Developer of Water Park Sues Irvine Co.

The firm building a water-theme park on land near the now-defunct Lion Country Safari sued the Irvine Co. for more than $30 million Tuesday, claiming that the giant developer tried to make the park “economically unprofitable.”

However, “the lawsuit will in no way impair our opening,” now scheduled for late June, said Bill Draney of American Sportsworld Inc., the firm developing the $5-million park along with The Splash Inc.

“There’s no problem from a financial standpoint in completing the park and getting it open,” Draney said Tuesday.

The lawsuit, filed in Orange County Superior Court, alleges that the Irvine Co., which owns the land, forced the developers under “duress and menace” to increase liability insurance coverage to $10 million. The developers claimed that their original lease agreement called for $5 million in insurance.

Representatives of the Irvine Co. could not be reached for comment.

The additional coverage purchased by Splash cost “the equivalent of 23% of (estimated) gross sales received from operation of the water park,” the suit alleges.

Asked how much operating profit would be left for the developers, Draney replied, “Not much.”

The lawsuit also asked for damages from Scottsdale Insurance Co. of Arizona and Marsh & McClennan, a California corporation that helped arrange the increased coverage.

According to the suit, the developers were placed “in a position of grave financial difficulty” when the additional insurance coverage was arranged last fall. The Irvine Co. allegedly wanted to force the lessee, Lion Country Safari, to give up its lease before it expires in 1997, the suit asserts. The water park developers subleased the property from Lion Country Safari.

When it opens, the park will be called Wild Rivers at Lion Country and will contain 40 attractions, including water rides.