HomeMy WebLinkAboutItem 1TFrom:Jeffrey Bernstein
To:City Clerk
Subject:Fwd: Important change for Plaza theatre foundation / city contract
Date:Sunday, July 23, 2023 12:42:41 PM
Attachments:image001.png
Jeffrey Bernstein
Mayor Pro Tem, Councilmember
City of Palm Springs
442-305-9942
Jeffrey.Bernstein@palmspringsca.gov
Begin forwarded message:
From: "J.R. Roberts" <jr66@mac.com>
Subject: Important change for Plaza theatre foundation / city contract
Date: July 22, 2023 at 10:15:44 PM PDT
To: Grace Garner <grace.garner@palmspringsca.gov>, Jeffrey Bernstein
<jeffrey.bernstein@palmspringsca.gov>, Ron.deHarte@palmspringsca.gov,
Christy.Holstege@palmspringsca.gov, Lisa.Middleton@palmspringsca.gov
Cc: Mark Hamilton <mhamilton@psplazatheatre.org>, Don Cecil
<don.cecil@mcbayarea.com>, "Kevin J. Corcoran - Consulting"
<kevin@kevinjcorcoran.com>, Rick Vila <rvila@psplazatheatre.org>, David C
Lee <prestondl@aol.com>, Scott Stiles <Scott.Stiles@palmspringsca.gov>,
teresa Gallavan <Teresa.Gallavan@palmspringsca.gov>, Jeff Ballinger
<Jeff.Ballinger@bbklaw.com>, Kathy Weremiuk
<kathy.weremiuk@icloud.com>, John Bolton <jbolton@oakviewgroup.com>
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open
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Esteemed City Council,
I’m writing to you regarding the proposed MOU with the Plaza Theatre Foundation
07/24/2023
Public Comment
Item 1T
on your upcoming consent calendar. We have been working diligently with Jeff
Ballinger and city staff to craft a workable 10 year contract that will guide the
foundation and city for a successful operation of the theatre. As you know the
foundation board and directors are all volunteer and fully dedicated to creating a
magnificent high quality entertainment and cultural venue in what was a decaying
theatre with no budget or hope for a future.
As you also know we currently have financial commitments in excess of $15.7
million dollars to fulfill the dream of a fully restored theatre / cultural venue. The
project is out to bid and will hopefully start work this fall. As promised we are also
in negotiations with the Oak View Group as a potential operator / manager. As
always, our goal is to not only create a successful theatre for our community but to
have the theatre not require operation subsidies from the city. That’s a tall order as
most theaters of this size do not do do well financially. We think we can do it.
Unlike other venues in the city the foundation is not asking subsidies for operation
but we will need all the help we can get to insure success. This will include the
foundations ongoing fundraising and a careful balancing act with programming to
keep the theatre affordable for the entire community while staying financially
independent. What we are doing is unprecedented.
As we consider ways of keeping the theatre financially viable we ask for one vital
change to the proposed MOU. We feel it’s important that since the the theatre is
city owned that the city be responsible for it’s monthly utilities. This will not only
help the theatre find financial success but also help to unsure that the foundation
won’t need to come to the city for subsidies in the future. One of the many costs
associated with the operation of the theater is renting additional space for admin and
other needs. Staffing and lease payments will put a great demand on finances. The
city picking up utility costs will help. It’s also important to note that the theatre will
be an important economic driver for the city including millions in TOT and tax
revenues from dining and other sales generated from the seven hundred people who
will be occupying the theatre on a regular basis. The utilities will be a small price to
invest toward those revenues and the utility costs will be significantly less with all
new highly efficient lighting, sound and HVAC equipment as part of the restoration.
The city covering utilities will show the city’s commitment to the success of the
theatre and help the foundation fulfill it’s very ambitious plan of affordable
entertainment with very little cost to tax payers. Below is the term we need altered in
the MOU. Please feel free to contact me to discuss this further.
B 1 Page 5
1. Operating Costs. The Foundation shall pay all costs associated with its occupancy
of the Plaza Theatre and its business operations, including performance of the
Services required by this Agreement and costs required to perform its maintenance
obligations as set forth in Exhibit A. The Foundation (or the Management Firm)
shall be responsible to pay the cost of any utilities associated with the Theatre.
With good thoughts...
J.R.
07/24/2023
Public Comment
Item 1T
J.R. Roberts
President
Palm Springs Plaza Theatre Foundation
P.O. Box 5537
Palm Springs, CA 92263
JR66@Mac.Com
https://savetheplazatheatreps.com
415 297 9309
07/24/2023
Public Comment
Item 1T