Despite the coronavirus-fueled budget crisis, Mayor Bill de Blasio went ahead with spending $62 million on new boats for the city’s lightly used and heavily subsidized East River ferry system, The Post has learned.
The decision to go ahead with the purchase of eight more vessels for NYC Ferry — a pet project of the mayor’s — came to light after Comptroller Scott Stringer attempted to block the spending, only to have City Hall override him in June.
“As our city battles a financial crisis and services for vulnerable communities are put on the chopping block, I seriously question spending millions of additional taxpayer dollars on ferry vessels, when the program does not effectively serve a broad range of New Yorkers,” Stringer said.
The boats were originally ordered in 2019 — months before the pandemic hit — as part of the $637 million that the city has budgeted so far on the East River ferry network.
However, city officials went ahead with the purchase and payment after the coronavirus pandemic hit, all while rolling out massive cuts to other agencies — including a $1.5 billion pot to the NYPD — in a bid to tackle a $9 billion budget shortfall.
“How does the mayor justify this sort of spending on a system that moves so few people, especially at a time when he’s taking away millions from New Yorkers who ride buses and bikes,” asked an enraged Danny Harris, who runs straphanger and transit activist group, Transportation Alternatives.
Officials argued in a letter sent to the Comptroller’s Office that the city-run Economic Development Corporation had no easy way to exit the deal.
However, they also acknowledged they had not attempted to sell the boats or otherwise reexamine the deal, claiming the boats are needed for future expansion still slated for 2021 and argued there was no guarantee the government would make a profit off the sale.
“EDC has not considered ‘eliminating’ or ‘offloading vessels,’ City Hall told the Comptroller in a letter. “The recently constructed vessels are necessary for the expansion of NYC Ferry which, while postponed, is still planned for 2021.”
“Additionally, given the dramatic reduction of activity in the small passenger vessel sector, the commercial market for resale of these vessel types is substantially depressed; selling the newly produced vessels would cause the city to incur a financial loss,” officials added.
The letter did not mention that until 2019 procuring the vessels — and the associated risk — was the responsibility of Hornblower, the company hired by EDC to operate the ferry system. EDC’s contract also contained provisions that gave officials significant latitude to modify or terminate the deal.
Officials claimed at the time that the city would save money by owning the NYC Ferry fleet, though experts found otherwise.
NYC Ferry has not been immune to budget cuts, though. The Economic Development Corp. says adjustments to service and schedules would allow for a 20 percent in its subsidy, which hit $54 million in the city’s 2020 budget.
Documents City Hall provided to the Comptroller show it will still cost $44 million during this upcoming budget year.
The system’s ridership was down 80 percent during the last week in April as the COVID-19 outbreak lashed the five boroughs, ultimately killing more than 22,000 New Yorkers and forcing the shutdown of the economy.
NYC Ferry is Mayor de Blasio’s signature transportation initiative, but the program has been roundly criticized for requiring massive operating subsidies and catering to a posh ridership — despite Hizzoner’s repeated claims it’s helping to build a more fair city.
“The NYC Ferry is a popular, reliable transit option that connects New Yorkers of all backgrounds with job centers across the city,” said City Hall spokesman Mitch Schwartz. “To meet current demand, plan for expanding the system and save money over the long term, we’re acquiring our own vessels instead of paying for expensive charter boats.”
He added: “As these vessels are delivered, the city must pay its bills to the shipyards that built them.”