Astorino: 10-Year Agreement Would Have Sustainable Playland Run County-Owned Park

Westchester County Executive Robert P. Astorino says that the plan to "reinvent" county-owned Playland park moved a step closer today with an agreement that would put the Sustainable Playland Inc. group in charge of the park for 10 years.

Playland is scheduled to open for the season on Saturday, May 11. For the 2013 season, it will be run, as in the past, by the county’s Department of Parks, Recreation and Conservation, subsidized with county funds. 

"The agreement ensures Playland will not only exist in the future but will flourish with $34 million in new private investment from Sustainable Playland," Astorino said. "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 the expertise in place for Playland to thrive for generations to come."

Astorino said that once the agreement is signed and executed, Sustainable Playland will operate, manage and maintain the park, with the start date slated for Oct. 1, 2013. Astorino said the agreement is based on Sustainable Playland obtaining approvals and permits required.

“The (Sustainble Playland) plan is designed to preserve, restore and enhance the historic character and qualities of Playland, including the historic amusement rides, the classic buildings and the landscape,” said Kim Morque, president of SPI. “Our vision is to have a beautiful park that capitalizes on its unique waterfront location and offers year-round activities and entertainment to attract individuals and families from across Westchester and the region. Our public-private partnership model is being used successfully nationwide and provides the opportunity for a long-term approach to assuring Playland’ s viability for generations to come.”         

The agreement, Astorino says, has an option for Sustainable Playland to get an additional 10 years after the initial 10-year operational period concludes.

The plan calls for the 100-acre park to be open year-round, with no admission fee and access to the Edith Read Wildlife Sanctuary, the boardwalk and the pier. Access to the beach is open to all and will continue to be subject to fees as it is now.

The effort to revitalize Playland has come as attendance at the park - opened in 1927 - have dropped from over 1 million in 2005 to 430,000 in 2012. Losses have been costing Westchester County taxpayers $3 million to $5 million annually in recent years. 

Playland is considered to be the prototype for today's theme parks and was the nation's first planned amusement park. Seven of its rides and several of its art deco buildings are designated as National Historic Landmarks. As the only Art Deco amusement park in America, Playland is part of the National Register of Historic Places. 

Astorino said that Sustainable Playland would pay the county and run the park with income from fees charged to ride operators, attractions, sponsorships and parking. When the agreement begins, Sustainable Playland would make a $500,000 payment to the county.

The start date could be extended, but the agreement gives Sustainable Playland an out if the deal is delayed beyond Jan. 1, 2014, in the event that the county Board of Legislators has not approved a Playland improvement plan by then.

In October 2012, Astorino announced that after reviewing proposals for Playland, the Sustainable Playland group should get the nod to take over the financially-troubled park for the county. The agreement announced today includes details that have been worked out since October.

Details include:

- Sustainable Playland will pay Westchester a base fee that could total $4 million.

- The group will make annual payments to the county based on the park's net operating revnue, with this estimated to be $1.2 million per year once the park is fully developed.

- Payments from Sustainable Playland will be put toward retiring the county's existing $35 million debt for Playland.

- Representatives from the county executive, Board of Legislators will be on Sustainable Playland's Board of Directors, along with a resident of the City of Rye and the county parks commissioner.

- A park improvement plan must be developed by the group, and approved by the county Board of Legislators.

- The county can end the deal, with six-months notice, for breaches of the agreement, including failure to make payments.

Astorino said the agreement was written to meet the rules of the county's charter.

"I welcome the Board (of Legislators) due dilligence, but it must be done in a timely fashion," Astorino said. "We also need to respect ouf partners at (Sustainable Playland), 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."

Sustainable Playland Inc. is a not-for-profit holding company, which has assembled a team of operators to run each of the zones of the park. SPI’s not-for-profit status gives the company access to low-cost financing and means that money after expenses will be invested back into the park, according to Astorino.

