Six Flags May Trim Properties

[OrlandoRocks]

By Juliet Chung, Times Staff Writer
LaTimes.com

Six Flags is making plans to grow while hinting it may shrink.

Mark Shapiro, the theme park operator's new chief executive, announced Tuesday that Magic Mountain in Valencia would unveil the world's tallest and fastest "flying" roller coaster in the spring.

But he also suggested that the company would reduce its real estate holdings, which he termed excessive, based on the results of a report it commissioned that is due at the end of next month.

"We're going to evaluate each case," said Shapiro, a former head of programming at cable sports channel ESPN, and decide whether to sell land at some of Six Flags' 30 parks.

The report is being prepared by real estate consulting firm Staubach Co., run by former Dallas Cowboys star Roger Staubach.

"It's a tough question," said Shapiro, who was installed as CEO in December after a months-long proxy battle led by investment group Red Zone.

In a filing with the Securities and Exchange Commission, Six Flags indicated that as of March 1, it owned the land on which Magic Mountain and 16 other parks sit, totaling at least 6,030 acres.

Shapiro's detailing of potential land sales is part of larger plans he has announced aimed at turning around the company. Six Flags, whose parks are known largely for their screaming roller coaster rides, has been on a wild ride of its own recently.

Shapiro and Washington Redskins owner Daniel Snyder, who founded Red Zone, took over the company in December after ousting its management.

The new executive team has made a rapid series of announcements that aim to reverse the revenue and attendance declines that Six Flags parks have suffered since the Sept. 11 terrorist attacks, though Shapiro said Tuesday that both categories improved last year.

The plans include expanding the parks' roster of characters (hello, Batman and Robin) and implementing family-friendly policies (goodbye, smoking), all part of Shapiro's goal of turning Six Flags into more than a park that attracts sometimes-rowdy teenagers.

Six Flags shares, which have been steadily rising since the changeover in management, fell 59 cents, or 5.4%, to $10.27 on Tuesday.

Ron Bension, former head of Universal Studios' theme parks, who had been interested in acquiring Six Flags last year, said Shapiro's planned evaluation of the company's real estate was sound and a process his group would have initiated as a management team.

"There is excess land in many of the parks which is just sitting there, and the real estate has become quite valuable," Bension said.

In addition, he noted, because some of Six Flags' properties have been underperforming their competitors, and amusement parks are capital-intensive enterprises, selling underutilized land "just makes good business sense."

Because amusement parks tend to be developed in concentric rings, the excess land Shapiro referred to probably lies along the borders of the Six Flags properties, Bension said, adding that they could range from small parcels to hundreds of acres if an entire park is shuttered.

Shapiro said Six Flags' first consideration would be to sell excess land rather than close entire parks, as it did recently with AstroWorld in Houston.

Still, he did not rule out wholesale closures.

"I think anytime you acquire or inherit 30 of anything," the chief executive said, "there's a couple that for whatever reason aren't best to keep going the way they are."

[WadeJ]

By Juliet Chung, Times Staff Writer
LaTimes.com

Shapiro said Six Flags' first consideration would be to sell excess land rather than close entire parks, as it did recently with AstroWorld in Houston.

This scares me to death.

Thanks for posting the article

[sfgadvfreak]

If this is true, I think GADV is in trouble.  If GADV puts land up for sale, it will just be bought out either by companies hoping to put buisnesses on the land, or people wanting to stop SF's development.  I think that in this case, i think there will be less big buisness and more people wanting to stop building.  This might present a problem in the future when we want to expand a bit more and there are people complaining about it.  Hopefully, if so, they will strike some deal that the new owners of the land cannot go against SF's expansion plans for the future.

[GADVwow]

I've been saying for some time that lands not currently utilized by the park may well be sold.  I hope to goodness I am wrong, but fear that I am not.

I just hope this isn't being penny wise and pound foolish...

[David Jr]

I've heard from a reliable source the State of NJ and the Pinelands commision are looking to buy properties in Jackson to add to the Pinelands tract. i saw some maps of the properties their looking at but i can't go into details at this time. but there are several spots in Jackson they are looking at.

[Nitro1118]

Well, I agree with the decision of selling a few parks if they are not showing profit and are not popular, but selling off huge chunks of land that could be used for future expansions is foolish (especially for a future resort like GADV).

[68CamaroGuy]

I 2nd that. GADV has a ton of potential to expand around the lake , and make itself like a disney world. It would be a shame to lose that extra land. Imagine being able to walk around the lake either by the land bridge or around from the arena. Possible ferry rides across the lake from 1 side of the park to the other. There are so many possibilities its almost endless as to what can be done at GADV.

[GADVwow]

Assuming, of course, that there aren't restrictions on the use of that property, from zoning to wetlands, etc.  The only good thing there is that if there are such restrictions, they will also reduce the value to others, since they would have to deal with the same restrictions...