Waterworld and Cedar Fair?

[The Interpreter]

Seems highly improbable to me, but:

Coming up dry

With Six Flags closing Waterworld, Cal Expo park's future is guesswork

By Jon Ortiz -- Bee Staff Writer

Published 12:01 am PDT Sunday, September 3, 2006

Story appeared in Business section, Page D1

Waterworld USA, the 25-year-old Cal Expo water park that has foundered periodically since its inception, may be going down for the last time.

New York City-based Six Flags has operated the 14-acre Caribbean-themed park since 1996 but decided earlier this year to cancel its lease. The company had contracted to operate the park through 2015, but it will close for good on Sept. 23.

What happens after that is not clear. Cal Expo officials are talking with "a number of parties" about running the state-owned property, said Brian May, deputy general manager of Cal Expo, where the State Fair is held each year.

"I can't tell you who, but people are tossing around different concepts," May said. "Some envision keeping it as a water park. Some don't."

Six Flags' departure comes as the water park industry is showing steady growth, leaving industry experts and Six Flags' competitors wondering what went wrong.

But the blessings of Northern California's sizzling summers and five-year housing and population boom bypassed Waterworld, while the region's other water park, Roseville's family-owned Golfland SunSplash, has grown.

"I hate to see Six Flags go," said SunSplash manager Steve Rodgers. "There's more than enough demand for the both of us."

In contrast to Waterworld's up-and-down fortunes over the past few years, the water park industry is growing 3 percent to 5 percent annually, said Rick Root, president of the World Waterpark Association, based in Overland Park, Kan.

The association, which represents 1,100 members worldwide, estimates that U.S. water parks took in more than $1 billion from 70 million visitors in 2005.

"It's amazing, given the growth of the industry and the (population) growth in Sacramento, that Six Flags couldn't make things work there," said David Froelich, a theme park architect and developer with the Baltimore-based Cordish Co. "I think it says more about what's going on with Six Flags than it says about the Sacramento market."

SunSplash's Rodgers said Six Flags, which is struggling financially, has had trouble maintaining Waterworld.

"One thing about this industry, you can't afford to let your property sag," he said. "If you get that reputation, people will not come back."

The park's maintenance has clearly slipped a notch or two.

One day last week, with temperatures in the low 90s and the State Fair in full swing, Waterworld lifeguards stood watch over empty rides just in case one of the park's few visitors took a plunge.

Water leaked from the greenish-blue tubes on the park's 6 1/2-story centerpiece attraction, Shark Attack, creating stains around some joints. Several buildings at the park needed a coat of fresh paint. Some of the landscaping was worn.

"Everyone we're talking to about taking over agrees that (the site) needs work," said Cal Expo's May.

A group of local developers built Waterworld in 1981 and signed a 10-year agreement with Cal Expo to pay 10 percent of gross receipts or $250,000 annually, whichever was greater. Supporters estimated the deal would generate $500,000 annually for the state, which owns Cal Expo.

The park opened that August, touting its huge water slide and free admission during the State Fair. More than 30,000 people got wet the first week.

By that October Waterworld was sinking. The developers blamed construction cost overruns, poor attendance and a burdensome lease.

The Small Business Administration gave the park $1 million in loan guarantees a few months later. The SBA deal became a public relations debacle when Wisconsin Sen. William Proxmire tagged the deal with one of his "Golden Fleece" awards as an example of wasteful federal spending.

Cal Expo took over Waterworld in 1986 after the park lost $2 million in five years and owed about $350,000 in back rent. Kansas City-based FRE Inc. paid $1 million for the operation a year later.

Amusement park operator Premier Parks of Oklahoma City bought the operating rights to Waterworld and purchased FRE's Concord water park for $17.25 million in 1996. Premier changed its name to Six Flags Inc. in 2000.

Under the terms of its lease, Cal Expo receives 8 percent of Waterworld's gross receipts -- including admissions, merchandise and food sales -- and splits parking revenues equally. To exit the lease before 2015, Six Flags' payment will be the same as its rent for this year. Cal Expo won't know how much it will receive until Waterworld's books are closed for the season, but May noted that Waterworld's parking revenue is down 40 percent from last year.

Using lease payment figures provided by Cal Expo, The Bee calculated that Waterworld's revenues dropped 28 percent between 2000 and 2004. Receipts improved last year to $3.32 million, but that was still down nearly 20 percent from the $4.15 million that Waterworld visitors spent in 2000.

Six Flags officials would not comment on Waterworld revenue.

Six Flags came to Sacramento in the middle of a seven-year expansion binge that left it saddled with debt. It now owns or operates 28 U.S. amusement parks, including Six Flags Marine World in Vallejo, but it also is saddled with $2 billion in debt.

Hoping to reverse its fortunes, Six Flags brought in a new management team, sold its 104-acre Astro World property in Houston for $77 million, laid plans to sell its two Oklahoma City parks and reached a agreement to sell its Columbus, Ohio, water park assets to its lessor, the Columbus Zoo.

Chief Executive Mark Shapiro in June announced the company could sell up to six more properties, including its flagship Magic Mountain park near Los Angeles and the Concord park that it bought from FRE.

It's been a tough year for Six Flags. Attendance at its parks for the first six months of 2006 fell 15 percent, and its stock price has ranged from $11.93 to $4.53 per share in the last year, most recently hovering around $5.

Six Flags spokesman Paul Garcia wouldn't talk specifically about Waterworld's performance. "There's not much to say other than we're ending our lease. It's business as usual until Sept. 23," he said.

With Six Flags departure, speculation is ramping up about who might take over. SunSplash's Rodgers, who has been in the amusement park business for 30 years, thinks that Cedar Fair LP, based in Sandusky, Ohio, might be interested.

The company is the third-largest theme-park operator in North America in terms of attendance, behind Walt Disney Co. and Six Flags.

It recently paid CBS Corp. $1.24 billion for Paramount Parks Inc., adding five parks to Cedar's portfolio, including the 100-acre Great America property in Santa Clara. The company also owns Knott's Berry Farm in Orange County.

"They've got plenty of experience," Rodgers said. "And the Sacramento area is big enough to support us and them."

Cedar Fair did not return calls seeking comment.

Waterworld visitors last week were saddened by the news that Six Flags' departure could signal the end of water park recreation in Sacramento.

"We're regulars," said Sam Khoubier, a 24-year-old San Jose resident who was visiting the park with friends. "We come every year. I'd hate to see the place close."

http://www.sacbee.com/content/business/sto...-15227002c.html

[BoddaH1994]

Only Six Flags can screw up a water park.

[flightoffear1996]

Six Flags can screw up anything

[SOB_TOM]

I think Six Flags executives have forgotten to breathe in the past.....

[WooferBearATL]

Only Six Flags can screw up a water park.

Careful.

Paramount/CBS screwed up Winterfest - And I thought that would not be possible!