Westchester Signs Asset Management Agreement with Firm to Save Playland

WHITE PLAINS, NY-Citing continued losses at the county-owned amusement park, Westchester County Executive Robert Astorino announced on Thursday that the county had signed an Asset Management Agreement that will shift the operation and management of Rye Playland to Sustainable Playland Inc.

Astorino stressed that if the agreement is approved by the County Board of Legislators' Board of Acquisition & Contract later this month, Sustainable Playland would have to submit an improvement Plan within 30 days of the approval of the Asset Management Agreement that would then be reviewed by the County Executive and the full Board of Legislators. The plan is to have the county run the park this season, which begins on May 11, but have SPI take over the management, operations and maintenance of Rye Playland on October 1, 2013. Westchester County would retain ownership of the amusement park and would oversee operations by Sustainable Playland and its vendors.

“This agreement ensures that Playland will not only exist in the future but will flourish with $34 million in new private investment from Sustainable Playland,” Astorino says. “Not only will the Dragon Coaster and the other historic rides be preserved, but the attractions will be expanded to make the park a destination for families year round. We started with a blank piece of paper three years ago. Now thanks to a lot of hard work and creativity, we have the vision and expertise in place for Playland to thrive for generations to come.”

Some of the highlights of the asset management agreement include SPI paying the county a base fee that could eventually total $4 million, provided all six planned zones at the property become operational. SPI will also make annual payments to the county based on the park's net operating revenue, which SPI estimates to be about $1.2 million per year once the park is fully developed. All of the SPI payments will go toward retiring the county's existing debt for Playland of approximately $35 million, county officials stated.

After about a three-year process that included the review of 12 responses to an RFP in 2011, the county and Sustainable Playland signed a letter of intent last October and had been in negotiations concerning the asset management agreement since then.

However, the Westchester County Board of Legislators has held a series of public hearings that have included presentations by a number of firms interested in redeveloping Playland, including Sustainable Playland.

Astorino said the process in selecting Sustainable Playland has conformed with the County Charter and said he hopes that politics will not delay the initiative from moving forward.

"I welcome the Board's due diligence, but it must be done in a timely fashion. We also need to respect our partners at SPI, who are putting themselves at financial risk by investing $34 million of their money to save Playland. Unnecessary delays will put the future of Playland in jeopardy,” Astorino said, noting that if a deal is not finalized with Sustainable Playland by Jan. 1, 2014, SPI could terminate the agreement.

While Astorino had hoped politics would not be a factor in whether the project will proceed, early indications are that he will not get his wish.

A number of members of the Westchester County Board of Legislators released statements on Thursday criticizing the process and Sustainable Playland's redevelopment proposals.

“The Astorino Administration said its goal was to stop losing money at Playland, but Sustainable is not the way,” said BOL Majority Leader Pete Harckham. “From what we have seen and heard during numerous committee meetings held on the subject, Sustainable is the least competitive financially.”

"At this point, I'm not at all convinced that Sustainable's weak financial proposal and its plan to tear down a large part of Playland are in the best interests of county residents and taxpayers,” states Legislator Bill Ryan. “I'm disappointed the County Executive is determined to force through this very questionable arrangement.