Westchester County and Standard Amusements have agreed to a five-month extension of the option agreement for the company to manage the county-owned park and invest $25 million in it, officials said Monday.
Standard, a privately held company, will pay the county $25,000 for the extension, which expands the end of the option period from Oct. 16, 2015, to March 31, 2016. Standard now has until that date to decide whether to go forward with the management agreement. If it does, county officials said Standard will take over management of the Rye amusement park next year, and it is on schedule to open in the spring for the 2016 season.
Standard Amusements partner and Harrison native Nicholas Singer said his company has committed $1.4 million to the revitalization of Playland and predicts its investment will exceed $25 million.
“If Standard Amusements wasn’t interested in investing in Playland, we wouldn’t have asked for the extension,” Singer said. “We simply need more time to conduct the due diligence necessary to ensure that our development and completion of the project will be successful.”
Westchester County Executive Robert P. Astorino said the extension was “reasonable and understandable.”
“One of the strengths of this deal is that it is a public-private partnership, but it also adds a layer of complexity that requires adequate time to be managed successfully,” Astorino said. “The goal is to save Playland for future generations and the extension means everyone remains focused on the goal.”
As part of the 15-year agreement approved unanimously by the county Board of Legislators in June, Standard Amusements will pay Westchseter $2.25 million up front in non-refundable payments, $500,000 of which the county said it has already received. Standard will then invest $22.75 million in renovating the park within five years. In addition, Standard will make annual payments to the county starting at $300,000 and increasing two percent per year.
Westchester will receive 7.5 percent of the park’s profits once Standard has recouped its initial investment.
Under the agreement, Standard will manage the amusement park, parking lot, beach, pool area and boardwalk. Not included in the agreement are the Children’s Museum, Pier Restaurant & Tiki Bar, Edith Read Sanctuary and the Ice Casino.
