Ohio Attorney General Sues The Beach Waterpark for Failure to Deliver

[PREMiERdrum]

Just into the newsroom...

Ohio Attorney General Mike DeWine Sues The Beach

Waterpark for Failure to Deliver

(TV Stations: Special satellite feed with Attorney General DeWine Comments at 1:30 p.m.)

(CINCINNATI) – Ohio Attorney General Mike DeWine today announced a lawsuit against the owners and operators of The Beach Waterpark in Mason, Ohio. The lawsuit charges the waterpark with failure to deliver, a violation of Ohio's Consumer Sales Practices Act.

"It's unfortunate when a long-standing Ohio business closes," Attorney General DeWine said. "But The Beach Waterpark took money from thousands of consumers and never delivered promised services. That's unacceptable."

The Beach Waterpark was a water amusement park located at 2590 Waterpark Drive in Mason, Ohio where it operated for more than 27 years. Before the 2012 season began, the waterpark sold approximately 8,800 passes for the 2012 season.

On March 9, The Beach Waterpark announced that it would not reopen for the 2012 season. After the announcement, hundreds of consumers filed complaints with the Ohio Attorney General's Office saying they wanted refunds. In lieu of refunds, the Beach Waterpark offered discounts and day passes to other local attractions, such as Kings Island and the Cincinnati Zoo.

According to the Attorney General's lawsuit, the offers were not adequate substitutions, because they were not similar goods or services and they were not of equal or greater value to what the consumers ordered. Substitute offers must be acceptable to consumers.

The lawsuit, filed in the Hamilton County Court of Common Pleas, charges the waterpark's owners and operators—The Beach at Mason Limited Partnership, Water Parks, Inc., and Cabana Equities, Inc.—with violating the Failure to Deliver Rule under the Consumer Sales Practices Act. The lawsuit seeks consumer restitution, a permanent injunction, and civil penalties.

Attorney General DeWine encourages consumers who purchased 2012 passes to The Beach Waterpark to keep all documentation related to the purchase and to file a complaint with his office at www.OhioAttorneyGeneral.gov or 800-282-0515.

A copy of the lawsuit can be found at the Ohio Attorney General's website.

[Browntggrr]

Good luck.

You can't squeeze blood out of a turnip.

[Gordon Bombay]

^It may be more for show than anything.

It's a shame that The Beach went down this way.

[Browntggrr]

^ it probably is for show.

I wonder if the AG is up for re-election soon.

[Gordon Bombay]

^He is not. However, it still looks good in the papers. The people asking may never get their money, but it's the headline the counts here.

[PREMiERdrum]

A ruling could be attached to the physical assets or the property - preventing ownership from profiting from the sale of attractions or land. Of course, they're probably going to be forced into bankruptcy and affected customers would be towards the back of the line anyways.

[Browntggrr]

^^Very true.

I'm sure The Beach was an S-Corp. meaning the owner(s) cannot have personal assets taken away. Any assets on park property or on park records are open season to be liquidated. EDIT: Unfortunately, the larger bills due will be paid 1st (i.e.: taxes-land & payroll, water, outstanding loans, services rendered and items purchased) and the season pass holders will be last to see anything.

The money collected for season pass sales probably went to other bills due. While the AG may be attempting to soothe the season pass holders, he also has to keep other viable businesses in mind. Having someone lose a couple hundred is bad, having a business lose a few thousand is worse (which goes back to the "headline theory"- those reading the story will be able to personally relate to those that lost $$ vs. a business owner).

As long as The Beach can accurately prove where the Season Pass income was allocated, those screwed out of their hard earned money will get the short end of the stick. It maybe a bitter pill to swallow, but they should take up KI's offer- it's better than nothing.

[PREMiERdrum]

^Very true.

I'm sure The Beach was an S-Corp. meaning the owner(s) cannot have personal assets taken away. Any assets on park property or on park records are open season to be liquidated.

