Kelleys Island Ferry Boat Lines docked its ferries Wednesday

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http://www.portclintonnewsherald.com/news/stories/20040311/localnews/58909.html


http://www.portclintonnewsherald.com/news/stories/20040312/localnews/65096.html





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"So the boat line shuttered its operations Wednesday, posted "No Parking" and "No Trespassing" signs on its Main Street parking lot."

Workers used a backhoe Thursday to block off the boat line's main entrances with large rocks and cement barricades.

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"There is no instance of a public entity taxing individuals to enter a private property. It can't be right. It can't be fair," Kranyak said. "What is the difference between Port Clinton taxing people to go to Wal-Mart? Where does it end?

-I feel for the people on Kelly's Isle!

Thanks for the update "T" :)

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http://www.portclintonnewsherald.com/news/stories/20040317/localnews/96372.html



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http://www.portclintonnewsherald.com/news/stories/20040318/localnews/103871.html




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Associated Press


MARBLEHEAD -- A ferry boat line that shut down operations last week because of a dispute over a new tax on passengers expects to return to service today.

The boat line, the only regularly scheduled ferry that shuttles people to this Lake Erie island, stopped running after failing to overturn the tax approved by Marblehead voters.

In a meeting on Tuesday, Kelleys Island Ferry Boat Lines officials said they would resume service and Marblehead leaders said they would not collect the tax until the trial of the boat line's lawsuit against the village begins March 26.

Both sides planned to meet again today and hope to reach an agreement that would keep them from going to trial, said Marblehead Solicitor John Brikmanis.

He would not say what the terms of the agreement might be.

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Village admits departure tax unconstitutional

By RICK NEALE
Staff writer

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MARBLEHEAD -- After years of controversy, threats and a ferry service shutdown, the village of Marblehead and Kelleys Island Ferry Boat Lines have settled their departure tax war.

Village council endorsed a three-page agreement Friday night that will kill off Marblehead's "head tax" in lieu of payments from the boat line for parking spaces and a future dock extension. The agreement was negotiated by village officials and the corporation during hours of mediation hearings Tuesday and Thursday at the Ottawa County Courthouse.

Passed by a two-to-one margin by Marblehead voters, the departure tax would have charged 50 cents per adult, 50 cents per vehicle and 25 cents per child for Kelleys Island Ferry Boat Lines passengers. The boat line owners, the Palladino family, countered by threatening to move to Sandusky and docking its vessels March 10, garnering national attention.

During a special meeting Friday night, village council voted 5-1 to approve the settlement. Councilwoman Janet Monak cast the dissenting vote -- and she quit her post minutes afterward.

Following are key details of the 20-year agreement between Kelleys Island Ferry Boat Lines and the village of Marblehead:


The village will agree that the ferry departure tax is unconstitutional.

The boat line will pay the village for 300 parking spaces per year in its Main Street lot. Cost is $80 per spot for the first five years, $82 per spot for years 6 to 10, $84 per spot for years 11 to 15; and $86 per spot through the end of the pact.

If regular ferry service returns to the old Neuman's Kelleys Island Ferry dock, nearby parking spaces and the lot across the road from Marblehead Galley Restaurant will be subject to those fees. Village Solicitor John Brikmanis said that could encompass about 200 parking spaces.

The boat line will set aside parking for the Marblehead VFW and for village use. These spaces will be located just east of the company sign on Main Street.

Within one year, the village and boat line will jointly apply for a grant to extend the company dock.
Village Council President John Starcher said the dock extension will help protect the landing area during Lake Erie storms, particularly nor'easters. Brikmanis said the grant applications will likely be made through the Toledo Port Authority and seek federal funding.

The boat line will pay for construction costs, including -- if necessary -- extension of two Marblehead water intake lines.


The boat line will pay the village $20,000 per year for 20 years for the dock extension.

Beginning Jan. 1, annual village ferry license fees will increase from $50 to $250 per vessel for the next five years.
Marblehead officials estimated the departure tax would have generated about $100,000 per year for infrastructure such as police, fire, EMS and street repairs.

Starcher said Friday's deal will generate at least $24,000 per year for the village. If the dock extension becomes reality and the Neuman's property is leased, he said the village could receive about $70,000 per year.

"While this agreement does not have the financial attractiveness of what the departure fee was estimated to generate, it does provide the village with a guarantee of revenue," Starcher said. "I feel that guaranteed revenue is a better option than gambling with the village's future in the court system."

Starcher and Brikmanis said it was "highly likely" the departure fee would ultimately be ruled an illegal tax. That opinion was based on indications from Ottawa County Common Pleas Judge Paul C. Moon and Cuyahoga County Common Pleas Judge Richard McMonagle, who led the mediation negotiations.

Starcher said the court appeals process could have stretched out about six years, with the village shelling out about $10,000 annually in legal fees.

Councilman James Redinger said he was not totally happy with the settlement, but it was fiscally the right thing to do -- particularly when "we're advised by our mediator and our own counsel that our chances of winning are slim and none."

Kelleys Island Ferry Boat Lines representatives did not attend Friday's meeting. More than 40 residents did, however -- and their reactions were mixed.

Robert Boytim is chairman of the board of public affairs, which oversees Marblehead's water department. He blasted village council for not asking his organization for advice regarding the water intake pipes.

"Dammit, you people don't know anything about the water intake and the water works," Boytim said, angrily waving his glasses. "Why didn't you consult with the board of public affairs?"

Steve Sapp of Johnson's Island asked if the boat line will start charging for parking, in light of the new yearly parking space fees.

"It's his property. He can do whatever he wants," Starcher said.

Dan Thompson, owner of Surf Motel, helped organize referendum petition drives in 2000 and 2002 to fight the departure tax. He said a settlement was in the best interest of the village.

"Without that ferry line down there, there is no Marblehead from a business standpoint," Thompson said.

Mary Beth Eisman, vice president of the Baycliffs Home Owners Association, said Marblehead's reputation has been damaged by media coverage of its ongoing controversies. The ferry fight made the pages of Thursday's issue of USA Today.

"It's bad for the village," Eisman said. "It's bad for the village to be in court over the police chief. And it's bad for the village to be in court over the departure fee."

Minutes after the meeting ended, Starcher and Mayor Jackie Bird shook hands and reclined in their chairs. Starcher called the departure tax settlement "a classic no-win situation" because the residents would be divided, regardless of the outcome. Bird said the past two weeks have been grueling and difficult.

"We felt we needed to go back to (the voters) with something, and not nothing," Bird said.

Kelleys Island Ferry Boat Lines went back into service Thursday, one day after the Public Utilities Commission of Ohio ordered the corporation to immediately resume operations. Interviewed Friday afternoon, operations manager Scott Stevenson said he was not aware of the PUCO order and it played no role in Thursday's start-up.

Contact staff writer Rick Neale at 419-734-7506 or rneale@fremont.gannett.com

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Originally published Saturday, March 20, 2004




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