pages: CityCouncil/2006-03-21.pdf, 14
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CityCouncil | 2006-03-21 | 14 | process would provide the key on whether or not to save the historic theater at any cost; starting now is critical; he would like to see the project go out to bid; another evaluation would be necessary once the bid results are received; he does not believe the size would affect the character of the City because the people are the character; Park Street has blossomed by bringing in Starbuck's Coffee and Peet's Coffee; stated he was ready to move forward. The Development Services Director clarified that the previously mentioned $12.849 million figure for the historic theater] includes acquisition, relocation and contingencies; the rehabilitation is estimated at $7.3 million. Councilmember/Commissioner Daysog stated that tonight's meeting addressees design and the bidding process the financial aspects of the project continue to trouble him; Alameda will collect 30 to 40 cents per-square foot on the historic theater, which is substantially below the $1.50 per-square foot market rate for new theater space; he remains convinced that the City should be collecting a rent significantly north of 40 cents per- square foot and somewhere south of $1.50 per-square foot to ensure that the project is financially beneficial to both the City and the developer; the difference between 40 cents per-square foot and $1.50 per-square foot may seem trivial but equates to millions of dollars that Alameda would be loosing over many years; rehabilitation costs have increased by 30% with strong prospects of increased costs once rehabilitation commences. the City should be collecting a rent commensurate with the project risks; the need for a better deal with the developer is underscored by the fact that both a consultant and City staff agreed that local residents would buy movie tickets in droves; the Central Cinema proves the demand analysis to be correct; both the developer and the City should be sharing in the anticipated strong demand for movie tickets and concessions; the historic downtown area should be revived by refurbishing the old theater within the dictates of financial prudence and reason. Mayor/Chair Johnson requested clarification on the rental rate for the historic theater. The Development Services Director responded that the historic theater differs from new theater space; the overhead, maintenance, and lease requirements are quite extraordinary; the lease requirements for maintenance are very strict; the Grand Lake Theater's rent structure is almost identical to Alameda's with the exception of retail rent; the historic theater retail space would Special Joint Meeting Alameda City Council and 6 Community Improvement Commission March 21, 2006 | CityCouncil/2006-03-21.pdf |