New Orleans continues to pay on loans for unused Six Flags site
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New Orleans officials say the old Six Flags amusement park in New Orleans East continues to draw interest for redevelopment, but there are no firm plans in place at this time. As it sits idle, the city pays $1.9 million each year on its federal loan for the site.
Read more from WWL/New Orleans.
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You would think they would have insurance for something like this. I'm guessing this falls under the "act of God" clause. Still, when building a park below sea level...is this an "act of God" or a forseeable possibility? Anyhow, seems weird that the city still pays lease money. You might think that the Federal Government would be willing to let this one slide...WAIT...what the heck am I thinking... ;)
IIRC, there was insurance, at least on behalf of SFI. The problem was that the insurance company didn't pay. Because heavens forbid that an insurance company be made to pay out after one of the worst storms in mondern history in the US.
I was thinking more along the lines of the city having insurance in case of a lease default (PMI type of insurance). I assume Six Flags going bankrupt put the city between a rock and a hard place. You would think they would mitigate their risks in case the unthinkable (or probable depending on one's knowledge of Six Flag's financial status and operations troubles around the Katrina time) happens. Sounds like Katrina gave Six Flags an easy out on a bad investment. Even had they got the insurance money, doubt they wanted to stay in that market. It looks like Six Flags is still suing for the insurance money. Wonder if the city gets a cut if they collect?
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