Comptroller asserts that insufficient oversight could cost City $6.1 million. A June 2008 audit by City Comptroller William C. Thompson concluded that New York Skyports, Inc. violated its lease agreement for a two-acre City-owned East River site, creating a potential cost of $6.1 million to the City.

Originally executed with the Gulf Oil Corp in 1959, the lease allowed the construction of a parking garage over the East River and the additional use of the two-acre parcel – running along the East River from East 18th to East 23rd Streets in Manhattan – for a seaplane operation, marina, gas station, and a plane, boat and auto repair facility. In exchange, the lease entitled the City to annual rents and 50 percent of all gross revenue from sales and advertising. Starting in 2002, several City inspections revealed needed repairs. In 2006, an inspection revealed issues with the garage’s structural support. In 2007, the City stepped in, spending $464,000 to install temporary shoring to support the floating garage. (read more…)