie Won about the plans in June – while Jimmy Van Bramer was also told about the project when he was in office.

The EDC then filed permits with the Army Corps of Engineers on Oct. 18 with the ACE issuing an initial deadline of Nov. 18 for public comments to be submitted.

Economic Development Corporation gets funding to destroy Hunters Point park space for new NYC Ferry dock

 

Queens Post 

The New York City Economic Development Corporation plans to demolish the existing ferry terminal at Hunter Points South Park and build a new dock about 300 feet away in front of the main boardwalk by the Oval.

The EDC, which oversees the city’s ferry routes, filed permits on Oct. 18 to build a floating dock in front of the boardwalk that runs parallel to the outdoor dining area near the Oval. If all goes to plan, the new dock would be completed by 2023.

The new ferry terminal would allow for an expansion of ferry operations at the site with the landing being able to accommodate two ferries simultaneously, according to the permit application. The current terminal can only handle one boat at a time.

The plans would see the construction of a large floating barge about 100 feet out from the boardwalk. Two boats would be able to dock at the barge.

A concrete platform would be built directly adjacent to the boardwalk and a long footbridge, known as a gangway, would then connect the platform to the floating barge.

The new ferry terminal would replace the current landing structure that is located in front of the beach volleyball court. The current terminal, which includes a 20-foot-wide floating barge, would be torn down should the project be approved.

The city has authorized $12.2 million in funding for the project, according to the EDC.

The plans, which were filed with the US Army Corps of Engineers, would bring about significant change to the waterfront. They have already drawn criticism.

For instance, the Hunters Point Parks Conservancy, a volunteer group that helps with the upkeep of the waterfront parks, is opposed to the project arguing it would spoil the view of the Manhattan skyline and fill the boardwalk with hundreds of passengers.

The group was also critical of the EDC, saying that it did not consult them about the plans when they were filed last month.

Meanwhile, Councilmember Julie Won, who has been briefed on the plans, said she has not yet taken a position on the matter and is waiting to hear community feedback.

NYC Ferry has a sinking feeling

 

 

 THE CITY

New York City is again looking for a company to run its ferry service — and wants the winner of the next contract to contribute more revenue rather than receive millions of dollars in subsidies to keep the service afloat. 

The city’s Economic Development Corporation, which oversees NYC Ferry, posted a request for proposals on Wednesday looking for a potential replacement for current operator Hornblower Group, whose contract is up next September.

Applicants will have to include a “revenue generation plan” focused on offsetting costs and EDC is inviting “creative thinking from private sector respondents” on how to make it sustainable, according to the request posted in the City Record.

EDC will favor the proposals with revenue plans that funnel the most money back to the city, the agency wrote. 

The expiring contract includes revenue sharing on the boat’s concessions and interior media ads, as well as the fares based on total ridership and revenue numbers, noted a spokesperson for Hornblower, which plans to put in a new bid. 

“Today, no other operator is better prepared to build upon the system’s early success and implement the vision to create a more equitable and accessible NYC Ferry,” Kevin Rabbitt, the CEO of Hornblower Group, said in a statement to THE CITY on Wednesday.

 

Ferry barely good fare hike

THE CITY 

The base fare of the New York City Ferry will go up to $4 a ride — with new discounts for seniors and Fair Fare program participants — as the city tries to make its program financially “sustainable,” officials said. 

The hike and new pricing structure comes as the city’s Economic Development Corporation had begun pumping more tax-payer money each year into the system, which launched in 2017 under then-Mayor Bill de Blasio.

The tack change also comes a week after Comptroller Brad Lander released an audit — spurred in part on THE CITY’s reporting — that found the system spent almost double the amount it originally said on subsidies to keep it afloat.

Under the new price system, set to launch Sept. 12, the base fare of $2.75 will go up to $4.

New Yorkers over the age of 65, those with disabilities, and participants in the Fair Fares program — which offers half-priced rides within the MTA system for low-income commuters — will get a discounted price of $1.35 per ticket, officials announced. 

Public housing residents within a mile of a ferry dock will also get two free boat rides a month.

“Getting around New York City shouldn’t feel like you’re running a 5K. Wherever you live in the five boroughs, we want you to have choices, and our vision for the NYC Ferry helps provide New Yorkers with those choices,” Mayor Eric Adams said at the announcement near the Astoria dock on Thursday. 

He said his administration’s “Ferry Forward” plan would be “built on the three pillars of equity, accessibility, and fiscal sustainability.” 

The $4 base fare will “offset the cost of everyday New Yorkers who need to take the system,” Adams said. 

