The New York Times reports that the Bloomberg administration and developer Joe Sitt, after a long standoff, have closed a $95.6 million deal for 6.9 acres along the Coney Island Boardwalk between the Cyclone and Keyspan Park, which the city regards as crucial to its stalled Coney Island redevelopment plan.Sitt originally asked $140 million for 10.5 of his 12.5 acres. A year ago, Sitt walked away from the city's offer of $110 million for 10.5 acres. The city's $95.6 million/6.9 acre deal breaks out to $300 per square foot — way overpriced in the current market.
Sitt, who runs Thor Equities, plans to develop hotels and stores on the 5.6 acres he still owns.
Sitt began buying Coney Island real estate in 2005 as part of a plan to build a Las Vegas-style year-round resort. Although Coney Island icons the Cyclone, the Wonder Wheel and Nathan’s are still standing, the Thunderbolt, Child’s restaurant and Astroland are gone and much of Sitt's land, cleared of tenants, is vacant.
The city plans to solicit offers for an interim amusement operator for the 6.9 acre parcel, and is sending representatives to the annual convention of the International Association of Amusement Parks and Attractions in Las Vegas next week.
The article from the New York Times.
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