The repeatedly delayed waterfront project was set adrift after talks with Norwalk, Conn.’s Stoneleigh Capital about ponying up the rest of the dough to finish the job failed, sources told The Post.
Meanwhile, the Economic Development Corp. is scrambling to “evaluate the city’s options” to revive the long-awaited hotel and restaurant plan, which would add a crown jewel to the foot of rejuvenated South Street.
The landmarked Battery Maritime Building towers over the dock for the Governors Island ferry. A planned luxury hotel on the roof remains frustratingly unfinished years after the city chose a development team in 2007 and signed a 99-year lease with them in 2012.
The developers, led by current and former executives of the Dermot Company, balked last year when estimated construction costs swelled from $100 million to $125 million “and probably much more than that,” said a source familiar with the issues.
The overruns were due in part to an abatement needed after Superstorm Sandy in 2012 and changes in the federal historic tax-credit program, which chopped $10 million from expected financing.
Read more by clicking below image