The biblical theme park in Kentucky centred around a full-size recreation of Noah’s Ark has transferred back land sold to its non-profit affiliate for just US$10 (€8.60, £7.70) after officials suspended a tax rebate worth US$18m (€15.5m, £13.8m) as a result of the deal.

In April, the Williamstown City Council imposed a tax on the city’s three entertainment venues, which would cost the ark around US$700,000 (€602,000, £538,000) annually to cover emergency services to serve the venue. Its owners then tried to have the fee capped at US$350,000 (€301,000, £269,000) and US$500,000 (€430,000, £384,000) before asking for an exemption on religious ground – the city refused all three offers.

In June, Ark Encounter sold its main parcel of land – worth an estimated US$48m (€41.3m, £36.9m) – to its own non-profit affiliate for just US$10 in a reported move to allegedly try and exempt itself from state property taxes.

At this point the City Council stepped in, saying the separate sales tax rebate would be suspended because the sale breached existing agreements with the state.

According to Ark Encounter’s parent company answers in genesis, the land was transferred back to its for-profit venture Ark Encounter LLC on Friday (21 July), though company COO Mark Looy said the matter had been “highly misrepresented” and that the company had always been willing to pay into the safety fund.

“In frequent discussions with the city over the last three months, Ark Encounter leadership had proposed that the fee be capped, and recently suggested a maximum of a half million dollars per year,” said Looy.

“Ark representatives made it clear that it had concerns about the fairness of the city ordinance, for it makes the Ark Encounter bear almost the entire load for the increased funding to cover Williamstown’s budget for police, fire, and emergency medical services.

“Ark Encounter leadership has agreed to meet the requirement of the ordinance. Since 1 July and has been adding 50 cents to each ticket purchase to meet the requirement of the ordinance.

“The filing for an exemption as a religious non-profit (as permitted in the ordinance), was done in an attempt to get the county to change the wording as it currently stands, which would exempt the Ark Encounter. It was not to avoid paying its fair share.”

Also in his statement Looy said that Ark Encounter operates as a non-profit because it is wholly owned by a non-profit, which is in turn owned by Answers in Genesis.

The park opened its doors in July last year, with the 510ft (155.5m) long, 85ft (26m) wide and 51ft (15.3m) high boat its centrepiece. Inside, more than 125,000sq ft (11,600sq m) of exhibits can be explored along the three decks, billed as “an immersive, historically-themed experience for the whole family.” The ark is surrounded by a zoo, a lake, a zip line tour, a garden and a 1,500-seat themed restaurant. Future plans include construction of a theatre, a flood-walled city, a recreation of the Tower of Babel and a first-century Middle Eastern village.