Cedar Point, city strike $100M deal

SANDUSKY — A historic agreement announced Thursday reaffirms Cedar Fair's commitment in Sandusky, paves the way for game-changing projects and aims to strengthen partnerships between all who live, work and play in the city. Potentially totaling about $100 million in new investments over a 20-year period, both entities announced this milestone deal exclusively with the Register. Among the most notable details, through a one-of-a-kind financial arrangement, this alliance calls for: • Constructing a new causeway, doubling as Cedar Point's main entranceway; This concept involves extending the Sandusky Bay Pathway onto the highway. Doing so would allow for pedestrian access on the causeway — through a dedicated, protected lane — and then into Cedar Point and its beach. • Building a new recreation center for city residents, with a focus on youth programming, somewhere in Sandusky; Cedar Point will receive the naming rights. • Creating a water taxi system in downtown Sandusky, providing people with an additional way to access Cedar Point; A pending arrangement involves Sandusky and Cedar Fair swapping land: Sandusky would acquire the Boeckling Building and Jet Express pier in downtown, and Cedar Point would get the former Sandusky drive-in movie theater site along Cleveland Road (U.S. 6). • Generating funds to further advance economic development and destination-related investments in Sandusky • Supporting various programming at the Sandusky State Theatre; Cedar Point will receive naming rights for the theater's auditorium. • Bolstering vital city services, namely for police, fire, parks, streets and recreation • Agreeing that Cedar Fair will maintain a corporate presence in Sandusky These negotiations and subsequent agreements resulted from months of behind-the-scenes talks between company executives and city officials, which began this summer. That's when Cedar Fair made moves potentially signaling it would relocate company headquarters to North Carolina. Through this process, however, both sides acknowledged it needs the other to remain viable. That's why, in part, Cedar Fair will maintain a corporate presence in Sandusky and add more full-time employees at Cedar Point. Provided image/CITY OF SANDUSKY Making sense of the dollars and cents Beyond the projects and initiatives, discussions largely revolved around how they would get funded. Sandusky officials steadfastly opposed raising any local tax rate, such as for income. So they came to a compromise: These initiatives, beginning in 2022, will completely get paid by visitors and those buying tickets, such as through season passes, to Cedar Point: • The admissions tax rate will increase from 4% to 8%. It's the amount someone entering Cedar Point or another Sandusky-based, for-profit venue spends on a ticket. Sales from Cedar Point, however, contribute roughly 99% of Sandusky's admissions tax account, which produces about $4 million annually today. • The parking tax will get enacted, an 8% fee on drivers entering Cedar Point. Back in 2003, for one year, and despite Cedar Point's disapproval, Sandusky approved a parking tax. This time around, Cedar Fair executives welcomed the tax. These two tax drivers should create about $4.5 million in new money each year to fund these projects. Provided image/CITY OF SANDUSKY Speaking up Several people playing crucial roles in the negotiation process spoke on the deal's importance: "This historic partnership builds on the foundation of a 150-year relationship to strengthen our city by the lake for generations to come. A thriving Sandusky is critical to Cedar Point reaching its full potential and vice versa. It took real leadership to make this happen, and I am proud of the Sandusky city commission and Cedar Point for coming together and solidifying Sandusky's status as the premier destination community on the Great Lakes." — Eric Wobser, Sandusky city manager "We believe this long-term partnership with the city of Sandusky will solidify our shared interest in enhancing community resources and attracting even more visitors from around the country to our tourism-driven region. Sandusky has been Cedar Point's home for 150 years, and we will continue to make significant investments in the region." — Carrie Boldman, Cedar Point vice president and general manager "This type of resolution that was reached comes from outstanding leadership in both Cedar Fair and in the city of Sandusky. It is not often that we get to make decisions that will positively impact several generations of residents in our city. Because of the vision and leadership of this commission, we now move forward in making so many of our dreams a reality." — Sandusky ex officio mayor Dick Brady "We renew and extend our partnership with an agreement breathtaking in its scope which will mutually serve our interests for generations to come. Years from now, Sandusky's rebirth will be defined by the twin pillars of Issue 8 and 'Partnership 2021.'" — Sandusky city commissioner Dennis Murray Jr.