Payment of Debt Service Focus of Playland Meeting

Several years of debt service payments likely will not be covered by revenues at Rye Playland, according projections by Standard Amusements, the company that seeks approval to operate the park.

However, a majority of the annual debt service payments over the next 15 years will be covered by revenues, and in the first year a one-time payment, officials said.

Westchester County Legislators this week discussed the park’s financial picture with representatives from Standard Amusements, including it’s head Nick Singer. Singer presented projections for the full 15-year term of the management agreement, including; revenue, employee salaries, marketing expenses, operating costs, overhead and more.

• Related: Astorino Negotiates $25 Million Investment Deal to Aid Playland

According to Standard’s projections, in the first year of the operating agreement, the county would realize revenue from Playland that would approximate the amount of debt service. This is attributable to the one time, upfront payment of $2.25 million dollars from Standard. In years 2-7, revenues from Playland operations are not expected to cover the debt service. Through the 7.5 percent share of Playland’s profits and the $300,000 annual payment to the county, Standard’s projections shows that the debt service will be covered through those revenues for years 8-15.

“Based on our experience and discussions with Standard to this point, I expect that they will continue to provide the financial detail and clear vision for Playland that Legislators will need in order to approve this agreement,” said Board of Legislators Chairman Michael Kaplowitz in a statement. “Today’s meeting laid out Standard’s projections for revenue and expenses, I’m looking forward to hearing their plans for how we achieve that success.”

Added Eastchester Legislator Sheila Marcotte, Chair of the Budget and Appropriations Committee, “The Standard Amusements team and the County Executive have done a good job of striking a deal that is fair for Standard, fair for the County and above all else, protects taxpayers by laying out a plan that will immediately begin to mitigate Playland’s drain on our tax levy. I look forward to continuing this vetting process and I am hopeful that at long last we have found the right operator with the necessary resources to return Playland to its, ‘tax-neutral’, former glory.”

The legislature’s Labor, Parks, Planning and Housing Committee is spearheading the review of the agreement with Standard Amusements, and its Chairman, Legislator Peter Harckham of North Salem, said, “A lot of important information came out of today’s Committee meeting and some additional questions have arisen from as well. I’m looking forward to continuing our review of Standard’s proposal especially regarding their capital plan. For the past six or eight years, the park has not been maintained as well as it should have been and I hope that Mr. Singer’s team is prepared to detail how they will remediate the state of disrepair that currently exists.” Harckham added, “The LPPH Committee will be touring Playland with Mr. Singer and his team on May 7. I expect many of our questions about the physical condition of Playland to be answered at that time.”

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