2007/12/05 Council Agenda Packet

• EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET 6 PROJECT TITLE: Consent COUNCIL BILL# Memorandum of X Action Originating Department Administration Understanding with Village First Reading Contact Person Lanie McMullin Theatre regarding lease of the Second Reading Phone Number 425/257-7100 former Key Bank Building at Third Reading FOR AGENDA OF 12/5/07 an initial rate of$48,000 per Public Hearing year Initialed by: Department Head '51' 7 • CAA Council President ( Location Preceding Action Attachments Department(s) Approval 1621 California 11/21/07 Real Estate Memorandum of Legal Committee Understanding Former Real Estate Key Bank Building Amount Budgeted n/a Expenditure Required Account Number(s): Budget Remaining Additional Required DETAILED SUMMARY STATEMENT: The former Key Bank building is currently surplus to the City's needs and available for lease to private parties. The Village Theatre wishes to lease the building for its KIDSTAGE youth education program. In addition to rental income, the City will derive improved quality of life for Everett residents and their children, increased downtown pedestrian traffic and enhanced tourism from leasing the building to Village Theatre for this purpose. This memorandum of understanding formalizes the parties' intent to enter into a lease whereby Village Theatre will pay an initial base rent of$48,000 per year, operate a coffee shop, allow City use of the premises 10 times each year at no cost to the City,provide weekly performances during the summer at no cost to the City and free up potential revenue-producing space at the Everett Performing Arts Center, and the City will lease the building and make improvements to the building shell. RECOMMENDATION (Exact action requested of Council): Authorize the Mayor to execute the Memorandum of Understanding Former Key Bank Building with Village Theatre for the lease of the former Key Bank building at the initial rate of$48,000 per year. 7'J