Is the Private Deal With Standard Amusements Good for Taxpayers?
By Dan Murphy
Playland, the historic-landmark amusement park owned by the residents and taxpayers of Westchester, is once again back in the news on two fronts.
First, several Rye residents seeking to stop any redevelopment or expansion of Playland were rejected by a state appeals court.
Second, efforts by the new county administration to get out of what many believe is a bad deal for the residents and taxpayers continues, with the named operator of Playland for next year at odds with the new administration. The
The New York State Court of Appeals, Appellate Division recently affirmed State Supreme Court Judge Thomas Walsh’s decision, which dismissed a case brought by the City of Rye and Rye residents Sack and Mecca regarding the Playland SEQRA process.
For decades, the neighboring residents of Rye have opposed any efforts to expand Playland or to turn it into “another great adventure.” Recent opposition has also come from plans to turn Playland into a year-round destination, instead of the Memorial Day to Labor Day amusement park it now is, in addition to an ice rink, which does not bring large crowds or traffic, and which is exactly what the residents of Rye want – no additional disturbances.
Former County Executive Rob Astorino pushed through a process of trying to find a private partner to come in and help rehabilitate Playland and share the financial burden with the taxpayers of Westchester. Before he was voted out of office, Astorino was able to get Standard Amusements selected as the new operator for Playland.
With the election of George Latimer as county executive, and a supermajority of democrats on the County Board of Legislators, the urge to privatize Playland diminished greatly, if not entirely. Furthermore, an examination by many of the agreement between Standard Amusements and Westchester County found that Standard Amusements was getting the better end of the bargain, and that while the financial burden to fund and pay for capital improvements at Playland continued to fall on the taxpayers, the benefit of most of the profits ended up with Standard Amusements.
When Latimer came into office, he attempted to settle the lawsuit from Rye City and Rye residents against Playland. Latimer is a Rye resident and former councilman, so many believed that the case could be settled by a sympathetic ear sitting on the ninth floor of the county office building in White Plains.
But that was not the case, with Rye officials wanting to pursue the appeal. One year later, with all the added legal fees on both sides, the Appellate Court sustained the decision of the Trial Court – as expected – supporting the county’s position, which was that the environmental review process known as SEQRA was completely legally.
What is also strange about Rye’s persistence in pushing the suit up the appeals ladder was that the lawsuit began under a prior Republican Council in Rye vs. the former Republican County administration (Astorino) – and strangely, continued when Democrats took control of the Rye City Council. Latimer established a Good Neighbor Policy on taking office that allows local governments more information about county policies and actions in advance. It does not, however, convey the authority to make land use decisions on county property to the local community.
The Appellate Division wrote: “The petitioners, the City of Rye, Joseph A. Sack, and Richard Mecca, commenced this proceeding pursuant to CPLR article 78, inter alia, to review a determination of the Westchester County Board of Legislators dated May 2, 2016, adopting a negative declaration under the State Environmental Quality Review Act (hereinafter SEQRA). The SEQRA determination related to several proposed development projects at Playland Park, an amusement park located in the City of Rye, and owned by the County of Westchester. The Supreme Court, in effect, denied the petition and dismissed the proceeding, concluding that the petitioners lacked standing. The petitioners appeal.
“We agree with the Supreme Court’s determination that the City of Rye does not have standing to maintain this proceeding based on its status as an ‘involved agency.’ The court properly employed the ‘balancing of public interests’ test and determined that the subject development projects are immune from local zoning and land use laws.
“We also agree with the Supreme Court’s determination that the petitioners failed to demonstrate that the City of Rye has standing based on any demonstrated interest in the potential environmental impacts of the development projects on the City of Rye’s community character.
“With respect to the individual petitioners, we agree with the Supreme Court’s determination that Mecca failed to demonstrate his entitlement to a presumption of standing based on the proximity of his home to the development projects and that neither Mecca nor Sack demonstrated their entitlement to standing by showing an injury-in-fact that fell within the zone of interests protected by SEQRA.” (End of Appellate Division quotes.)
In laymen’s terms: Game, set, match for Westchester County, and shame on Rye for continuing a lawsuit and for rejecting attempts by a fellow Rye resident to settle the matter.
The more difficult and complex argument comes in the discussion on the future of Playland, with published reports claiming that Westchester County is challenging parts of a contract with Standard Amusements, setting up a possible legal battle or even the collapse of the deal. Standard Amusements has fired back, claiming the county isn’t living up to its end of the bargain.
At issue is the money that has to be invested into Playland, totaling $60 million, with Standard required to pay for $27.5 million and the county government picking up the other $32.5 million.
A review of the contract by the Latimer administration found the terms unfavorable, and shortly after, the company was found to be in breach of the contract by failing to meet a 2017 deadline to invest $5 million into the park. Standard claims it spent $5.7 million though last fall, but the county disputes that amount, claiming that includes salaries and expenses of employees.
Westchester County government also claims that Standard hasn’t proved it has the financial capabilities to live up to its end of the contract.
The attorneys for Standard, the high powered law firm of DelBello Donnellan Weingarten Wise and Wiederkehr, , disagree, saying this is nothing more than an attempt to manufacture a contractual dispute.
Last year, Latimer pointed out that his administration has renegotiated a deal with Liberty Lines for the good of the taxpayers. “It’s our responsibility to push back if the taxpayers or the people who use the service are getting the best value out of it,” he said.
County Legislator Lyndon Williams indicated support for the Latimer administration’s efforts to enforce the contract.
“I know from the perspective of the Legislature, we want to make sure that Standard Amusements – like any other contractor with the county – that they comply with the terms and conditions of the contract which they entered into with the county of Westchester,” said Williams. “Those terms and conditions, we expect that if they’re not complied with, that the county attorney will seek to enforce them. That’s what he’s required to do.”
County Legislator Catherine Parker, who represents Rye, has previously called on Latimer to tear up the deal with Standard.
Standard has support from a group called Save Playland. One member of Save Playland, Steve Vasko, said, “Playland is in terrible shape, it needs massive investment, and I don’t think the county can afford to do all of the investment at this time.”
Under the agreement, Standard pays Westchester escalating annual payments starting at $300,000. After the company recoups its initial investment, Westchester gets 8 percent of net income generated at the park. Westchester’s cut increases to 10 percent after the first 10 years of the deal and increases to 12 percent in years 21 through 30.
The county is set to turn over management to Standard in November. The park will run as is this summer under the same county management
Standard wants to add six new restaurants and rebuild an old roller coaster, the Aeroplane, which was taken down in 1957 but loved by roller coaster enthusiasts. Nathaniel Garnick, a Standard spokesman, said in a statement, “This plan, which was carefully crafted over three years, will revitalize Playland’s aging infrastructure, attractions, concessions and amenities, ensuring it is a world-class, safe entertainment destination for families.
Deirdre Curran, founder of the group Friends of Playland, added, “People need to look at that contract and they need to look at how much money it’s going to cost the taxpayers – because the terms of the contract are disastrous.”
Republican minority BOL leader John Testa said, “In the interest of transparency, I would like an opportunity to go through the plan with Standard in a committee meeting where legislators would have an opportunity to ask questions and hear more details from our private partner.”
“We started out with the county on the hook for $40 million-plus, and Standard $30 million,” said Latimer. But he says the actual amount needed for repairs is $125 million. “And all the extra $50 million of the obligation falls on the county, which is a problem,” he added.
Latimer said he’s also upset by a leaked report suggesting there are safety violations at the park.
A 2017 independent review found that rodents could access food supplies in concession areas, and a photograph shows a bag of hot dog buns with the plastic gnawed open.
Built in 1928, Rye Playland is the only amusement park in the nation owned and operated by government. It averages 500,000 visitors each year.
Standard Amusements issued the following statement: “Standard Amusements remains ready to engage in meaningful discussions regarding our fully-financed plan to preserve Playland’s ecological, historical and cultural integrity. This plan, which was carefully crafted over three years and includes detailed architectural schematic drawings and timetables, will revitalize Playland’s aging infrastructure, attractions, concessions and amenities, ensuring it is a world-class, safe entertainment destination for families. Standard Amusements has and remains open to sitting down with the administration to discuss any specific concerns they have with the contract.”
