ABSTRACT: At the City Council’s 5 April 2011 City Council meeting, the City Council approved a five-year lease agreement with Pacific Repertory Theatre (Agreement Term: January 1, 2011 – December 31, 2015), but only a one-year lease agreement with Forest Theater Guild (January 1, 2011 – December 2011). With regard to Consent Agenda item I. Consideration of a Resolution entering into a five-year lease agreement with the Forest Theater Guild for the use of the Forest Theater facility, specifically Council Member BURNETT’s motion “to enter into a one-year lease agreement with the Forest Theater Guild for the use of the Forest Theater facility, to ask the Guild return after the season with a request for a full lease to continue to 2015, to add the amendment that with the exception of rehearsals, all work including construction on sets shall end by 5:30 p.m. and begin no earlier than 9:00 a.m. on Sundays and direct staff to work out the details of the calendar with the Guild, with the staff’s resolution being final,” (AYES: BURNETT; HAZDOVAC; SHARP; McCLOUD & NOES: COUNCIL MEMBERS: TALMAGE), it is anticipated that the consideration of a “full lease to continue to 2015” will be on the 2 August 2011 or 6 September 2011 City Council Agenda. Given Assistant City Administrator Heidi Burch's and council members' commentary about Forest Theater Guild's financial history, IRS Form 990s and Annual Registration Renewal Fee Reports are embedded in other posts for context and information. Staff recommended a one-year lease agreement, whereas Forest Theater Guild requested a five-year lease agreement. The lease agreement (season April 11 - July 29) is the same lease agreement as PacRep’s agreement of 2005 - 2009; apparently, both PacRep and Forest Theater Guild have operated without a lease since 2009. Assistant City Administrator Heidi Burch commented on the difficulty in collecting rent from Forest Theater Guild and one year was a good term to “judge viability” of the Forest Theater Guild. Rebecca Barrymore, Forest Theater Guild Board of Directors President, addressed financial viability specifically with the fact that City Administrator Rich Guillen refused full payment of $5,000 which was later accepted. Forest Theater Guild is viable, financially solvent and a “very viable organization” and Barrymore requested the same consideration as PacRep. During council deliberation, Council Member Talmage stated the City should treat PacRep and Forest Theater Guild “even-handedly;” he therefore advocated City approve a five-year lease to Forest Theater Guild. Mayor McCloud stated that a one-year lease has merit to “hold the Guild’s feet to the fire.” Past experience is the FTG was four years in arrears in paying bills and now settled. McCloud alleged that the FTG leaves the Forest Theatre in “worse condition” at the end of their tenancy than PacRep and FTG is a strain on staff resources. Council Member Jason Burnett characterized the one-year lease as a “probationary” period, and advocated FTG be granted a one-year lease agreement and immediately following this season the FTG make a request to the city council for a 4 ½-year lease to 2015.
Regular Meeting
Tuesday, April 5, 2011
4:30 p.m., Open Session
Archived video streaming
City Hall
East side of Monte Verde Street between Ocean and Seventh Avenues
VII. Consent Calendar
H. Consideration of a Resolution entering into a five-year lease agreement with the Pacific Repertory Theater for the use of the Forest Theater facility.
I. Consideration of a Resolution entering into a five-year lease agreement with the Forest Theater Guild for the use of the Forest Theater facility.
MINUTES
REGULAR CITY COUNCIL MEETING
CITY OF CARMEL-BY-THE-SEA
April 5, 2011
II. ROLL CALL
PRESENT: Council Members Burnett, Hazdovac, Sharp, Talmage, and Mayor McCloud
ABSENT: None
STAFF PRESENT: Heidi Burch, Assistant City Administrator/City Clerk
Molly Laughlin, Deputy City Clerk
Mike Calhoun, Interim Police Chief
Sean Conroy, Planning Services Manager
Janet Cubbage, Library Director
VII. CONSENT CALENDAR
Carolyn Hardy asked to pull Item “H”.
