The city is tacking on another seven years to its leasing agreement with Coney Island’s amusement operator, saying the seaside area was socked so hard by Superstorm Sandy that the firm deserves the break.
“[Zamperla USA] invested a lot of money after suffering damages from Sandy, so it’s fair to give them more time to recoup their money considering they hired so many people from the neighborhood,” said the area’s city councilman, Domenic Recchia Jr., today.
A City Council subcommittee today backed the plan, which was pitched by the city’s Economic Development Corp.
The full council is expected to ratify the extension at a later date, sources said.
The move will extend the 10-year lease given to Zamperla in 2010 through 2027.
The Italian-based company has opened Luna Park, Scream Zone and many other new attractions on the 6.2 acres of city-owned beachfront land since taking over.
Through the extension, the city will continue to collect $100,000 annually from Zamperla in base rent but will see an increase in its cut of the gross receipts over the added seven years, sources said. The city already collects several hundred thousand dollars annually in gross receipts through Zamperla.
Zamperla isn’t the only amusement operator in Coney Island set to get an extension.
Deno’s Wonder Wheel Amusement Park, which is run by the Vourderis family, sits partly on city-owned land and was also hit hard by Sandy. Under the EDC plan, Deno’s would also get a seven-year extension on its lease for the city-owned property it uses.