By Dan Murphy
On April 12, The Westchester County Board of Legislators, by a vote of 13-4, approved a bankruptcy court settlement with Standard Amusements over the future management of Playland, the county owned, and taxpayer funded amusement park.
Five years ago, former County Executive Rob Astorino proposed a public private partnership for Playland. Standard Amusements was chosen to be the manager-operator in 2015, but lawsuits and a bankruptcy filing by Standard stretched out the transfer of power.
The current County Executive, George Latimer, elected in 2017, sought ways to get Westchester County out of the Playland agreement with
Standard, citing failure to comply with a number of requirements. Standard sought federal bankruptcy protection to enforce the 2016 contract, but the judge urged both sides to negotiate an amended agreement.
The settlement agreement gives Westchester County more protections, oversight and better financial terms. That agreement was approved by the County Board but not without objection by four legislators who wanted more discussions, negotiations and what they see as required approval by NY State government over the transfer of parkland.
Westchester County and its taxpayers will now share in any profits over $12 Million, and if Standard cannot generate at least $12 million in gross revenue per year for four straight years, the County may terminate the contract.
Standard Amusements will begin management at Playland starting in December of 2021, so this summer families can enjoy Playland as it always has been operated, as a Westchester County run park.
Those who voted for the agreement did so with the understanding that this was the best of two unpopular choices: to come to the best agreement for the county or continue the fight in court and in Albany.
BOL Chair Ben Boykin said, “The choice we faced in this vote was not between our theoretical best agreement or no agreement at all. Our choice was between voting to approve this settlement or voting not to approve this settlement and allowing Standard to assume the original contract in bankruptcy court. In approving this settlement, we are voting to give the County much better financial terms, more oversight over Standard’s work and operations at Playland, and more outside investment from Standard in this park which is a jewel in the crown of our Parks Department. Thanks to getting us to this improved place for County taxpayers and residents.”
Law and Major Contracts Chair Legislator Nancy Barr said, “Although this agreement might not represent the dream contract we would have negotiated if we were starting from scratch, it is clear after three months of deep and detailed review that this settlement represents enormously improved terms for the County and a better future for Playland.”
Budget and Appropriations Chair Legislator Catherine Borgia said, “A legislator’s duty as a financial fiduciary and as a steward of our parks means we often must make challenging and hard-nosed decisions, guided always by what we believe is in the best interests of the people of this County. In the final analysis, it is important that we not let the perfect be the enemy of the good.”
Majority Leader Legislator MaryJane Shimsky said, “Reverting to the 2016 Astorino deal, or engaging in years of further litigation with limited likelihood of success, only risked further harm to our wonderful Jewel on the Sound. I am glad that my colleagues put aside emotion and acted as good fiduciaries.”
Four democratic county legislators voted no on the Playland settlement: Legislators Damon Maher, Catherine Parker, David Tubiolo and Ruth Walter.
Legislator Parker represents the Rye community that is most affected by any changes to Playland. “This feels rushed. We haven’t taken into account new information. The Mayor of Rye has some very serious concerns with the agreement and wanted to be heard. I’m very disappointed that this courtesy and protocol, to listen to the chief elected official in my district that abuts Playland, was not followed. The process cannot be separated from our policy. When we neglect things and rush, we make mistakes. For this reason, I will be voting no,” said Parker.
Legislator Ruth Walter said, “I do have lingering concerns. I’m very concerned about the numbers that were presented by our partners, and if they add up, including a 40% increase in attendance which as we heard today from the Mayor of Rye will increase parking and sewage and law enforcement costs to the city. I’m also concerned about protecting full time union jobs at the park. We also need to protect affordability at Playland for those families in Westchester who can’t afford to go to Disney.”
Legislator David Tubiolo said, “This has been quite the discussion, and now we can vote our peace and our mind.”
Legislator Maher and Chairman Boykin got into a heated debate over whether a legislator could ‘hold over’ the item for additional debate, after Chairman Boykin placed the item on Special Order. Boykin overruled Maher, who asked for an apology for “trying to follow the rules and advocate for Playland and the people of Westchester.”
Maher raised a different point in the Playland debate, whether the State of NY has to approve the agreement because Playland is a county park. “Only the highest official, the State of New York, can give away or sell parkland. This kind of transaction needs to be approved by both houses of the state legislature and the Governor through an alienation of parkland. If you don’t ask for approval by the state, you open yourselves up to litigation and we have already spent $6 Million in legal costs on this agreement for Playland,” said Maher.
“This may be the most important vote that any of us take. Playland is the Jewel in the Crown of Westchester Parks. How absurd would it be to have a 35-year exclusive lease with someone for another county park? What if this were happening at Memorial Field, or Scout Field, or the Hudson River Museum. Those are the terms of this agreement.
“Can we legally get out of this agreement? I don’t think we have explored it enough and the people of Westchester deserve that. The job of an equity firm is to make money for their investors, and that is not a great model for Playland. Public parks don’t have to make money,” said Maher.
Legislator Jose Alvarado, a former Chair of the BOL Parks Committee, voiced his uneasiness over the vote, but he expressed his hope that Standard could work with the County and perform in a manner that would elevate the park, considering the bickering of the recent past. “The legislation before us is the result of an unfortunate set of circumstances. In my heart, I believe it was a serious mistake for the previous administration to abandon its responsibilities to Playland by outsourcing its management. After all, let’s not forget the County has managed and cared for Playland for some 92 years. During the course of that time, Playland has created magic for millions of children and their families while establishing lifetime memories. Under the County’s care, Playland has been an award-winning park, famous throughout the country and the industry.
“The 2016 management agreement was not a good one for the park in terms of County input and involvement, as well as in other areas. I applaud our current County Executive George Latimer’s efforts to forge a new path. Despite his best efforts, that path led to bankruptcy court. That court now brings us here. While I still believe we should not be outsourcing management of Playland, I recognize that due to the legal proceedings we have no choice. In fact, failure to vote for this agreement will return us to the 2016 agreement, which we all know would be a giant step backwards. While I am not pleased by this, the only responsible thing to do is to vote ‘yes’ for the new agreement,” said Alvarado.
Remaining questions about Standard Amusements include:
1-Whether it has the capital to operate Playland successfully. A required holding of $17.5 Million in a bank account was part of the settlement. Some have called on a stricter requirement like having a letter of credit from a bank.
2-Standard does not own or operate any amusement facilities. Another parent company, United Parks, LLC, will manage and operate Playland on behalf of Standard. — United Parks, LLC, currently only owns and operates Daytona Lagoon Waterpark and lists their Playland Contract, through Standard Amusements, LLC, on their website. They used to own and operate Hydro Adventures Waterpark and Family Entertainment Center in Poplar Bluff, MO, until they Closed the Park in 2020 due to COVID.
3- Required investments in the park will come from Standard, $35 Million, and Westchester County taxpayers –$126 Million. Will Standard, and its owner, Nicholas Singer, a native of Harrison who has publicly stated his desire to turn Playland around, come up with the required funds?
4- Standard has committed to continuing to hire a diverse slate of young seasonal workers during the summer as well as older workers. We hope this tradition continues.
Many Westchester residents on social media thanked County Executive George Latimer for his efforts to, at least, make the Playland settlement the best that it could be. Remember, that it was Latimer, upon taking office as County Executive, who cancelled the Playland agreement in 2019 that Astorino negotiated, only to be stymied by Standard’s legal maneuvers which included Bankruptcy protection. And that was the primary reason why 13 members of the county board voted for the settlement.
