Commission approves 22-year causeway agreement with Cedar Fair; $1.25M support structured via taxes
Summary
The city commission approved a 22-year causeway agreement with Cedar Fair under which the city will provide $1,250,000 in support that is structured through admissions and parking-tax arrangements rather than an outright gift, staff said.
City staff updated the finance committee on a newly approved 22-year causeway agreement with Cedar Fair that the commission passed between meetings.
Michelle Reeder, a city staff member, told the committee the commission approved a causeway agreement providing $1,250,000 in support over the agreement term. A committee member clarified that the funding mechanism involves the city collecting admissions and parking taxes and returning funds to the operator as part of the negotiated agreement rather than an unconditional gift.
Committee members noted that the causeway funding was part of the broader deal associated with Issue 8, when the city added the parking tax and increased admissions tax; the negotiated support was an element of avoiding litigation over those tax changes. Staff said Cedar Fair is proceeding through permitting and design and plans to begin major construction in the off-season next year, with work that will expand the west side of the causeway and use barges or other marine methods for some construction phases.
Staff said they are not aware that Cedar Fair has selected a final construction vendor; the company was reported to be down to three bidders and waiting on permits. The committee did not vote on the causeway agreement at the meeting because the commission had already acted; the update was informational to the finance committee.
