Industry

Funworld February 2010

In 1978, Paul Nelson realized a longtime dream when he gained full ownership of Waldameer Park in Erie, Pennsylvania. It was something he had planned for since 1945, when, at the age of 11, he started working for Alex and Ruth Moeller, who had operated the one-time trolley park since the 1920s. He impressed the couple with his work ethic and by 1957 took over management of the facility. By the time Alex Moeller died in 1965, the childless couple had adopted Nelson and willed the park to him.

When Nelson took control, Waldameer, which opened in 1896, was a successful local amusement park. While the facility was aging, it enjoyed a loyal customer base and was considered a community institution. But to many, Nelson had an uphill battle. The years between 1977 and 1987 were an extremely difficult time for family-owned amusement parks like Waldameer. More than three dozen closed during this period, including many industry anchors like New Orleans’ Pontchartrain Beach; The Pike in Long Beach, California; and Pittsburgh’s West View Park. These locales closed in the face of increased competition, aging infrastructure, ownership succession issues, and the decline of the industrial economy that robbed so many of their critical picnic business.

Waldameer could have easily joined this list. The Erie economy was dependent on manufacturing, and the unemployment rate was rising. Competition was increasing as Geauga Lake in Ohio and Darien Lake in New York underwent major expansion programs; Cedar Point and SeaWorld Ohio were established as regional destinations, and nearby Conneaut Lake Park and Idora Park in Youngstown, Ohio, were competing for group picnics.

But after more than three decades of working to obtain his dream, Nelson was not about to let the park whither away; he wanted to build something he could pass along to his children. So Nelson spoke with his wife, Lane, and came to the conclusion Waldameer could not survive long term in its current form. It would have to grow and be modernized.

Three decades and an estimated $30 million later, a remarkable transformation has occurred: Waldameer Park is now a regional destination that has outlasted many of its competitors, including Geauga Lake, Sea World, and Idora Park. “It’s remarkable what they’ve done,” says Carl Hughes, former chairman of Kennywood Entertainment. But how did they do it?

Small Steps

Nelson started slow. He brought food and games operations in house and focused on the park’s aging infrastructure— upgrading waterlines, burying electrical lines, and constructing new buildings—while traveling the country looking for ideas. It was on one of these trips he saw the popularity of the then-new cement waterslides dotting the country. While those were impractical for Waldameer, Nelson knew once fiberglass models were available, they would be the park’s first major addition.

By the mid-1980s, the waterpark craze was taking America by storm and amusement parks were just starting to combine water slides with traditional dry attractions. Waldameer was one of the original parks to embrace this strategy, opening its first water attractions in 1986. Again, Nelson started out modestly, with two waterslides and several activity pools.

But he had bigger plans. In 1989, Nelson made the difficult decision to auction off his antique carousel. To minimize the tax impact, he structured the transaction as a “like-kind exchange” and used the $1 million in proceeds to expand the waterpark and add a modern carousel. By the early 1990s, Water World, as it is called, featured a dozen waterslides, a lazy river, and several wading pools. “The waterpark was when we turned the corner,” says Nelson. “It increased revenues and attracted a nicer clientele.”


With the waterpark firmly established, Nelson shifted his attention to revitalizing the dry side of the facility. In 1992, he announced a 10-year, $10 million expansion program that would bring larger and more modern rides to the park. While some attractions such as a Sea Dragon and Giant Wheel expanded the park into new areas, others such as the “Wipeout” and “Thunder River,” a $2.5 million log flume from O.D. Hopkins, replaced older attractions. At the end of the 1990s, seven new mechanical rides were up and running.

By this time, Nelson hoped to have construction under way on his flagship attraction—a new wooden roller coaster—which would be a contemporary re-creation of Waldameer’s original thrill ride, the “Ravine Flyer,” which operated from 1922 to 1938. By the late 1980s, he knew a major roller coaster was critical in securing the park’s future. In 1993, he put down his first deposit with Custom Coasters Inc., and the planning began.

‘Ravine Flyer II’ Plans Take Shape

Plans called for Waldameer to utilize the natural topography of the park—which overlooks Lake Erie—and to cross a state highway using a longstanding easement. This required numerous approvals from state and local governments, the Department of Transportation, and the Department of Environmental Protection. But as approvals were finalized, an appeal by a neighboring business owner delayed the start of construction for several years as environmental studies were completed.

