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Will SF New Orleans ever reopen?

F.A.S.T.

Hyper Poster
he company that last year shelved its interest in redeveloping the shuttered Six Flags amusement park in New Orleans is indicating renewed interest.

Southern Star Amusement is in "preliminary talks" with the city of New Orleans to buy the theme park, chief financial officer Tonya Pope said.

"We've approached them," Pope said. "We're about to start some more formal meetings."

In 2008, Southern Star Amusement submitted a $70 million plan to the city and Six Flags ( SIX - news - people ) that called for adding a water park and doubling the number of rides at the park, which has been closed since Hurricane Katrina struck in August 2005.

The company sent representatives to assess the property in early 2008.

But the Baton Rouge-based startup company walked away from that plan after being unable to reach agreements with the city and Six Flags. Pope said Southern Star Amusement decided to reopen talks after becoming aware of the dispute between the city and Six Flags over the lease terms for the property and in light of Six Flags' possible bankruptcy filing.

Six Flags, which has continued to make lease payments to the city, has said that it does not plan to reopen the park.

Six Flags pays $1.4 million a year in rent, which in addition to $1 million a year from the city makes up the $2.4 million annual payment due until 2017 on a U.S. Department of Housing and Urban Development loan used to build the park.

The city and Six Flags have failed to reach a deal that would allow Six Flags to terminate its lease.

Ceeon Quiet, spokeswoman for New Orleans Mayor Ray Nagin, said all attention is tuned to resolving issues with Six Flags. The city's legal representatives, she said, would consider Southern Star Amusement's interest only after the Six Flags dispute is resolved.

Pope would not say how much Southern Star would offer the city to buy the land, but said any amount offered would not cover the city's loan "because the property is not worth that much." Southern Star believes its offer in addition to any sales tax revenue the park would generate after it opened could cover the loan cost, Pope said.

The company has received bids on restoration of the property with a May 2010 reopening projected, Pope said. She declined to say how much the company planned to spend on that work, or how it would be financed.
http://www.forbes.com/feeds/ap/2009/05/ ... 75066.html

Wow, I never knew SF lost so much money just letting the park just sit around like that. What a waste!
As for the renovation, I'll doubt it'll ever pan out and if it ever does it will be a long time coming.
 
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