| | | | | | | | Agenda Item - 2.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | John Montanchez
| | Dept.: | City Manager
| Dept.: | Community Services
| | Subject: |
Approval of a 10-year Agreement with One More Productions to manage the operation of the Gem Theater. (Action Item) | Date: | 10/23/2018 |
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| | | | | | | | OBJECTIVE
To request that City Council approve a 10-year Agreement between the City and One More Productions (OMP) for exclusive use of the Gem Theater. |
| | | | | | | | BACKGROUND
On April 23, 2008, the City and One More Productions (OMP) entered into a 10-year agreement for OMP to be the sole operator of the Gem Theater. In exchange for providing $150,000 in capital upgrades, OMP operated the Gem Theater rent-free, for a term of 10 years. During this term, OMP brought nearly 50 theatrical productions and expanded the artistic reach into the community with award-winning musicals.
Through its productions and generous support of local non-profits and businesses, OMP has added artistic value to the Downtown Civic Center area and helped to revitalize Historic Main Street. |
| | | | | | | | DISCUSSION
The Gem Theater is a city facility operated by the current tenant, One More Productions (OMP). Attached is a renewal Agreement for OMP to continue to manage the operation of the Gem Theater through October 31, 2028.
The more significant aspects of this Agreement include provisions related to:
- The term is for a period of 10 years;
- In exchange for providing capital improvements at an estimated cost of $400,000, OMP shall have exclusive use of the GEM Theater during the term of the Agreement;
- OMP shall be required to produce at least five full theatrical productions, with an minimum of 24 weeks of performances annually. In addition to full theatrical productions, OMP shall be required to include at least 15 other performances annually; and
- OMP must provide the City with all insurance required.
The proposed Agreement has been signed by One More Productions, and approved as to form by the City Attorney. |
| | | | | | | | FINANCIAL IMPACT
Included in this Agreement is the requirement that OMP will provide funding and complete capital improvements to the Gem Theater in the estimated amount of $400,000, and will provide all interior custodial maintenance.
The City will be responsible for payment of monthly utilities, not to exceed $20,000 per year, exterior building maintenance and major building repairs. These costs were part of the previous agreement with OMP and are contained within the current city budget. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve the Agreement between the City and One More Productions for exclusive use of the Gem Theater; and
- Authorize the City Manager to execute the Agreement, including any minor modifications as appropriate thereto, on behalf of the City.
By: Janet Pelayo, Manager
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