Mayor Eric Adams needs to chop losses on the metropolis’s standard however money-burning ferry system by telling potential operators to pitch new methods to earn income — together with leases, concessions and promoting.
Metropolis Corridor on Wednesday printed a “request for proposals” from potential ferry operators that particularly requires them to cook dinner up a “income era plan” that may put cash in metropolis coffers to offset the large municipal subsidy that at the moment funds the service.
Metropolis taxpayers subsidize ferry journeys at as a lot as $14.75 per journey, in line with a current audit by metropolis Comptroller Brad Lander — even because the ferry’s rich clientele pay simply $2.75 to journey.
Adams in July pledged to elevate the bottom fare to $4 beginning Sept. 12, whereas providing a 10-ticket package deal for $27.50.
Hizzoner has insisted the ferry is not only for the prosperous, echoing claims by his predecessor Invoice de Blasio, who expanded the service and instituted the $2.75 fare to match the price of an MTA bus or subway journey.
Regardless of changing into mayor on a pledge to finish a category divide he referred to as a “story of two cities,” de Blasio aggressively promoted the ferry service, which has a ridership with a median annual revenue between $100,000 and $150,000, The Publish completely revealed in 2020.
Ferry journeys beforehand value $4 beneath Mayor Michael Bloomberg.
Day by day NYC Ferry ridership was simply 11,688 on weekdays and 12,984 on weekends within the first three months of 2022. Summer season ridership is greater, however solely simply returned to pre-COVID-19 ranges, in line with metropolis officers.
Potential new sources of income embody movie shoots and personal occasions, in line with the request for proposals, which doesn't require any cost-savings from ferry operations.
Metropolis officers and out of doors specialists have warned that too-high fares may discourage ridership and cut back income.
“Operationally, it doesn’t look like a lot goes to vary,” mentioned Sean Campion of the Residents Funds Fee. “They need to function a extra financially sustainable ferry system. They’ve addressed one piece of that by growing the fares — and now they’re hoping to give you new income concepts and a brand new personal working mannequin that’s less expensive.”
Present ferry operator Hornblower plans to submit a proposal to proceed working the service, the corporate advised nonprofit information outlet The Metropolis, which first reported on the RFP.
“Right this moment, no different operator is healthier ready to construct upon the system’s early success and implement the imaginative and prescient to create a extra equitable and accessible NYC Ferry,” mentioned Hornblower CEO Kevin Rabbitt.
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