Astorino Negotiates $25 Million Investment Deal to Aid Playland

Westchester County Executive Rob Astorino has negotiated an agreement that will invest $25 million in private money into Playland over the next five years, he announced at a press conference Tuesday.

The deal, he says, will help secure “the long-term future of the county’s iconic 100-acre amusement park in Rye.”

“This deal meets our three goals for preserving Playland,” said Astorino in a statement. “It stops the losses for taxpayers, which have been running about $4 million a year, it puts the park in the hands of a top-flight operator with strong financial resources and decades of experience, and it revitalizes Playland as a must-visit destination for family fun for years to come.”

Related:

• Playland’s Future to Be Focus of April 15 Legislators’ Committee Meeting
• Playland to Receive $5 Million from FEMA for Storm Repairs

The proposed deal still needs approval from the county Board of Legislators before it is adopted. Legislators have had a prickly relationship with Astorino’s office in recent months over the fate of Playland, and several were scheduled to meet with members of Astorino’s office Wednesday.

“My colleagues and I at the Board of Legislators are hopeful that this management agreement will prove to be a good one for Playland, Westchester taxpayers, and the residents of Rye,” said BOL Chairman Michael Kaplowitz in a statement. “We are here together at what we hope is the first step toward a bright future for Playland. Through the Board of Legislators Parks Planning and Housing Committee, we will set an ambitious schedule for a thorough and expeditious review of the new plan that County Executive Astorino has presented to us today.”

Under the proposed deal, New York-based Standard Amusements will pay the county $2,250,000 up front; invest $22,750,000 million of its money within five years into refurbishing the park; and make annual payments to the county starting at $300,000 and escalating 2% a year. The county will also receive 7.5% of profits once Standard Amusements has recouped its initial investment.

Westchester native and Standard Amusements partner Nicholas Singer “architected the deal,” Astorino says. The $25 million investment “will go toward revitalizing Playland with new rides and attractions, as well as upgrading food choices, picnic areas, and restaurants and renovating grounds and buildings.” Proposed new rides include a Double AquaLoop Slide, UniCoaster and a mini water park for young children.

“Rye Playland was a special part of my childhood, and I couldn’t be more excited to play a role in its future,” said Singer in a statement. “I’m proud that our longstanding vision to revitalize Playland has finally reached this stage and, given my discussions with members of the community, I am very hopeful that our plan will be approved by the Board of Legislators. I am eager to restore the park to its original grandeur and to ensure its success for decades to come.”

For its $25 million investment, Standard Amusements will receive the right to operate the park for 15 years with an option to renew for an additional 15 years under what is being called the Playland Management Agreement (PMA), according to Astorino. Standard Amusements has entered into an operating arrangement with United Parks, which is headed by CEO Jack Falfas. The structure of the PMA allows the county to retain full control of the property, as well as any material benefits from the capital improvements made by Standard Amusements.

Playland will open for the 2015 season on May 9 under current county management.

The proposed deal has the support of the Business Council of Westchester, which is urging the Board of Legislators ”to conduct a thorough but expeditious review of the contract and to support” the proposal.

“The Business Council of Westchester strongly endorses County Executive Rob Astorino’s plan to contract with a private company to operate the historic Playland Park in Rye,” the group said in a statement. “The financial package in excess of $23 million that has been negotiated with Standard Amusements, one of the finalists in the RFP process that began some five years ago, is comprehensive and addresses the substantial investment that is required to upgrade the 87-year-old amusement area. Importantly, the plan provides both short and long term income to the county and protects the interests of Westchester’s taxpayers.”

Additional information from Astorino’s office:

The rejuvenation of the park will be handled by Falfas of United Parks, who will be personally overseeing Playland’s operations and will take up residence in Rye during the first full year of the agreement. Falfas is a leading amusement park executive with more than 40 years of operating experience across the country. David Glazek, a partner in Standard Amusements, said: “We are thrilled that Jack has agreed to lead this important project. His extensive experience with amusement park turnarounds makes him ideally suited to help Playland regain its status as the crown jewel of Westchester County parks.”

The agreement now goes to the County Board of Legislators, which has 60 days to approve it. Upon board approval, Standard Amusements would co-manage the park with the county for the remainder of the 2015 season, beginning the transition to its role of sole operator on Nov. 1, 2015.

The PMA follows a recommendation in the report commissioned by the county from Biederman Redevelopment Ventures, whose principal is Dan Biederman, one of the nation’s leading experts on improving and revitalizing public spaces. The report recommends that the “daily operation of the amusement park and parking lot sections of Playland should be transferred to Standard Amusements” and reached its conclusion after extensive outreach and conversations with virtually every operator who could potentially run the park.

“Nicholas Singer and his team at Standard Amusements offered the best path forward for the county because of their willingness to guarantee a $25 million investment in the park,” said Biederman. “Without this kind of cash infusion and private management, hopes of rejuvenating and reinvigorating the park are not realistic.”

Under the agreement, Standard Amusements will manage the amusement park, parking lot, beach, pool area and boardwalk. Outside the agreement are the Children’s Museum, Pier Restaurant & Tiki Bar, Edith Read Sanctuary and the Ice Casino, which is run by American Skating Centers Entertainment through a separate asset management agreement with the county.

Standard Amusements will continue the park’s current admission policies. Entry into the amusement park will be on a fee basis. Access to the boardwalk and property that surround the amusement park will be free of charge and open to the public.

The investment by Standard Amusements will be used to upgrade the park’s overall appearance (painting, landscaping, façade replacements, pavement work, signage, bathhouse, picnic area and fountain renovations), improve the dining experience (more variety and new venues), restore historic rides, add new attractions (coasters, slides and water elements) and increase marketing. The agreement also gives Standard Amusements the option to have temporary athletic fields installed in the parking lots to accommodate spring and fall sports.

Photo: Westchester County Executive Rob Astorino at Tuesday’s press conference conference announcing the proposed Playland deal. Photo credit: Contributed

Subscribe to a free email newsletter and news alerts:

BEDFORD-KATONAH • BRONXVILLE-EASTCHESTER-TUCKAHOE • CHAPPAQUA-MOUNT KISCO • HARRISON • LARCHMONT-MAMARONECK • NANUET • NEW CITY • NEW ROCHELLE • NYACK-PIERMONT • OSSINING-CROTON • PEARL RIVER • PEEKSKILL-CORTLANDT • PELHAM • PORT CHESTER • PLEASANTVILLE-BRIARCLIFF • RIVERTOWNS • RYE • SCARSDALE • SOUTHEST-BREWSTER • TARRYTOWN-SLEEPY HOLLOW • WHITE PLAINS • YORKTOWN-SOMERS