HomeMy WebLinkAbout11/10/1998, C-4 - NEW LEASE WITH SAN LUIS OBISPO LITTLE THEATRE FOR THE PROPERTY AT 888 MORRO STREET council
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C ITY OF SAN LU IS O B 1 S P 0
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FROM: Ken Hampian,Assistant City Administrative Officer
Prepared By: Wendy George,Assistant to the City Administrative Officer W16'
SUBJECT: NEW LEASE WITH SAN LUIS OBISPO LITTLE THEATRE FOR THE
PROPERTY AT 888 MORRO STREET
CAO RECOMMENDATION
Approve the new lease agreement with the San Luis Obispo Little Theatre for the property at 888
Morro Street.
DISCUSSION
Background
Since 1992, the San Luis Obispo Little Theatre(SLOLT) has been renting property at no cost from
the City at 888 Morro Street(the Old Library building) as a temporary location for its theater. This
site was intended to be an interim location until SLOLT could build a new theater on another piece
of City-owned property at 1010 Nipomo Street (currently the location of the Children's Museum).
Due to a number of factors SLOLT's fundraising has been slow to develop,and they are just now in
the process of re-energizing their capital campaign to build a new theater.
Approximately a year ago, the City was asked by the Children's Museum to consider renting the
1010 Nipomo property to them on a long term basis so that the museum could expand its facility.
After several discussions with both the Children's Museum and SLOLT, all parties agreed that
SLOLT would give up its option to the 1010 Nipomo site and that the City would develop a new
lease agreement with SLOLT for the 888 Morro Street location,extending the occupancy time until
the end of 2002. At its June 16, 1998,meeting,the Council approved these changes.
Proposed New Lease with SLOLT
The new lease contains much of the same language included in the one it supersedes. However,
clauses have been added which address use of the facilities by outside parties, hours of operation,
construction milestones, fire inspections and maintenance of the premises. Relating to these areas
the agreement:
• Ends December 31, 2002 and may be extended for an additional two years by agreement of
both parties.
• May be terminated by the City at any time should it need the building for government purposes,
such as civic center expansion.
Council Agenda Report-Title of Report
Page 2
• Requires SLOLT to provide landscape maintenance for the front of the building, interior
building maintenance and repairs, and cleanup of the upstairs bathroom and outside patio area
after performances.
• Allows the Children's Educational Theater to take place during regular business hours, as long
as every effort is made to insure that noise levels do not impact the City's use of the building.
• Requires SLOLT to make the facilities available without fee for City sponsored events.
• Provides for the use of the theater by other performing groups and organizations at lease six
weeks per year, at least three weeks of which are in a continuous block.
• Allows SLOLT to charge a fee to outside groups which provides recovery of SLOLT's costs.
Fees and requests for outside use are subject to City approval.
• Requires SLOLT to prepare an annual report for the City which summarizes the facilities use
statistics and allows the City to assess whether or not outside use has been consistent with the
agreement.
• Sets new theater construction milestones of site selection by January 1, 2000, design
completion by January 1,2002 and construction completion by December 31,2002.
• Requires fire inspections at least annually,and more frequently if necessary.
CONCURRENCES
The SLOLT Board of Directors has approved the agreement.
FISCAL IMPACT
There is no change from the fiscal impact of the existing agreement. The City provides the building
rent free to SLOLT.
Attachments
Agreement
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AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE SAN LUIS OBISPO LITTLE THEATRE FOR LEASE OF PROPERTY AT
888 MORRO STREET
This agreement entered into this day of is made by
and between the City of San Luis Obispo ("the City") and San Luis Obispo Little Theatre, a non-
profit California corporation, ("Little Theatre").
RECITALS
1. The City owns the premises commonly described as the Old Library, located at 888
Morro Street in the city of San Luis Obispo, California ("the Old Library").
2. Under a 1993 lease agreement Little Theatre has renovated part of the Old Library into
theater space and has put that space to productive use.
3. The City wishes to extend Little Theatre's rent-free occupancy of the Old Library while
the Little Theatre accumulates the money needed to build a new community theater in
the downtown.
