Cedar Fair sells land under California's Great America, will lease back and close park after 11 years

Posted | Contributed by Jeff

From the press release:

Cedar Fair, L.P. (NYSE: FUN), a leader in regional amusement parks, water parks and immersive entertainment, today announced it has sold the land at its California’s Great America amusement park and plans to close the park. Cedar Fair elected to sell the land to Prologis, Inc. (NYSE: PLD), a Bay Area-based logistics real estate company, for approximately $310 million with a lease agreement. The Company will continue to operate the park for a period of up to 11 years and then will close existing park operations at the end of the lease term.

The land sale, which was marketed by CBRE, was the outcome of a strategic review initiated by Cedar Fair in 2021 to explore potential avenues to maximize the value of the Company’s extensive asset portfolio. Cedar Fair purchased the land at California’s Great America in 2019 from the City of Santa Clara after the State of California dissolved redevelopment agencies, requiring the city to cede its ownership of the property to pay off existing debt. Prior to that transaction, the Company leased the land from the City for more than 40 years.

Cedar Fair intends to use proceeds from the land sale transaction to accelerate progress on its strategic priorities of reducing debt to achieve its $2 billion target, investing in high-return projects within its portfolio such as upgrading resort properties, and reinstating a sustainable unitholder distribution. Based on the strength and pace of the recovery since reopening its parks in 2021, and due to the additional capital raised through the Great America transaction, Cedar Fair expects to reinstate quarterly unitholder distributions by the third quarter of 2022, subject to review and approval by the Cedar Fair Board of Directors.

“We chose Prologis as our partner because of their deep ties in the Bay Area and their reputation for working closely with local communities on large developments,” said Cedar Fair President and CEO Richard A. Zimmerman. “For our investors, the sale and lease agreements allow us to monetize a high-value asset in the heart of Silicon Valley at a very attractive multiple. The transaction also provides us with a substantial sum of incremental capital which we intend to use to further advance our strategic priorities and generate enhanced returns for our unitholders.”

Read more from Cedar Fair.

Not to worry, it’s come to my attention a Reddit user has disproven the document that led to my anxiety. The info was altered and when one looks up the job number it goes to a project in town.
For Andy- I don’t know what rides like that run anymore, but I’d think with today’s prices they’re higher than ever. The Arrow mice were on the smaller side, but transport is also expensive these days. Plus if something is ruined or if they need a part or two Arrow is no longer around to support the project.

Fun's avatar

It's always worth being skeptical of a screenshot of a webpage. If it's real, just provide the URL.

kpjb's avatar

Transport to move a ride is expensive, but you'll most likely need more transport to get a new ride than a used one.

Mac, although Arrow is no longer around, I believe S&S will still provide all the spare parts you'd need.


Hi

Maybe the city will ruin Proligis’ investment and FUN can offer to buy the land back for half what they sold it for…..

—Dave Althoff, Jr.


    /X\        _      *** Respect rides. They do not respect you. ***
/XXX\ /X\ /X\_ _ /X\__ _ _ _____
/XXXXX\ /XXX\ /XXXX\_ /X\ /XXXXX\ /X\ /X\ /XXXXX
_/XXXXXXX\__/XXXXX\/XXXXXXXX\_/XXX\_/XXXXXXX\__/XXX\_/XXX\_/\_/XXXXXX

BrettV:

I'd be happy with a refurbished Chance Rotor

Not sure how many of those, if any, are left. Sylvan Beach has one but I don't think it runs very often. I know Kissel Entertainment travels with one also, but they installed foam foot rests on the wall, so when the floor drops, you really aren't left "hanging" on the wall. I'll assume that was to prevent any foot crushing incidents, but it seems like that would take some of the excitement out of the ride.

SBF Visa manufactures a Rotor called Zero Gravity that features translucent walls. I'm sure CP could build a pavilion with observation deck(s) around it and that could be a fun and popular addition. Zero Gravity

And Battech still offers their Spin Drome/Rave version of the Rotor, however theirs looks way too "portable" for a major theme park. The webpage does state that the ride can be incorporated into existing structures, so that is also a possibility. Spin Drome

Carousel Rabbit's avatar

I don't know how many Rotors are left but there is one at Canobie Lake, called Turkish Twist. It has the observation area up top and everything. I was very happy to see it on my visit a few years ago. It brought back memories of watching kids ride one at Bob-Lo Island on a band trip in the 80s. (I didn't ride it myself as I was very timid about rides back then.)

Carousel Rabbit's avatar

RCMAC:

I don’t think anyone has mentioned Marriott’s original grand centerpiece that endures (at both parks) to this day- the double-decker Columbia Carousel.

