City commission supports Cedar Point deal

SANDUSKY — Sandusky city commissioners provided their seal of approval regarding a $100 million milestone agreement between the local government and Cedar Point. During Monday's public meeting, all seven elected officials unanimously voted on three separate pieces of legislation, each centered on supporting this deal: • One resolution involved raising the admissions tax. • Another called for re-enacting a long-dormant parking fee at the amusement park. • The remaining piece fixated on related financial information. Before the trio of 7-0 votes occurred, Sandusky ex officio mayor Dick Brady offered up a statement. "The seven members of the commission will be credited with delivering $100 million to this community over the next 20 years without one dime of those dollars falling as a burden onto (local and city) taxpayers," Brady said. "That is huge." He continued: "Future commissions will be judged by how they choose to spend those dollars for the benefit of each and every resident in each and every segment of this community." And, in closing, Brady, a longtime businessman said, "What comes next changes the trajectory of this city for decades to come. It's important to all of us to be a part of that tonight. I'm more proud of this commission, this body, than any group of people that I have ever dealt with." Coming to a compromise In a nutshell, the momentous agreement — exclusively shared with the Register and first reported by the newspaper — 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. 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; It's not known exactly what amenities could get added but these types of facilities often offer basketball courts, swimming pools and workout rooms. • 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). Sandusky acquired the property in 2007 after receiving federal grant funds. • Generating funds to further advance economic development and destination-related investments in Sandusky; Officials want to provide businesses with grants and other financial incentive packages to strengthen Sandusky's economy on a year-round basis. • Supporting various programming at the Sandusky State Theatre; The contribution fixates on bringing larger, more notable acts to the venue, particularly during wintertime. • Bolstering vital city services, namely for police, fire, parks, streets and recreation; It's unknown exactly what will get funded today, but officials put an emphasis on replacing outdated equipment for safety services, smoothing out roads and maintaining city parks. • Agreeing that Cedar Fair will maintain a corporate presence in Sandusky; It's unknown exactly how many people will stay and/or get hired, as Cedar Fair didn't reveal those numbers. But executives reiterated they'll continue to have a "comparable corporate presence" in Sandusky going forward as compared to today 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. "This historic partnership builds on the foundation of a 150-year relationship to strengthen our city by the lake for generations to come," said Sandusky city manager Eric Wobser, who spearheaded this deal on the local government's behalf. 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.