The Westchester County Board of Legislators voted 13-4 to approve the settlement with Standard Amusements that allows Standard to become the operator of the county”™s Playland Amusement Park.
When County Executive George Latimer succeeded Rob Astorino, one of his early actions was to cancel the contract that had been negotiated between Standard and the Astorino administration. Standard went to court to fight the contract cancellation and at the same time filed for bankruptcy. The case was heard in federal court in White Plains.
A new agreement between the county and Standard had been approved by the bankruptcy court. Latimer has said that the county would operate the park this coming season with Standard moving into the management role in 2022.
The settlement provides that beginning on Aug. 31, 2022, and each year thereafter, Standard Amusements will pay the county a management fee, which in the first year is $300,000, rises to $400,000 in the second year and each year thereafter is adjusted by the change in the Consumer Price Index.
Beginning with Playland”™s 2023 season, Standard Amusements will be obligated to pay the county annually an amount equal to 5% of gross revenue above an initial revenue target of $12 million.
When the settlement goes into effect, Standard is required to have $17.5 million available in cash or credits to spend on improvements at the park, although $5 million of that may be used on certain operating and management expenses. In all, Standard has to invest $35 million of which $2.25 million may be dedicated to costs involved with demolition and reconstruction of the Tiki Bar and Charley’s Pier Restaurant should Standard undertake such a project.
The county has to make a $126 million capital investment in Playland.
The settlement also gives the county new oversight over Standard’s operation of the park, controls that were not in the previous agreement. These include the power to review and approve Standard’s construction plans, approval of new rides, new and more specific financial reporting requirements for Standard, and county approval of an annual operating plan for the park.
The settlement contains new terms under which Standard can assign the contract to another company but the county will now have the ability to object to such an assignment.
In addition, under the settlement, if Standard fails to generate at least $12 million in gross revenue per year for four straight years, the county may terminate the contract.
Board of Legislators Chairman Ben Boykin said, “The choice we faced in this vote was not between our theoretical best agreement or no agreement at all. Our choice was between voting to approve this settlement, or voting not to approve this settlement and allowing Standard to assume the original contract in bankruptcy court. In approving this settlement, we are voting to give the county much better financial terms, more oversight over Standard’s work and operations at Playland, and more outside investment from Standard in this park.”
