What Did You Pay for Your Last Rental?

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.

Comments from City Hall?

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