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Robert Cowing (1965)
"Council to approve new agreement for State Theatre renovations - Courtesy Work on renovating Woodland's State Theatre could begin as soon as February under a plan up before the City Council Tuesday night."
15 Dec 2014, 12:14 PM
A local nonprofit will provide a loan for the State Theatre project, if the City Council approves an amended agreement Tuesday.
If the agreement is approved, it would save the city $250,000. The project includes transforming the theater, located at 322 Main St., into a 1,013-seat, 10-screen multiplex.
"Under the proposed agreement, State Theatre Management Group, would provide Woodland State Theatre a $2,500,000 loan and as a condition of the loan, require the developer to grant a 15 year operating covenant," explained Community Development Director Ken Hiatt in a city report.
"This loan would be forgivable and amortized over the 15-year operating covenant period. The city would purchase the operating covenant from the STMG for the amount of the loan on the condition that the operating covenant purchase funds be used solely and exclusively to assist in the construction of the project."
According to Hiatt, the proposed approach is consistent with the tax and financing objectives of the developer and reduces the financial assistance from the city.
The city and developer have moved forward as outlined in the original agreement, Hiatt said.
"Plans have been submitted and approved for design review and building permit plans are being finalized and expected to be submitted in the next week," Hiatt said in the report.
Originally, developer Ron Caceres was to sell the city an "Operating Covenant" that would ensure the multiplex will be around for at least a decade, Hiatt explained.
In return, the city was to provide $2.7 million from the former Redevelopment Agency's bond revenues to assist with development costs. It was be paid in ten equal installments of $275,000, with the first payment due at close of escrow (now estimated in January) and annually thereafter until paid in full, the agreement stipulated.
The State Theatre project, estimated to cost about $9 million, is expected to stimulate economic activity for downtown businesses, according to the report.
"The project will generate one-time revenues in the form of development impact fees and permit fees," said Hiatt in the report. "Upon completion, the project will generate an estimated $27,000 in net new property taxes annually. Sales of food and beverage from the concessions and café portions of the project will generate sales taxes."
As part of the agreement, the $275,000 earned from the sale of the building will be deposited into the city's Measure E funding account to be used in the City Hall Annex renovation.
Earlier this month, the council approved the transformation of the Annex building into the home of educational and children's programming for the Woodland Opera House.
The 2014-2015 budget includes $40,000 of remaining unspent General Fund dollars that were appropriated as part of the 2013-2014 budget to cover costs associated with the city's ownership and stabilization of the State Theatre building, explained Hiatt in the report. The funds will remain in the budget until close of escrow to cover any routine maintenance during this period as well as escrow closing costs, Hiatt said.
In June, the council OK'd the original agreement, which covered the sale, renovation and expansion of the State Theatre.
Construction on the State Theatre is scheduled to begin in February, with completion eyed for December 2015.
ROBERT: This concept has been tried and is currently working in Sacramento. In Portland Oregon, this type of theatre venue is popular and only appears to be so IF . . . (1) you have a large population of X-generation and younger of drinking age, (2) you provide beer and wine as part of the drink selection and (3) movies are not first run but obtainable at an inexpensive/cheap price similar to movie prices of 20 years ago.
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