2009/06/10 Council Agenda Packet

EVERETT CITYCOUNCIL AGENDA ITEM COVER SHEET PROJECT TITLE: Former Key Bank Building Lease Consent COUNCIL BILL# between Village Theatre and City X Action Originating Department Legal of Everett("Kidstage") First Reading Contact Person Bruce Jones/ Jim Iles Second Reading Phone Number Ext. 7000 Third Reading FOR AGENDA OF June 10, 2009 Public Hearing Initialed by: Department� Head � Council President Location Preceding Action Attachments Department(s) Approval 2007—Memorandum of Lease Economic Development Understanding(MOU) MOU Facilities Legal Economic Development &Budget Committee Expenditure Required $1,500,000 (est.) Account Number(s): Amount Budgeted Additional Required $1,500,000 DETAILED SUMMARY STATEMENT: In 2007, City Council authorized execution of a"Memorandum of Understanding Former Key Bank Building" (MOU with Village Theatre). Based on the MOU, the proposed lease was negotiated for the Village Theatre "Kidstage"program. Some of the proposed terms are: 1) 5 year lease with 3-five year options (max. 20 years)(Sec. 2.A); 2) City to construct shell improvements,not to exceed$1.5 million(Sec. 2.B, C); 3) Village Theatre to demonstrate evidence of financing(have secured$900,000 in funding) (Sec 2.C); 4) Rent- $2,000/month until tenant improvements installed; $4,000/month for next 12 months; annual CPI increases thereafter(Sec. 3); 5) Village Theatre to provide City use of facility for 10 events/year plus some lunch time performances (Sec. 3); 6) Village Theatre to provide space for food and beverage operation with an opening to the adjacent public space (Sec. 3). City Council needs to determine if it wishes to proceed with the lease and, if so,whether the proposed terms are acceptable. In conjunction with any approval, there will be the need to eventually appropriate funding for the shell improvements. RECOMMENDATION (Exact action requested of Council): Authorize the Mayor to execute the"Former Key Bank Building Lease between Village Theatre and City of Everett." 17