Company looks to revive park
Published 12:00 am Friday, July 10, 2009
NEW ORLEANS (AP) — A startup company based in Baton Rouge on Thursday applied for $100 million in bonds to revive the shuttered Six Flags New Orleans theme park.
Southern Star Amusement Inc., which has been pushing the idea of redeveloping the park, filed the application with the New Orleans Industrial Development Board for Gulf Opportunity Zone bonds, said Sharon Martin, administrative consultant for the quasi-government agency.
At the same time, a unit of media giant Viacom Inc. said it has had talks with the city and Southern Star Amusement — as well as other locales and companies — about possible participation in park projects using the Nickelodeon brand.
But Joanna Roses, a spokeswoman for Nickelodeon Kids and Family Group, said the company was not in discussions about buying the New Orleans park.
‘‘We have had speculative conversations with many cities, including the city of New Orleans, and companies like Southern Star Amusement, regarding licensing arrangements,’’ Roses said. ‘‘No deals have been made or signed, and the nature of our discussions is confidential.’’
Nickelodeon’s brand is used by one stand-alone theme park in Minneapolis and eight ‘‘themed-lands’’ within other parks.
Officials with Southern Star Amusement said they were not giving interviews at this time. Six Flags spokeswoman Sandra Daniels also said her company would have no comment.
Martin said the IDB’s governing board would meet July 21 to consider the application for GO Zone bonds — provided by the federal government to revive the Gulf Coast following Hurricane Katrina, which struck in 2005. If the board approves, the application would be considered by the State Bond Commission.
Six Flags New Orleans has been closed since sustaining heavy damage during Hurricane Katrina and its parent company, Six Flags Inc., has said it does not intend to reopen the park. The company filed for bankruptcy reorganization on June 13, saying it needed to lighten a $2.4 billion debt load.
According to the bond applicaton, Southern Star Amusement plans to spend just under $114 million on the project, creating 1,650 construction jobs and 735 park jobs with an annual payroll of $17.2 million. The application calls for construction to begin Aug. 1, with a completion date of Dec. 31, 2010.
In 2008, Southern Star Amusement submitted a $70 million plan to the city and Six Flags that called for adding a water park and doubling the number of rides at the park. The company sent representatives to assess the property early that year.
But the company walked away from that plan after being unable to reach agreements with the city and Six Flags.
The city is embroiled in a legal fight with Six Flags. In a federal court suit, the city contends that Six Flags is obligated to run the park. That suit has been put on hold because of Six Flags’ bankruptcy filing.
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 in the late 1990s when it was known as Jazzland.
Associated Press writer Becky Bohrer contributed to this report.