NEWS: Bonfante Gardens sells land

[robbalvey]

While the article reports that this is a positive move, I hope that it doesn't impact the park in a negative way at all:

 

http://sanjose.bizjournals.com/sanjose/stories/2005/05/30/newscolumn1.html

 

Bonfante Gardens sells off excess Gilroy land

 

The biggest thrill ride at horticultural theme park Bonfante Gardens of Gilroy in recent months has been in its accountant's office. The unusual theme park, which opened in 2001, has been struggling to stay in business.

 

Now, it says, there's been a positive development -- the sale of 32.9 acres of surplus land to Shapell Industries, bringing the park closer to restructuring its existing debt.

 

Shapell plans to build 117 single-family homes on the land.

 

Bonfante Gardens says it will complete the senior bondholder tender offer notification steps required with the sale, including redeeming more than 50 percent of the senior bonds at specified discounts. When the tender process is completed, Bonfante Gardens' debt will move from approximately $70 million down to approximately $12.5 million of remaining senior bonds, the company says.

 

More than $27 million of City of Gilroy "Senior Lien Project Revenue Bonds" were issued in 2001 to finance construction of the theme park. The bonds are payable by Bonfante Gardens Inc.

 

In a May 5 letter to bondholders, the company said it was "struggling" under too much debt.

 

"The number of visitors coming to Bonfante Gardens has been far less than was originally anticipated when the bonds were issued. If things remain as is, we are headed to a payment default on the bonds," the letter says.

 

When the bonds were issued, approximately 755,000 visitors per year were projected, resulting in enough revenue to cover both operating expenses and the payment of interest and principal on the bonds and subordinate debt.

 

"Unfortunately, attendance at Bonfante Gardens has been drastically short of the projected level. In spite of major efforts to increase attendance, including hiring Paramount Parks Inc. to manage the park, Bonfante Gardens has continued to operate in a deficit situation since its opening in June, 2001," the letter says.

 

But the land sale, which was given approval by the city of Gilroy, provides optimism, company officials say.

[WalrusMan]

The theme park of Bonfonte Gardens does not use up all or even (I think this is true) half of the land owned by the park. So hopefully they get their money back, get more money after that, and finally build that terrain woodie there.

[coasterdude5]

^^I agree, what's the point in having all that land when you could be selling it for better ride purposes? Maybe they just don't want the land to be developed with industrial buildings. That'd make the park lose its gardens atmosphere. That's my thought on it.

[Billy Hill]

I try to do my part to support the place. I really do hope that things work out. It's a sweet little park. I can't help but think that attendance will continue to suffer until they add some better rides though. I'm thinking along the lines of a terrain hugging log flume or river rapids ride for starters. Given the hot summers in the area, I think a water ride would be the ticket.

 

You gotta' spend money to make money.

[Gregory DG]

LOL... Most of the ride names look they should be on a menu...

 

http://www.bonfantegardens.com/rides/list.html

 

Artichoke Dip? Bananna Split? Garlic Twirl? Mushroom Swing? Strawberry Sundae? Mmm... Sundae...

[WalrusMan]

LOL well, the Gilroy area is (well was) a very farming oriented place. They're still the garlic capital of the world.

[PhishyBrewer]

I really enjoy this park. The landscaping is just awesome and my son really enjoys all the rides. It's would be really sad if Paramount stopped supporting this park. Holiday Lights is probably my favorite seasonal park event.

Yeah! Circus trees!

My son Gavin-Trey

Main Entrance