NEWS: CNL terminates PARC lease on 18 properties

[jedimaster1227]

http://www.sec.gov/Archives/edgar/data/1261159/000119312510268859/dex991.htm

 

CNL Lifestyle Properties and PARC Management End Lease Relationship

Eight Family-Entertainment Centers, Eight Theme Parks to Transition to New Management Companies; plans being finalized for two other properties

 

CNL Lifestyle Properties Inc. has reached an agreement regarding the early termination of PARC Management’s leases on 18 attractions and family entertainment centers currently operated by PARC.

 

CNL Lifestyle Properties has already entered an agreement with Amusement Management Partners (AMP), a company chaired by former Ripley’s Believe it or Not CEO Robert Masterson, to manage eight family entertainment centers. The REIT is now evaluating new operating strategies with leading experienced management teams for the eight theme parks. CNL Lifestyle Properties expects new management companies to be in place well in advance of the start of the 2011 season.

 

In the last few years, CNL Lifestyle Properties has invested significant capital to expand and strengthen these attractions, investing in new rides and other guest amenities. As part of its ongoing program of capital investment and park improvement, the REIT is in the final stages of planning various new attractions for these parks for the 2011 season.

“Since our acquisition of these properties in 2007, CNL Lifestyle Properties has remained dedicated to their success and ensuring they provide fun and memorable experiences to guests in a family-focused environment,” said Byron Carlock, president and CEO of CNL Lifestyle Properties. “We are excited about the changes that are planned for 2011 and will continue to seek ways to improve these parks and build upon the wonderful experiences they provide to the local communities we serve. We are also committed to ensuring these properties are managed by industry-leading management teams.”

 

CNL Lifestyle Properties expects no adverse changes in the consumer experience, employment levels or community involvement due to the management transition. Since there is no change in ownership, season passes already purchased for the 2011 season will be honored.

The affected attractions are:

 

•Elitch Gardens (Denver, Colo.)

•Frontier City (Oklahoma City, Okla.)

•White Water Bay (Oklahoma City, Okla.)

•Waterworld (Concord, Calif.)

•Wild Waves & Enchanted Village (Seattle, Wash.)

•Darien Lake (Buffalo, N.Y.)

•Splashtown (Houston, Texas)

•Magic Springs and Crystal Falls (Hot Springs, Ark.)

 

AMP will manage the following family entertainment centers:

 

•Zuma Fun Center (Charlotte, N.C.)

•Zuma Fun Center (Knoxville, Tenn.)

•Zuma Fun Center (North Houston, Texas)

•Zuma Fun Center (South Houston, Texas)

•Mountasia Family Fun Center (North Richland Hills, Texas)

•Fiddlesticks Fun Center (Tempe, Ariz.)

•Funtasticks Fun Center (Tucson, Ariz.)

•Camelot Park (Bakersfield, Calif.)

 

PARC is committed to assisting to make the transition to new management companies as smooth as possible. PARC plans to focus on its existing operations including NASCAR SpeedParks and on development and management opportunities, both domestically and internationally.

 

CNL Lifestyle Properties also is finalizing plans to smoothly transition two other properties.

Edited January 25, 2011 by jedimaster1227

[chadster]

This was not unexpected, good to get it over with and done many months before a new season starts. Frontier City is in desperate need of many new attractions, and a new signature coaster. Although land locked, there is still much they can do. I believe the land behind wild cat is theirs, and while a pedestrian bridge would be needed, relocating the parking and entrance would do wonders for expansion and getting the park back to being a contender. Magic Springs could also use another signature coaster and a few more flats. IMO, it's probably one the most underrated parks in the country.

[nagro5]

Wow, this will be the third time Magic Springs has changed management within the past couple of years...

[beatle11]

This was not unexpected, good to get it over with and done many months before a new season starts. Frontier City is in desperate need of many new attractions, and a new signature coaster. Although land locked, there is still much they can do. I believe the land behind wild cat is theirs, and while a pedestrian bridge would be needed, relocating the parking and entrance would do wonders for expansion and getting the park back to being a contender. Magic Springs could also use another signature coaster and a few more flats. IMO, it's probably one the most underrated parks in the country.

 

'm definitely glad this is over and done with as well. I'm planning to re-visit Darien Lake next year.

[Shavethewhales]

I think it's somewhat unfortunate, because I think PARC's strategy was good overall and that they would have done much better with more time and a better economy. I don't know about the rest of the chain, but at Frontier City they did more in a few years than Six Flags did in twenty.

 

It sounds like they're just looking for a new management team rather than selling off any of the parks though. The earlier rumor about HFEC buying FC may just mean they were approached as a potential operator. I doubt they would do that though...

