Six Flags Wants Out of New Orleans Agreement

Published: Jul. 1, 2006 at 8:26 PM CDT|Updated: Jul. 4, 2006 at 4:04 AM CDT
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NEW ORLEANS (AP) - The company that owns Six Flags New Orleans does not want to reopen the flood-ravaged eastern New Orleans theme park, but Mayor Ray Nagin said he wants to hold the company to its 75-year lease.

Six Flags Incorporated has offered to pay the city $10 million to cover rent to the city and to give the city 66 acres of land the company owns next to the park. The company also is offering to give the city 20% of its insurance proceeds above $75 million dollars.

It is unclear how much insurance money the park will receive.

The amusement park has been closed since Hurricane Katrina. The company previously had said the park would be closed for the 2006 season but that it hoped to reopen it. The park struggled to attract visitors even before Katrina, and Six Flags spokeswoman Wendy Goldberg says it now makes no sense to keep it open.

But Mayor Ray Nagin says that the city plans to hold the New York company to its agreement to operate the park.