Standard Amusements Gets Five More Months for Playland Due Diligence
With the 2015 outdoor recreation season quickly becoming a memory as cold weather descends on the region, Standard Amusements has requested a five-month extension of the option agreement for Playland, which ended October 16.
Extended to March 31, 2016, Standard Amusements will pay the county an additional $25,000 to complete the due diligence before investing $25 million in Playland and start taking over management of the park next year.
The extension has the support of the County Executive and Board of Legislators.
“If Standard Amusements wasn’t interested in investing in Playland, we wouldn’t have asked for the extension,” said Nicholas Singer a Standard Amusements partner in a press release issued Monday. “To date we have committed $1.4 million to the revitalization effort and based on our review, which began in July, it’s likely that our investment would exceed $25 million. We simply need more time to conduct the due diligence necessary to ensure that our development and completion of the project will be successful.”
The release also stated that County Executive Rob Astorino said the extension was reasonable and understandable, and that part of the need for the extension was to give Standard Amusements more time to understand the integration of its investment with the ongoing capital projects that the county will continue to undertake to fulfill its responsibilities as the owner of the park.
“One of the strengths of this deal is that it is a public-private partnership, but that also adds a layer of complexity that requires adequate time to be managed successfully,” Astorino said. “The goal is to save Playland for future generations and the extension means everyone remains focused on the goal.”
Playland will open on schedule in the spring for the 2016 season.
The extension now gives Standard Amusements until the end of March to decide whether to go forward with the management agreement negotiated with the county earlier this year.
Under the terms of the agreement, approved unanimously by the Board of Legislators in June, Standard Amusements will pay the county $2,250,000 up front, $500,000 of which the county has already received in a non-refundable payment; 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 will also receive 7.5 percent of profits once Standard Amusements has recouped its initial investment.
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.
Access to the boardwalk and property that surround the amusement park will continue to be free of charge and open to the public.
