Castaway Cove waterpark in Wichita Falls, Texas, US is to be acquired by the city council in a move to erase the park owner’s US$4m of debt.

The park, which opened in 2004 at a cost of US$5.8m, is owned by Castaway Cove Limited Partnership and operated by AMG, a California-based water park management and consulting firm.

The 21.4-acre waterpark boasts 40,000sq ft of water areas and features two slide towers, a lazy river, a tidal wave pool, a sport pool, an interactive multi-level children’s play system and a sand volleyball court.

The council will pay for the acquisition with debt paid by the 4B Sales Tax Fund, which is a provision of Texas’s Development Corporation Act of 1979, whereby a city may impose a sales tax for economic development.

The council said in a report: "If it was clear that the operation of this park would be a future drain on the city’s general fund budget, staff would not hesitate to recommend against buying this facility.

“However, the historical operating data and pro forma shows that the park revenues can support its annual operating expenses and future capital replacement costs.”