NEW YORK (CBSNewYork) – Developers may walk away from plans to build a huge Ferris wheel on State Island after demanding Mayor Bill de Blasio support $380 million in tax-exempt bonds to help pay for the project.

Work stopped a year ago for building a 360-foot observation wheel near the Staten Island ferry terminal.

Earlier this month the city’s economic development corporation denied the bond sale.

“The wheel was a private sector endeavor that was supposed to pay for itself,” said de Blasio in a radio interview. “I think the economics were a little shaky from the beginning and they’ve proven to be shakier.”