Overseeing the overall management of the park for SPI will be Biederman Redevelopment Ventures, headed by Dan Biederman, a Chappaqua resident whose experience includes co-founding and managing the Bryant Park Corporation, the 34th Street Partnership, and heading major efforts  nationally to bring private resources and management techniques to work on public problems.  

“The SPI plan will allow visitors to enjoy both amusement park rides and a passive park experience with beautiful views of Long Island Sound,” said Biederman. “We will bring private-sector techniques and diverse revenue streams to bear on the problems that have made Playland unaffordable for the county government.”

Astorino said the county will ensure the park is in a condition that is satisfactory to SPI prior to the  commencement date, when SPI will assume responsibility for management and operations of the park. Repairs to the boardwalk, Ice Casino and other parts of the park damaged by Superstorm Sandy are currently being made by the county as the owner of the property. 

For the future, plans call for six zones to operate within the park: 

• Amusement Zone: Playland’s historic rides will remain, including the Dragon Coaster and the Derby Racer, as well as Kiddyland and arcade games. Some existing rides will be removed while new rides will be added as part of an ongoing program to upgrade the amusement area.
• Aqua/Beach Zone: Playland’s beach and pool area will feature more amenities, including chair and sun umbrella rentals, cafés and activities such as water slides and floats.
• Field Zone: There will be a field house for indoor sports, plus outdoor athletic fields for soccer, lacrosse and other sports.
• Fountain Plaza Zone: This area will feature year-round restaurants, cafes, outdoor dining, special events as well as the Ice Casino.
• Great Lawn Zone: This area will feature the Central Promenade, which will remain open to the public year round, as well a picnic shelters,  seasonal music and dance performances, a variety of special programming and the historic Grand Carousel.
• Common Area Zone: This encompasses “everything else” within the park’s footprint, such as parking lots and the lake, shore and beach leading to the Edith Read Wildlife Sanctuary.     

About the Playland revitalization effort

Q. Why did County Executive Astorino issue a Request for Proposals to Re-Invent Playland?

A. In recent years, Playland has had far fewer visitors than in the past and has continued to lose money – as much as $4-5 million a year, which must be paid for with county tax dollars. It is now in need of major capital improvements as well. Astorino would like to preserve the family character of the park, but make it self- sustaining by “reinventing it for the 21st century.” The goal is to save Playland – which Astorino calls “one of the most beautiful pieces of property anywhere” – by strengthening its financial foundation while maintaining access to it to residents of the community and preserving the historic park.

The county executive issued the Requests for Proposals to ascertain the potential for uses of this beautiful facility addressing these concerns. Twelve proposals were received and evaluated by a citizens’ committee and then later internally by the county administration. At the conclusion of this process Sustainable Playland Inc. (SPI) was selected as the proposed operator of Playland going forward.

Q. What happens to Playland for next year?

A. Playland will open May 11 for the 2013 season, under county management. Go to www.ryeplayland.org for the full schedule.

Q. What is Astorino proposing?

A. SPI, a not-for-profit organization, would be given a 10-year asset management contract for Playland with an option for an additional 10-year term upon mutual agreement of the parties. Sustainable has assembled a team with strong experience in amusements, sports, restaurants and park operations. A variety of zones would allow for a “portfolio” approach with many different aspects to allow visitors to enjoy the park on a year-round basis and not just an amusement park in the summer.

Under terms of the agreement, the park will be divided into a variety of zones, including:

• Amusement Zone: Playland’s historic rides will remain, including the Dragon Coaster and the Derby Racer, as well as Kiddyland and arcade games. Some non historic rides will be replaced with new ones as part of an ongoing effort to upgrade the amusement area.

• Aqua/Beach Zone: Playland’s beach and pool area will feature more amenities including chair and sun umbrella rentals, cafes and activities such as water slides and floats.

• Field Zone: There will be a field house for indoor sports plus outdoor athletic fields for soccer, lacrosse and other sports.

• Fountain Plaza Zone: This area will feature year-round restaurants, cafes, outdoor dining, special events as well as the Ice Casino.

