Playland Management Now in the Hands of Private Contractors

The Board of Legislators Monday unanimously approved the 15-year agreement reached between Westchester County Executive Rob Astorino and Standard Amusements for the New York-based company to manage and revitalize the Playland amusement park in Rye.

Under the agreement, Standard Amusements will invest $25 million in private money into Playland over the next five years, “securing the long-term future” of the county-owned facility.

“I want to thank Chairman [Michael] Kaplowitz for his leadership on moving this forward with the necessary speed and due diligence,” said Astorino in a statement. “This deal meets our three goals for preserving Playland by reversing the losses for taxpayers, putting the park in the hands of a top-flight operator, and revitalizing Playland as a must-visit destination for families for years to come.”

Added Nicholas Singer, president of Standard Amusements and a native of Westchester, “We’d like to thank the BOL for supporting our plans to return Playland to that special place I knew as a child. In hearings over the past two months, we’ve made a detailed effort to inform the local community of the steps we’ll take to restore the park, and we’re excited to have received its strong vote of confidence. We’re excited to now move to the next phase, and begin the co-management arrangement, under the experienced eye of our CEO, Jack Falfas.”

Related:

• Astorino Negotiates $25 Million Investment Deal to Aid Playland
• Playland’s Future to Be Focus of April 15 Legislators’ Committee Meeting
• Playland to Receive $5 Million from FEMA for Storm Repairs
• Opinion: Privatizing Playland: $300k vs. $1,324,000.00 Annually?

The beleaguered amusement park has suffered through low attendance in recent years, and needs a shot in the arm, which Astorino convinced legislators this deal represented.

Not everyone agrees.

“The County’s financial obligation as the property owner/Landlord to make necessary Capital Improvements to the Park that have been long outstanding due to a years-long policy of deferred maintenance is going to be *at least* in the neighborhood of an additional $40-$50 million,” wrote resident and Patch reader Deirdre Curran in a recent opinion piece. “The contract stipulates that Standard Amusements will recoup their entire investment and then keep 92.5% of any profits. In return they will give the County a 7.5% profit share (if any profits are ever actually realized) and pay the County a $300k annual ’rent’ for the entire property.”

Curran and members of her group, Friends of Playland, believe that among other things, the county is not recouping enough money from the deal, particularly when concession sales alone can tally more than four-times the annual $300,000 Standard Amusements will pay.

According to Astorino:

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. 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 percent per year. The county will also receive 7.5 percent of profits once Standard Amusements has recouped its initial investment.

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). 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.

With the BOL’s approval on Monday, Standard Amusements will now co-manage Playland for the remainder of the 2015 season and will begin the transition to its role of sole operator on Nov. 1, 2015. 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.

Standard Amusements will continue the park’s current admission policies which includes entry into the amusement park on a fee basis. Access to the boardwalk and other areas that are currently free will remain as such.

Photo: County Executive Rob Astorino announcing the Playland agreement in April, 2015.