There will also be discounted 10-pack rides at $27.50 to retain regular commuters who ride the ferry the most.

Finally, but there's still one thing they overlooked, the free Hornblower shuttle buses that the NYC Ferry provides. How about another fare for those? 

The Blaz's expensive lies

 

THE CITY 

Last fall the city Department of Investigation released a damning report declaring that then-Mayor Bill de Blasio needed to reimburse the taxpayers $320,000 for the cost of bringing his NYPD detail along during his quixotic and ultimately failed quest for the White House.

At the time, the mayor questioned DOI’s findings, claimed there were “inaccuracies” in the report, and insisted he was simply following the advice of the NYPD. He also maintained he had “never received any contradictory guidance” on the use of the detail.

But a day before he announced his bid for the White House, he did receive explicit advice from the Conflicts of Interest Board (COIB) informing him in no uncertain terms that he must pay back the city for the use of the detail on the campaign trail.

The clarity of this instruction is revealed in a May 15, 2019 letter obtained by THE CITY via the Freedom of Information Law, signed by then-COIB Chairperson Richard Briffault to de Blasio’s City Hall counsel, Kapil Longani.

Briffault’s advice on how to avoid violating city conflict rules is unambiguous:

“The City may pay for only the salary and/or overtime of the NYPD personnel on such a campaign trip,” Briffault wrote. “All other costs associated with such personal campaign travel — including but not limited to airfare, rental cars, overnight accommodations, meals and other reasonable incidental expenses — must not be borne by the City. Rather these costs must be paid for or reimbursed by the Mayor’s campaign committee.”

In explaining his decision to de Blasio, Briffault noted federal campaign finance rules would require a federal candidate to repay a government for the use of governmental resources as part of a campaign. De Blasio is currently one of more than a dozen candidates running for Congress in the 10th Congressional District.

Three years after receiving COIB’s letter, the former mayor has yet to pay a dime.

De Blasio did not respond to a voice message left by THE CITY early Thursday asking about the straightforward declaration from COIB and his decision to disregard it. Neal Kwatra, a spokesperson for his congressional campaign, followed up later in an email to say he’d need more time to research the issue before answering.

THE CITY

Former Mayor Bill de Blasio’s signature NYC Ferry took taxpayers for a pricey ride when city economic development officials underreported its costs by nearly a quarter of a billion dollars, City Comptroller Brad Lander said Wednesday.

Lander accused the city of “playing hide the ball” on ferry finances and criticized the economics and oversight of the watery transportation network, which launched under de Blasio in 2017 and promised heavily subsidized $2.75-per-ride trips from piers in all five boroughs.

The comptroller’s report says the Economic Development Corporation rang up $758 million in ferry-related costs from July 2015 through the end of last year — but only reported $534 million in expenses in its audited financial statements and other records.

“This is a very substantial financial underreporting and mismanagement,” Lander said while standing near Pier 11 in Lower Manhattan. “$250 million of underreporting raises a lot of questions and those questions should be asked.”

Auditors found that the city’s actual subsidy on each ferry trip rose to nearly double the $6.60-per-trip subsidy that the de Blasio administration originally projected. The city subsidy amounted to $12.88 for Fiscal Year 2021, according to the report, not the $8.59 that was originally reported.

“It is a premium service, like express buses and it is also a tourist commodity,” Andrew Rein, president of the Citizens Budget Commission, told THE CITY. “We should be pricing the ferries accordingly and that should be able to reduce that subsidy.”

The comptroller’s report follows a series of stories in THE CITY about NYC Ferry, including one in January that revealed how de Blasio’s budget office supplied a $23.2 million infusion for the service before he left City Hall at the end of 2021 — after the service had previously been funded by the EDC.

“The ferry system was eating the EDC budget,” said Rein, whose nonprofit organization detailed in a 2019 report how subsidies for NYC Ferry are among the highest in the country for comparable ferry networks.

Lander’s report calls into question the purchase of new boats — something THE CITY flagged in April 2019 — as well as the $2.75 fare that de Blasio insisted on for the privately operated ferry trips. The price of an NYC Ferry trip is considerably lower than one on similar services in San Francisco and Boston.

On the San Francisco Bay Ferry, for example, fares are determined by three different zones, with the priciest zoned trip set at $11.25 for a paper ticket or $9.00 for rides paid for through mobile devices or the Clipper fare-payment system. 

De Blasio, in a statement through a spokesperson for his campaign for Congress, said he could not comment on Lander’s report because he had yet to fully review it.

Gonna need a bigger boat...

