When Katrina swamped New Orleans in 2005, it also destroyed much of the tourism infractructure, including the Six Flags theme park 12 miles east of downtown.

But while the rest of the Big Easy is getting up off the mat and trying to rebuild and get back in business, the Six Flags Park remains shuttered. And even worse - abandoned to the bayou.

Six Flags’ interest lies in keeping the park shuttered - so they can claim it’s completely wiped out and collect insurance. 

They’re asking for $150 million in insurance claims, out of which only about $35 million has been paid out. The rest is mired in litigation. Adding to their decision to keep the park closed is the fact that it was losing money anyway before the storm. That basically means they get more money if they let the park rot, and lose money if they open it.  

On the Six Flags website, it says this in plain English - “Six Flags is still in the process of settling claims with its insurers due to substantial damage caused by Hurricane Katrina. As a result, Six Flags New Orleans will remain closed at this time.”

The City, on the other hand, desperately needs to open the park to entice visitors and add to the list of attractions in New Orleans.  This impasse has led New Orleans to file an injunction against Six Flags, barring it from removing any equipment inside the park. The idea is to kick Six Flags out of the lease, and get someone else to operate the park.

They did try for a deal like this in 2006, but negotiations were scrapped because both sides wanted more out of it. This time, though, it just might work, because Six Flags is losing money across the board on most of it’s theme parks, and is about to make a decision on whether to go into bankruptcy.

So if another operator is willing to step in and pay the city a hefty sum, Six Flags - or the court-appointed bankruptcy trustee - just might let go of the lease for whatever little they can get their hands on.

Photo from Theme Park Review forum. 

Posted on May 28th, 2009 by Thomas
Filed under: News