The money collected for season pass sales probably went to other bills due. While the AG may be attempting to soothe the season pass holders, he also has to keep other viable businesses in mind. Having someone lose a couple hundred is bad, having a business lose a few thousand is worse (which goes back to the "headline theory"- those reading the story will be able to personally relate to those that lost $$ vs. a business owner).

As long as The Beach can accurately prove where the Season Pass income was allocated, those screwed out of their hard earned money will get the short end of the stick. It maybe a bitter pill to swallow, but they should take up KI's offer- it's better than nothing.

Will that be the judge's goal though - to simply find out where the money was spent? That's not really the issue here. AG DeWine's primary role is as a consumer watchdog. He's doing what he's elected to do. The patrons didn't give The Beach their money to pay utility bills, they gave them their money for services which The Beach ultimately didn't deliver. I'd be shocked if a judge didn't rule in favor of the suit. However, unless ownership resolves this issue before a BK filing (highly unlikely), the customers won't see a dime.

[Browntggrr]

Will that be the judge's goal though - to simply find out where the money was spent? That's not really the issue here. AG DeWine's primary role is as a consumer watchdog. He's doing what he's elected to do.

That will absolutely be the judge's goal. Like I mentioned, you can't squeeze blood out of a turnip.

If the money is gone, and there is no income. The customer is SOL.

The patrons didn't give The Beach their money to pay utility bills, they gave them their money for services which The Beach ultimately didn't deliver.

The patrons did give money to pay utility bills which then leads to delivering services. It REALLY sucks for those people, but it is what it is.

[PREMiERdrum]

That will absolutely be the judge's goal. Like I mentioned, you can't squeeze blood out of a turnip.

They would have to be able to prove their inability to pay a judgement, which given the value of their assets and property I see as a difficult task. Outside of extreme hardship, people are granted judgments every day from people or companies who have no means to pay; essentially forcing them into bankruptcy protection.

Again, I'd be shocked to see a judge dismiss this, but I'd also be shocked to see customers get a dime out of these swindlers.

[Browntggrr]

They would have to be able to prove their inability to pay a judgement, which given the value of their assets and property I see as a difficult task.

Business don't close their doors unless they can't pay bills. Given The Beach was forced to close, it is safe to assume all money owed is probably in the millions of dollars- and I am not over exaggerating at all.

The Beach issue did not just happen overnight. Vendors NEVER want to cease service to a customer, unless there is no choice, because once service is stopped (in this case, the water was turned off) it is unlikely to recover 100%, if any, money owed. Think about that for a second- the water was turned off at a waterpark. If they cannot pay for the # 1 reason we go there, they have to be behind on everything else.

Sure, a liquidation sale will probably take place. But the items, including land, is only as valuable as what someone is willing to pay.

For $hits & giggles, let's say there will be money left for the season pass holders. When will they see it? Maybe a year? I'll bet at least 2 years because everything has to be finalized. They would be better served with the current offers. A bird in the had is better than two in a bush.

[Oldiesmann]

This is definitely just for show. I did a bit more research on this, because I was wondering why he filed the lawsuit in Hamilton County when The Beach is in Warren County. As it turns out, Mike DeWine's son Pat is a judge on the Hamilton County Court of Common Pleas. In addition, Pat is running for a seat on the state's First District Court of Appeals this fall - the very same district which covers Hamilton County...

[BB1]

This case makes me wonder, whats next for the Beach, who will own it, who will destroy it? Only time will tell...

[westcoaster]

I would have loved to see someone like an operator of Holiday world take it, but with there lack luster approach to Bluegrass park, I don't think they would be a good pick.

Someone that came forward would have to take on a lot of challenges for the Beach:

[Gordon Bombay]

^I wouldn't call HW's approach to KK "lackluster." I'd say they're ambitious, however also unrealistic. I think they bit off a lot more than they could chew and now they're hurting for it.

I used to have a lot of friends who worked at The Beach in management over the past few years. There was a rumor going around about some "folks from Dollywood" who came to visit and that's why the push to open this season was still happening. Allegedly, they cut their holiday fest to keep a higher profit margin and went forward with plans to open in hopes that the deal with the "folks from Dollywood" would pull through. Clearly, nothing happened and The Beach closed at the last minute. The Friday that it was announced, many associates were returning to the area for their training that weekend.

