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Thor’s Coney Island: Tattered Tents, Deathwatch for Historic Buildings

Posted in Coney Island Redevelopment, Real Estate, tagged Coney Island, flea market, Joe Sitt, Stillwell Avenue, Thor Equities on April 21, 2010| 7 Comments »

Thor Equities abandoned flea market, Coney Island. April 16, 2010. Photo © Tricia Vita//me-myself-i via flickr

Thor Equities abandoned flea market tents on Stillwell Ave, Coney Island. April 16, 2010. Photo © Tricia Vita//me-myself-i via flickr

If you’ve been wondering what Joe Sitt of Thor Equities is doing with his vacant buildings and empty lots in Coney Island 2010, the answer is nothing yet. It’s disgraceful that Coney Island’s no. 1 real estate speculator is getting away with letting his tents from last year’s flopped Flea by the Sea deteriorate and become a public eyesore. The bedraggled tents are the first sight visitors see when they stroll down Stillwell Avenue, the gateway to Coney Island’s Beach and Boardwalk. How would “Joey Coney Island” like it if this mess was in his backyard instead of the People’s Playground? Tear ‘em down!

Thor Equities abandoned flea market tent, Coney Island. April 19, 2010. Photo © Tricia Vita/me-myself-i via flickr

Coney Island’s 40 rides and diverse attractions opened for the season on Palm Sunday and enjoyed the best Easter in decades. On the City-owned former Astroland site, Zamperla/CAI is working nearly around the clock to finish the new Luna Park in time for Memorial Day Weekend. If Sitt had sold the land to the City when the rezoning was passed in July, the park would probably be open now! With the return of Ringling Brothers Circus and the grand opening of Luna Park, Coney Island’s stakeholders are busy planning an exciting summer season. But Joe Sitt has yet to announce any tenants or plans for his Coney Island buildings or remaining Stillwell parcels.

Shoot out the Star in Thor-Owned Henderson Building, Bowery at Stillwell. Photo © Tricia Vita//me-myself-i via flickr

Shoot out the Star in Thor-Owned Henderson Building, Bowery at Stillwell. April 19, 2010. Photo © Tricia Vita//me-myself-i via flickr

Thor Equities huge “Store for Lease” banners on the Henderson Building and Shore Hotel continue to greet visitors when they exit Stillwell station. As for Thor’s vacant buildings, the Grashorn—Coney Island’s oldest building—and the former Bank of Coney Island—it’s deathwatch time. The Coney Island Rumor Mill is saying a demolition company was asked to give a quote for the takedown of the Grashorn and the Bank of Coney Island immediately as well as the Henderson Building and Shore Hotel by October. Popeye’s $120K per year lease of the corner store on the ground floor is said to be up this year.

Thor-Owned Henderson Building sits on a Parcel Rezoned for a High-Rise Hotel. Photo © Tricia Vita//me-myself-i via flickr

Last July, the Bank of Coney and the Henderson parcels were rezoned for high-rise hotels of up to 27 stories. Though it’s unlikely a hotel will go up anytime soon, the speculation is that Sitt wants to get rid of the Grashorn and Henderson, which were nominated by Coney Island USA for landmark status, before the LPC calendars them or Save Coney Island’s plan for a historic district gathers steam.

Vacant on Surf Ave at Jones Walk: Thor-Owned Grashorn and Lambros Buildings. April 1, 2010. Photo © Tricia Vita//me-myself-i via flickr

Since Zamperla/CAI won the 10 year contract to build a new amusement park on the City owned land purchased from Sitt, a who’s who of amusement operators has enquired about leasing Sitt’s remaining parcels. But showmen are not marks. Sitt’s steep asking price—reportedly $300K-$500K– for each of his two 50,000 square foot Stillwell lots–has driven away top carnivals and amusement park operators who negotiated for yet failed to sign multi-year leases. Sources tell ATZ that onerous lease terms such as a 30-day vacate clause and having to pay all of the rent up front helped kill the deals.

Boarded Up Shore Hotel: Nature's Paradise By the Sea. April 26, 2009. Photo © Tricia Vita//me-myself-i via flickr

Sideshow operator John Strong, who negotiated with Thor to bring his freak museum to the Grashorn Building, now says all deals are off since he can’t spend more in rent than he can take in at the ticket box. Strong believes he got outbid by a Russian who owns an arcade. But the supposed tenant, Sam’s Arcade from last year’s Dreamland, hasn’t signed the lease for Coney Island’s oldest building. What is Sitt’s game?

The Wall Street Journal recently had an article called “Empty Storefronts Blot Union Square Area”–San Francisco, not New York–with a quote from Joe Sitt, who is one of the property owners: “Mr. Sitt says he isn’t rushing to lock up a long-term lease before the market recovers. ‘I’m very willing to be patient,’ he says. While an empty storefront might not help in the short run, securing better tenants is a long-term boon for the neighborhood.” Ironically, another quote in the piece is “It’s like a major theme park losing its rides,” says Joe D’Alessandro, chief executive of the city’s Convention & Visitors Bureau, of Union Square’s store closings.

Funny thing is the quote could apply equally to the situation in Coney Island, though Sitt hasn’t had much to say about Coney since he sold 7 acres to the City in November 2009. At the time, Sitt told the Real Deal in a Q & A…

“We have to redo all of our plans, but we will still have millions and millions of square feet of apartments and hotels and retail and restaurants and enclosed amusements. Yes, it will still have the Las Vegas component to it. The latter versions of the renderings are close to what it will be.”

Oh, yeah, he forgot to mention the millions and millions of dollars he’ll make when he flippity-flips it.

Before Thor: Remember Batting Range and Go Kart City? April 16, 2010. Photo © Tricia Vita/me-myself-i via flickr

In the meantime, a parade of people eager to do business in Coney Island continues to look at Thor’s Stillwell parcels. Last week, yet another amusement operator interested in a three-year lease for a go-kart track arrived on the scene. Rumor has it they’re set to sign a lease tomorrow. We’ll see. Our skeptical friends say that Sitt’s lots will remain empty this summer. We say it’s 37 days till Memorial Day Weekend and Sitt never had carnival rides up and running in “Dreamland” until then. In fact, bizarre rumors of Thor Equities producing entertainment in a Spiegeltent on one parcel and bringing their very own carnival to the other are circulating, too. What else can we say but this isn’t just any run-of-the-mill rumor mill, it’s in Coney Island, which thrives on the strange, the odd and the unpredictable.

Thor’s Coney Island: Wanna Lease Stillwell? That’ll Be $500K Up Front!

Posted in Coney Island Redevelopment, Real Estate, tagged amusement park, amusement rides, Coney Island, flea market, go karts, Joe Sitt, Stillwell Avenue, Thor Equities on March 9, 2010| 1 Comment »

Thor Equities abandoned flea market on Stillwell Ave in Coney Island. Photo © Tricia Vita/me-myself-i via flickr

Thor Equities abandoned flea market on Stillwell Ave in Coney Island. October 30, 2009. Photo © Tricia Vita/me-myself-i via flickr

One month ago, ATZ asked “What is Joe Sitt planning for Stillwell Avenue in Coney Island 2010?” Still no word on Stillwell from Thor Equities, though Coney Island’s 40-plus rides and diverse attractions will open in just 20 days. Palm Sunday– March 28th this year— is the traditional season opener in Coney Island.

The Cyclone roller coaster, Deno’s Wonder Wheel Park, McCullough’s Kiddie Park and the Eldorado Bumper Cars are busy getting ready for the big day. In fact, the Eldorado as well as Paul’s Daughter, the Grill House and Gyro Corner on the Boardwalk were already open last weekend! Yet Thor Equities property on Stillwell, the gateway to Coney Island’s beach and Boardwalk, still looks like the ghost town of last summer’s failed flea market.

Here’s why: The Coney Island Rumor Mill says that Sitt is asking $500,000 for both sides of Stillwell and he wants all of the money up front!

According to sources, Sitt is not willing to negotiate on the amount either. This lack of flexibility doesn’t surprise us. Half a million is actually a 75 per cent reduction from Sitt’s original asking price! As ATZ reported last month, sources said several carnival and amusement park operators balked at Thor’s initial asking price, a cool $2 million for the two 50,000 square foot parcels.

January 7, 2010: New Sign on Stillwell. Photo © Bruce Handy/Pablo 57 via flickr

Some of the interested parties were contenders in the City’s RFP for a Coney Island Amusement Operator, which was won by Zamperla. The Coney hopefuls who put in bids for Thor’s parcels were said to be balking at the slew of onerous lease terms such as a 30-day-vacate clause. (“Coney Island: Amusement Operators Balk, Money Talks at Stillwell,” Feb. 10, 2010).

Negotiations continue for carnival rides and a go kart track though rumor has it that one of the potential amusement operators told Sitt’s agent where to take his lease and shove it. Good negotiating strategy or goodbye Coney Island?

When all is said and the deal is done, we may see Geren Rides back on Thor’s property for the third year in a row. The Georgia-based carnival operator did after all buy a Schwarzkopf Wildcat roller coaster, Reverchon Himalaya and other rides last year with the intention of coming back to Coney.

