New Playland Management Deal Under Scrutiny by County Board
Last week, County Executive Robert Astorino endorsed a proposal by Standard Amusements LLC to invest $25 million in private money to restore Playland.
The plan, which was submitted in response to a request for proposals by the County Executive, is based on the vision of Nicholas Singer, a native of Westchester County, who attended Harrison public schools and whose family frequently visited Playland’s amusement park during his youth.
Now under review by the Board of Legislators, the proposal suggests that the county pay $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 a year. The county would also receive 7.5 percent of profits once Standard Amusements recouped its initial investment.
Currently the county loses about $4 million annually through its Playland operations.
For its $25 million investment, Standard Amusements would 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).
Singer is a financial executive who has founded and operated several successful investment firms. He is currently the Managing Member of Purchase Capital, which among other projects has invested in United Parks.
Singer formed United Parks in 2014 with CEO Jack Falfas, said to be one of the country’s foremost amusement park operators. Standard Amusements has entered into an operating arrangement with United Parks.
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.
The rejuvenation of the park would be handled by Falfas, who would personally oversee Playland’s operations and would take up residence in Rye during the first full year of the agreement.
The PMA follows a recommendation in a report commissioned by the county from Biederman Redevelopment Ventures, whose principal is Dan Biederman. 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, according to comments from the County Executive’s office.
“Without this kind of cash infusion and private management, hopes of rejuvenating and reinvigorating the park are not realistic,” Biederman concluded in the report.
At a press briefing following the proposal announcement, members of the BOL Parks Planning and Housing Committee said the ability for the public to be involved had been lost and that they would have liked more transparency while the Biederman report was being compiled.
“We paid $100,000 for the Biederman report,” said Legislator Catherine Parker (D-Rye). “At this stage a selection has been made. The public should have been more involved. It is our job to make sure we have a good deal.”
Noting that the current deal is not the same one proposed by Standard Amusements in 2013, Legislator Catherine Borgia (D-Ossining) said it was the responsibility of the BOL to do the vetting and dig down into the specifics on the financials. “We are happy to be a more formal part of the process,” she said.
The BOL has 60 days to go over the proposal, a schedule that members say they have every intention of meeting.
If the Board approves the plan, 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.
Under the agreement, Standard Amusements would 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 would continue the park’s current admission policies. Entry into the amusement park would be on a fee basis. Access to the boardwalk and property that surround the amusement park would be free of charge and open to the public.
The investment by Standard Amusements would 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.
The installation of athletic fields is expected to rouse concern Rye residents, who are encouraged the check the BOL website (www.westchesterlegislators.com) where meeting dates will be posted.
Playland will open for the 2015 season on May 9 under current county management.