 

Roosevelt Islander

 Earlier this month, a Roosevelt Island resident asked on Twitter:

"why is it impossible to get on a ferry at Roosevelt Island?! They are coming full from East 90th. This is a constant issue on weekends"

This Memorial Day Weekend Sunday afternoon was a perfect example of a full NYC Ferry Boat coming from East 90th Street with little room for passengers waiting to board at Roosevelt Island. After a few people boarded at Roosevelt Island, a NYC Ferry Crew member announced only "one more" spot on the boat was available even though there were at least 25 other people in line to board.

Upon hearing this, a frustrated man waiting with his family to board walked to the front of the line and told the NYC Ferry Crew member that the people already allowed on the boat cut ahead of those waiting in line and that NYC Ferry needs to do a better job organizing the line at the Roosevelt Island dock.

This is not a new problem. Larger capacity boats are needed during the summer.

Update

A proposal by mass transit guru Larry Penner:

 

 I enjoyed reading "Gonna need a bigger boat" concerning Roosevelt Island customers left at the dock unable to board.

My old friends at NYC EDC (who directly manage their Private Ferry Operator program) for some reason I can't understand continue year after year to ignore Federal Transit Administration funding that could be used to purchase larger size ferry boats. Perhaps you might consider the following...

Why Not Apply For Federal Funding Available To Purchase Larger Ferry Boats for Roosevelt Island Service by Larry Penner

Here is one way City Hall can find additional funding to pay for larger ferry boats to support greater passenger capacity benefiting Roosevelt Island and other destinations served by the NYC Economic Development Corporation Private Ferry Operator program. The United States Department of Transportation's Federal Transit Administration will announce a NOFA (Notice of Funding Availability) in coming months. This is an opportunity to apply for a portion of the $30 million in Fiscal Year 2022 competitive grant funding for passenger ferry projects nationwide. FTA’s Passenger Ferry Grant Program, funds capital projects to improve existing passenger ferry service, establish new ferry service including the purchase of ferry boars along with repair and modernize ferry boats, terminals, and related facilities and equipment. Under this program, a portion of these funds are usually set aside for low or zero-emission ferries or ferries using electric battery or fuel cell components and the infrastructure to support such ferries.

FTA recipients such as NYCDOT can also choose to spend whatever they receive under their share of 2022 Fiscal Year Section 5307 Urbanized Area; $6.4 billion, 5307 Passenger Ferry $36.5 million or Section 71102 Electric or Low Emmiting $49 million for ferry projects. The Federal Highway Administration has funding under several programs including Congestion Mitigation Air Quality (CMAQ), Surface Transportation Program (STP) and others which can be flexed or transferred to FTA can also finance capital ferry projects.

New ferry services can be implemented more quickly than construction of new subway, commuter rail or highways. These can take years or even decades until completion of environmental reviews, planning, design, engineering, real estate acquisition, permits, procurements and construction before reaching beneficial use. Completing all of the above, along with finding funding for ferry boats, docks and parking with costs in the millions is easier than finding the billions of dollars for construction of new or extended subway, commuter rail or highways. Utilization of ferry boats equipped with fuel efficient engines can make a positive contribution to air quality

Consider past history for federal support of the NYC DOT Staten Island Ferry. The nation's largest municipal ferry system moving 66,000 pre COVID-19 daily riders has benefited by over $1 billion in grants from the FTA (previously known as the Urban Mass Transportation Administration), going back to the 1970's. A majority of the Staten Island Ferry system capital program, including the purchase of ferries, Staten Island Pier 7 ferry maintenance facility, both renovated St. George, Staten Island and Whitehall Street, Manhattan ferry terminals, midtown Pier 79 West 39th Street ferry terminal, St. George, Staten Island ferry terminal replacement bus ramps and other support equipment necessary to run the system were all paid for primarily with federal funding. Additional funding was provided to purchase and preserve the old abandoned North Shore Staten Island Rail Road right-of-way for future restoration of transit service. The original service was terminated in 1953. This would reestablish a direct connection with the St. George, Staten Island Ferry Terminal. A past $450 million Federal Transportation Infrastructure Finance and Improvement Act (TIFIA) loan paid for rehabilitation of the St. George, Staten Island Ferry terminal bus ramps.

Mayor Erik Adams, Queens Boro President Donovan Richards, Manhattan Boro President Mark Levine and the Roosevelt Island Operating Corporation should ask NYC Department of Transportation Commissioner Ydanis Rodriguez to apply for these funds which could help finance new capital improvements for initiation of ferry service to Coney Island. NYC Economic Development Corporation President and CEO Andrew Kimball can do the same on behalf of the Private Ferry Operators Program. This is another great example of Washington providing financial assistance to promote public transportation.

