The cash-strapped South Street Seaport Museum stands to lose up to $1 million in annual revenue if the Mayor’s plan for a subsidized citywide ferry service drives NY Water Taxi from its berth at Pier 16, warns Borough President Gale Brewer.
BY COLIN MIXSON
The citywide ferry service plan unveiled last week will allow commuters ply the waterways for the price of a subway ride, according to the Mayor. But the boatload of government subsidies required to keep the cheap new service afloat could lead existing ferry operators to weigh anchor and head for fairer seas — and that could be a bigger loss for Downtown than many realize.
“We can’t compete against heavily subsidized monopolies, and that’s what’s happening in the harbor,” said David Neil, co-president of the New York Water Taxi, a ferry service that zips between the Financial District and Red Hook near Ikea.
This map shows the routes of the mayor’s planned ferry network that is set to launch in 2017.
NY Water Taxi threatened to leave the city following a report last month in Crain’s breaking the news that Mayor de Blasio had selected San Francisco-based Hornblower Cruises & Events to operate a citywide ferry service scheduled to set sail in 2017.
Reps for the city’s Economic Development Corporation responded at the time that the bidding process remained ongoing, but — surprise — the city ultimately confirmed that it was going with Hornblower during a seaside press conference on March 16.
As part of the announcement, city officials boasted that the new service, in addition to undercutting NY Water Taxi’s ticket price, would bolster the city’s workforce by providing an additional 155 new jobs.
But that number would be more than offset by the 200 jobs that NY Water Taxi will take with it if the company follows through on its promise to leave the city at the year’s end, according to a spokeswoman for the black-and-yellowcheckered ferry service.
But NY Water Taxi’s departure could have far reaching consequences for Downtown institutions such as the South Street Seaport Museum, which stands to miss out on up to $1 million in annual rent if the ferry company flees, according to Borough President Gale Brewer.
NY Water Taxi currently leases space on Pier 16 that’s owned by the museum for $600,000 annually. But that pales in comparison to a $1-million deal that the museum was close to finalizing with the ferry service to continue with the lease — and the loss of that revenue could deal a devastating blow to the Seaport’s perpetually cash-strapped cultural cornerstone, according to Brewer.
In response, the borough president penned a letter to EDC asking the organization to address her concerns regarding job losses and the impact that snubbing NY Water Taxi will have on the maritime museum.
“Does EDC have a financial plan to prevent the Museum from closing its doors as a result of lost revenue?” Brewer asked in her letter. “You know how hard we are all working to support this institution, and a loss of income such as the one from this lease is devastating.”
EDC has supported the Seaport Museum in the past, especially following Hurricane Sandy, and says it will continue assist the institution moving forward, said a spokesman, albeit without providing specifics.
East River Ferry riders can ride the high seas for the price of a subway trip once the citywide ferry service gets underway next year.
“NYCEDC has been proud to provide ongoing support to the Seaport Museum, including significant investment in post-Sandy recovery and resilience work, and we are committed to working with them to ensure that they remain a vibrant part of our city’s cultural landscape for years to come,” said EDC spokesman Anthony Hogrebe.
The South Street Seaport Museum declined to comment for this story.
