HomeMy WebLinkAboutMemo - SLO REP on site possession 5-20-26City of San Luis Obispo, Title, Subtitle
DATE: May 20, 2026
TO: Kevin Harris, Managing Artistic Director
FROM: Robert Hill, Sustainability & Natural Resources Official
Cc: Whitney McDonald, City Manager
Greg Hermann, Deputy City Manager
SUBJECT: Possession of SLO REP Theatre Lease Area / Premises
As of the date of this Memorandum, the City of San Luis Obispo (City) has completed the
Cultural Arts District Parking Structure project with Swinerton Construction and has filed its
Notice of Completion for the project. In accordance with the Lease Agreement between the
City and the San Luis Obispo Repertory Theatre (SLO REP; Lessee), dated December 10,
2024, upon completion of construction of the Cultural Arts District Parking Structure, City
“…shall place Lessee in quiet possession of the Premises…” (Paragraph 3).
The occasion of SLO REP taking possession of the Lease Area, or Premises, prompts
attention to several other key elements of the Lease Agreement:
Paragraph 2, Premises, states that “Any objection by Lessee to the condition, improvements,
or prior occupancy of the Premises shall be deemed waived if not made within sixty (60) days
following the City’s delivery of possession of the Premises to Lessee…”
Paragraph 4, Term, states “The term of this Lease shall be for a period of ninety-nine (99)
years… The term shall commence upon … delivery of the Premises to Lessee…”
Accordingly, please use the date of this Memorandum and notice as the effective date of the
99-year term.
With possession of the Lease Area, SLO REP is now responsible for Protection of the
Premises (paragraph 14) and Insurance (paragraph 15 and Exhibit B), as well as all other
terms and provisions that are applicable at this time.
Please note, however, that SLO REP may not begin Construction of the Theatre (paragraph
6) and other Construction on Premises (paragraph 12) until all of the requirements therein
are satisfied and the City Manager has issued written approval to commence construction,
including but not limited to removal of the oak tree. The Lease Agreement states that “No
such structural construction, improvements or alterations shall be made to the Premises or
any portion thereof without the submission to, and prior written approval of, the plans by the
City Manager” (paragraph 12 C.).
As always, please be in contact and coordination with us as we move forward through these
next steps with this important community project!
Memorandum
City Administration Department