News: Six Flags may get buyout extension

Posted at 3:53 PM EST (2053 GMT)

Dec. 9th, 2004 -- The Vallejo City Council meeting tonight will determine if Six Flags will receive an extension on its contract with the city of Vallejo to purchase the Marine World property for $52 million. The vote comes a few months after Six Flags pulled out of its plans to purchase Marine World.

The current agreement has Six Flags operating the park while the city owns the park. Both share in the revenues of the park with the city receiving about $2 million per year from the park.

If tonight's vote passes, a new agreement will be made with Six Flags if it does decide to purchase the park by 2010. The new details include paying the city 2.5 percent of all admission revenues, which is expected to be no less than $750,000 annually.

Industry experts say that while Six Flags does want to buy the property, it does not have the financial backing to do so. Analysts cite Six Flags' lack of revenue for the past five years and its large outstanding debt.

The meeting will take place at 7 p.m. tonight at the city council chambers.

To read more visit the Times-Herald.