UPDATE March 10…Sources say amusement operators from Wildwood, New Jersey, are close to signing a 5-year lease with Sitt for a go-kart track on one of his Stillwell parcels. If they ink the deal and if CAI/Zamperla goes ahead with their plan for go-karts on the City’s Stillwell parcels in 2011, Coney Island will have duelling go karts on the site of the much missed Coney Island Batting Range and Go Kart City. Why not bring back the Batting Range? As one of our friends says, “I still miss the batting cages. Without a doubt, they were the best in the entire city. Watching the balls fly off your bat with the Wonder Wheel in the distance was a thing of beauty.”

Thor’s Coney Island: Amusement Operators Balk, Money Talks at Stillwell

Posted in Coney Island Redevelopment, Real Estate, tagged advertising, amusement park, amusement rides, Coney Island, Stillwell Avenue, Thor Equities on February 10, 2010| Leave a Comment »

What is Joe Sitt planning for Stillwell Avenue in Coney Island 2010? Last month, ATZ said “Good Riddance to Thor Equities Flopped Flea Market, Hello Rides?” In the February print edition of the amusement trade publication Funworld, Thor Equities has a full page ad seeking amusement operators for two large open air lots at Bowery and Stillwell: “Are you ready to count cash this summer in Coney Island?”

After selling the Boardwalk half of the property to the City, Sitt appears to be playing a high stakes game with amusement operators to lease what’s left of his Stillwell lots to the highest bidder.

Thor Equities ad in this month’s Funworld Magazine seeks amusement operators to lease the Stillwell property. The photo shows an overflow crowd at Nathan’s Hot Dog Eating Contest on the 4th of July.

But sources say several carnival and amusement park operators have balked at Thor’s initial asking price, a cool $2 million for the two 50,000 square foot parcels. Some of the interested parties were contenders in the City’s RFP for a Coney Island Amusement Operator, which was won by Zamperla. The Coney hopefuls who put in bids for Thor’s parcels are said to be balking at the slew of onerous lease terms such as a 30-day-vacate clause.

Sideshow operator John Strong, who made a deal to lease the Thor-owned Grashorn Building for his freak museum, managed to get the 30 day clause removed. Perhaps Sitt will play let’s make a deal with one of the balking operators as we get closer to Coney Island’s opening day—March 28, 2010. At the moment, the Coney Island Rumor Mill says all bets are off for the City’s RFP winner Zamperla and runner-up Amusements of America to lease Thor’s Coney parcels.

Or maybe not…. Jane Baxter Vivona, an independent ride operator who is married to A of A’s Phil Vivona, is said to be eager to park her Space Roller in Coney Island for the season. Here’s a vid of what we’ll be missing if A of A has indeed dropped out of the picture…

Glenn Geren of Geren Rides, whose carnival has supplied the rides for Sitt’s Dreamland for two consecutive seasons is still in the running. Last summer, Geren purchased a Schwarzkopf Wildcat Coaster, Reverchon Himalaya, Watkins Swinger and Tempest in anticipation of a third season in Coney Island (“Coney Island 2010? Carnival Gambles on Roller Coaster,” Aug 8, 2009). Perhaps his gamble will pay off.

Geren Rides Trabant in Coney Island, Labor Day 2009. Photo © Tricia Vita/me-myself-i via flickr

Funworld is a trade magazine published by the International Association of Amusement Parks and Attractions (IAAPA), the largest amusement industry association in the world. Sitt’s ad appears to be trying to take a page from the CIDC’ s playbook. In November, the CIDC successfully pitched the City’s Coney Island Amusement Operator RFP to attendees at IAAPA’s trade show in Las Vegas.
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But Thor Equities advertisement touts visitor stats for Coney Island’s season that are as over-inflated as Sitt’s rents and cites five million more visitors than the City’s estimate for an entire year. According to the ad copy, “Coney Island, Brooklyn’s famous entertainment destination, expects 10 million thrill seeking visitors this summer and your business can be right smack in the middle of them!” The Coney Island Development Corporation’s RFP Fact Sheet says, “Currently, approximately five million visitors come to Coney Island every year. With its signature events and its iconic attractions, Coney Island ranks among the must-see destinations for both the more than 8 million New York City residents and the estimated 46 million visitors who come to New York City each year.”

The City’s five million figure includes the New York Aquarium’s 750,000 year round visitorship. The majority of amusement rides and attractions are currently open from Palm Sunday through Columbus Day, with daily operations from Memorial Day Weekend through Labor Day Weekend.

The best estimate of what an individual amusement operator can expect in Coney Island this summer is provided courtesy of Alberto Zamperla, the CEO of Zamperla, in a recent article about their new Luna Park: “For the first season we have estimated the presence of 400 thousand visitors and we are confident it will grow in the future,” Zamperla told the the Italian newspaper Il Giornale di Vicenza.