Council Member BURNETT moved to approve Consent Agenda Items “A”-“G” with corrections, and to move discussion of Item “H” to immediately after the Consent Calendar, seconded by Council Member TALMAGE and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT; HAZDOVAC; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
H. Consideration of a Resolution entering into a five-year lease agreement with the Pacific Repertory Theater for the use of the Forest Theater facility.
Stephen Moorer, executive director of Pacific Repertory Theater, addressed the issue of the times designated for set construction.
Carolyn Hardy, Adam Moniz and Carl Iverson spoke to the issue.
Council Member BURNETT moved to approve Consent Agenda Item “H”, with the amendment that with the exception of rehearsals, all work including construction on sets shall end by 5:30 p.m. and shall not begin before 9:00 a.m. on Sundays, seconded by Council Member TALMAGE and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT; HAZDOVAC; SHARP; TALMAGE; McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
I. Consideration of a Resolution entering into a five-year lease agreement with the Forest Theater Guild for the use of the Forest Theater facility.
Carolyn Hardy had pulled Item “I” for discussion at the end of the meeting.
Assistant City Administrator Heidi Burch presented the staff report.
Rebecca Barrymore, president of the Forest Theater Guild, spoke to the issue and requested a five-year lease.
Mayor McCloud opened the meeting to public comment at 9:02 p.m.
Carolyn Hardy spoke about construction noise and extra sound amplification at the Theater.
Mayor McCloud closed the meeting to public comment at 9:07 p.m.
Council Member BURNETT moved to enter into a one-year lease agreement with the Forest Theater Guild for the use of the Forest Theater facility, to ask the Guild return after the season with a request for a full lease to continue to 2015, to add the amendment that with the exception of rehearsals, all work including construction on sets shall end by 5:30 p.m. and begin no earlier than 9:00 a.m. on Sundays and direct staff to work out the details of the calendar with the Guild, with the staff’s resolution being final, seconded by Council Member HAZDOVAC and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT; HAZDOVAC; SHARP; & McCLOUD
NOES: COUNCIL MEMBERS: TALMAGE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ADDENDUM:
City Council
Agenda Item Summary
Name: Consideration of a Resolution entering into a five-year lease agreement with the Pacific Repertory Theater for the use of the Forest Theater facility.
Description: At its February 1, 2011 meeting, Council directed staff to negotiate a lease agreement with Pacific Repertory Theater for the use of the Forest Theater. Using the prior five-year lease as a starting point for negotiations, staff is recommending the attached proposed lease agreement.
The lease agreement term is for five years and includes the use of the Indoor Theater formerly occupied by the Children Experimental Theater. City lease fees collected from Pacific Repertory Theater are specified on Exhibit “B” under “Schedule of Payments”.
Overall Cost:
City Funds: $13,200 estimated annual revenue
Grant Funds: N/A
Staff Recommendation: Adopt the Resolution.
Important Considerations: The Pacific Repertory Theater is a long-established local performing arts organization that offers a range of theatrical and cultural events for the community. This organization is a good tenant during the performance season and pays its City lease fees promptly. The lease fees are deposited into the Forest Theater Enterprise Fund, which offset costs to maintain the Forest Theater facilities and grounds.
Decision Record: The City Council on November 2, 2010 directed staff to negotiate a lease agreement with Pacific Repertory Theater. The City Council confirmed this action at a subsequent meeting held on February 1, 2011.
Reviewed:
Rich Guillen, City Administrator Date
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ENTERING INTO A FIVE-YEAR LEASE AGREEMENT WITH THE PACIFIC REPERTORY THEATER FOR THE USE OF THE FOREST THEATER FACILITY
WHEREAS, Pacific Repertory Theater is a performing arts organization in the City; and
WHEREAS, the City owns the Forest Theater facility and property; and
WHEREAS, the City leases the Forest Theater facility and property during a performance season, generally commencing in mid-April and ending in mid-October; and
WHEREAS, Pacific Repertory Theater is interested in leasing the Forest Theater facility (including the Indoor Theater) commencing generally the last week of July through the second week of October.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF CARMEL-BY-THE-SEA DOES:
1. Authorize a five-year lease with the Pacific Repertory Theater.
2. Authorize depositing fees generated from the Pacific Repertory Theater lease into the Forest Theater Enterprise Fund – Account #60-40727.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARML-BY-THE-SEA this 5th day of April 2011, by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SIGNED:
_______________________
SUE McCLOUD, MAYOR
ATTEST:
__________________________
Heidi Burch, City Clerk
FOREST THEATER USE AGREEMENT
Agreement between CITY OF CARMEL-BY-THE-SEA and PACIFIC REPERTORY THEATRE
Agreement Term: January 1, 2011 – December 31, 2015
pages 68 - 83
7 comments:
I agree with Ken Talmage. The council members voting for a 1 year lease with FTG took every negative opinion Sue McCloud put forth without demanding the facts themselves. Here is another example of the council not treating everyone and every organization equally or evenhandedly. Some get special preference and some get negative treatment all at the whims of the mayor and council. Ken was right and the mayor and her clones were wrong.
Is it that common to have a 5-year lease agreement for a city council building? I would think they want a longer one to lock in a lower rate...
Lease Agreement Template
I don't know about Anon's comment above. As a landlord myself, I don't treat all my tenants the same when it comes to lease terms. If a tenant has been behind on rent for several years, that hardly entitles them to a 5-year lease! Even the FTG president didn't dispute the fact that they had been pretty far behind. Besides, didn't Ken mentioned that his business is one of the FTG's cash sponsors? Sounds like a conflict to me.
In support of FTG:
1. Current FTG Executive Director Rebecca Barrymore is responsible for paying off the $40,000 debt incurred from a former executive director and board. Ergo, Barrymore should be applauded for retiring debt and returning FTG to fiscal solvency, not penalized.
2. Mayor Sue McCloud negatively characterizing the FTG at the 5 April 2011 City Council meeting with claims that the FTG takes too much of her time (really?) and takes too much staff time prior to voting on a one-year lease instead of a five-year lease as was agendized is reminiscent of Mayor McCloud negatively characterizing the then-Community & Cultural Commission as taking too much of her time due to the members’ having the temerity to ask substantive questions on the proposed non-profit organization management of Sunset Center prior to her dissolution of the Community & Cultural Commission.
3. It is in the interest of the City to have both the Forest Theater Guild and PacRep Theatre have a lease and use of the Forest Theatre for theatrical and other productions.
4. Adults and neighbors should be able to put the interests of youth and the performing arts at the Forest Theatre ahead of our own interests, especially during the days between Memorial Day and Labor Day.
To Doug Hart:
Sorry, no information or knowledge about whether or not a five-year lease is commom or uncommon, but information gleaned from a theatre expert is that it is extremely atypical or uncommon for an entity to charge ten percent (10%) of the gross receipts (Gross receipts are defined as total gate.)
I'd look for another theatre expert. Having been on the accounting side of the business, I can assure you that minimums opposite a percentage, as the linked lease outlines, are quite common. Movie and theatre royalties work the same way. Please do your homework.
The city's taking 10% of the gross receipts at the gate has been standard for years in Carmel. The percentage is collected because the theater groups pay next to nothing for rental of the FT facilities (about $25 a day). That's peanuts for the use of a public facility.
Very Brief Historical Perspective on Theatre Cost Structure
B. Cost Structure in Theatre
Payment to theatre owners: Up until the late 1970s, theatre owners retained 25-30% share of gross box office revenue for providing the theatre space, ushers, box-office staff etc. This changed in the late 1970s, when theatre owners decided to “separate their landlord and risk-bearing roles” (Caves, 2000, p. 117), shifting to a two-part fee structure involving a fixed fee to cover variable and fixed theatre costs (rent, insurance, mortgage and personnel) plus a 5-10% share of gross box office revenues (theatre owner rate).
Source:
Is Making Movies All That Different Than Making Plays?
Analysis of Cost Structure in Film and Live Theatre
Dr. Anna P. Della Valle*
Presented at The 14th Biennial Conference of the Association for Cultural Economics International
Vienna, Austria
July 6-9, 2006
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