 

I'll be glad to see a new set of hands at the wheel again though, just to see another fresh wave of changes at the parks.

[astroworldfan1]

I heard that PARC Management is absolutely broke..Broke to the point where they can't even pay their vendors.

[chadster]

While the parks did see a major cleaning, you must wonder if that was PARC's doing or the holding company's instructions to do so. Even tho you pay a company to manage your investments, the owner still has the ability to point them in the right direction. In this case I believe they leased the parks, but even so, certain items can be inserted into a lease that must be followed or termination can occur. While it's easy to blame the economy, several other parks did very well the last few years considering all that was going on. I saw more commercials by leaps and bounds for Worlds and Fun/Kansas City/SFOT and Silver Dollar City (all 200 miles away) than for a park thats less than hundred miles away from me. The PARC parks I visited this year were clean, staff friendly, etc, but they were just dead. They lacked any sort of excitement that you expect when you visit a park.

 

Given that, I hope whoever gets the amusement parks ramps up marketing and tries to breathe some much needed life into a a few of these parks.

Edited November 25, 2010 by chadster

[JustCoasters]

I have to agree with 'chadster' in that...

 

Magic Springs could also use another signature coaster and a few more flats.

IMO, it's probably one the MOST UNDERRATED parks in the country.

 

What a beautiful location!

A Good Selection of Coasters.

and Great People...

 

Peace

JC

[coastercrazy216]

So does this mean that some of the parks will not open this year?

[robbalvey]

So does this mean that some of the parks will not open this year?

Read the article...

 

CNL Lifestyle Properties expects no adverse changes in the consumer experience, employment levels or community involvement due to the management transition. Since there is no change in ownership, season passes already purchased for the 2011 season will be honored.

[larrygator]

I heard that PARC Management is absolutely broke..Broke to the point where they can't even pay their vendors.

 

Probably true since they weren't fully paying CNL.

[cal1br3tto]

I've never had a serious issue with a PARC park (I could find plenty to criticize about Wild Waves, but I still enjoyed my visits). Still, it will be interesting to see what kind of changes and (hopefully) improvements this brings.

[carolinacaniac]

The possibility of HEC getting involved sounds good to me, even if it were just for Frontier City. They certainly do a great job in running Dollywood, and I believe I had seen that overall, Wild Adventures is getting better too since they bought it. It will be interesting to see how this all plays out

 

-Gary

[kenshinmac]

Wow... Just wow... I had a feeling that PARC had bitten off a bit much and certain things at Elitch Gardens this year just felt off. I wouldn't have thought that this would happen though.

 

Well hopefully we will see some good changes from this move. I honestly feel mixed about the PARC era in Elitch Gardens but they did make things look a bit better in areas of the park that were definitely looking shabby. I continue to hope that we have something coming in the next few years because currently the park is in need of a new thrill ride. We really need a good coaster though so hopefully we will see something soon.

 

So any idea what this means as far as the webpages and the like? Who owns the rights to those?

 

What management groups are there out there now? I mean who would take on 18 properties some with some serious needs?

[davisal771]

^ Well with the flying coaster finally being removed perhaps a new coaster is right around the corner... (El Loco, please)

[darienlakeonline]

I remember reading in one of the press release that PARC bought Myrtle Waves from CNL.

 

and heres a PREE RELEASE for Darien Lake

 

“Since our acquisition of these properties in 2007, CNL Lifestyles Properties has remained dedicated to their success and ensuring they provide fun and memorable experiences to guests in a family-focused environment,” Carlock said in the news release.

 

CNL, in its release, said “PARC is committed to assisting to make the transition to new management companies as smooth as possible.”

 

Carlock also said CNL was in the final stages of planning new attractions for the theme park for the 2011 season.

 

The company said it expects no adverse changes in the consumer experience, employment levels or community involvement due to the management transition. Season passes already purchased for the 2011 season will be honored.

 

http://thedailynewsonline.com/news/article_32864006-f831-11df-9c4c-001cc4c002e0.html

[Six Flags Enthuseast]

This is bittersweet news for me. Wild Waves has become a lot cleaner, better managed, and more reasonable in general with PARC, but at the same time they haven't had many new additions. Not just rides, but better pathways, facilities, trash cans, and lights. Only time will tell, but I hope the new owners will keep up the good park managment, as well as add some new stuff...

[Shavethewhales]

So according to the latest scoop on screamscape, HFEC is indeed considering picking up some of these contracts, but they're more interested in Darien Lake than FC. Also, Parques Reunidos and several others are in the mix as well.

