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Home My WebLink AboutR42-Economic Development AgencyCITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ® FROM: Emil A. Marzullo SUBJECT: Initiation of negotiations with Maya Cinema Interim Executive Director North America for a Consent to Assignment and Amendment [o Lease and a Disposition and Development Agreement for the Agency DATE: August 8, 2008 owned CinemaStar Theatre and vacant property ---------------------------------------------------------------------------------------------- Svnoasis of Previous Commission/CounciUCommittee Action(s): On August 7, 2008, Redevelopment Committee Members Estrada and Johnson unanimously voted to recommend that the Mayor and Common Council and/or the Community Development Commission consider this action for approval. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission of the City of San Bernardino direct Agency Staff to initiate negotiations with Maya Cinema North America for a Consent to Assignment and Amendment to Lease and a Disposition and Development Agreement for the Agency owned CinemaStar Theatre and vacant property Contact Person(s): Don Gee Phone: (909) 663-1044 Project Area(s): N/A Wazd(s): All Supporting Data Attached: D S[aff Report ^ Resolution(s) ^ Agreement(s)/Contract(s) ^ Map(s) ^ Letter(s) FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A Budget Authority: N/A Signature: Fiscal Review: a ~a.~(Q Cct.c`°~' ~ ~5~/ r ) Emil A. Marzullo, Interim Executive Director Barbara Lindseth, Administrative Services Director -------------------------------------------------------------------------------------------------- Commission/Council Notes: P~UgeMuMUmm Dev Commission\CDC 2008Wg-IB-OB Maya Cinemas ERN&Leau Assignment S0.doc COMMISSION MEETING AGENDA Meeting Date: 08/18/2008 Agenda Item Number: ~~ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT INITIATION OF NEGOTIATIONS WITH MAYA CINEMA NORTH AMERICA FOR A CONSENT TO ASSIGNMENT AND AMENDMENT TO LEASE AND A DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE AGENCY OWNED CINEMASTAR THEATRE AND VACANT PROPERTY BACKGROUND: Recently, Maya Cinemas expressed strong interest in the CinemaStaz location and operations and contacted Agency Staff to initiate a discussion to explore the possibilities of assuming the CinemaStaz lease and operations. Maya Cinemas would develop and operate new, state-of--the-art multiplex theaters with 3-D features and an I-MAX screen. The company's theaters offer mainstream first-run Hollywood movies/films, utilizing state-of--art technology and providing a comprehensive first-rate entertainment experience for the overall trade azea population. On July 24, 2008, the Redevelopment Committee viewed a Power Point presentation and proposal by Maya Cinemas to renovate and rebrand the current CinemaStaz movie theaters. The discussion also included a review and discussion of their conceptual massing model and rough site plans/elevations for the Agency property in front of the CinemaStaz box office. The development concept for the comer of 4"' Street and "E" Street would be a mixed use development of approximately 50,000 to 60,000 squaze feet of retail and office uses that would be integrated with the renovation and rebranding of the CinemaStar movie theaters, consider the operations and activities of the California Theatre, and provide for a design and development suitable for a prominent corner of Downtown San Bernardino. CURRENT ISSUE: Maya Cinemas indicated that they were prepared to move quickly and to rebrand as soon as possible so that they would be able to take advantage of new films and movies being released for this yeaz's winter holidays. The Redevelopment Committee responded to their request and recommended that Agency Staff prepare a Redevelopment Project Study and Exclusive Right to Negotiate Agreement (the "ERN") and an Assignment of Lease with an Option to Purchase (the "Lease Assignment") for the building and the land cun•ently leased by CinemaStaz for subsequent presentation to the Commission. On Friday, August 8, 2008, Agency Staff and Agency Counsel met with representatives of Maya Cinemas and modified the strategy for further proceeding with documentation on the theater project. Maya requested a formal action by the Commission on August 18, 2008, to officially initiate negotiations on the following described documents. It was decided that a Consent to Assignment of Lease and Lease Amendment (the "Lease Assignment") would be presented in final form to the Commission on September 2, 2008, and a final Disposition and Development Agreement for the purchase of the theater building and the acquisition and development of the vacant land area fronting on Fourth Street would be presented to the Commission on September 15, 2008. The proposed Lease Assignment would be effective on a date certain and would replace CinemaStaz with Maya Cinemas, provide for a period of renovation and upgrade, and a rebranding of the movie theaters to include 3-D film features and an I-MAX theater P UgeMu\Camm Dev Cummisaon\CDC 2008\06-I8~08 Flrya Cinema ERN&Lou bsignmrm $R.doC COMMISSION MEETING AGENDA Meeting Date: 08/18/2008 Agenda Item Number: ' Economic Development Agency Staff Report Maya Cinemas ERN & Lease Assignment ~j Page 2 `~ ENVIRONMENTAL IMPACT: None. FISCAL IMPACT: None. RECOMMENDATION: That the Community Development Commission adopt the Motion. Emil A. Manullo, n enm Executive Director ~~.r' P.UgeMU~COmm Dev COmmusbMCDC IOOBW8-18-08 Mnyn C'ummu ERNklsuc bsignmcm SR.Ax COMMISSION MEETING AGENDA Meeting Date: 08/18/2008 Agenda Item Number: