Cedar Fair's Deal with Sandusky For Tax Increases to Pay for $100 Million in City + Park Improvements

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Cedar Point has worked out a new deal with the city of Sandusky that will see some $100 million invested in both the park and the city over the next two decades.  The improvements are of a wide variety, and will be funded through two new tax increases related to the amusement park and resort.  The improvements are not new rides and attractions, to be clear, rather infrastructure improvements and initiatives within the city.

The deal is, in my opinion, meant to be an olive branch to the city of Sandusky, which has shown concern in recent months that the company is moving its entire corporate presence to North Carolina.  While the deal does not restrict that from happening, it does show a vote of confidence on the relationship between the company and the city. 

 

The funds used for the improvements will come from an increase in the city's admission tax, up to 8% from 4%.  A new 8% parking tax will also be implemented.  These two are expected to raise nearly $5 million in additional tax monies each year.  So, that $5 million times 20 years equals the $100 million being touted.

 

No news yet on whether Cedar Point will increase ticket and parking prices to let guests pay the tax, or absorb it as a new cost.

 

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What will all that money go to?  Well this news story says about 50/50 improvements to the park and the city over the 20 years.  A big chunk, around $25 million will go toward totally renovating the causeway that cars travel to the park on.  It will see a 5th lane added to help with congestion, add under ground utilities, new water and sewer lines and pedestrian access and lanes.  This will help with congestion in and out of the park, also no more worries of downed electric poles or water main breaks.  It will take several years to reconstruct the whole causeway when work starts.

About $3 million will also be spent to establish ferry service to Cedar Point directly from Sandusky, with more frequent service that includes weekends.  This will hopefully entice guests to spend an extra day of their vacation exploring Sandusky.  There will also be $1.5 million that will go toward programming at the Sandusky State Theater, $14 million for a new city recreation center in town, $3 million for a tourism development fund, and close to $30 million for other changes in Sandusky such as city road improvements, beautification, pathways and parks.

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Also worth noting, as part of the deal the Sandusky Register reported that Cedar Fair will obtain the land of the former Sandusky Drive-In as a swap for the Boeckling Building and Jet Express pier in downtown.  I think the former drive in is in the area above that I put an orange box around - but I have no idea how big of an area Cedar Fair received (if the ownership goes all the way out to the water).  This land is right next to the Sports Force Park, so it's prime for development... perhaps as a resort or more competition fields, but obviously it's beneficial to Cedar Fair to own.