Six Flags New Orleans - After Hurricane Katrina

After Hurricane Katrina

Eastern New Orleans was badly flooded in 2005 in the aftermath of Hurricane Katrina (see: Effect of Hurricane Katrina on New Orleans). The park grounds are located on a low-lying section of Eastern New Orleans, with a 6-foot (1.8 m) earthen flood berm running along the perimeter, creating an artificial basin. After the park's drainage pumps failed during the storm, the berm retained the combination of rainwater and sea water overflow from Lake Pontchartrain caused by Katrina's massive storm surge, submerging the entire park grounds in corrosive, brackish floodwater to a depth of 4–7 feet. The floodwater was not drained for over a month. Due to the damage received, the park was closed indefinitely with no plans to reopen.

Damage reports by Six Flags inspectors stated that the park buildings are 80% demolished, all of the flat rides (except for one which was being serviced off-site at the time of the storm) have been effectively destroyed by long term salt-water immersion, and both the wooden track and steel superstructure of the Mega Zeph have been damaged beyond likely hope of repair. The only large ride to escape relatively unscathed was the Batman: The Ride roller-coaster, due to its elevated station platform and corrosion-resistant support structure.

On July 1, 2006, having previously announced that the park would be closed "at least" through 2007, Six Flags Inc. announced that they had concluded their damage assessments and declared the park to be an "effective total loss"—with no desire or intent by the company to undertake the prohibitive cost of rebuilding—and was in negotiations with the City of New Orleans to make an early exit from the 75-year lease which Six Flags entered into on the property. However, then-Mayor Ray Nagin said he planned to hold Six Flags to the lease agreement and force them to rebuild. If held to the terms of the lease agreement, Six Flags would be legally obligated to rebuild the park on the same site, but only to the extent of the insurance money Six Flags receives. Six Flags determined the value of assets destroyed by the storm at $32.5 million. As of September 2006, Six Flags had collected $11.5 million of insurance proceeds, bringing the insurance receivable balance to $24.4 million. It remains unknown whether the amount of money the park receives will be enough to successfully rebuild it. In January 2007, Six Flags officials revealed to the Times-Picayune that the company is suing its insurers for the remaining amount of $175 million in coverage.

The park had long been one of the least profitable parks in the Six Flags portfolio, being well away from the French Quarter and other tourist attractions. It has been stated that the park would most likely have been more profitable had it been built somewhere on the West Bank or in Metairie, as these places are a shorter distance from tourist districts. Even more so, these locations would have placed the park much closer to affluent population centers where a strong local base of repeat customers could be cultivated, as opposed to the poverty and crime-afflicted Eastern New Orleans district where few residents could afford or were interested in expensive season passes to an amusement park.

On December 15, 2006, Six Flags confirmed that they were removing Batman: The Ride for refurbishment and relocation to a new park, as it was considered to be the only salvageable ride. Batman: The Ride was reassembled in 2008 at Six Flags Fiesta Texas in San Antonio and opened under the new name Goliath. In addition to Batman: The Ride, Six Flags removed shade coverings, ride parts, lights, security cameras, planting structures, and various other salvageable items. Six Flags also removed their large lighted sign from the park entrance, effectively indicating their intent not to return.

Despite the park's condition, as late as 2009 the Six Flags Corporation website formerly stated the following: "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." The New Orleans section has since been removed from the Six Flags website.