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Report: City nixes Coney Island plans

By Ryan Chatelain, amNewYork Associate Editor | ryan.chatelain@am-ny.com

August 6, 2007

City leaders refuse to meet with the developer planning a $1.5 billion face-lift for Coney Island unless it drastically alters its vision for the fabled amusement area, a newspaper reported Sunday.

The Daily News quoted a "high-ranking city official" as saying Thor Equities' Vegas-style redevelopment, which would include a new amusement park, a water theme park, hotels and 350 time-share units, is "dead in the water."

Since Thor, which owns 10 acres between West 10th and West 15th streets, scrapped its initial plan of adding luxury condos in Coney Island's amusement area in June, City Hall's new chief concern about the project has been the time-shares. In June, Robert Leiber, president of the city's Economic Development Corp., called the units a "wolf dressed up as a sheep."

Thor needs the city to rezone the property to allow for time-shares and hotels. Some critics of the plan fear Thor will resell the property at a substantial profit once it is rezoned for residential use. The Daily News also reported that Thor was seeking $100 million in city subsidies.

"It was clearly designed merely to try to get a lucrative zoning change and massive city funding without genuine regard to Coney Island's future," the unnamed city official told the Daily News. "It's atrocious."

Thor spokesman Lee Silberstein declined Sunday to comment specifically on the developer's talks with the city, saying in an e-mail: "Thor, as the largest investor and property owner in Coney Island's amusement district, continues to work with all key stakeholders to refine its plan. Thor is determined to restore Coney Island as a year-round amusement and entertainment destination."