With new ownership from executives at real estate giant Related and a new CEO in former MTA head Jay Walder, Citi Bike expansion is back on track. DOT has already started taking suggestions for new bike-share stations. Image: DOT
It’s official: Alta Bicycle Share, the company that runs Citi Bike, has a new owner, an infusion of cash, and a fresh face at the top — longtime transit executive Jay Walder. At a press conference this afternoon, the new team promised to correct Citi Bike’s blunders and double the system’s size by the end of 2017.
The same ownership group will also be running Alta bike-share systems in Chicago, San Francisco, Washington, and Boston, among other cities. While today’s news signals potential changes in those cities as well, the most immediate changes — along with Alta Bicycle Share’s headquarters — are coming to New York.
Citi Bike’s reboot has been months in the making. Top executives from Equinox Fitness, itself a division of real estate giant The Related Companies, burst onto the bike-share scene in April with an unsuccessful last-minute bid for Bixi, the bankrupt Canadian supplier of Alta’s bike-share components. Related execs resurfaced in July, when word came that they were on the verge of buying out Alta. After months of negotiations, the deal is now official, with a company backed by Related executives and other investors, called Bikeshare Holdings LLC, acquiring all of Alta Bicycle Share.
Alta is getting a major cash infusion — $30 million from Bikeshare Holdings LLC, which is led by Equinox CEO Harvey Spevak, Related CEO Jeff Blau, and investor Jonathan Schulhof. Citi has extended its initial $41 million, five-year sponsorship of NYC bike-share by promising an additional $70.5 million through 2024, contingent on system expansion. Goldman Sachs Urban Investment Group, which has already helped finance Citi Bike, is increasing its credit line to Alta by $15 million. The deal includes $5 million from the Partnership Fund for New York City, an investment fund backed by the city’s big business coalition, to expand Citi Bike to more neighborhoods.
That expansion is set to roll out in stages over the next three years. Today, the system has 330 stations and 6,000 bikes. Alta and DOT promised today that by the end of 2017, it will double to over 700 stations and 12,000 bikes. The first round will bring the system to neighborhoods that have long been promised bike-share, such as Long Island City and Greenpoint, as well as additional parts of Williamsburg and Bedford Stuyvesant. The second phase will expand the system to just north of 125th Street in Harlem, south to Red Hook, Park Slope, and Prospect Heights, and to a large section of Astoria. It does not include Roosevelt, Randalls, and Ward Islands.