NYC can also apply for capital grants from the New York State Department of Transportation to assist in funding. Albany also provides State Transportation Operating Assistance (STOA). Ridership on any transit service generates yearly federal transportation capital assistance via the annual FTA Section 15 annual reporting process. Numerous past private ferry operators have come and gone. They could not financially survive without government subsidy. MTA bus, subway, Staten Island Railway, Long Island and Metro North Rail Road along with NYC DOT Staten Island Ferry is subsidized by a combination of City, State and Federal assistance for both capital and operating costs. All new ferry services will require similar subsidies to survive.

Who wouldn't want to enjoy the fresh air and breeze that only waterborne transportation can provide. Riding a ferry can be less stressful than being on a crowded subway car.

(Larry Penner is a transportation advocate, historian and writer who previously worked for the Federal Transit Administration Region 2 New York Office. This included the development, review, approval and oversight for billions in capital projects and programs for the MTA, NYC Transit, Long Island Rail Road, Metro North Rail Road MTA Bus, NYC DOT Staten Island Ferry along with 30 other transit agencies in NY and NJ.)

de Blasio's boondoggle ferry service is mostly used by the rich and White, as expected

 

AMNY 

 Riders of the heavily-subsidized NYC Ferry system became even wealthier and whiter during the pandemic, according to city statistics.

Annual surveys by the Economic Development Corporation — which oversees the waterborne transit system — show that in 2021 the average income of passengers jumped to six figures at $100,000-$149,999, compared to $75,000–$99,999 for both 2020 and 2019.

In a system long criticized for serving largely the well-off and white living along the Big Apple’s waterfront, a mere 32% of passengers identified as non-white or multiracial last year, declining slightly from 34% in 2020, and 36% in 2019.

The city questionnaire also found that more out-of-towners are coming back to the ferries, as tourism began recovering from a COVID slump in 2021.

Last year 88% of ferry riders were residents of the Five Boroughs, compared to an all-time high of 95% during 2020, and 86% in 2019.

EDC’s most recent report gathered data from 4,100 people in early October. The figures appear to have been published in December, according to its hyperlink address, but have not previously been reported. 

The chairperson of the City Council’s Transportation Committee lamented that the ferry system has continued to leave out needier New Yorkers, despite footing the bill for the service through their tax dollars. 

“The communities that are in need, that are a part of transit deserts, and that have lower household incomes, those are not the communities, unfortunately, that have the pleasure of having a ferry system,” Queens Councilmember Selvena Brooks-Powers told amNewYork Metro. “We need to make sure that it’s not leaving out a community that could greatly benefit from the access and from it being subsidized, quite honestly.” 

The 2021 study notes that the higher incomes last year were “in line” with data the city collected in 2017 and early 2018, however that was before EDC expanded its ferry service area to more blue collar parts of the city like Soundview in the Bronx, which opened a landing in August 2018.

On that route, the majority of passengers make less than $100,000 a year and ridership has the largest share of people of color compared to other circuits — which is still less than half, according to graphics in the report.

Economic Development Corporation lied about the hazards of NYC Ferry landings

 

 

AMNY

 NYC Ferry regularly had to cancel trips because of issues with its piers that closed dozens of times in recent months, an amNewYork Metro analysis has found.

A review of NYC Ferry’s notices of landing closures on Twitter revealed that pier closures occurred on 47 days in the past six months, or more than every four days across its network of 25 stops.

That’s on top of the constant suspension of the Greenpoint landing in Brooklyn, which, unlike the other stops, is private property. This stop has been out of commission since May and won’t be fully repaired until at late June, according to its owner Lendlease.

The most common cause was generically described in the social media posts as a “mechanical issue,” which accounted for 35 closures, or nearly three-quarters of cases.

The NYC Ferry account did not consistently post when service was restored on its Twitter page, but data provided by EDC showed that 85% of mechanical issue closures were resolved in less than three hours.

Ten cases were due to “extremely high winds,” and all boat service stopped during the Jan. 29 winter storm.

“NYC Ferry is a complex network of vessels and landings subject to severe weather conditions, which are monitored at all times and maintained with ongoing inspections and repairs when needed,” said EDC spokesman Brian Zumhagen in a statement.

“Weather-related outages are considered important operational decisions that place safety first. With this said, NYC Ferry regrets disruptions to service, and in each instance, our operations teams have moved as quickly as possible to repair any issues,” the rep added.

The Astoria landing in Queens had the most closures and was shut down 10 times due to electrical outages — all of them in January. The frequent outages there were first reported by Patch.

