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CR 97-55 Hopkins Center for the Arts March 18, 1997 , \ y 0 ~ o P K \ ~ council Report 97-55 HOPKINS CENTER FOR THE ARTS Pronosed Action staff recommends adoption of the following motion: Move to annrove a 1ease with Chi1d's P1av Theatre Comnanv for the Honkins Center for the Arts with lease narameters as shown in lease attached. to authorize city executive officers Redenennina and Mielke to resolve outstandina minor issues as identified bv staff. and to authorize city executive officers Redenennina and Mielke to execute the lease with Child's Play Theatre Comnanv. With approval of this action, the City would approve a 15-year lease with Child's Play Theatre Company for space in the Hopkins Center for the Arts. overview As reviewed with the HRA at its March 4 meeting, the proposed lease would provide Child's Play with use of the theater to rehearse and perform throughout its 36-week annual season, and with use of the multi-use performance hall for 16 weeks of each year. Child's Play would pay between $84,000 and $90,000 in rent for the first full year, based on its 42% share of operating expenses; thereafter, rent would increase by 4% per year. The lease has several mechanisms to provide for school and community use of the theater during Child's Play's season, including a collaborative, iterative meet-and-confer process, recognition of the guaranteed Additional Hours theater time that District 270 and HAAA will have, and a half-credit rent incentive to Child's Play for it to release theater time to other users. It should be noted that Child's Play agreed to drop its Additional Hours in the theater to zero. Primary Issues to Consider . What are the outstanding minor issues? Sunnortina Documents o Lease HRA report 97-20). Parsons, Assistant to the City Manager CR97-55 Page 2 Primary Issues ~o Consider . What are the outstanding minor issues? The City Attorney has identified numerous minor issues, such as: 1. Fiscal Year should be changed to Activity Year, which must be defined. 2. Entry by city to Child's Play's exclusive use areas, the control booths and catwalks - under what conditions? 3. Should the lease state that Child's Play is the primary tenant of the theater? Would that statement confer rights on Child's Play that are not conferred elsewhere in the lease? 4. Child's Play's final rehearsal activities shall be counted toward its 16 weeks in the multi-use performance hall. 5. The lease provides for Child's Play to conduct at least two fund-raisers for its benefit in the theater or multi-use performance hall per year. Should the lease specify a maximum number of such fund-raisers? 6. Child's Play has agreed to add language to the Meet-and-Confer section of the lease to process any advance requests for release of space by Child's Play during its season to District 270, HAAA, or the City. 7. Should the City have priority in booking some dates through the Meet-and- Confer process? 8. Child's Play has agreed that it will not have priority over all other users for use of the theater. 9. Does the city have any liability to Child's Play if after Meet-and-Confer is done, Child's Play is unsatisfied with assignment of any remaining available usage dates by the City? 10. Is it acceptable for the City to collect additional rent from Child's Play at rates charged to other users for Child's Play's enterprise events? 11. Is it acceptable to allow Child's Play to book use of the theater or other spaces no more than one week in advance at no cost if no other users have booked the space? 12. Child's Play has agreed to move a back-out date back to July 1, 1997; that is the date before which footings must be poured or Child's Play is entitled to cancel the lease. 13. Is it acceptable for the lease to allow Child's Play to back out if the building is not done by January 1, 1998? Staff will provide an up-date on these issues at the March 18 meeting. Al~erna~ives The Council has the following alternatives regarding this matter: 1. Approve the action as recommended by staff. 2. Continue for additional information. 3. Deny the action as recommended by staff 4. Approve the action as it may be amended by the Council. ###