I'm surprised I wasn't the one to bring that up! I've commented on it in other venues but I guess I haven't been keeping up with the discussion here. I've never been to CGA, but I have a poster-sized photo I took of the twin carousel at SFGAm hanging in my kitchen. It certainly looks impressive. I don't tend to get that excited about fiberglass carousels, but as they go this is definitely among the best of them. It's also (nearly) unique and I sure hope it ends up somewhere that it's appreciated.

As for your idea, any plan that brought the Frontier Carousel back to Cedar Point is going to get a selfish and enthusiastic thumbs up from me. I would feel a little sorry for the Dorney locals for losing a proper antique carousel, but my conscience would be drowned out by getting back a carousel that figures prominently in my childhood memories of Cedar Point and my development into a carousel fan.

That would make 3 carousels at Cedar Point?

They had four at one time. plus the racing derby.....

If you count Cedar Downs they technically have three now. Even though its in Kiddy Kingdom, Kiddy Carousel is a vintage 1924 Dentzel model.

Carousel Rabbit's avatar

When I was a kid they had four carousels: Cedar Downs, the Kiddieland (now Kiddy Kingdom) Carousel, the Frontier Carousel (which is at Dorney), and the Midway Carousel. Of them, Kiddy Kingdom has always been my favorite and my username here references my favorite figure on that carousel. It really needs a band organ, though. My second favorite was the Frontier Carousel.

I never got to experience Frontier Carousel, but aesthetically I prefer Kiddy Kingdom Carousel to Midway Carousel. I can't even tell you the last time I have been on it, but side by side with Midway Carousel I prefer the figures and building on Kiddy Kingdom Carousel.

My daughter and I have closed our visits each year with a ride on Midway Carousel at closing time for at least the past 10 years. Tradition to how we close out the day. Looking forward to it again this year.

Cedar Point may be well known as the Roller Coaster Capitol of the Roller North Coaster Coast, but it should be equally as famous for its carousel collection. All are nice and all are rare. To have 4 antique carousels, with one being extremely rare, would return a feather to the park’s cap.
Which is why CP needs to call in it’s perma-loan and get Frontier Carousel back once and for all. It’s a beautiful ride and could only add to the charm that Frontiertown carries now. The carvings, it’s colors, and the white lights over it are perfect. And the building is still there. Some may remember, the ride was surrounded by rocking chairs for spectators which made it seem so relaxing. And the armored horse was on the stamp. A replica was in the Town Hall Museum but the ride itself wasn’t even there.
I don’t care what the patrons of Dorney will be missing. Knock on wood, but that park’s carousel history is sketchy. The park has been plagued with fires over the years and a couple have been lost. One sank along with a boat and sat at the bottom of the sea before it could be rescued.
That ride belongs to us and we need it back.
(I feel strongly about this…)

Carousel Rabbit's avatar

The armored horse from the famous stamp is actually on the Kiddy Kingdom carousel (or rather, its replica is; the real one was in the Town Hall Museum). You might be thinking of the so-called "haunted horse" which was on the Frontier Carousel. The real haunted horse was last seen in the Town Hall Museum and they sent a replica to Dorney.

In the mid 1970's there were four carousels, plus Cedar Downs. The Midway, Mueller machine, the Wm Dentzel machine that is in Kiddie Land (that's what the area was called then, )plus there was a second machine there, an antique Allen Herschell kiddie carousel (which I understand was sent to Valleyfair) and then the former Lake Lansing Park Wm. Dentzel machine in Frontiertown. The latter was my favorite, as I am a big fan of the later model Wm Dentzel carousels. It didn't hurt either that it had what had to be at the time the strongest sounding Wurlitzer Style 153 organ that I had ever heard. Walking down the Frontier Trail, just past Coffelts Fudge Shop you could begin to hear the bass notes of that organ, with the rest of the sound becoming clearer as you went further down the trail.

GooDFeLLoW's avatar

Here's an interesting lil' local article about lost city revenue from CGA's closure...

https://sanjosespotlight.com/how-much-money-revenue-will-santa-clar...rk-closes/

Carousel Rabbit's avatar

I live in Lansing now and get sad whenever I see the vacant carousel structure in Lake Lansing Park. (A fair number of locals still seem to believe that carousel is at Cedar Point, even though you and I know it went to Dorney long ago.)

Sadly the Herschell kiddie carousel was gone before my earliest memories of Cedar Point.

The Sandusky Merry-Go-Round Museum is worth a visit if you haven't done it yet. https://www.merrygoroundmuseum.org/

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