“I heard it was out but I thought it was because of the weather,” said local Effie Hegazy as she was about to board a boat to Manhattan Tuesday morning.

Another area resident, Mary Olm, said she rides the ferry about three times a week and noticed an issue with one of the pier’s two walkways, where yellow tape cordoned off the front end of that plank.

The heavily-subsidized waterborne transit service is run by private operator Hornblower and overseen by the city’s quasi-public business boosting arm, the Economic Development Corporation.

Among the other piers with frequent outages were some the EDC recently opened or renovated, such as the St. George stop on Staten Island’s North Shore, which debuted in August connecting to Manhattan’s West Side as part of a $44 million expansion, but has since had to close down six times.

The South Williamsburg pier in Brooklyn has closed seven times, despite getting a $6.7 million makeover in July, as well as DUMBO, which shuttered five times after a $4.7 million revamp in June.

de Blasio's EDC splurges 64 million dollars to keep zombie ferry service running

  

THE CITY

The city’s Economic Development Corporation agreed to increase its financial support to operate NYC Ferry by up to $64 million as the pandemic batters ridership on the heavily subsidized system.

Documents provided to the EDC board’s executive committee for a meeting Wednesday show the mayorally appointed body unanimously approved a resolution at a December session to modify its operating agreement with Hornblower Cruises, the San Francisco-based company that runs NYC Ferry.

“Since the launch of service, the city has chosen to increase the number and size of vessels operated and the frequency of service, and to add new routes serving additional parts of New York City,” reads a short memo accompanying the proposal. “These are the main drivers for increased funding needs.”

EDC’s budget will provide the additional money, the document said.

A spokesperson for EDC pointed to service expansions planned to roll out this year and beyond.

“NYC Ferry will keep providing New Yorkers with an affordable and safe transportation option as we continue our long recovery from the pandemic,” said the spokesperson, Shavone Williams. “We have made numerous route and service choices to reduce costs while maintaining our commitment to serve more New Yorkers as we expand service to Coney Island, Staten Island and the Bronx.”

Hornblower’s figures show substantial COVID-tied drops in ridership continuing into last summer, the most recent figures available, with just 11,599 fares on the system on an average weekday in July, August and September 2020. That’s less than half the ridership than during the same period a year earlier.

The funding move comes as ferry revenue is in decline, a fiscal crisis confronts the city and EDC contributions to the city budget are trending downward. Last year, EDC put $28 million in city coffers from real estate rentals and other activities — down from $125 million in 2014 and $103 million in 2016.

City Comptroller Scott Stringer, who attempted to cancel a $82 million contract to buy ferry boats in 2019 and has since raised red flags about escalating EDC spending on ferries, told THE CITY that the latest hike in spending commitments demands scrutiny.

“Time and again, I have called for EDC to be transparent and accountable around NYC Ferry, and time and again EDC fails,” Stringer, who is running for mayor, said in a statement.

“New Yorkers deserve a range of transportation options to safely travel throughout our city, but they also deserve fiscal responsibility. EDC must explain the justification for such a sizable expenditure at this time,” he added.

EDC isn’t subject to city budgeting procedures and operates outside of the comptroller’s purview. 

 What pandemic? What fiscal crisis?

Abolish the EDC

 

THE CITY

The mayorally controlled city Economic Development Corporation diverted tens of millions of dollars in rent receipts from publicly owned Times Square real estate holdings to help operate the costly NYC Ferry system, the corporation’s latest financial filings show.

Budget statements prepared for the EDC’s Wednesday morning board meeting show just $28 million in 42nd Street and other proceeds being sent to the city treasury for the fiscal year that ended June 30. That’s down from $125 million in 2014 and $103 million in 2016.

Mayor Bill de Blasio launched NYC Ferry in 2017, heralding its arrival as “a new day for our city.”

 The ferry system racked up $53 million in net costs for EDC in fiscal year 2020, the new numbers indicate, as it did in 2019. The watchdog Citizens Budget Commission a year ago calculated that with passengers paying just $2.75 a ride, each ferry trip costs the government $9.34 a ride.

State Sen. John Liu (D-Queens), who as city comptroller slammed EDC in 2010 in an audit that found it had failed to deliver more than $125 million owed to city taxpayers, said he now believes EDC should be abolished — calling it “a slush fund for whoever runs City Hall.”

 

The Great NYC Ferry Subsidy Robbery and city bus austerity

NY Post

Ferries help the poor? That’s rich.
 
Mayor Bill de Blasio has insisted that his administration’s heavily-subsidized ferry service would help poor New Yorkers get around, but newly revealed data shows it’s been a plaything of the rich almost from the jump — figures the city sat on for months.
 
