The de Blasio administration is in the process of finalizing its purchase of five new ferries, but Comptroller Scott Stringer, the city’s fiscal watchdog, is waving a red flag, saying the contracts don’t make any sense.
Specifically, Stringer can’t get his head around why the city is spending $126 million to buy a total of 24 ferries from Hornblower, while letting Hornblower keep the concessions and ticket sales.
“Hornblower has played [New York City's Economic Development Corporation] and taxpayers are buying the ferries, while Hornblower gets to keep all the profits," Stringer told Gothamist. “It kind of boggles the mind when you look at this contract.”
Stringer added that it was impossible for his office to review the viability of ferry service when the city hasn’t released data on utilization rates, rider demographics, or other performance metrics.
It’s also unclear how the ferries will turn a profit. A single ferry ride costs $2.75. But arecent review found that taxpayers are subsidizing each ride by $10.75.
The NYCEDC, which runs the program, told Gothamist that the reason it’s buying ferries, rather than chartering them, is that it would cost $1,500 an hour to charter the boats.
As for sharing the revenue with Hornblower, the NYCEDC said that’s part of the fee paid to Hornblower for operating the system, otherwise the city would have to pay them for operating the ferries.
The city added that it is currently analyzing a ridership survey and will release the information soon.
“NYC Ferry is growing, and making sure we have an adequate fleet is just smart planning. The Comptroller should stop trying to stand in the way of New Yorkers who just want a better a commute,” a spokesperson for NYCEDC told Gothamist.
Last Friday, Stringer’s office sent a letter to NYCEDC with questions about the service, but the NYCEDC and city are under no obligation to halt the purchase on account of Stringer’s concerns. And if history is any indication, it will overrule his concerns and proceed with this purchase. The comptroller can only issue stinging rebukes and letters, but doesn’t have the legal authority to block any purchases.
“If we’re going to continue to have and expand our ferry service we need a coherent fiscal plan to keep the ferries afloat, and you don’t want to create a situation where we ground the ferries because EDC wasn’t transparent about the fiscal costs,” Stringer said.
NYCEDC plans to spend $300 million over the next five years to double its ferry service, bringing the city's total investment to around $637 million. That includes buying another 24 more ferries, although it’s unclear how much money will come from NYCEDC’s budget, and how much will come from taxpayers. It currently owns 24 boats which it bought with capital funding.
Correction: This story has been corrected to reflect that the $126 million the city is spending will go towards the purchase of a total of 24 ferries, not 3 ferries. We regret the error.