LEASE PROVISIONS
4. Tenn of Agreement. The term of this agreement shall start upon execution by both
parties and expire on December 31, 2002. It supersedes the agreement dated
December 8, 1995. The term of this agreement shall be subject to the termination
provisions of Paragraphs 21 and 22. By mutual consent of both parties, this agreement
may be extended for a period not to exceed two years.
5. Rent. For use of the portion of the Old Library shown in Exhibits A and B ("the Premis-
es"), Little Theatre shall pay the City a rent fixed at$1.00 per year for the lease term.
6. Extent and Condition of the Premises. Little Theatre shall accept the Premises was is".
This agreement shall not obligate the City to guarantee the condition of the Premises, the
suitability of the Premises for Little Theatre's intended use, the duration that the
Premises may be safely occupied, or the availability of alternate facilities. Should any
occurrence (such as fire, earthquake, flood, or the need to repair, improve, or use the
Premises) necessitate closing the Premises or a portion of the Premises to the public,
Little Theatre shall have no recourse to the City for any loss incurred.
7. Cost of Operations. Little Theatre shall bear the entire cost of its operations on the
Premises, including:
A. paying a portion of water, electricity and natural gas bills prorated according to
square footage occupied;
B. paying the cost of any maintenance for which Little Theatre is responsible;
C. paying any taxes and fees related to its occupancy of the Premises, including all
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possessory interest taxes which may be imposed.
8. Maintenance of the Premises. Little Theatre shall provide for.
A. interior building maintenance of the Premises;
B. maintenance of the landscaped areas shown on Exhibit A;
C. any interior repairs necessary to the Premises;
D. cleanup of upstairs bathrooms and outside patio area after performances.
9. Alterations to Building
The City shall be notified before any alterations are made to the building. Little Theatre
shall comply with all applicable procedures of the City's Building Department and all
applicable building codes in making any alterations to the building's structural, electrical,
plumbing, interior and/or exterior systems and funishes.
10. Fire Inspection. A fire inspection will be completed by the City's Fire Department at
least annually, and more frequently if necessary.
11. Hours of Operation. Little Theatre shall not conduct rehearsals or productions during
regular business hours, which are defined as 8:00 a.m. to 5:00 p.m. Monday through
Friday, except holidays observed by the City. However, activities of the Children's
Educational Theater may take place during regular business hours as long as every
effort is taken to insure that they do not impact the City's use of the building by creating
unacceptable levels of noise.
Following the relocation of the City's Utilities Conservation Office, Little Theatre may use
the building during business hours for purposes other than the Children's Educational
Theater, upon receiving prior approval from the City to assure no conflicts with the City's
computer training programs.
12. Minimum Theater Production Level. Little Theatre shall annually produce at least 30
weeks of rehearsals and theater performances.
13. Relationship of Parties. Under this agreement, the City shall be solely and exclusively
a lessor, and Little Theatre shall be solely and exclusively a lessee. Little Theatre shall
not be considered a partner, agent, officer or employee of the City. Little Theatre's
officers, members, affiliates, volunteers, employees and independent contractors shall
not be considered agents, officers or employees of the City.
14. Use of Facilities by Outside Parties. In recognition of the below market lease rate,
Little Theatre agrees:
A. to make the facilities available without fee to the City for official or City-sponsored
uses. In addition, the City shall have first right of use for uncommitted time
periods consistent with the requirements of Little Theatre's own use and other
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provisions of this agreement.
B. to use due diligence in encouraging other performing groups and organizations to
utilize the facilites whenever not in use by Little Theatre. First consideration for
use by others will be given the City (see A above) and to local non-profit groups.
The City and other performing groups and organizations shall be assured use of
the facility at least six (6)weeks per calendar year. At least three (3) of these
weeks shall be in a continuous block. Use of the facility by other groups will be
coordinated with the Little Theatre performance and rehearsal schedule.
The City shall allow Little Theatre to assess use charges for the facility. In tum,
Little Theatre agrees to set the use charges at a rate which generally reflects the
costs which would be incurred by Little Theatre as a result of the outside use.
