Pittsburgh's Andy Warhol Museum has dropped plans for a satellite location in New York City. A new 10,000-square-foot space was to showcase works from the museum's collection as part of a 6-acre development on the Lower East Side in Seward Park.

“The Andy Warhol Museum, which had been exploring its participation in the Essex Crossing development in lower Manhattan, has determined that it will not proceed with the project. Despite the efforts of both the museum and the developers, an internal study of business and other operational considerations led the museum to this decision," read a statement issued Friday by The Warhol director, Eric Shiner. 

He continued, “The Warhol will continue to participate in programs, exhibitions, and special projects in New York City through its longstanding collaborations with a variety of New York-based arts organizations.”

Risa B. Heller, a spokeswoman for Delancey Street Associates, the group of developers behind the project, said, "For the past two years we have worked closely with The Andy Warhol Museum to find a way to bring Andy home to New York's Lower East Side. We have dedicated tremendous time and resources and offered them a very generous multimillion dollar package to make this work. We found out today and are surprised and disappointed that they are unable to see this through. We are hard at work looking for another exciting use for this great space."