Westchester County Executive Robert P. Astorino took to the Rye Playland boardwalk Tuesday to announce an agreement for Standard Amusements to take over management and invest nearly $23 million in restoring and upgrading the historic park.
If the deal is approved by lawmakers, New York City-based Standard Amusements LLC will pay the county $2.25 million up front, invest $22.75 million over five years in upgrades to the park and make payments of $300,000 per year to the county, with an annual 2 percent inflation rate. Once the company recoups its investment, the county will receive 7.5 percent of its profits from running the park, Astorino said.
“The county will be part of the upside of Playland,” Astorino said.
- Playland amusement park in Rye.
When Astorino came into office in 2010, one of his goals was to turn over the 87-year-old, county-owned park to a private operator because he said it cost the county about $4 million in losses every year and was a drain on taxpayers.
Astorino said the only way to improve the park would be to bring in a private partner. The county put out the first bid for a new operator in 2011 and chose nonprofit Sustainable Playland Inc. in 2012, which backed out of the deal last year.
After the deal with Sustainable Playland fell through, the county commissioned Manhattan-based Biederman Redevelopment Venture Corp., owned by Dan Biederman, who redeveloped Bryant Park in Manhattan, to make recommendations for the future of Playland. He received $100,000 for the report, which was due in November.
Astorino said Biederman vetted every possible park operator. He said the county received a draft of the report in December, which recommended renegotiating with Standard Amusements but not to do so in public. The final report came Monday, and the agreement with Standard Amusements was signed Monday night. It gives the company the right to become the sole operator for 15 years beginning Nov. 1, with an option to renew for another 15 years.
The agreement requires approval from the county Board of Legislators, which has until June 15 to act. If approved, Standard Amusements will begin to manage the park this season. The company can back out of the deal by Oct. 31 but would owe the county $500,000.
The company will manage and upgrade the amusement park, parking lot, beach, pool area and boardwalk, and said it plans to improve rather than transform the park.
Standard Amusements partner Nicholas Singer is a financial executive who grew up in Harrison and frequently visited Rye Playland”™s amusement park and beaches. He called the park deal a “passion project.”
“Our plan is to restore Rye Playland to the crown jewel of Westchester County,” Singer said. “There”™s nothing fundamentally wrong with Playland. It just needs some capital investment and some TLC and the right leadership, which we found in Jack Falfas.”
Standard Amusements entered into an operating agreement with United Parks, whose CEO Jack Falfas has 40 years of experience with amusement parks, including Dorney Park in Pennsylvania. He will move to Rye for at least one year to oversee operations.
Singer said Standard will restore historic rides, add attractions, upgrade the park”™s appearance, improve the dining experience and increase marketing. Future plans include opening a small water park for children and installing temporary playing fields in the parking lot in the spring and fall.
Astorino said the goal is to bring more people to the park year-round, increasing its use from 100 days to as many as possible. Playland is home to the Ice Casino, which was recently contracted to be operated by American Skating Entertainment Centers; the Westchester Children”™s Museum, which opened last summer; Pier Restaurant & Tiki Bar; and Edith Read Sanctuary ”“ all which are operated outside of the agreement.
Astorino said the company plans to give employees the option to continue working at the park or work elsewhere in the Parks Department. It plans to continue the park”™s admissions policies ”“ requiring a fee to enter the amusement park and maintaining free access to the boardwalk and surrounding area.
Board of Legislators Chairman Michael Kaplowitz said the public-private partnership could be good for the people of Westchester and he looks forward to vetting it.
The board’s Budget & Appropriations and Labor, Parks, Planning & Housing committees will review the proposal.
After the press conference, The Business Council of Westchester issued a press release endorsing the plan, saying it will provide short- and long-term income to the county and protects the interests of taxpayers.
