pages: CityCouncil/2005-08-16.pdf, 16
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CityCouncil | 2005-08-16 | 16 | obstacles in determining how to go forward with the project and save the historic theater at the same time. Mr. Kelly stated the historic theater costs over $9 million for 484 seats; $9 million is enough money to build a 12-plex. Mayor Johnson stated eight years ago, the Council gave direction to staff to develop a project that would save the Alameda Theater and have it used for first run movies. Mr. Conner stated the percentage rent structure was designed to help protect the downside and have everyone share in the upside ; the City shares significantly [in the upside ] more than any other deal; the amount is three to four times what an average percentage rent would be in any commercial theater in a suburban setting. Councilmember Daysog inquired whether the City's share of the percentage rent in net present value terms over 20 to 30 years is $190,000. Mr. Kelly responded an aggressive assumption that the theater will get 100% of the Alameda market would mean the City will have some significant percentage rents; if the theater does very well, the City will receive 15 to 17%, will share in that [profit] and receive what is believed to be a fair rent. Mayor Johnson inquired whether 15 to 17% was based on gross or net, to which Mr. Kelly responded gross, including concessions. Vice Mayor Gilmore stated everyone seems to agree that the historic theater should be restored and preserved; the money being spent to restore the theater could build a 12-plex; money is being put into the historic theater because it almost becomes a public amenity; a public amenity is not expected to make a return; the new Library is not expected to make a return. Councilmember Daysog noted residents voted for the new Library. Vice Mayor Gilmore stated the community has clearly expressed that restoration and preservation of the historic theater is valuable: the high cost of rehabilitating the theater makes a financially neutral project difficult; opinions about the rest of the project differ restoring the theater does not come cheaply. Mayor Johnson stated there have been on-going attempts to install parking in the Park Street area since the 1970 s; there was effort to save the theater in the 1980's; the project will not solve all parking problems on Park Street; Webster Street potential parking Regular Meeting Alameda City Council 16 August 16, 2005 | CityCouncil/2005-08-16.pdf |