Falls unveils plans to run struggling downtown park. (Niagara Falls City Hall; NIagara Splash Water Park)

Niagara Falls City Hall would run the troubled Niagara Splash Water Park this summer on a scaled-back budget under a proposed arrangement between the park's receiver and the city.

Mayor Jacob Palillo's administration is willing to take another chance on the debt-ridden park, which is in the hands of a receiver. The city claims it is owed nearly $16 million in federal loans used to build the park and unpaid in-lieu-of-tax payments and water/sewer bills.

"With the city in control of operations, a profit is a real possibility," says an April 20 memo from Palillo filed with the City Council April 22. "It is unlikely that losses would reach $100,000, even with a repeat of last year's weather."

The council, often at odds with Palillo, must approve the plan for it …