An internal survey taken in July 2017 — two months after the service’s inception — found that the median rider’s income ranges between $100,000 and $150,000, a trend that held as of another poll conducted in the winter of 2018.
 
The results of the surveys were obtained by The Post through an eight-month Freedom of Information 

Law battle with the Economic Development Corporation, the city-controlled non-profit that manages the ferry service and solicited the data.
 
The EDC for months rebuffed The Post’s requests as it claimed it was still searching for the records — but City Councilman Antonio Reynoso had a different explanation for it.
 
“The city was being misleading about what information they had, and also didn’t want to give the information because it would prove a point that many of us were already making,” said Reynoso (D-Brooklyn/Queens).

Impunity City

“The needs of the many outweigh the needs of the few”
                                                                                                S’chn T’gai Spock.

The NY Post reported the other day that the prime demographic that frequently uses the NYC Ferry are upper class people making six figures.

But we all knew it.

The fucking New York City Economic Development Corporation knew it.

The goddamn New York City Mayor knew it.

And both of them fucking spent every second of city time trying to hide it for two years.

The NYC Ferry is mostly used by the wealthiest commuters by the river towers that are owned and run by all of Mayor deFaustio’s developer overlord donors. Notably at the ports on the west Brooklyn coast line where it’s a leisure walk away from them (plus Hunter’s Point in Queens).


The current cost for each taxpayer for each $2.75 ride across the rivers and under the bridges is currently at $9.75. A seven dollar loss for each ride millions of people don’t take or don’t bother to take because they don’t live near the ports. And because they probably have no need and use for the boats because they are just plain inconvenient for where they are located and where they need to go.

If they are not the overvalued rental market rate rent paying tower people, it’s tourists and hipsters going to Rockaway Beach. Which is probably the most popular destination of the city gentrification yachts. Which is where some of this profligate spending on this boondoggle is located.


Because whats constantly overlooked about this obscene and overtly useless and consistently vacant aqua transit service is that there is a free shuttle bus service when you get off the ferry. Although ever since this started, you have to pay another fare to get on a city bus. 



 Now above is the Rockaway port, the picture was taken in 2017 late in the summer when it first started. It should be noted that these stylish shuttle buses weren’t available until late August and the city was actually using big ass charter buses to transport upper class denizens to the beach.

 

Above is the city bus stop for the Q22, now why are free ferry shuttle buses necessary when you can just set up a free transfer from the city bus to go to your desired destination, because both buses go to the same places east and west of the peninsula. Why clearly spend money irresponsibly on some private company buses when you got a long time city transit service right there in front of your face?

NYC Ferry so white

Gothamist


Riders of Mayor Bill de Blasio's subsidy-soaked ferry system are significantly richer and whiter than their mass transit counterparts, according to new data reluctantly released by the city.

The long-sought figures reveal that 64 percent of ferry riders are white, with a median income ranging between $75,000 and $100,000. By comparison, studies have shown that two-thirds of subway riders and three-quarters of bus riders are people of color, with median incomes at around $40,000 and $29,000, respectively.

The disparities are likely to intensify criticism of the troubled transit project, which will cost New York City taxpayers more than $600 million over the next three years. In order to keep the price of a trip equal to a subway swipe, the system currently benefits from a per-rider subsidy of about $10, set to jump to nearly $25 on some newly-expanded routes, according to an analysis from the Citizen Budget Commission.

Faced with questions over the ballooning price-tag, de Blasio has repeatedly championed the service as an antidote to transit inequality, part of his broader agenda to make New York the "fairest big city." A spokesperson for the Mayor's Office did not respond to inquiries about whether this new breakdown in ridership would force him to reevaluate that position.

 The Economic Development Corporation, the quasi-public agency that operates the system, previously declined to provide data to back up that claim. The results of three previous rider surveys were not made public, and the agency has ignored multiple freedom of information requests sent by 
Gothamist and other media outlets.

 The new demographics were shared with the media in a slideshow marked "not for distribution," which has not yet been posted online. An EDC spokesperson would not say why the slideshow was being withheld from the public.

Is anybody going to factor the $10 subsidy per rider with the free shuttle buses the NYC Ferry provides?

 

 Update:

NY Post


Mayor Bill de Blasio promised to run the most transparent administration in Big Apple history, but City Hall appears to have violated the state’s open records law by withholding key data about the East River ferry, experts said Wednesday.

