Six Flags is still in the process of settling claims with its insurers due to substantial damage caused by Hurricane Katrina. As a result, Six Flags New Orleans will remain closed at this time. We know that it is still a difficult time for the residents of New Orleans, and we remain committed to working with the city in support of the recovery efforts.
In other words, Six Flags New Orleans hadn't begun to show real profits when Katrina hit, so the company is hoping to recoup as much of their losses as possible.
Jazzland
It's hard to blame Six Flags for its attitude. When the park first opened as Jazzland in 2000, its owner, Alfa Smartparks, never really could make it work. The location in New Orleans East put off a lot of people, and the park seemed kind of low-rent and small.There wasn't a lot of cheering when Six Flags took over the park in 2002. Despite the $20 million in improvements and the new Batman ride, much public opinion felt that the park had lost its New Orleans' "Jazzland" flavor.
Katrina
For whatever reasons, attendance at Six Flags New Orleans was pretty low, and the park was one of the least profitable of the Six Flags theme parks in 2005, when Katrina hit.The park's location is prime flooding area (great thinking on that one), and the hurricane damage to the park was extensive. Many buildings and rides were damaged beyond repair.
Eventually, Six Flags stated that they would be reopening the park in 2006, and then again in 2007. The plan was to rebuild the park as much as possible with the insurance money, keeping Six Flags from having to spend any more millions on a park that had yet to show any real profits.
Actions Don't Match Press Announcements
Yet even though Six Flags received over $20 million in insurance money, they've demanded a total closer to $200 million -- a figure it seems most unlikely they will receive.Meanwhile, Six Flags has been trying to get out of its lease, which in 2009 still has 66 years to run. Mayor Ray Nagin has been adamant that the lease is not to be broken, because the City of New Orleans and Six Flags jointly owe money on a $25 million construction loan from the Department of Housing and Urban Development. Should Six Flags break the lease, New Orleans would have to pay the remainder of the loan itself.
The company has also salvaged a number of rides and repairable equipment -- lights, cameras, iron work -- and moved these assets to other Six Flags parks. "Batman: The Ride," for example, was disassembled and then remade as "Gotham" at Six Flags Fiesta Texas. As for the property itself, it's basically been left to the swamp.
No Good News in Sight
From time to time, there are rumors of another company taking over the park, such as the report about the Southern Star Amusement Group last April. But these have all come to nothing. As the economy continues to worsen, financial salvation for Jazzland/Six Flags New Orleans seems ever more unlikely.The best bet right now is that Six Flags and New Orleans will eventually reach some sort of agreement on the lease and loan, bits of the park will be auctioned off on eBay, and the park itself will simply disappear under the foliage, ending up a strange green lump off the I-10.