New York Buys

Prime Coney Island Real

Estate From Controversial

Developer

by Staff Reporter

BROOKLYN, NY -- New York City has reached a deal to buy nearly seven acres of prime Coney Island real estate from the developer that owns the property. According to initial reports, Thor Equities will receive $95.6 million for the 6.9 acres situated in the heart of the fabled amusement district.

According to those familiar with the negotiations, the city's purchase price was far less than the $140 million Thor had originally demanded for 10.5 acres, though still well above current market price. Thor still owns 5.6 acres, which it said it plans to develop.

Initial plans for the real estate parcel by Thor called for a $1.5 billion Las Vegas-type resort with hotels, condominiums, amusement rides and a water park. The plans, which resulted in years of acrimonious negotiations with the City, local residents and those seeking to maintain the historic integrity of the area, have now been drastically scaled back.

New York City officials are heading to the IAAPA this next week to begin soliciting offers for an interim amusement operator. The City will also seek potential developers to create a dynamic year-round amusement destination.