This article was updated on Sept. 24 at 9:35 p.m.
The arbitration panel working to mediate the last remnants of Westchester’s messy Playland divorce from Standard Amusements has ruled that the ex-operator defaulted on its contract and is not entitled to the $57 million in damages it sought – but the split could still cost the county millions.
The county and Standard entered into arbitration this summer over which party was responsible for the collapse of their 30-year Playland management contract, which Standard announced it was exiting earlier this year.
Standard claimed the county hadn’t made promised infrastructure upgrades at the waterfront amusement park.
After backing out of the deal, Standard requested $57 million in damages from the county as payback for its investment into the historic property. But since the arbitration panel earlier this month decided Standard was the one in default, the company’s $57 million damages claim was also denied.
“This decision is a clear validation of the county’s position that Standard Amusements defaulted on its responsibilities to operate and manage Playland,” said Westchester County Executive Ken Jenkins in a statement announcing the ruling on Sept. 15.
But the county isn’t completely off the hook.
The panel also decided in its Sept. 10 ruling that Westchester will still have to pay Standard the “least amount of liquidated damages” since the county terminated its contract with the for-profit management company. That amount, according to Westchester County Attorney John Nonna, could be as much as $36 million.
Photo Christian Falcone
Both Westchester and Standard remain in arbitration over the sum. Standard maintains that the county failed to substantially complete 70 percent of the projected capital project costs by April 30, 2024. (Standard claimed the county only completed 31 percent of the work by the deadline, while the county argued it had completed at least 65 percent.)
Because of the Westchester-Standard divorce, the county scrambled to staff the park and complete necessary ride maintenance for the summer season, eventually opening over Memorial Day weekend with more than two-thirds of the rides closed.
Playland was set to end its summer season on Sept. 14, with 27 out of 41 rides operable. But many of the park’s major attractions like the Dragon Coaster and the ferris wheel remained closed for the duration of the summer.
“Our priority has always been ensuring that Playland remains open, safe, fun and well-managed for the residents of Westchester – especially our littlest residents – for now and beyond,” trumpeted Jenkins after the latest arbitration decision. “With this ruling, the county can move forward with certainty and continue to build a strong future for this cherished park. On my watch, Playland will continue to the crown jewel of Westchester County.”