Ironically, while driving to a meeting downtown today - there was a Wild Eagle billboard off of Gilbert.

[KI-ORIG-EMP]

It is only a matter of time now before The Beach files for bankruptcy protection. The bottom line is their debts far exceeded their revenue and they could not pay their bills, with water being one of their biggest debt that is owed. They could not line up investors or receive financing to service their debt. They could not compete with Kings Island and thus, went out of business. But to say they stole the money from season pass holders is just grandstanding. All parks use their season pass base during the off season to pay the bills and I bet KI is no different. Only difference is Ki has far greater financial resources to invest that The Beach did not. When they do file bankruptcy, then this lawsuit will be dismissed, as will any and all other cilvil lawsuits that might be filed. This bankruptcy will take place if they can not line up a buyer to take over the Beach and restructure all their debt, including the current season pass holders. The Beach's revenue problem might had been the lack of spending the season pass holders and general admission guests while in the park. Not enough admission, merchandise, food and drink sales might not had been great enough to pay their financial obligations.

[Browntggrr]

Just numbers from the outside looking in:

8800 season passes sold for 2012 = $792,000 The debts have to be much more than this or the doors would have stayed open.

They owners may just let the park go w/o filing bankruptcy. I only say this because, typically, in Chaper 7 a trustee sells all of its assets, and then distributes the proceeds to its creditors (including season ticket holders). Any residual amount is returned to the owners of the company.

It must have been REALLY bad though; at least Chapter 11 allows the doors to stay open- which is always more attractive to potential suitors.

Unless like Gordon mentioned, a potential suitor is looking into a purchase.

Can anyone tell if minor maintenance is being done? (i.e. lawn mowed?) If so, it is very possible it is being looked at.

[Gordon Bombay]

^I used to work over near there and often eat at The Waffle House down the street. Usually I drive by just to see if anything's going on down there. They still fly the American flag and the first weekend after they announced their closure, it was open for cars to drive into the parking lot. Seemed like their offices were open. As of late, nothing seems to be going on. A piece of their "Welcome to Paradise" sign fell down, they put it back up.

[BB1]

Maybe CF needs to buy it, and call it Boomerang Bay ! I am actually serious on CF buying out the Beach property, with the right work, im sure they could make it an A+ (or at least a waterpark!

[Oldiesmann]

8800 season passes sold for 2012 = $792,000 The debts have to be much more than this or the doors would have stayed open.

Not necessarily. The park always had a "buy one get one free" sale on passes towards the end of the season, and they had multiple levels of season passes. Still, you would think with that many passes being sold that they'd have money to pay bills and make other improvements to the park.

[TombRaiderFTW]

Maybe CF needs to buy it, and call it Boomerang Bay ! I am actually serious on CF buying out the Beach property, with the right work, im sure they could make it an A+ (or at least a waterpark!

Someone please assure me I wasn't this persistent in 2008 when The Crypt was "new". (Just teasing... kind of. I know you miss how things used to be, but do realize there are good things about what is. Enjoy what's there now, because you never know when a tweet's going to take it away. )

Excluding the Boomerang Bay bit, I've actually wondered about Cedar Fair buying it. Doesn't seem like the sort of thing Ouimet would do right now, as he seems to be more focused on increasing the quality of the park experience. I do wonder if it could become something like Knott's Soak Cities, though--separate from the dry park, and offering its own experience. Maybe it could become the "Kings Island Resort" if KI ever became important enough in the Cedar Fair chain to warrant its own resort; they could build a nice hotel on the side.

[BB1]

Well I actually like the SC its like my mind in a waterpark, but you just never know whar could happen, it could become BB again or not, but I do hope they buy the Beach, its a great addition.

[shark6495]

8800 season passes sold for 2012 = $792,000 The debts have to be much more than this or the doors would have stayed open.

Not necessarily. The park always had a "buy one get one free" sale on passes towards the end of the season, and they had multiple levels of season passes. Still, you would think with that many passes being sold that they'd have money to pay bills and make other improvements to the park.

