The city’s stalled bike-sharing program is asking for financial help even before it begins, The Post has learned.
Alta, the company that was supposed to have put 10,000 bicycles on the street starting today, has asked the lead sponsor to accelerate payments of $3.5 million in case the program is delayed until next spring and runs out of cash, sources said.
“They want the money earlier than they would’ve gotten it,” one source said.
The sponsor, Citibank, is considering the request, a source said.
The bank is shelling out $41 million over five years to attach its name to the program, which would be one of the largest of its kind in the world.
But the payments are timed to targets that Alta might not be able to reach because of delays caused by a software problem.
Citibank paid its first $1.4 million installment when it signed the contract with Alta. A second $1.4 million comes due on the launch date, and $2.1 million more is supposed to be paid when at least 7,000 bikes hit the road.
The source said Alta, fearful it might take a while to resolve the software issue, has asked the bank to pay the second $1.4 million in September and the $2.1 million in January even if the targets aren’t met.
One insider said the program might be shelved until next spring if the delay reaches late October.
“No one wants to do this in November,” the insider said. “You’d be looking at spring [2013].”
The city has been secretive, and a spokesman for the Department of Transportation, which is overseeing the program, didn’t provide much information yesterday.
“That is inaccurate,” spokesman Seth Solomonow said when asked about the possible delay until 2013 and Alta’s request for a bailout.
“While we can’t get into details, we are working on a plan to launch the system.”
Beyond the embarrassment, the city has no exposure with the program because Mayor Bloomberg insisted taxpayers have no direct financial role.