SIX FLAGS IS NOT SELLING MAGIC MOUNTAIN, HURRICANE HARBOR.

Byline: ALEX DOBUZINSKIS Staff Writer

VALENCIA -- Six Flags is selling seven of its theme parks, but not Magic Mountain and Hurricane Harbor, company officials said Thursday.

The two Valencia theme parks had been among several properties up for sale, as their New York-based corporate owner tried to reduce $2.1 billion in debt.

But company officials decided to keep Magic Mountain and Hurricane Harbor, noting that business is up.

``Season pass and group sales are off to an amazing start for (this) year, and it became abundantly clear that this is going to be a great year for Magic Mountain,'' said Wendy Goldberg, spokeswoman for Six Flags Inc.

The company, which owns 27 parks in North America, sold seven of them in a $312 million deal. They are Six Flags Darien Lake in Buffalo, N.Y.; Six Flags Elitch Gardens in Denver; Frontier City and the White Water Bay water park in Oklahoma City; SplashTown in Houston; Waterworld USA in Concord, Calif., and Wild Waves and Enchanted Village in Seattle.

The buyer is a Jacksonville, Fla., company, PARC 7F-Operations Corp., led by Michael Jenkins, a former vice president of Six Flags Over Texas.

The two Valencia parks -- officially Six Flags California -- have always been moneymakers. But there was talk when the pending sale was announced in June that Six Flags would consider selling them for their real estate value.

The parks sit just outside the city of Santa Clarita in a fast-developing region under Los Angeles County's jurisdiction.

``I think it has been a very profitable entity for the corporation, and moving it to a real estate venture did not make good business sense,'' said Larry Mankin, president/CEO of the Santa Clarita Valley Chamber of Commerce.

``So we're obviously delighted that the corporation made that decision (to keep the parks,)'' Mankin said. ``I think it bodes well for the future of the tourism industry here in the Santa Clarita Valley.''

Magic Mountain has attracted hordes of teenage thrill-seekers, who come to hang out and ride the park's 17 roller coasters. But Six Flags is making the park more family friendly, as company officials say parents are more likely to spend money on concessions and souvenirs.

Sitting in the College of the Canyons cafeteria in Valencia, students Derrick Jasmin, 18, and Joshua Kellman, 19, were happy to hear a sale of their summer hangout was off.

``Thank God!'' said Jasmin, throwing his hands in the air, and later explaining that he likes to ride a steep-drop ride, flick up a penny and watch it hover in the air on the descent.

Kellman is a perennial passholder.

``(It) gives us something fun to do in the summer,'' he said.

The company is not seeking buyers for the two properties, Goldberg said. ``Their value was such that we decided we really want to keep them,'' she said.

Magic Mountain had a 25 percent drop in attendance from June to roughly the end of last year, which Six Flags CEO Mark Shapiro blamed on uncertainty about a possible sale.

Tena Cannon, a mother of one, has been to Magic Mountain just twice since moving to Santa Clarita in 1998. But her friend, a pastor from Atlanta, is a big fan.

``He loves it so much that he's willing to get on a plane just simply to come to the theme park,'' she said.

When the property was for sale, city and county officials rallied to keep it around.

``The city's interest was first and foremost keeping it operating as a theme park. It's very much an economic engine for our community,'' city spokeswoman Gail Ortiz said. ``We're pleased Six Flags is going to retain the park.''

In the deal to buy the seven parks, PARC will simultaneously sell them to CNL Income Properties Inc., a Florida-based real estate investment trust, and lease them from CNL. The seven parks generated $30 million in earnings before interest, taxes, depreciation and amortization.

``We believe (PARC has) the vision, the expertise and the pedigree to return these parks to their original glory, and really help them become regional destination attractions,'' said Carolyn Gosselin, spokeswoman for CNL.

The sale is expected to be completed in March. It includes $275 million in cash and a note receivable for $37 million.

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