• Common Area Zone: This area encompasses every other area of the Park including the entry and parking areas as well as the peninsula between the Edith Read Sanctuary and the Amusement Park.

Q. What about admission fees?

A. Admission to the Park, the Boardwalk and the Edith Read Wildlife Sanctuary would be free. Access to the beach would be open to all, but with fees charges, which is currently the case. Rides and other attractions would be on a pay-as-you-go basis.

Q. What about the Children’s Museum?

A. SPI is working with a variety of operators for the various zones. It will be up to SPI to work out an agreement with the Children’s Museum.

Q. Where does the agreement with Sustainable Playland now stand?

A. Astorino and SPI have agreed to terms of a 10-year Asset Management Agreement (AMA), with renewals as mentioned. Once signed and fully executed, this will shift responsibility to SPI to operate, manage and maintain the county-owned park as of Oct. 1, 2013. This date is contingent upon SPI having obtained all approvals and permits that are required, including any needed from the county Board of Legislators.

Q. What is the financial arrangement?

A SPI will pay the county a base fee, which could total $4 million upon the opening of operations of all zones, including the Ice Casino. SPI will also make annual payments to the county based on net operating revenue. SPI estimates this to be about $1.2 million per year once the park is fully developed. The money will go toward retiring the county’s existing $35 million of debt on Playland.

Q. What is next in the approval process?
A. Each step in this timetable is dependent to some degree on previous steps. Here is the current timetable:

• April: Approval of the asset management agreement by Board of Acquisition & Contract is expected in mid- April.

• May:: Playland opens for the 2013 season on May 11, under county management. Within 30 days of the approval of the asset management agreement by the Board of Acquisition & Contract, SPI must submit a Playland Improvement Plan (PIP), consisting of the material changes the group proposes to make when the park comes under its management.

• June: The County Executive’s office is expected to receive SPI’s improvement plan. Following the County Executive’s approval, the PIP will go to the Board of Legislators for its approval.

• October: Commencement date – when SPI takes responsibility for operations – is scheduled in the contract for Oct. 1, 2013. This date may be extended based upon receipt of required approvals. However, if commencement is delayed beyond Jan. 1, 2014 because the BOL has failed to approve the improvement plan, then SPI has unilateral right to terminate agreement. At the commencement date, SPI will pay the county the first $500,000 installment.

Q. What approvals are needed from the Board of Legislators?

A. The AMA itself does not have to be approved by the BOL – but the board must approve the PIP, which is a list of all the material changes it proposed to make at the park as the operator. The PIP also must be approved by the County Executive.

Q. What were the criteria for the selection of Sustainable Playland?

A. Criteria used by the citizens’ committee included:

• Economics – did the proposal provide a financially viable, long-term business model

• Entertainment – were the proposed activities consistent with the mission of a park

• Experience – did the proposers have a track record of success

• Expectations – did the proposal come with a realistic chance of completion in a reasonable amount of time

  Q. Who are the operational members of the Sustainable Playland team?

The operating team being assembled by SPI includes:

• Dan Biederman, whose firm, Biederman Redevelopment Ventures, will manage the park for SPI.

• Amusement and Aqua Beach Zones: Steve Turk and the Mega Funworks Team. Capital investment upwards of $7 million.

• Field Zone: John Abate and Eric DeGraw of Playland Sports Center LLC. Capital Investment $12.4 million.

• Fountain Plaza Zone: Shane Coppola of American Skating Entertainment Centers. Capital investment $600,000

Q. What happens to Playland’s current employees?

A. There are currently about 26 full-time employees at the park. As government employees at a time when the county budget has revenue shortfalls, these jobs are never certain irrespective of what happens to Playland. The new operator will be free to hire whoever they want, but it is anticipated there will be more full-time jobs at the park.

In addition there are a number of part time/seasonal employees. It is anticipated the operators of the various zones, will be undertaking significant hiring to conduct their respective operations.