pages: CityCouncil/2005-08-16.pdf, 11
This data as json
body | date | page | text | path |
---|---|---|---|---|
CityCouncil | 2005-08-16 | 11 | hours; the theater peak time is later. The Development Services Director stated the parking studies included a desire for a much bigger parking structure; a 508 space parking garage was contemplated when the Long's parking lot was discussed; a long-term parking plan is still needed. Vice Mayor Gilmore stated that existing tax increment covers the bonds that have already been issued; requested staff to address how the Housing and Urban Development (HUD) loan would be paid back, the developer's buying and selling options, and how much capital the developer is investing in the project; stated that there has been a lot of discussion regarding scaling down the theater or just doing three screens the number one goal of the Downtown Vision Plan was to restore the historic theater for first run movies. The Development Services Director stated all except $3.5 million of public investment in the project would go to the historic theater and parking garage the developer will provide his own furniture, fixtures, and equipment (FF&E) in the historic theater; the developer will bring $5. 3 million in equity and bank financing; the developer has met financing commitments outlined in the Disposition and Development Agreement (DDA) ; the bank financing includes an SBA (Small Business Administration portion, which has additional control and rigor because of the examination SBA completes; the developer would build the Cineplex; the City will own the land under the Cineplex and own the historic theater and land; the City will lease the historic theater and the ground under the Cineplex to the developer ; a $700,000 grant will pay for vertical elements, such as the elevator, ramps, Americans with Disabilities Act (ADA) exiting and life safety exiting; the Cineplex entrance will be used to meet ADA requirements; there are two methods for repaying the $2.8 million loan in the DDA; $1. 4 million will begin to be repaid in the seventh year after the developer's FF&E financing would be retired; the other $1.4 million will be paid in a percentage rent, which is 17% of the project gross above a certain threshold; DDA provisions preclude the developer from selling or refinancing without paying off the loans; the historic theater retail rental income will be retained by the CIC; the developer has the option to purchase the the historic theater and the land under the Cineplex from the CIC after successfully operating for five years; the developer would have to buy both the historic theater and Cineplex land; the purchase price would be the amount that the CIC paid. Vice Mayor Gilmore stated that there is a lot of concern over the assumptions about ticket sales; the developer has to sell tickets to meet his obligations to bankers and the CIC; the concern is that not enough tickets will be sold and that the project will fail; Regular Meeting Alameda City Council 11 August 16, 2005 | CityCouncil/2005-08-16.pdf |