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All in the Family
An industry historian takes a deeper look into the legacy of family-owned parks and attractions
by Jim Futrell
ACCORDING TO ESTIMATES FROM THE SMALL BUSINESS ADMINISTRATION, up to 90 percent of the 21 million United States businesses are family owned. While this figure is slightly lower in the amusement industry, the importance of the family-owned businesses cannot be denied.
At a time when three of the longest family ownerships in the industry have come to an end—Kennywood, West Mifflin, Pennsylvania; Indiana Beach, Monticello, Indiana; and Kiddieland, Melrose Park, Illinois—it is important to look at some of the industry’s enduring family legacies and learn from their success.
Pass the Torch
Making the transition to the next generation is always a challenge. The Small Business Administration estimates that only 30 percent of family-run companies succeed into the second generation, while just 15 percent survive into the third. Despite these odds, success stories abound.
For many of these park operators, establishing a successful track record over generations is not a matter of formalized planning or succession plans. Their reasons for success are as varied as their facilities.
One key challenge is how to accommodate succeeding generations who might not be interested in being a part of the business. In many instances, a family might divide ownership interests equally among the next generation. But such an arrangement was cited as a key reason the 102-year ownership of Kennywood by the Henninger and McSwigan families ended when, after four generations, the company had 77 shareholders, only eight of whom were employed by the them.
Paul Nelson, CEO of Waldameer Park in Erie, Pennsyl - vania, had similar concerns with his business. “I’ve seen so many parks where family members did not participate [as owners], and the park was ripped apart,” citing Kiddieland, where one branch of the family came to own the land and one came to own the business, resulting in disputes that will close the park this fall after 80 years.
As a result, Nelson told his three daughters, all of whom worked at the park through high school and college, that anyone who wanted to take an active role in the business could have a share of ownership, but if they chose not to participate they could not receive any of the benefits. “I wanted to make sure the park was protected," he says.
The Buyout
The Gillian family, which has operated amusements on the Ocean City, New Jersey, boardwalk for 80 years, saw buying out other family members as the best solution. Done primarily to reduce the impact of inheritance taxes, Jay Gillian bought out his father, Roy, at Wonderland Pier, while brother Jim bought out his two brothers’ (including Jay) interest in the family’s nearby waterpark.
“For our family, it was the best thing to do,” says Jay Gillian. “You can only have one boss.” However, while the buyout insulated the business from inheritance taxes, the debt incurred adds more challenges to managing the facility.
Although the means in which a park transfers ownership among generations varies, a common trait among successful multigenerational operators is that the new generation was introduced to the business at a young age.
“My daughter began working at the park at age 10; now she’s the personnel manager and oversees rides and the waterpark,” says Rob Norris, president of Seabreeze in Rochester, New York. His daughter represents the sixth generation of a family legacy in the amusement industry that dates back to the 1870s.
Who Should Take the Reins?
Helping out at a young age is one thing, but opinion differs as to the best approach to take once the kids get older and are deciding on their careers. It’s important to differentiate between those who are born into the life and those who might feel pushed into it.
 In several cases, owners have encouraged their children to work outside the industry. When Paul Nelson’s daughter Nancy and her husband, Steve Gorman, first indicated their interest in becoming involved in Waldameer, Nelson told them to wait 10 years while Steve worked as an engineer and Nancy worked as a nurse. Nelson felt it was important for them to gain additional maturity and demonstrate the lifestyle was something they wanted to embrace.
“My dad tried to push me out at one point to see if I wanted to fly on my own,” says George Frantzis of Quassy Amusement Park in Middlebury, Connecticut, which his grandfather purchased in 1937. “It did not last too long,” although he says he will probably take the same tack with his kids. “You have your callings in life, and maybe they need to see how it plays out.”
But for many people it’s more subtle. Jay Gillian, who started working concessions at 13, never imagined another life. “It never gets tiring,” although he does say he will not force the lifestyle on his kids.
The common theme operators emphasized is family members must earn their position. Andy Quinn, a part of the McSwigan family that owned Kennywood, said while family members were always guaranteed employment, they had to earn their titles. “When you first started out, you did whatever you were instructed to; if you lasted five years, they knew you were serious,” he says, recalling a family member who moved from a career in banking and still had to don a jumpsuit and paint buildings in the off-season. “We wanted to make sure you had an understanding of the business.”
Manage Internal Conflict
But even among the closest families, many members find it difficult when the time comes to turn the business over to the next generation. In some cases the challenges can be greater, like at Seabreeze where five members of the fifth generation came of age at the same time with similar interests in pursuing the family business. “We are very fortunate that we all grew up in the business and developed areas of expertise,” says Norris, citing the fact that all five gravitate to separate, defined roles.
 For many parks the intergenerational transition is a gradual process. At Waldameer, Steve Gorman came in as a manager then was later put in charge of rides and finances. The family is taking a similar approach with Steve and Nancy’s son Brian, who joined the management team in 2009 after graduating from college.
But it’s important to challenge them. “Don’t shove it down their throats; but let them take the leash,” says Dick Knoebel, third-generation operator of Knoebels Amusement Resort in Elysburg, Pennsylvania. “Give them a challenge and let them run.”
As the transition unfolds, families should be open to what each generation can learn from the other. “The new generations have fresh ideas that we are too old to come up with,” says Buddy Knoebel, Dick’s brother.
Knoebel’s son Brian says the four fourth-generation members regularly meet and develop ideas and present them to the third generation. But they view these meetings as a two-way street since they embrace the opportunity to pick the brains of the previous generation on decisions they have made. “From time to time you get reminders that the previous generation carries a bigger stick; it keeps us grounded,” says Brian Knoebel.
Ask for Help
In other cases, the transition can be much more dramatic. Pat Koch, whose father-in-law founded Holiday World in Santa Claus, Indiana, in 1946, recalls how the park hired a professional facilitator to come in and guide the family through the transition. “You are often not the best person to see how it should be done,” she says.
 Over the course of a weekend all the family members gathered to talk about relationships and the business. In the end, the facilitator reached the conclusion that Pat and Bill Koch should resign as chairs, making way for the next generation. While they knew it was the best thing for the business, it was very difficult. “I try hard to not give advice but I’m still [park president Will Koch’s] mother and that plays into his feelings,” says Pat.
The drastic actions taken at Holiday World underscore what family park operators agree upon: for any operation to make the transition from one generation to the next, the family cannot lose sight of the fact that the good of the business takes precedence over personalities.
“You can have disagreements, but you leave them behind in the boardroom,” Norris says, adding that parks cannot lose sight of the long-term health of the park.
“Corporate parks are worried about the next quarter,” says Norris. “We’re worried about the next generation. It gives you a different perspective.”
Jim Futrell has been historian for the National Amusement Park Historical Association since 1984. He serves on IAAPA’s Hall of Fame and Archives Committee and oversees the association’s Oral History Project. His fourth book, “Amusement Parks of Virginia, Maryland and Delaware,” was released last year.
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