However, the City encourages Little Theatre to develop affordable use charges for
non-profit organizations. Arrangements for allowing other groups to use the
facility, and associated use charges, shall be subject to City approval. Such
approval shall not be unreasonably withheld if consistent with the purposes and
intent of this agreement.
C. to prepare an annual report for the City that summarizes the facility's use statistics
for the calendar year and provides an assessment of whether Little Theatre is
allowing public use of the facility consistent with the terms of this agreement.
15. Operations Manager. Little Theatre will provide a full or part-time operations manager
who will be responsible for meeting the terms of this agreement and assuring the fullest
community use of the facility.
16. Construction Milestones. Little Theatre agrees to the following construction milestones
in its project to build a new theatre on another site:
A. Selection of a site - January 1, 2000.
B. Completion of design phase - January 1, 2002.
C. Completion of construction - December 31, 2002
17. Assignment. Little Theatre shall not assign this agreement to another party without the
City's prior written consent.
18. Subrogation Waiver. The City and Little Theatre release and relieve each other and
waive their entire rights of recovery against each other for damage from perils covered by
their property insurance, whether due to the negligence of the City, Little Theatre, their
agents, their officers, their employees, or their guests.
19. Hold Hanniess and Indemnification. Little Theatre agrees to defend, indemnify, protect
and hold the City and its agents, officers and employees harmless from and against any
and all claims asserted or liability established for damages or injuries to any person or
property, including injury to the Contractor's employees, agents or officers which arise from
or are connected with or are caused or claimed to be caused by the acts or omissions of
Page 4
the Contractor, and its agents, officers or employees, in performing the work or services
herein, and all expenses of investigating and defending against same; provided, however,
that the Contractor's duty to indemnify and hold harmless shall not include any claims or
liability arising from the established sole negligence or willful misconduct of the City, its
agents, officers or employees.
20. Insurance. Little Theatre shall comply with the insurance requirements for lessees
described in Exhibit C.
21. Termination. If the City determines that Little Theatre is not faithfully abiding by any
term or condition of this agreement, the City may send written notification giving Little
Theatre a 30 calendar day notice to cure the deficiency. If Little Theatre has not cured
the deficiency within the 30 days specified in the notice, that failure shall constitute a
breach of the agreement, and the City may give written notice to terminate the
agreement effective 120 calendar days from receipt of the notice.
If the City determines that it needs to use the property at 888 Mono Street for municipal
government purposes (such as civic center expansion), the City may give written notice
to Little Theatre to terminate the agreement effective 180 calendar days from receipt of
the notice.
22. Cooperation upon Termination or Expiration. In the event of termination or
expiration, Little Theatre shall fully cooperate by relocating its operations before the
termination or expiration date and by not seeking relocation assistance from the City. By
midnight on the termination or expiration date Little Theatre shall remove from the
Premises all property in its possession or custody and shall leave the Premises in a
condition as good as when received, excepting normal wear and tear. Any property
remaining on the Premises after the termination or expiration date shall be deemed
abandoned.
23. Notices. All official notices required under this agreement shall be given in writing and
submitted by certified mail, postage prepaid and addressed as follows:
To the City: City Administrator
City of San Luis Obispo
955 Morro Street
San Luis Obispo, CA 93401
To Little Theatre: President
San Luis Obispo Little Theatre
P.O. Box 122
San Luis Obispo, CA 93406
24. Enforcement Costs and Attorney's Fees. The prevailing party in any action between
the parties to this agreement brought to enforce the terms of this agreement may recover
from the other party its reasonable costs and attorney's fees in connection with such an
action.
25. Entirety and Integrity of Agreement. This document represents the entire and
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Page s
integrated agreement between the City and Little Theatre. This document supercedes
and negates all prior negotiations, representations, agreements and amendments, either
written or oral, regarding the Premises and the operation of a community performing arts
theater on the Premises. This document may be amended only by written instrument
executed by both the City and Little Theatre. All provisions of this agreement are
expressly made conditions. This agreement shall be governed by the laws of the State
of California.
