HomeMy WebLinkAboutR29 EDAECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Ann B. Harris SUBJECT: MANAGEMENT OF THE
Business Retention /Revitalization Director CALIFORNIA THEATER
DATE: October 5, 1998 ORIGINAL
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Synopsis of Previous Commission /Council /Committee Action(s):
On October 26, 1998, the Redevelopment Committee recommended that this item be forwarded to the Community
Development Commission.
Recommended Motion(s):
(Community Development Commission)
MOTION: That the Community Development Commission authorize staff to prepare an
agreement with Theater Arts International to manage the California Theater for one
year, commencing on December 1, 1998 with a thirty day termination clause by either
party.
Contact Person(s): Ann B. Harris/ Colin Strange
Project Area(s)
Supporting Data Attached:
Central City (CC)
Phone: 5081
Ward(s):
D Staff Report ❑ Resolution(s) ❑ Agreement(s) /Contract(s) ❑ Map(s) ❑ Letter/Memo
FUNDING REQUIREMENTS Amount: $ N/A Source:
j Budget Authority:
y
SIGNATURE: '. _ .4/1
a an Osde xecutive erector
Economic Development . gency
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Commission /Council Notes:
N/A
N/A
J r ry
nn . Hariis, ire, for
Business Retention /Revitalization
AB ----- l 1- 16- 02.cdc COMMISSION MEETING AGENDA
Meeting Date: 111�/16/11�998
Agenda Item Number: /�� /
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Management of California Theater
On August 31, 1994, the Agency acquired the California Theater of the Performing Arts. Interim
management of the facility was obtained from the San Bernardino Civic Light Opera at a cost of
$5,000 per month plus a reduction of $1000 per month in debt owed to the Agency. Keith Stava,
Executive Director of the San Bernardino Civic Light Opera, was given the position of interim
manager on behalf of the Agency.
Upon the cessation of activities of the Civic Light Opera in early 1997, Keith Stava was retained as
interim manager of the theater, under the name Stava Productions at a current cost to the Agency of
$1000 per week or $52,000 per annum.
Since August 1994, a number of Requests for Proposals have been published resulting in staff being
directed to negotiate contracts on two occasions. One of which was Susan Feller, formerly of the San
Bernardino symphony Orchestra, and more recently, The Robert Stein Group in January 1998.
Neither contract was consummated and in September 1998, a further proposal was received from Mr.
Bob Lewis of Big Red Apple to manage the theater in conjunction with the San Bernardino Stadium.
The basis for all proposals received to date has been based on the following:
1. The Agency will pay a flat fee to the operator.
2. The fee is not performance based.
3. The Agency assumes all further fiscal liability for the theater.
The 1998/1999 operating budget for the California Theater is $195,000, of which $52,000 is paid to
Stava Productions for management services.
Staff has received a proposal from Theater Arts International to manage the facility at no charge to
the Agency in consideration of twenty days per year theater usage for this company's productions.
Current occupancy of the theater runs at approximately 60 -70 days per year so this will not displace
any potential rentals to the agency in the foreseeable future. Occupancy of the theater has remained
more or less constant under the current management arrangement.
Theater Arts International recently relocated their operations from Riverside and launched its first
San Bernardino Season. Their subscriber base has reached 3,500 members in the first year and four
productions have been scheduled. The first production, Zorro, achieved attendances averaging 1,000
persons per performance. These are numbers way in excess of any other performing arts group which
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ABH:lag:l 1- 16- 02.cdc COMMISSION MEETING AGENDA
Meeting Date: 11/16/1998
Agenda Item Number: Alq
Economic Development Agency Staff Report
Management of California Theater
Page Number -2-
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has utilized the theater in many years. In addition, Theater Arts International has informed staff that
they are able to contract with other performing arts groups throughout the nation. This will result in
an additional six to eight musical comedy productions per year negotiated on behalf of the agency on
a 50/50 split.
Theater Arts International and the Agency propose a one year contract with a thirty day termination
clause by either party.
Direct savings to the Agency:
Management Fees
Potential additional income from joint venture operations marketed
$529000
$127,500
through Theater Arts International
Less: Additional costs from increased occupancy
($37,000)
(Utilities, theater staff, maintenance, supplies, etc)
GROSS SAVINGS TO THE AGENCY PER YEAR:
$142,000
The current revised expenditures for the theater for 1998/1999 is projected at a cost of $144,000 to
the Agency.
In the event that Theater Arts International are unable to attract the additional performances the
overall cost to the Agency is still reduced from $144,000 per annum to $92,000 per year.
Based on the foregoing, it is recommended that the Community Development Commission authorize
staff to enter into a contract with Theater Arts International to manage the California Theater for one
year, commencing on December 1, 1998 with a thirty day termination clause by either party.
Ann B. Harris, Director
Business Retention/Revitalization
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ABH:lag:l 1- 16- 02.cdc COMMISSION MEETING AGENDA
Meeting Date: 11/16/1998
Agenda Item Number: fl'�LR