HomeMy WebLinkAbout10/3/2001 - STAFF REPORTS (18) DATE: October 3, 2001
TO: City Council
FROM: Assistant City Manager-Administration
SUBJECT: Lease of Alleyway located between Plaza Theatre and Indian Canyon
Drive
RECOMMENDATION:
That the City Council approve a Business Property Lease between the City and Plaza
Investment Company, Inc. to lease the Alleyway between the Plaza Theatre and Indian
Canyon Drive.
SUMMARY:
This is a proposal thatthe City of Palm Springs lease the Alleyway behind the Plaza Theatre
to Indian Canyon Drive from Plaza Investment Company to make available a staging and
storage area for the Plaza Theatre stage sets and props. A related action, which is the
subject of a separate report, recommends approval of a Sublease between the City of Palm
Springs and the Partnership for the Performing Arts, LP('Palm Springs Follies")for the use
of this space,
BACKGROUND:
The Community Redevelopment Agency of the City of Palm Springs entered into a lease
with the Partnership forthe Performing Arts forthe lease of the Plaza Theatre commencing
September 1, 1991, with annual options for extensions through December 31, 2006. The
annual rental, as adjusted in the First Amendment to the Lease, is 10% of gross income
produced by the tenant, with an annual cap of$120,000, adjusted annually by a cost-of-
living factor. The rental for this past year ended July 31, 2001, amounted to almost
$135,000.
One of the shortcomings of the Plaza Theatre is that it has little space available for"back-of-
house" type activities, such as storage of props and stage sets, dressing rooms, etc.
Hence, "The Follies" has been leasing space from Plaza de ]as Flores for office space,
dressing rooms,and a small rehearsal area. However, as"The Follies" program expanded
over the years,and the stage sets became more elaborate,with more scene changes, 'The
Follies"ran out of room for storing such stage props and sets. Consequently, 'The Follies"
extended its storage into the subject alleyway without permission of the owner, Plaza
Investment Company. Negotiations to resolve these issues have been ongoing for a
considerable period of time,and,finally,with the cooperation of all the parties involved, and
afterthe much appreciated patience of Larry Pitts, President of Plaza Investment Company,
the parties have come to terms.
The City of Palm Springs is leasing the Alleyway from Plaza Investment Company, Inc. for
$500 per month forthe period September 1,2001 through December 31,2006, plus$7,000
upfront for past rent and legal fees.
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Lease of Alleyway -
Plaza Theatre and Indian Canyon Drive
October 3, 2001
Page 2
The City will then sublease the Alleyway area to the Partnership for the Performing Arts
('The Follies")for$300 per month for the same term, plus 50% of the upfront costs of past
rent and legal fees ($3,500, or 50% of$7,000).
Attached is a proposed Minute Order approving this Business Property Lease between the
City of Palm Springs and Plaza Investment Company, Inc.
Dallas J. Flicek, Assistant City Manager-Administration
APPROVED -.
City Manager
Attachments:
1. Minute Order
2. Proposed Lease
sUh Z
MINUTE ORDER NO.
APPROVING BUSINESS PROPERTY LEASE BETWEEN
THE CITY AND PLAZA INVESTMENT COMPANY, INC. TO
LEASE THE ALLEYWAY LOCATED BETWEEN THE PLAZA
THEATRE AND INDIAN CANYON DRIVE
---------------
I HEREBY CERTIFYthat this Minute Order,approving a Business Property Lease between
City and Plaza Investment Company, Inc. to lease the Alleyway located between the Plaza
Theatre and Indian Canyon Drive was adopted by the City Council of the City of Palm
Springs, California, in a meeting thereof held on the 3`d day of October, 2001.
PATRICIA A. SANDERS
City Clerk
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