This agreement is executed by the following authorized representatives:
For San Luis Obispo Little Theatre: For the City of San Luis Obispo:
President Mayor
date date
Attested:
Lee Price, City Clerk
Approved as to form:
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LOWER FLOOR - OLD LIBRARY
BUILDING AREA TO BE OCCUPIED BY SLOLT
LANDSCAPED AREA TO BE MAINTAINED BY SLOLT
EXHIBIT A
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UPPER FLOOR - OLD LIBRARY
BUILDING AREA TO BE OCCUPIED BY SLOLT
EXHIBIT B
EXHIBIT C
INSURANCE REQUIREMENTS: Lessees (No Auto Risks)
The Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or
damages to property which may arise from or in connection with the Lessee's operation and use of the leased premises. The
Lessee shall bear the cost of such insurance.
Minimum Scooe of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage(occurrence form CG 0001).
2. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.
3. Property insurance against all risks of loss to any tenant improvements or betterments.
Nfnimum Limits of Insurance. The Lessee shall maintain limit e no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury,personal injury and property damage. If
Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit
shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence
limit.
2. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
3. Property Insurance: Full replacement cost with no coinsurance penalty provision.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions tmrst be declared to and approved by
the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; or the Lessee shall procure a bond guaranteeing payment
of losses and related investigations, claim administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain,
the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability
arising out of premises owned, occupied, or used by the Lessee. The coverage shall contain no special limitations
on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers.
2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees,
agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees,
agents or volunteers shall be excess of the Lessee's insurance and shall not contribute with it.
3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not
affect coverage provided to the City, its officers, officials, employees, agents or volunteers.
4. The Lessee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except
with respect to the limits of the insurer's liability.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided,
cancelled by either party, reduced in coverage or in limits except after thirty(30)days' prior written notice by
certified mail, return receipt requested, has been given to the City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANLL
Verification of Coveraee. The Lessee shall furnish the City with a certificate of insurance showing required coverage.
Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The
endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to
be received and approved by the City before the lease commences.
:TIN AGENDA n/l
DATE ITEM #
• COUNCIL MEMORANDUM
November 9, 1998
TO: City Council
VIA: John Dunn, City Administrative Office�D—.
FROM: Ken Hampian, Assistant CAO K�
Wendy George, Assistant to the CAO
SUBJECT: New Lease with San Luis Obispo Little Theatre, Consent Item#4
Council Member Schwartz has requested pulling this item from the November 10th agenda and
continuing it to the 1999-01 Financial Plan goal setting process. His reasons are expressed in his
memorandum,but in summary relate to the City's current plan is to allow the Children's Museum
to locate long term at 1010 Nipomo, even though the Conceptual Physical Plan for the City's
Center identifies this site as the eventual home for the Little Theatre. In addition, he is
concerned that the proposed lease of 888 Morro Street may tie the City's hands should it wish to
use that location in the near future for civic center expansion.
The proposed lease with the Little Theatre is the first step in implementing a plan approved by
Council in June 1998. This plan was the result of several years of discussion with both the Little
Theatre and the Children's Museum. The history and relationship between these properties and
the two organizations is summarized at some length in the June agenda report(attached).
With regard to Council Member Schwartz's concerns, they are both very reasonable. However,
staff believes that they have been taken into account in past City actions and in the proposed
Little Theatre lease.
In terms of the land planning concern, the location for the Little Theatre was discussed in the
Conceptual Physical Plan for the City's Center as part of a cultural complex extending from
Chorro Street to Broad Street along the north side of the creek. In the June agenda report, the
idea was expressed — at the request of the Little Theatre -- that their future building might
eventually locate in the area of the City properties at 610 Monterey Street and Parking Lot #14 at
630 Monterey Street (see boxed text in attached report). This general location would still keep
the theater within the cultural complex proposed by the Plan.
Regarding the proposed agreement with the Little Theatre for its current Morro Street location,
the lease contains specific language which allows the City to terminate it with 180 days notice
should the property be needed for municipal government purposes, such as civic center
expansion. Staff believes that this section of the lease provide sufficient protection to the City
between now and the year 2002,when the lease expires. ❑�NCIL ❑ DDm
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Finally, staff is concerned that a potential "tabling" of the implementation program could have
quite negative consequences. Relying on the Council's June action, the Children's Museum is well
into its capital campaign for expanding its facility. The Museum has developed conceptual
expansion plans, raised over$100,000 and is working with a local bank to secure financing for the
additional $200,000 needed for the project. While the Little Theater agreed to locate the
Museum at the 1010 Nipomo, they did so with some expectation that their lease would be
extended until 2002 at the 888 Morro, giving the organization time to initiate a new fundraising
program. Therefore, creating an uncertain situation for both organizations at this stage could
jeopardize was has been an amicable solution to a difficult situation.
Attachment
June 16, 1998 Agenda Report
council 16 -'(0-95
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CITY OF SAN LUIS 0 B I S P 0
FROM: Ken Hampian,Assistant City Administrative Officer
Prepared By: Wendy George,Assistant to the City Administrative Officer 4i�
SUBJECT: . PROPOSED LEASE AGREEMENTS WITH THE SAN LUIS OBISPO
CHILDREN'S MUSEUM AND SAN LUIS OBISPO LITTLE THEATRE
CAO RECOMMENDATION
1. Give conceptual approval to a long-term lease agreement with the San Luis Obispo
Children's Museum(SLO Children's Museum)for property located at 1010 Nipomo Street..
2. Give conceptual approval to a two-year extension(to.2002)of the current-lease with the San
Luis Obispo Little Theatre (SLOLT) for property located at 888 Morro Street(Old Library
Building)and to the City's continuing assistance in SLOLTs search for an appropriate long-
term theater location.
DISCUSSION
Background
In January of 1990,the City entered into an agreement with:SLOLT to allow construction of a 300
seat community theater on City=owned property located at 1010 Nipomo StreeL Construction of
the theater was intended to be completed by the summer of. 1992. That fundraising and
construction schedule turned out to be too ambitious, and a new agreement was executed m 1992
which set a date for completing construction of 1999. The new agreement also set time-related
fimdraising goals for SLOLT,none of which have been met to date.
In.the meantime, in November, 1992, the Council approved SLOLTs request to lease a portion of
the old library property located at 888 Morro Street to be used as an.interim theater pending the
proposed construction. That agreement was extended in 1995 to the year 2000.
At the same time as the agreement was made with SLOLT to lease the building located at 1010
Nipomo Street(1990),the City entered into an agreement with SLO Children%Museum to use the
Nipomo site on an interim basis,pending theater construction. Since construction was significantly
delayed due to SLOLTs lack of finds,in 1995 that agreement was also extended to the year 2000.
Request from SLO Chr7dren's Museum
In September, 1997, at the.request of SLO Children's Museum, City staff met with representatives
of SLOLT and SLO Children's Museum too-discuss the future of the 1010 Nipomo Street site, the
current location of the museum. . The SLO Children's Museum representatives pointed out.that,in
the seven years since it was established, the museum has seen its daily admissions soar. It has
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Council Agenda Report-Agreements with SLO Children's Museum and SLOLT
Page 2
become a favorite family location for local residents, tourists and elementary school classes fr
inside and outside the county. Due to this success, the board of SLO Children's Museum w.
proposing to expand its facilities and wanted to know if it would be able to do so at the Npomo
Street site, the board's strong preference. Since this location had been promised to SLOLT for its
proposed new theater,SLO Children's Museum was unsure how to proceed with its building plans.
SLO Children's Museum assured staff that it would have no difficulty mounting a successful capital
campaign, and that it was ready to move into a feasibility study immediately. Staff encouraged the
Museum representatives to work with the City's Planning Division to evaluate whether or not
expansion at the Nipomo Street site was viable and return to the City when the feasibility study was
completed.
