NYC wants to revise Wi-Fi kiosk deal based on financial returns
Financial returns on New York City's free public Wi-Fi kiosks have slightly surpassed the minimum amount the city was guaranteed to receive, but the de Blasio administration plans to allow the consortium running the system to defer profit-sharing payments, according to the New York Post.
The agreement inked between the city and the consortium — known as CityBridge — called for the city to receive escalating annual minimum payments, in addition to 50 percent of advertising revenues for a 15-year period.
In the first two years of the program, the city collected slightly less than $43.4 million in payments. It was guaranteed a minimum of $42.5 million.
Under an amended arrangement, CityBridge will be able to delay paying its share of revenues beyond the annual minimum payments until the final three years of he contract. At that time, profits will be due with 10 percent interest. The amended deal must be ratified by the city's franchise and concession and review committee, according to the report.
The change will allow CityBridge to invest more money into the program, officials said. The company declined to divulge its expenditures to date or say whether the venture has been profitable.