White County Officially Accepts $ 3 Million Incentive Loan in Indiana Beach | New

Staples said it bought the 94-year-old theme park and water park from Apex Parks Group before APG filed for Chapter 11 bankruptcy on April 8, but only publicly announced it on April 8. April 23.

“Our team saw the need for someone to step in to acquire Indiana Beach and keep it from being part of the closure story,” Staples told Commissioners Monday. “We reached out to Apex (Parks) Group in late February when they announced the shutdown to see if we could do something with our equity group. (We) found out the reasons for their closure, looked at their financial statements, talked to their creditors, and were able to strike a deal that made sense to everyone involved. “

Terms of the purchase agreement were not disclosed.

The county loan would mature on September 1, 2025 and essentially become a $ 3 million grant that Staples and Indiana Beach Holdings LLC would not have to repay – as long as the park is functioning and certain conditions are met until then. moment.

Conditions that must be met include:

• Begin operations and open in summer 2020 in accordance with COVID-19 restrictions put in place by the current state. If these restrictions change and / or are extended, Indiana Beach Holdings LLC will not be considered in default for not having opened if it cannot legally do so.

• Remains in business until September 1, 2025 – the loan maturity date

• Employs at least 200 people during the 2021-2025 seasons

Richard Hall, a partner at Indianapolis-based Barnes & Thornburg law firm, said on Monday that the county would receive some collateral for the loan because it would have the right to step in and hold the property if the loan defaults.

Hall added that Indiana Beach will also honor any prepayments (for the park and campgrounds) purchased prior to the initial closure announcement.

Commissioner Steve Burton said that while Staples is “taking a risk,” “the new owner’s” agenda or motives or desires for this to happen “are significant enough to support the granting of the loan to him and Indiana. Beach Holdings LLC.

“Sometimes with the council and the commissioners we have to make decisions that maybe are not popular at the time, but part of our responsibility is to look (to) the future, and we all think that Indiana Beach should be in White County’s future, ”he said.

Apex Parks Group, the former owners of Indiana Beach, abruptly announced on February 18 that it was closing the park for financial reasons. State and local authorities had since worked to locate a potential buyer.

Indiana Beach supporters started an online petition to save the park, then staged a rally on February 29 in hopes it would persuade owners to keep it open or speed up the search for a new owner.

Less than a month after the shutdown, the White County Commission and White County Council passed a resolution to offer up to $ 3 million in incentives to any potential buyer. On March 31, the commission and council, with the help of lawyers, established a revolving fund into which the $ 3 million will be transferred – a decision that was required under Indiana law.

The money comes from the County Wind Farms Economic Development Fund, established several years ago, into which payments from wind companies are deposited for economic development and job creation.

On April 8, Apex Parks Group filed for Chapter 11 protection with the U.S. Bankruptcy Court in Wilmington, Del.

“As a result of (the bankruptcy filing), we worked with our team in Indiana Beach and with the county on a development plan for Indiana Beach,” he said. “We are looking to move forward with ongoing operations, with the anticipation of Indiana Beach opening for the 2020 season, albeit at a much later date than originally anticipated when we started this business. . “

Under Indiana restrictions due to the COVID-19 health emergency, the campground may open as long as social distancing limitations and sanitation precautions are in place. Amusement park and water park operations cannot open until at least June 14, when Indiana enters the fourth of five stages of reopening the economy. At that point, Indiana Beach could only open at 50% of its capacity.

The restrictions will not be fully lifted until July 4, until the state falls back into a second outbreak.

Presidential Commissioner John Heimlich said that “$ 3 million is a lot of money, but without it Indiana Beach would be gone and the cost to White County would be well over” $ 3 million.

He cited a 2002 Purdue University study on the economic impact of tourism on White County, which said the tourism business brings in $ 60 million annually, adding that without it every taxpayer would have to pay. $ 160 more each year to make up for the loss.

“Even those far-off county taxpayers who may not think they are affected by Indiana Beach, they are and have been for a number of years,” he said.

Copies of the loan agreement were not made immediately available, although commissioners said the contrary in a public meeting on March 17. They said at the time that once finalized, the county would publish the terms of the deal.

Instead, the county provided a copy of the resolution that was approved Monday morning.