Why Do Abandoned Theme Parks Remain Standing?

Introduction to the Phenomenon

It is a common sight to find abandoned theme parks standing, un-demolished, after they cease operations. The question often arises, why do these parks remain standing instead of being torn down? Various economic, legal, and practical factors contribute to this phenomenon.

Property Value and Economic Consideration

Property Value is a primary factor influencing the decision to leave abandoned parks standing. According to estate brokers and enthusiasts, the property value of a theme park, especially those with decommissioned rides, often increases due to their perceived historical and nostalgic appeal. As an example, Jon Mixon highlights that when Frontier Citys' boneyard is visited, a park representative explains that they keep defunct rides due to the addition of property value. This is similar to SBNO Williams Grove or Six Flags New Orleans, where the structural integrity of the rides serves as a selling point for realtors.

An illustrative example is the AstroWorld theme park in Houston. Before its closure, the park was economically viable, but after bankruptcy and subsequent demolition, the site's property value significantly increased. The Astrodome, which can be seen standing, is an excellent illustration of how the continued presence of the structure can enhance property value. According to Jon Mixon, this increased value often becomes a powerful selling point in the real estate market.

Bankruptcy and Financial Constraints

Financial Constraints also play a significant role. The closure of a theme park often leads to bankruptcy, which means that the former owners may not have the necessary funds to demolish the park. In such cases, the park's assets, including rides and structures, might be sold off, but the remaining unrenovated parts are typically left in place. For instance, when AstroWorld shut down, it succumbed to financial difficulties, leaving numerous decommissioned rides standing.

Bankruptcy Law and Debt: If the park is owned by a bank or a financial institution, they likely prefer to retain the real estate assets to sell them and recoup their financial losses. The nature of the debt often dictates that it is more economically prudent for the bank to keep the park standing rather than demolishing it. Additionally, selling the property can attract potential buyers who may be interested in reviving the park.

Involvement of Legal Hurdles

Ongoing Litigation: Litigation is another significant factor that can prevent theme parks from being demolished. When a park experiences financial issues, the previous owners may face lawsuits. Dogpatch USA, for example, illustrates this point. The legal dispute between Ford and Nance lasted for years, and the court's resolution dictated that the park should remain in its current state until the lawsuits were resolved. Such legal complications often extend the lifespan of abandoned theme parks.

Abandonment and Neglect: Sometimes, the issue is abandonment by the original owners. If the owners leave the park without addressing legal or financial issues, the property is left as is, awaiting resolution. Courts often mandate the park to remain in place until the legal issues are sorted out, ensuring that no damage is done to the structure in the meantime.

Health and Safety Concerns

Asbestos Hazard: Another considerable factor is the presence of asbestos. Structures built before 1975 often contain asbestos, which can be hazardous when disturbed or deteriorating. Demolishing a park with asbestos poses significant health risks and requires specialized equipment and management, which can be costly. Given that theme parks frequently shut down due to bankruptcy or legal issues, they are unlikely to have the financial resources to address asbestos hazards. Therefore, the structures remain in place, at least until the risks are neutralized or until the land's value justifies the cost of demolition.

Conclusion

In summary, abandoned theme parks remain standing for a variety of reasons, including property value, financial constraints associated with bankruptcy, ongoing legal disputes, and health hazards such as asbestos. These factors combine to make the demolition of theme parks an expensive and time-consuming process, while leaving the structures in place provides various benefits to the land's owners and potential future operators. The presence of these parks serves as a testament to the enduring appeal of amusement and the economic value they add to surrounding areas.