Westchester County says it has formally initiated arbitration against Standard Amusements, LLC, following what the county says was Standard’s wrongful attempted termination of the Playland Management Agreement (PMA). Additionally, Westchester County Department of Parks, Recreation and Conservation Commissioner Kathy O’Connor has formally requested that Standard begin the transition process to ensure the county can proceed with its plans to open Playland for the upcoming season.
Standard Amusements, in a statement provided to the Business Journal, said, “We are encouraged that the county is finally beginning to talk about taking the steps necessary to effect an orderly transition of Playland, as we have encouraged them to do since informing them in November of our intention to terminate our agreement. We welcome the arbitration process as the county still seems incapable of living up its agreements without the judicial branch forcing them to do so.”
Duke Law School explains that arbitration is a process to resolve disputes without going to court. The parties in a conflict select a neutral third party who is charged with trying to resolve the claims the parties have made. Contracts often contain a provision for the parties to go to arbitration because it can be less expensive and less time consuming than bringing court cases.
In a statement issued late on Feb. 6, the county said that it began arbitration to ensure that contractual obligations are upheld.
“Standard Amusements has failed to meet its responsibilities, and we are taking action to protect the interests of Westchester residents,” the county said. “The county has cured the 70% threshold requirement prior to Standard’s attempted termination and that Standard failed to adhere to the proper notice provisions outlined in the PMA. Under the agreement, Standard was required to continue managing Playland until the dispute was resolved. The company’s refusal to operate Playland for the 2025 season constitutes a breach of contract and an Event of Default under Section 23B(ii) of the PMA.”
The county said that even tough it has initiated arbitration regarding Standard Amusements’ decision to terminate the agreement, the county remains committed to ensuring a smooth transition of Playland’s management to county operations.
Westchester County Executive Ken Jenkins late last month provided an update on the dispute between the county and Standard Amusements, which has been managing the amusement park under a long-term contract.
Jenkins emphasized that Playland is a county park and will remain open to the public despite the unfolding dispute with Standard. In addition to the various rides and amusements, Playland has a beach, swimming pool, pier, boardwalk, restaurant, wildlife refuge, museum for children and a casino with an ice skating rink. The property is open year around with the amusement park operating during the warmer months.
Standard Amusements had notified the county that is terminating the management contract and claims that the county has breached the agreement. Standard says the county owes it a substantial amount of money under terms of the contract. The county has declared that Standard is in breach of the contract.
The county claims that Standard’s failures include: having inadequate ride operation with numerous rides closed throughout the seasons, a violation of industry standards; having insufficient maintenance staff that affected both daily operations and preventative maintenance; allowing several repairs identified in an October 2024 safety audit remain unfinished; withholding money that is owed to the county, citing delays in project completion buy the county with the county saying it provided proof that all projects were completed.
