A troubled Texas waterpark is hoping to get a new lease on life now a fresh operator has been appointed to manage the attraction and refinancing of a US$25m loan that was used to build the park has been approved.

Hawaiian Falls in Pflugerville – a water and adventure park that opened in 2014 – has been taken over by Typhoon Texas, operators of another Texas waterpark, in Katy. On 1 March, the Pflugerville Community Development Corporation (PCDC) and City of Pflugerville approved a refinancing plan for the 25-acres property.

The facility will be renamed Typhoon Texas Austin under the Typhoon Texas brand and receive a US$4.5m makeover, including new rides and more child-friendly attractions, before reopening in May this year.

“We’ve known that with the right operator, this waterpark could be a beautiful, safe and family-friendly destination for residents and visitors in Pflugerville, and we’re so pleased to now have Typhoon Texas at the helm,” said Pflugerville Mayor Victor Gonzales.

Hawaiian Falls parent company Horizon Family Holdings defaulted on its monthly payments to the PCDC several times in 2015 and 2016, causing the city council to seek alternative management for the attraction.

The financial problems came following a rocky start for Hawaiian Falls Pflugerville. In its opening season, a man drowned at the waterpark, while a deaf toddler was rushed to hospital and almost died after being found at the bottom of a wading pool.

There is a pending lawsuit against Hawaiian Falls, which allegedly lacked properly trained lifeguards and failed to notify their insurance company about the death of the man. A further lawsuit has been filed by a man who was injured on a slide in 2016 when the rider behind him slammed into him. The man claims the staff operating the ride did not check the path was clear before allowing the next rider to go.

The Pflugerville attraction faced more problems in 2016 when, along with six other Hawaiian Falls facilities, it was found to have violated labour laws. Minors were found to be using dangerous equipment and working hours that contravened federal law for employees aged 14 and 15.

“The Pflugerville waterpark needed investment and changes to be successful. After exploring options for more than a year with our partners at the City of Pflugerville, we believe we have found the right operator who shares our vision for the park. The Typhoon Texas team has the capital, the leadership and the proven track record to turn around this waterpark,” PCDC executive director Amy Madison said.

Typhoon Texas co-owner Ray DeLaughter added: “Our investment analysis shows there is strong market opportunity at the Pflugerville location, but the wrong product has been in place, and we can fix that. We know we can deliver a waterpark that people love, which is evident by our success at Typhoon Texas in Houston.”