by Miles Jung-Kilbreath
Reporter
Aurora -- During the amusement park's financial heyday in 2001, Six Flags Ohio provided the city with $800,000 annually in income / admission taxes, according to Mayor Lynn McGill.
Eight years later, the park has been reduced to Geauga Lake's Wildwater Kingdom, and McGill said he expects the city to receive only between $15,000 and $20,000 in revenue under a proposed agreement.
"We've been anticipating this decrease in revenue for the last seven years and have been budgeting for it," McGill said.
Geauga Lake's owner Cedar Fair Entertainment announced in September 2007 the amusement side of the park would not open for the 2008 season, leaving only the water park on the former Sea World side.
McGill said the city worked to replace the dwindling funds from Geauga Lake by convincing voters to pass a 1 percent income tax increase that raised the rate to 2 percent.
"This has helped make up the [Geauga Lake] shortfall," he said.
Council is considering a proposal from the city administration which would give Aurora 31 percent of income/admissions taxes from the park. The remainder would go to Bainbridge Township. The agreement would be retroactive to Jan. 1, 2009.
Finance Director Robert Paul said when Geauga Lake was fully operational with rides two years ago, the city received only 3 percent of tax revenue because most of the 500-acre park was in Bainbridge.
However, while the proposed agreement would increase the percentage to 31 percent, the water park now encompasses only 30 acres, which Paul said means the city should not expect much additional revenue.
PAUL SAID under the agreement Cedar Fair does not need to provide any projections on how much the city would receive.
Council discussed the issue April 27.
According to a city ordinance, if a business charges admission for "every person" and it is partially outside the city limits, the city can determine an appropriate amount of admissions tax.
A survey of the property has found that two-thirds of the water park is in Bainbridge, according to Paul.
But Ward 1 Councilman Jim Vaca said he believes there is surrounding acreage in the park that is not being calculated, including land that encircles the park to the edge of Geauga Lake Improvement Association's ditch line.
He said even if the ditch line is not "usable land," it is still "part of the park and should be included when the city negotiates its agreement, and the city should get a higher percentage.
"I can't believe it's just 31 percent and [Bainbridge] gets 69 percent when you look at all the acreage," Vaca added.
McGill said the survey covers only the active section of the former amusement park. Aurora's portion covered is where Tidal Wave Bay is situated.
After Vaca questioned who surveyed the land, McGill said it was a company hired by Cedar Fair, but one that the city "knows and respects."
Vaca asked for more documentation on the survey before the next meeting.
The proposal is expected to be given a second reading at Council's May 13 meeting at 7 p.m. at Town Hall.
E-mail:
mjung-kilbreath@recordpub.com
Phone: 330-688-0088 ext. 3151