UNITED STATED
The company that owns the Great America amusement park in Santa Clara agreed Thursday to be sold to a private investment firm, adding another knot to the tangled debate over the construction of a new football stadium for the San Francisco 49ers."I'm not sure what this means," said Pat Mahan, who favors the 49ers' proposal to build a nearly $1 billion dollar facility in Santa Clara near the amusement park and the team's headquarters. "But I do know that ownership is key."
All the players in the controversial project — the city of Santa Clara, the team, the amusement park, stadium boosters, opponents and individual residents — already had a lot to consider, including a lawsuit and the prospect of two ballot initiatives over the stadium.
So with New York-based Apollo Global Management buying Cedar Fair, which owns the amusement park, the biggest question becomes: What role in the stadium drama will the new owner play?
On Thursday, Apollo Global wasn't talking.
"No comment," spokesman Jonathan Gasthalter said from New York City. "At this point, that's all I'm saying."
According to Cedar Fair headquarters in Ohio, Apollo Global will pay $635 million in cash for Great America, 10 other amusement parks, seven water parks and five hotels.
Apollo is one of the world's largest private equity firms, with a taste for billion-dollar entertainment properties.
It owns the AMC Entertainment theaters, Harrah's casino empire and the Norwegian Cruise Line.
The purchase of Great America would seem to be small potatoes for such a global player, but locally, Apollo Global's arrival turns up the heat on an issue that's burning hot in Silicon Valley: Should Santa Clara subsidize a $937 million stadium for a National Football League team?
Bill Bailey is treasurer of Santa Clarans Play Fair, a citizens group opposed to stadium subsidies and the addition of a new retail space that might hurt the town's existing businesses.
The group's worry now, Bailey said, is that Apollo might abandon Cedar Fair's opposition to a stadium.
Worse, it might join forces with the 49ers to build one or even sell Great America to the team.
"They've got to be looking at that really hard," said a concerned Bailey.
Cedar Fair just last week filed a lawsuit against the city, claiming a deal with the team is illegal and threatens the rights of Great America, which would share the massive Santa Clara
site with a new stadium. Previously, the amusement park's owner was negotiating with the 49ers to build a stadium and a retail park together.
While such a partnership now looks slim or even dead, a 49ers spokeswoman said the team still has a "confidentiality agreement" with Cedar Fair, an arrangement that continues to muddle a situation growing ever more complicated.
'Great combination'
"We still believe a theme park with an NFL stadium still makes a great combination," 49ers spokeswoman Lisa Lang said. "Other than that, I'm sorry there's nothing more I can say."
While Apollo remained quiet, some lawyers and officials involved said the lawsuit and the ballot initiative drives probably will stay on track for now.
"This would not change anything," assistant city manager Ron Garrett said about the unexpected sale. "This transfer doesn't affect anything in place or under way."
Political football
Geoff Etnire, a lawyer for Cedar Fair, said Great America's management will remain in place at least through April, when the sale is expected to be final.
"This is a change of ownership, not management," Etnire said. "This will not affect the 49ers application because the same managers will still be in place."
The uncertain politics, however, will probably turn up a notch.
Bailey said stadium opponents will discuss lobbying Apollo directly about maintaining opposition to the stadium.
Mahan, the mayor, said she won't try to win over Apollo directly, preferring to let voters decide.
Personally, however, she said she hopes the new owners jump on board in favor of the huge construction project.
"This to me is a big win for Silicon Valley," she said, "putting us where we should be, in the major leagues."(By Joe Rodriguez)
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