However, while Nelson pressed on to make his dream a reality, he used the interim period to expand the park even further. “The Steel Dragon,” a $4.5 million spinning coaster from Maurer Sohne opened in 2004, along with $1 million in other park improvements; in 2007 “X Scream,” a 140- foot-tall drop tower from ARM, cost just under $1 million to install.

By now, Nelson had seen several years of double-digit revenue increases, and the last of the appeals for the new wooden roller coaster were resolved; construction on

“Ravine Flyer II” was—finally—ready to begin. The Gravity Group, which had taken over the project when Custom Coasters closed, kicked off construction of the $7.5 million project, and the coaster opened to rave reviews in 2008. “Ravine Flyer II” was a huge success. Parking lots overflowed several days during the season, formerly a rare occurrence. Waldameer’s core marketing area also doubled from 50 to 100 miles, reaching the outskirts of Buffalo, Cleveland, and Pittsburgh. This culminated years of market research, as Nelson typically invests two to three years in a given community to build awareness.

The growing crowds taxed the park’s infrastructure. In 2009, Nelson invested $2 million in improvements highlighted by a new midway area with a Zamperla Mega Disk’O and expanded picnic groves and concessions.

How He Did It

This remarkable transformation has been a result of some common sense operational principles Nelson embraced from the beginning. “Paul’s had a great vision for the park. Incredible dedication and drive, and a belief in his product,” says Rob Norris, president of Seabreeze Park in Rochester, New York.

“Residents think of the park as being part of the community; others have gotten away from that,” says Nelson. He cites this need to connect to the community as a key reason he maintains the policies of free parking and free admission. As a result, many local churches have Sunday services at the park.

Well-Rounded Facility
Church groups are but a small portion of the groups that use the 5,000-space picnic grove. Group sales are integral to this community focus, as they have traditionally accounted for 60 percent of revenues, even as attendance grew. Waldameer has a policy of permitting groups to keep their same deposit price year after year along with the same pavilion and grove, resulting in a 95 percent repeat business rate. “You take care of them, and they take care of you,” Nelson says.

Nelson also credits his success in creating a well-rounded facility that appeals to the entire family. In addition to a diverse attractions lineup, a lot of attention is paid to the grounds, with flower gardens and statues in abundance. “I don’t want to be a hard park,” says Nelson. As Waldameer grew, the park significantly expanded its retail locations, while a great deal of attention is paid to creating a quality environment for the rides. In fact, Waldameer dedicates 25 percent of the construction budget to installation, and most of this construction occurs without the use of outside consultants. “My main consultants are my wife and son-in-law,” he says.

Great Vendor Relationships

Given the amount of money invested in the park, it has been critical that Nelson effectively manage his finances, another key to his success. “We have a strong bank relationship. They need us and we need them,” he says.

Several of his suppliers hold Nelson’s financial acumen in high esteem. “Paul has a great constitution when it comes to that business,” says Mike Gill of ARM. “He did not overextend himself and didn’t get greedy.” Larry Bill of The Gravity Group agrees: “He knows finance from a gut level. He studies it.”

Additionally, Nelson found it critical to effectively manage the transition to the next generation. In an unusual move, he told his three children 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 would not receive any of the benefits. One daughter, Nancy, and her husband, Steve Gorman, joined the business after Nelson had them work outside the park for a decade because, he says, “By then they would know what they wanted to do.”

But probably most critical in Waldameer Park’s success is Nelson’s persistence in sticking to a long-term plan. Even now, he shows no signs of slowing the expansion and is candid about his intentions to add three more major rides and make improvements to the waterpark. While the 50-acre site is sufficient for the next few years, Nelson hopes to eventually grow to about 60 acres.

“He has been very bold in his purchases and perseverance to put in the ‘Ravine Flyer II.’ It is testament of that vision, not only of the big investments, but the long-haul thinking,” says Norris.

“Others were looking at the dollar they could make today,” explains Nelson. “I was looking at the dollar I could make tomorrow.”

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.