Status of SLOLT's Theater Construction Project
Over the last several years,staff has expressed its concern to SLOLT regarding the lack of progress
in reaching fimdraismg benchmarks set forth in its agreements with the City. Since 1995, a high
level of concern has been expressed in correspondence and in meetings with SLOLT. SLOLT
officials have acknowledged that despite the best of intentions and various efforts, actual
fimdraising has never approached benchmark goals. For example,by January 1, 1998, SLOLT was
to have raised the full $1.5 Million needed for construction. Actual fimdraising is probably less
than$50,000 in cash and pledges.
During the September 1997 meeting with SLOLT and the Museum,staff once again discussed f
concerns with SLOLTs lack of fundraising and its failure to meet the fimdraising targow
established in the last agreement. Staff shared its growing discomfort about committing two
properties to one non-profit organization for an indefinite period of time, even though agreed upon
goals had not been met., Therefore, staff indicated that if the results of the Museum's feasibility
study were promising, staff would likely recommend a long term agreement with the Museum for
the 1010 Nipomo site. Staff also indicated that it would support a lease extension for the old
library, and assist SLOLT in fiiture site searches, given its excellent track record of service in the
community.
Results of SLO Children's Museum Feasibility Study and Current Plans
In December, 1997, SLO Children's Museum completed its feasibility study which found that it
was possible to expand the current museum facility to meet it needs. (A copy of the study is in the
Council Reading File.) The concept would be to remodel the building in two phases. The first
phase would be a two-story structure attached to the existing building. Upon completion of the first
phase, a passage would be opened between the two buildings. The museum would occupy both
buildings until such time as the second phase commences. The second phase would involve
moving into the new structure, removing the original building and replacing it with a new building
to match the first phase.
Of the$300,000 needed for the first phase, SLO Children's museum currently has over$100,000 in
cash assets before even beginning its capital campaign. A local bank is considering maki
construction loan for the rest of the funding, which would then be paid off from the cape d
Council Agenda Report-Agreements with SLO Children's Museum and SLOLT
Page 3
campaign. SLO Children's Museum is ready to move into the design phase,and anticipates that
construction could begin as early as January, 1999, should the City approve its request for a long-
term lease on the Nipomo.Street property.
Staff Recommendations
Since receiving the original request'from SLO Children's Museum to clarify its position in relation
to the Nipomo Street site, staff has had several meetings and telephone conversations with
representatives from both SLO Children's Museum and SLOLT. As a result, SLOLT has agreed to
give up its option on the property at 1010 Nipomo Street. It return,staff recommends that SLOLTs
lease for part of the old library (888 Morro Street) be extended until the year.2002, with the
potential for additional extensions depending on the City's future needs for the location.
In addition, staff proposes that the City continue to assist SLOLT in its search for a long-term
theater location, after it has made substantial progress in actual fimdraismg. Such a location might
be in the area of property owned by the City near the Children's Museum. In 1992, when the
Council extended the SLO Children's Museum lease at its current site, it also conceptually endorsed
the City-0wned Parldng Lot No. 14 (630 Monterey Street) as a permanent site for the Children's
Museum. This site could potentially be used by SLOLT instead The City has also recently
acquired property at 610 Monterey Street which adjoins this parking IaL Cultural uses in this am
would be consistent with the Conceptual Physical Plan for the-Downtown Center which calls for
cultural use on Monterey Street between Broad and Nipomo.
If Council concurs with the conceptual recommendations set forth in this report, staff will work to
drift a long-term lease between the City and SLO Children's Museum for the 1010 Nipomo
property. Staff would return to Council in September with this agreement, as well as the extension
of the lease with SLOLT for 888 Morro Street
CONCURRENCES AND PUBLIC INPUT ON"OLD LIBRARY"USE ISSUE.
SLOLT and SLO Children's Museum concur with the CAO recommendations, except that SLOLT
would hke a longer lease extension for the old library(3-4 years). However, staff believes that a
shorter lease, or series of leases, will not only encourage SLOLT to pursue fimdraismg
aggressively,but will also allow flexibility for potential future City uses of the location.
