The Rye City Council is drafting a settlement agreement with Westchester County regarding Playland Amusement Park’s tax collection and responsibility — perhaps signaling the beginning of the end of a lengthy battle between the county and municipality.
At its Oct. 9 meeting, the council unanimously passed a resolution to draft a settlement agreement with Westchester County, saying they didn’t want to further affect the municipalities or the institutions that rely on tax dollars.
“All parties wish to resolve both matters so as to not impact the city, school district, and county budgets,” the resolution stated.
The issues arose after Standard Amusements, a private operator, took over management of Playland in 2022. When the park was run by the county it was tax exempt, but since Standard Amusements’ takeover, the city has argued that the park owes Rye property taxes — primarily because the city pays for police, fire, and EMS services at Playland.
When the city sent Standard Amusements a tax bill of $3 million and the company refused to pay, Rye sued the new Playland managers for the bill. Rye lost in lower court, with the judge ruling that the land should remain tax exempt because it serves the greater public. The city is appealing that ruling.
Westchester County also has disagreed that Standard Amusements owes Rye property taxes, arguing that Playland tax revenue should be turned over to the county. At the most recent boiling point on Sept. 10, Westchester County slapped the city of Rye with a lawsuit amounting to nearly $15 million — seeking $14 million in what the county argues is withheld Playland tax revenue, as well as another $840,000 in late payment penalties.
The city previously has said it will pay Westchester County $7 million in Playland tax dollars — agreeing to $10 million minus the $3 million Rye claims Standard Amusements owes the municipality.
And while Standard Amusements, the city of Rye, and Westchester County continue to point fingers at each other, the Rye City School District (RCSD), which depends on tax revenue for its budget, is caught in the crossfire.
Rye City Manager Greg Usry and Playland public relations official Shin-Jung Hong both declined to comment on the council’s resolution. The Record has reached out to the Westchester County government and the Rye corporation counsel attorney and is awaiting response.
In an interview, outgoing RCSD superintendent Eric Byrne said he had no information about the settlement. But he previously told The Record that the ongoing litigation has caused “uncertainty,” noting that “we have asked the county repeatedly and the city to please resolve this without further damage to the school district.”
It was unclear what the City Council’s settlement would look like, but the resolution stated the city attorney will work on the draft with the county attorney’s office.
