Unless a Belgian financial company can find a new operator to run Raging Waters, the park's future may be sunk.
Both Fitraco, a Belgian pension fund, and Salt Lake City this week terminated leases that allowed Raging Waters Salt Lake City Ltd. to operate the park and wave pool. That means the company is out of business. Fitraco plans to tell Salt Lake City next week whether it has found a new firm to run the park.If Fitraco is unsuccessful, it may end up mothballing or dismantling the park, located at 1200 W. 1700 South. Despite that possibility, there appears to be little support among City Council members to step in to save it.
"I'm reluctant to see cities get into businesses that cities should not be doing," said Councilman Keith Christensen. "I just don't think that's the way to go."
Councilman Tom Godfrey said the city is already in the recreation business. Adding a water park to its recreation assets "may not be all bad for the city." But he'd have to be convinced the park would pay its own way and the liabilities would be minimal.
Roger Black, city management services director, said a new operator would likely honor any season passes sold by Raging Waters Salt Lake City. If the park folds, season passholders will likely receive refunds.
Raging Waters was owned by a joint partnership between Amcore Management Inc. of Toronto, Canada, and Morey Development Co. of New Jersey. Morey Development began operating the park in the early '80s. Amcore became a partner in the park last summer.
Raging Waters already was behind in payments to the city when Amcore came aboard. City officials thought the Canadian firm would be the shot in the wallet that the park needed.
But in December, the depth of the park's financial troubles surfaced when the city received a letter from Fitraco revealing Raging Waters was delinquent on payments.
The city gave the Raging Waters until January 15 to come up with a repayment plan. In December, company officials were optimistic they could solve the money woes.
But Raging Waters failed to come up with a plan that satisfied Fitraco or the city.
Raging Waters has struggled to stay financially afloat over the past decade. The park has made a net profit only twice since 1985, according to Black. It last made a profit in 1988; the park broke even last summer.
Because of the park's money-flow problems, the city in 1993 agreed to lower the property lease payment from $100,000 to $50,000 per year. That gesture apparently wasn't enough to pump up the park's profits.
Last year Raging Waters failed to make payments to Fitraco on the equipment it leased. It also owed Salt Lake City $80,000, its property lease payment for 1994 and part of 1993. Salt Lake City owns about a quarter of the 15-acre site and leases the rest from Salt Lake County.
The city spent $450,000 in 1978 to install a wave-making machine in a swimming pool at the park. But four years later, the pool's popularity began to dry up and the revenue it generated dipped.
The city got a private developer to expand the pool into a water theme park in hopes of attracting more people and making more money. Competition from other water parks along the Wasatch Front, however, siphoned off water-parkgoers. Bad weather in some years also limited profits.