In April, The Post demanded the statistics compiled by the Economic Development Corporation about the $637 million NYC Ferry system’s ridership under the state’s Freedom of Information Law — only to be repeatedly rebuffed and told the search for the records was still ongoing.
However, EDC revealed the existence of the data by leaking a presentation summarizing its findings to another newspaper Monday night.

“It violates the Freedom of Information Law,” said John Kaehny, an open-records expert who runs the good-government group Reinvent Albany. “It’s really unacceptable — and particularly lame.”
The Post filed the FOIL request on April 15 asking for “the results of the demographic survey of boat riders, by line and by stop, if available,” as well as for contracts and other related documents.

The agency confirmed it received the records request on April 22 and later released the contract and some supporting paperwork, but never provided the crucial ridership data.
Instead, it claimed in letters dated May 20, July 5, Aug. 2 and Sept. 6 that agency officials were “continuing to search for additional documents.”

However, EDC’s 13-page presentation summary reveals that as it stonewalled The Post and others, it had already conducted at least three surveys of its ridership.

“This is the 4th onboard survey conducted in NYC Ferry’s 2 years of service,” it disclosed on the second page of the presentation.

The document shows that the previous surveys covered summer 2017, winter 2018 and summer 2018. The most recent survey covered in the memo examined ridership from this summer.

“This is really not acceptable conduct by any government agency,” said Susan Lerner, the head of watchdog group Common Cause New York. “The data is subject to FOIL, there is no excuse for playing games.”

 “Certainly the spirit of the law has been violated,” she added. “This sort of game-playing should not be countenanced.”

Recall that Mayor de Blasio broke the "spirit of the law" with his illicit pay to play Campaign For New York PAC he ran in City Hall and still avoided indictments from Attorney General Cy Vance and acting Southern District Attorney that replaced Preet Bharara. So whatever the spirit of the law entails is pretty much dead.

Skipper de Blasio drops anchor on Stringer and spends 43 million for five more ferries

NY Post

The de Blasio administration plans to ram through another $43 million in ferry purchases for its money-pit fleet — in the face of objections from the city’s fiscal watchdog, The Post has learned.

The push comes just months after City Hall forged full speed ahead with another $84.5 million purchase over the worries of City Comptroller Scott Stringer.

It swells the total amount sunk into the program to $637 million.

The decision “to deem another City tax-payer funded vessel purchase registered without providing exhaustive data, metrics, reports, etc. to demonstrate the success of the citywide ferry program and justify the ballooning costs of this initiative is disappointing,” Stringer wrote in a letter Friday to the Economic Development Corp., a copy of which was obtained by The Post.

The $43 million covers the purchase of five new boats, according to purchase documents submitted to the Comptroller’s Office.

It marks the second time this year that City Hall has exercised veto power to torpedo Stringer’s attempts at oversight of the ferry system.

The East River system is among Mayor de Blasio’s biggest transit initiatives, despite carrying only a fraction of the New Yorkers who use the subways, buses or CitiBike.

Just 18,000 people rode the ferries on an average weekday during the spring, with those trips subsidized at a rate of $10.73 per ticket.

Here's an obnoxious example of those people who use the gilded commute.

NY Post


On Friday nights, revelers are turning a commuter ferry into a DJ-helmed dance party.
Helicopters buzz overhead as the East River churn bumps riders — businessmen and women just off work and metallic jacket-clad partiers alike — while beats blast from the boat’s stern.

“You see guys with suits on, chugging a beer and just dancing,” says NYC Ferry captain Ben Nedrick, as he steers the boat along the Lower East Side route.
From his booth on the boat’s upper deck, he watches as DJ Sheri Barclay mixes music for the weekly Rooftop Sounds Pop-Up.

The other week, Nedrick, 23, handed the wheel to his co-captain so he could join in the fun, breakdancing in his uniform as a soca jam played, to his passengers’ delight. There’s an almost palpable sense of cutting loose, especially on a hot summer night.

“It’s got that kind of lawlessness to it,” concedes Barclay, 36, the manager of online radio station KPISS.FM, which streams from an RV in Bushwick.

The dance parties did, in fact, begin illicitly.

“Last year, I threw my birthday on the ferry without their permission,” says creative director Franz Aliquo, 43. He and his guests rode for one round and finished all the booze on the boat before getting kicked off. This spring, he says, the ferry company reached out to him.

“They hit me up to be like, ‘You did it last year, and it was pretty dope,’ ” says Franz, who picks the DJs, and organized the events as a labor of love.
Now, the happy hours have the blessing of the ferry — and that of its concession stand, which sells a rotating variety of beer ($7), wine ($8) and snacks on-board all boats. (Passengers aren’t allowed to BYOB.)

