Opinion: Privatizing Playland: $300k vs. $1,324,000.00 Annually?

This Wednesday, June 10, 2015 there will be a COMMITTEE vote within the BOL. This will take place at the 9am Labor, Parks, Planning & Housing Committee meeting. The meeting is open to the public (although there is no opportunity for questions or comments from the public), and takes place on the 8th floor of the Westchester County Office Building at 148 Martine Ave. in White Plains, NY (corner of Martine & Court streets, across from Macy’s in the Galleria, the entrance door is actually on Court Street and you must bring photo ID to get through security sign in located in the lobby.) The meeting agenda and agenda packet can be viewed by clicking on the link below. The meeting itself will be broadcast live via internet stream, and video taped for later viewing, all of which can also be found by accessing this link:

JUNE 10, 2015 LPPH COMMITTE MEETING ON STANDARD AMUSEMENTS CONTRACT.

This is expected to be a joint meeting with the Budget & Appropriations Committee, both of which are reviewing the current plan to fully privatize management of Playland Amusement Park, Beach and Pool under a 15-year contract with Standard Amusements.

AT THIS MEETING the Committee members must decide whether or not to vote this proposed contract “out of Committee” and send it to the full 17- member Westchester County Board of Legislators (“BOL”) for a full vote of either “yea” or “nay” on approval of this contract. That vote is to take place this coming Monday, June 15th at 7pm.

There are a lot of unanswered questions about this contract that just have not been ironed out in the very short arbitrary review deadline County Executive Rob Astorino gave the BOL - 60 days to review a full privatization, 15-year contract. The BOL simply has not had enough time to iron them all out and get definitive answers, and is scrambling to craft a “Memo Of Understanding” (MOU) to replace actual changes to the contract due to the rushed nature of the CE’s requirement for an approval vote. Deputy County Executive Kevin Plunkett doesn’t want to make actual changes to the CONTRACT because of Standard Amusement’s contention that to go back to their attorneys to make changes to the actual contract would be “problematic”. I hope that has raised some red flags for you, because it should.

The contract up for a vote has Standard Amusements investing $25 million dollars. 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. 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.

Let’s just focus now on that last sentence. It said “THREE HUNDRED THOUSAND DOLLARS” in annual rent. For the ENTIRE PARK.

In 2015, under the various concessionaire contracts in place and working at Playland right now, we are receiving OVER $1,324,000.00 (and no, that’s not a typo, that reads ONE MILLION-THREE-HUNDREED-TWENTY-FOUR-THOUSAND dollars) annually from the concessionaires currently there. And keep in mind, that is with fully HALF the food and games concessions closed and shuttered. This is also an incomplete analysis as it does not include the Lake Boating concession run by the Tolves or another small concessionare by the name of Costa. So, that $1, 324,000 number is in actuality higher.

See links below for full explanation.

If you are concerned that this solution to the supposed “financial crisis” at Playland is not in the best interest of Westchester County Taxpayers, please contact the County Executive’s office in writing (emails work as do phone calls) and also your own County Legislator. Links to their contact info can be found at the bottom of this post. You can also go to the 6/15/15 meeting at 7pm to voice your concerns during “Public Comments”.

FOODS CONCESSION:
Item 45375 - Culinart Inc. - this is the contract with the food concessionaire currently at Playland - Culinart. It clearly outlines that the County receives 20% of Culinart’s gross sales up to the first $3 million. That would equal $600k. Further, it provides for a 24.1% share of gross sales if they go OVER $3 million in a season.

ARCADES CONCESSIONS:

Item 45119 Tolve Amusements: This is the link to the Tolve arcade contract for three arcades - $57k, approved 3/26/15. This does not include additional payment for their Lake Boating concession.

GAMES & RIDES CONCESSION:
Items 45699-45705: Trahanas Amusements & MGE Inc (same family) for 10 game concessions: $50k, for 2 cotton candy stands and one popcorn stand: $54k, for the Thunderbolt ride: 40% of gross receipts to an estimated $149k, for the Flying Witch ride: 40% of gross receipts for an estimated $135k, for the Zombie Castle ride: 40% of gross receipts for an estimated $104k, for the Starship ride: 40% of gross receipts for an estimated $102k, for the Skyflyer ride: 40% of gross receipts for an estimated $73k - all totaling $667,000.

**Keep in mind also that when Standard comes in, the Trahanas family that has been there for decades leaves, and they take with them all the aforementioned rides that they own - a total of five. Standard Amusements has only pledged to bring in two to three new rides, and that is supposed to be *in addition to* the number of rides currently in the Park. No one has addressed in any review meetings how this discrepancy will be handled, or mentioned that in fact, the Park is actually going to LOSE the number of rides it has under this deal. So, of course, that equals less revenue and fewer attractions. And c’mon, what would Playland be without the Flying Witch? (who, unfortunately is not Flying this year...)

Current Total of just three concessionaires: $1,324,000.
Proposed contract with Standard: $300k.

We currently get 40% of the gross receipts on the rides owned by private operators, and 20%-24% of the gross sales on all food and beverage sales.

Standard wants to give us 7.5% of “potential” profits - profits that may never be realized.

Which do YOU think is the better deal?

WHAT CAN YOU DO?

If you are concerned about this, and you want the County to put the brakes on it for further review and revisions (and possible dismissal altogether), please contact you Legislators and County Executive to let them know.

**To find contact information for your Westchester County Legislator click here

**For information on how to contact County Executive Rob Astorino and the Parks Commissioners Kathy O’Connor and Peter Tartaglia click here

**For the Standard Contract, the Biederman Report, the Cap Improvement projects reports from 1998 & 2009 and other Playland related info click here and scroll down to the “Playland Improvement Plan” links.

**For further information on OTHER concerns not listed in this piece, please click here

To read ”Rob Astorino’s $25 Million Joke on Westchester?” click here

**You can follow “Friends Of Playland” on FaceBook for up-to-date information on this issue. Please “like” and share our page!

FRIENDS OF PLAYLAND on FaceBook