Over the last several months, another issue has been raised concerning the extent of availability of
the old library to independent theater organizations. This issue has been raised by a Mr. Norman
Schwartz, an independent drama instructor and producer, who wishes that SLOLT would be
required under their lease to make longer periods of time available to independent theater
organizations. While specific standards of availability were established in the agreement with
SLOLT for the 1010 Nipomo site, such standards were not established in the old library lease.
Nevertheless, SLOLT does allow independent uses of the facility — but not for duration's
acceptable to Mr. Schwartz. In any case, staff will consider this issue with SLOLT as a part of our
discussions to revise and extend the lease.
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Council Agenda Report Agreements with SLO Children's Museum and SLOLT '-
Page 4
FISCAL IMPACT
There would be no fiscal impact to providing conceptual approval as proposed Any actual fiscal
impacts would occur at the time that new lease agreements are negotiated and approved
ALTERNATIVES
1. Retain the status quo. Staff does not recommend this alternative as it commits two City
properties to one non-profit group for an extended period of time and that non-profit group has
yet to develop an active capital campaign after eight years. At the same time, another non-
profit is ready to begin construction design for one of the sites and has demonstrated that is
financially ready to build
2. Offer another site to San Luis Obispo Children's Museum. Since SLO Children's Museum has
been successfully using the current location and has presented a feasible plan for expanding on
the site without interrupting its program,it seems unfair to force a relocation because of another
organization which is not prepared to use the site in the foreseeable future.
3. Conceptually agree to extending the current lease with SLOLT at the 888 Morro location for an
additional 3-4 years, instead of the recommended two-year extension to 2002. As indicated,
staff feels that a shorter lease not only provides impetus to SLOLT for its capital campaign,but
also provides flexibility for future City use of the property.
4. Provide another site to SLOLT for construction of a theater. Staff believes that it is
inappropriate to make such a commitment at this time. When SLOLT makes substantial
progress in actual fimdraising, to a level where constriction is realistic, it would be more
appropriate to consider possible commitment of another City site.
Attachments
1. Letter from Greg Notley,SLO Children's Museum Board President
2. Letter from Peter Sterios,Architect
3. Architectural Feasibility Study(In Council Reading File)
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p E3 PERS DIR
November 4, 1998
To: Council memb s Roalman, Dave Romero, Copies: Ken Hampian
Dodie Williams ayor Allen Settle Wendy George
From Ken Schwartz John Dunn
Re: Consent Item vember 10, 1998 Agenda, Lee Price
New Lease with LO Little Theatre
I would respectfully request that this item be pulled from this agenda and continued until after
the new Council has had a chance to involve itself in the Goal-setting and Financial Plan Schedule
for 1999-01 which is planned in the immediate months ahead.
Even though all parties affected by this proposed new lease(the City, SLOLT and the Children's
Museum)appear to be in agreement, it is clear to me that all of the ramifications of the physical
moves that would be triggered by signing this lease have not been thoroughly thought through.
As a member of the Downtown Physical Concept Design Team I am aware of the very delicate
step 1, step 2, step 3, step 4, etc. domino-like moves that were envisioned to bring together a
centralized "cultural complex' consisting of the historical Old Mission, the Art Center(with
expansions),the f4'istorical Museum(with expansions), the Little Theatre in a new home, and a
new Children's Museum all related to the Mission Plaza(park) and the adjacent downtown
commercial-retail center. This set of domino moves relies on another set of domino moves that
involves(1)the vacating of the old library to permit(2)the building of a new wing to City Hall
which(3)permits the moving of Public Works into the City Hall which(4)helps clear land
needed for Palm H parking which(5)permits the removal of on grade parking at the Court Street
lot (and others)which(6)permits the building of much needed new retail commercial space,
offices, and residential units within the downtown. There are also some strategic moves that must
be made concurrently to eliminate surface parking in the "cultural center" and to concentrate that
parking so that limited land resources in that area can be used more effectively and more
efficiently.
This agreement, as proposed,would essentially lock out the Little Theatre from being a part of
this cultural complex To my mind this would border on the tragic. The Children's Museum- as
important and successful as it is- should not be the tail wagging the dog.
I hope that this Council will allow the new Council to filly explore all opportunities before
signing off on the Agreement before us.
Thank you