“It gives a good vibe,” marketing coordinator Tiffani Samaroo tells The Post. She says the transit service is planning a host of other events it hopes will increase ridership, though only the Friday night 6:30 to 8 p.m. “happy hour” will have a DJ.

There’s no cover charge, just the price of passage: $2.75, the same as a subway ride — but you can’t use a MetroCard. NYC Ferry currently operates six routes and a summer shuttle to Governors Island.

 Remember, the city and you the taxpayer do not get a dime from the booze sold on these ferries. All monies go to the contractor, Hornblower.

Developer wants city to pay for new NYC ferry dock by their luxury tower in Astoria

THE CITY

 A developer wants the city to extend a ferry line by one stop to connect Astoria with the Upper East Side – at public expense.

The Durst Organization recently opened the first tower in a planned seven-building residential complex in Astoria, about a 10-minute walk from the neighborhood’s ferry terminal.

The ferry route currently runs from Wall Street to 34th Street, with subsequent stops at Long Island City, Roosevelt Island and Astoria. The Durst Organization is calling for the line to stretch back over the East River, ending at the 90th Street ferry terminal in Yorkville.

“It’s about 1,000 feet between the two ferry stops. The trip would take less than five minutes,” said Jordan Barowitz, a Durst spokesperson.

Barowitz stressed the proposal was preliminary. He added the developer would rely on the New York 

City Economic Development Corporation to pick up the tab.

The Astoria-to-Upper East Side proposition comes as budget watchdogs scrutinize ferry subsidies amounting to $10.73 per ride. City Comptroller Scott Stringer has demanded the city move the ferry operation out of EDC’s purview following THE CITY’s reporting that taxpayers are on the hook for as much as $369 million in ferry purchases.

The developer plans to float the proposal before a Manhattan community board Wednesday before making a formal pitch to the Economic Development Corporation, which oversees the city’s ferry service.

For Durst, an impetus for the plan is to improve transit options for residents within its planned 2,400-unit Astoria development, Halletts Point, which opened its first tower to tenants earlier this year.

There should be no more debate about what this service was tailor made for.

NYC Ferry subsidy costs are INSANE

NY Post

 

The city’s ferry system is taking taxpayers for a ride, with each individual trip costing $10.73 more than passengers pay, according to a government watchdog.
 
In a report titled “Swimming in Subsidies,” the Citizens Budget Commission said the $2.75 fare covered just about one-fifth of the cost of the waterborne-transit system.
 
The $10.73 subsidy is 10 times the $1.05 that the government kicks in for each subway trip, which costs the same $2.75.
 
And it’s nearly twice the $5.46 paid to subsidize each trip on the free Staten Island Ferry.
It was only a few months ago that city officials pegged the ferry subsidy at $7 to $8 a ride.
 
A planned expansion of the ferry system will hit taxpayers even harder.
 
A Coney Island line due in 2021 will need an eye-popping $24.75 per passenger from the city to stay afloat, the CBC estimated.
 
“They have created a ferry network that serves a small number of New Yorkers, is expensive to operate and requires a high subsidy that will only grow higher,” said CBC researcher Sean Campion.
The ferries carried 4.1 million passengers last year, less than the subways did in on an average day.
 

 Also:

City Comptroller Scott Stringer’s recent warnings about massive waste at NYC Ferry were alarming enough. But a Citizens Budget Commission report out Thursday truly, uh, rocks the boat.
 
For every ferry ride, the CBC found, the city kicks in an average of $10.73 of its own funds to meet costs. Every ride!
 
And, to be clear, that $10-plus is on top of the $2.75 fare.
 
That’s 10 times the average subsidy for the New York City Transit system. And double the one for the Staten Island Ferry.

And get this: A new route Mayor Bill de Blasio recently announced will run from Coney Island to Wall Street — and cost the taxpayers a mind-numbing $24.75 in subsidies for every ride.
 
That’s $247.50 for five round trips a week — or $12,375 a year. Is the mayor nuts?
 
Based on Kelly Blue Book figures, de Blasio could buy each regular commuter a late-model Jaguar XE and save more than $2,000 a year on each one. Or put three riders in an Uber: The cost of that trip at 1:30 p.m. Tuesday was $35. Even with a $10 tip, the city could save $5,000 a pop each year. What in the blue seas is he thinking?

We all know damn well this mayor has no modicum of fiscal sense or is even capable of thinking. But there is something that wasn't mentioned in the CBC report and that is the free shuttle bus service that acts as a transfer to and from the ferries that traverses east and west Rockaway...

...which are also operated by Hornblower