Official: Thor's $1.5 Billion Coney Plan 'Dead'
A city official told the Daily News that Thor Equities’ $1.5 billion plan for Coney Island—the latest iteration of which involves the construction of high-rise hotels with luxury time-share units rather than condos, in addition to a brand-new amusement park—is dead in the water. The unnamed official said the city was wary of Joe Sitt’s…
A city official told the Daily News that Thor Equities’ $1.5 billion plan for Coney Island—the latest iteration of which involves the construction of high-rise hotels with luxury time-share units rather than condos, in addition to a brand-new amusement park—is dead in the water. The unnamed official said the city was wary of Joe Sitt’s firm flipping its Coney holdings, as it did earlier this year when it sold the long-term lease and development rights to the Albee Square Mall for $125 million. The official suggested that the city is also unhappy about Thor’s push for $100 million in subsidies. Word of the city’s reticence to green-light Thor’s latest plan follows recent news that Economic Development Corporation officials were eyeing operations like Denmark’s Tivoli Gardens as more appropriate for Coney than Sitt’s vision.
$1.5B Vegas Plan for Coney Island is History [NY Daily News]
Coney Island: How Much Do You Give a Sitt? [Brownstoner]
Thor Backs Away from Coney Condo Plan [Brownstoner]
Coney Island #1: Thor Craves Approval [Curbed]
I work for a lawyer who specializes in real estate. Looking over Thor Equities proposal the city could never agree to it. Look under the surface. Forget what is in the renderings and how many hotels and time shares they say they will want to build. To build the hotels they will need rezoning to allow buildings of 45 -75 stories high, and for the time shares they will need zoning that allows residential use in the area. There proposal also calls for three hotels and an unamed number of buildings designated fr time shares. They also want zoning for mixed use on the ground floors which will allow either amusements or retail. urthermore Thor refuses to submit blueprints showing the exact location of these proposed buildings with the reason being that they will not know what they can build until they know what the land is zoned for. This means that Thor would get equal zoning under every inch of their property, and the city would also have to give similar zoning changes to any neighboring properties because of the patchwork of lots Thor owns and their insistance they are in negotiations to buy the remaining land from Steve Vourderis, McCullough Amusements, Jack Ward, the El Dorado Corp., the Handwerker family, Horace Bullard, et al. So in effect Thor is asking for rezoning on both property they own and property they plan to own in the future.
However, given the history with this company they could easily abandon their plans and offer up their property for sale on a lot by lot basis. And each lot would be legally zoned to allow apartment towers and only require a token storefront on the ground floor which could be internal, such as a dry cleaning shop for building residents only. In addition, should Thor fail to buy the additional property, the owners could still sell down the line based on the new zoning on their property. Real estate developers could offer them five times the ammount of Thors top offer if the land is in demand.
The subsdies Thor is also asking for it the least of the city’s concernes. What is at stake is the future of Coney Island being a world famous amusement area. What Thor is asking for culd end that in a matter of months from the date when the rezoning takes effect.
It’s funny how this “unnamed city official” can now claim that this project is dead because “it’s obvious that the developer is just looking to turn a profit” and “is not interested in the Community or the City”
Isn’t that what every developer has been doing for the longest time. And isn’t it also true that anyone and everyone who really cares about this city has been complaining about the fact that our city and state officials, for the sake of the all mighty dollar, have been turning a blind eye to the immoral and in many cases illegal acts of these developers.
I guess this “Unnamed City Official” didn’t get his palm greased by Mr. Sitt.
Now what would be real nice is if all the City and State Officials admitted that they have sold out our City and our basic rights to peace and quality of life. Then start tearing down some of the over built death traps that they have allowed to be built in the name of progress.
There was a time not long ago that Coney Island, Luna Park and Dreamland were unique attractions that drew people in the thousands. Now, only Coney Island has a chance to return to prominence. However, thor has no idea how to do it.
I actually hope that the City uses imminent domain as a stick to get a capable developer in charge of the project.
If it works, there will be money enough to make everyone happy.
more like shahn telling it like it is.
Shahn Anderson coming to bat for Joe Sitt? Who knew?
It’s not the subsidies that are the issue, but the inclusion of a hotel component. The city knows it is financially feasible to build an amusement park. They’ve done the research.
Thor isn’t really interested in developing the site – they just wanted to secure a zoning change so they could flip the property for a profit.
The city is very much interested in redeveloping the site such that it will be a 24-hour entertainment destination, and that is how it is going to be. We have a great example of something quite comparable that is nice – Morey’s Piers in Jersey. Coney Island could be just as nice, and as profitable. It could also be something even more, and that is what the city is pushing for.
There is lots of vacant land in Coney Island, and the hotels can and will be built elsewhere.
But there will be subsidies and tax breaks, at the very least ICMP exemption will be granted for a long time. Low interest bond financing will also undoubtedly be thrown in. None of that really has anything to do with this article however.
I don’t see how the City of New York is going to convince a developer to make Coney Island into an amusement park on par with Tivoli Gardens in Denamrk without significant subsidies. Some people in city hall clearly don’t remember when Coney Island more closely resembled Tivoli Gardens in Jamaica.
Tivoli gardens is in COPENHAGEN DENMARK, *NOT* in The Netherlands!
Thank god we’ve been saved from Joe Sitt’s vision of turning coney island into mall disguised as an amusement park.