Why do you think they would be able to pay the bills with that? Obviously they couldnt if they closed. If the water was turned off, then it was likely not paid. I think we are all underestimating how much the bills at the park would cost. While the passes sold would give the mark just under a million dollars, thats for the year, not a month. If the park only made 1 M then thats just a little more than $83K per month. If the park has to pay creditors (people that financed the park), bills (electric, water), Maintence (paint, fixing of rides), crew (people have to do the work and run the rides), training, goods (shirts, food, etc), and other bills. All is said, does not seem like enough money.

Well I actually like the SC its like my mind in a waterpark, but you just never know whar could happen, it could become BB again or not, but I do hope they buy the Beach, its a great addition.

The park would be a great addition, if KI did not just pour a bunch of money to upgrading their own water park, if the area did not already have an indoor water park/resort just down the road. The Beach was a valuable asset a few years (20) ago, but now the time for the park has passed. It is, unfortunately, in an area that has 2 other water parks, and it went the way other water parks and parks have gone.

Plus why would FUN purchase the Beach to build a resort when there is a resort directly in their front lawn. It would look very bad for the park (Hey! Stay at the KI resort located on a sprawling water park, just a 10 minute bus trip from the park. Please ignore the Resort park with indoor water park, located directly in front of the park.)

[beastfan11]

Maybe CF needs to buy it, and call it Boomerang Bay ! I am actually serious on CF buying out the Beach property, with the right work, im sure they could make it an A+ (or at least a waterpark!

I think they should buy it and call it Water Works.

[BB1]

Maybe CF needs to buy it, and call it Boomerang Bay ! I am actually serious on CF buying out the Beach property, with the right work, im sure they could make it an A+ (or at least a waterpark!

I think they should buy it and call it Water Works.

Go to Kings Dominion, they still have their works!

[The Interpreter]

...for now.

[Browntggrr]

I cannot imagine why CF would even think of purchasing The Beach.

[Oldiesmann]

8800 season passes sold for 2012 = $792,000 The debts have to be much more than this or the doors would have stayed open.

Not necessarily. The park always had a "buy one get one free" sale on passes towards the end of the season, and they had multiple levels of season passes. Still, you would think with that many passes being sold that they'd have money to pay bills and make other improvements to the park.

Why do you think they would be able to pay the bills with that? Obviously they couldnt if they closed. If the water was turned off, then it was likely not paid. I think we are all underestimating how much the bills at the park would cost. While the passes sold would give the mark just under a million dollars, thats for the year, not a month. If the park only made 1 M then thats just a little more than $83K per month. If the park has to pay creditors (people that financed the park), bills (electric, water), Maintence (paint, fixing of rides), crew (people have to do the work and run the rides), training, goods (shirts, food, etc), and other bills. All is said, does not seem like enough money.

What I meant is that they didn't necessarily make $792k off the season passes. Sorry for the confusion.

[shark6495]

8800 season passes sold for 2012 = $792,000 The debts have to be much more than this or the doors would have stayed open.

Not necessarily. The park always had a "buy one get one free" sale on passes towards the end of the season, and they had multiple levels of season passes. Still, you would think with that many passes being sold that they'd have money to pay bills and make other improvements to the park.

Why do you think they would be able to pay the bills with that? Obviously they couldnt if they closed. If the water was turned off, then it was likely not paid. I think we are all underestimating how much the bills at the park would cost. While the passes sold would give the mark just under a million dollars, thats for the year, not a month. If the park only made 1 M then thats just a little more than $83K per month. If the park has to pay creditors (people that financed the park), bills (electric, water), Maintence (paint, fixing of rides), crew (people have to do the work and run the rides), training, goods (shirts, food, etc), and other bills. All is said, does not seem like enough money.

What I meant is that they didn't necessarily make $792k off the season passes. Sorry for the confusion.

Yea no biggie, I for some reason read that as "They were pocketing the money" not "they probably didnt make that much" ... so my bad too!