 

I don't know if I like Parques Reunidos all that much. I've heard negative things about how they have changed Lake Compounce. I mean, they're a pretty big corporate entity, and none of the parks up for grabs need more of the big corporate treatment.

 

Burke/Story taking over FC doesn't sound too appealing either, since they sure didn't do the park any favors during SF's management.

 

I'm starting to really miss PARC... Whatever their financial issues were, you have to admit that they did a pretty good job fixing up a bunch of odd little parks.

 

I hope HFEC is able to at least pick up Darien Lake, and maybe FC too.

[Geauga Dog]

Darien Lake seemed much better under PARC and at least saw some additions. Based on Herschend's current track record they would do wonders for that place.

 

Burke/Story back at Frontier City, where Premier Parks began? They totally neglected that park once Six Flags got in their hands. I wonder if they've learned their lesson.

[Stephen G]

I hope Magic Springs Gets some new rides, Its Probably one of my favorite accidental park Discovery's, First time we went there It was just be cause we happened upon this little park out side Hot Springs AR and said lets give it a look and were quite surprised by how nice and clean the park was and very well maintained, and having a very nice setting in the Ozarks. Perhaps I can go back to Arkansas after I ride the new Giant

[technfxrick]

http://www.hfecorp.com/about/HFE-CNLAnnouncement012511.pdf

 

January 25, 2011, Orlando, FL & Norcross, GA -- CNL Lifestyle Properties, Inc., owners of Darien Lake Theme Park Resort and Elitch Gardens, and Herschend Family Entertainment (HFE), the nation's largest family-owned theme park corporation, jointly announced today that HFE would assume the day-to-day management of both properties starting January 25, 2011. Based near Buffalo, New York, and in Denver, Colorado, respectively, Darien Lake Theme Park Resort and Elitch Gardens both include a theme park, a water park and a performance venue. In addition, Darien Lake Theme Park Resort also includes a hotel, cabins and a campground. HFE will become the management company for all properties; CNL Lifestyle Properties remains the owner. Curt Caffey, senior vice president and managing director, CNL Lifestyle Properties and Joel Manby, president and CEO, HFE, made the announcement.

 

“HFE was a natural choice due to the company’s solid history of operating first-class, successful theme parks with a reputation for top service and guest experience standards,” said Caffey. “Both Darien Lake and Elitch Gardens already have strong foundations as beautiful, fun and wholesome family parks. We’re confident Herschend will use its operations know-how to take these attractions to the next level.”

 

“We are eager to get to work managing the operations at these popular parks. With 50 years of experience serving millions of guests, and operating a variety of family entertainment enterprises including theme parks, water parks, tour businesses, hotels and campgrounds, HFE is committed to delivering great value while always bringing families closer together. These parks align well with that philosophy,” said Manby. “Our aim is to make the transition as seamless as possible for the parks’ employees and as transparent as possible to guests.”

 

As the parks’ new management company, HFE will oversee all operations including supervising more than 3,500 full-time and seasonal employees.

 

Darien Lake Theme Park Resort is New York State's largest theme and water park resort. Darien Lake Theme Park Resort provides accommodations at the Lodge on the Lake Hotel with Forts-o-Fun suites, Brown Bear Cabins, RV sites and campgrounds. It is also home to a 22,000-seat performing arts center featuring some of today’s hottest musical acts.

 

For more than 120 years, Elitch Gardens has been a gathering place for Colorado's families and children and the entertainment hub of the community. It was home to the first zoo, first theater, first movie house, first symphony orchestra and continues to be the oldest continually operating theme park west of the Mississippi.

 

ADMIN EDIT: I went ahead and removed some of the press release extras that don't need to be included in the quote (media info, company backgrounds, etc...) and added a link to the source.

Edited January 25, 2011 by jedimaster1227

[SharkTums]

Hmm. I don't know if I like this. I kind of want Herschend to stay small and focus on what they do right instead of buying B- grade parks.

[KDCOASTERFAN]

Darien Lake seemed much better under PARC and at least saw some additions. Based on Herschend's current track record they would do wonders for that place.

 

Burke/Story back at Frontier City, where Premier Parks began? They totally neglected that park once Six Flags got in their hands. I wonder if they've learned their lesson.

 

I doubt it & now they're after a waterpark here in va.

 

Heck I'm suprised that Burke/Story are still even in the industry any longer & thought they'd left when Snyder gave them the boot from SFI.

[BeemerBoy]

^^ You beat me to it.

[Hercules]

Very interesting. I too like that Herschend is smaller and does a good job with their current properties, but this should mean Darien Lake and Elitch should just get better now, right? At least from an operational and day-to-day standpoint. They could go from "B-" to "B" parks at the very least.