Regular 5.
Regular City Council Meeting
- Meeting Date:
- 01/22/2018
- TITLE
- Babcock Theater Lease
- PRESENTED BY:
- Bruce McCandless
- Department:
- City Hall Administration
Presentation:
Yes
PROBLEM/ISSUE STATEMENT
In 2008, the City of Billings approved a grant to the Babcock LLC to assist with purchasing and restoring the Babcock building, located at the corner of N. Broadway and 2nd Ave. North. The development agreement required the owners to perform specified restoration work on the theater and to deed that portion of the property to the City at a later date. To prepare for the theater's transfer to the City, the City Council created an Ad Hoc Committee to advise it. In 2017, the committee directed staff to develop and issue a Request for Proposals (RFP) to Lease, as well as an Invitation for Bids to buy, the Babcock Theater.
Both documents were advertised November 17 and 24, 2017, in the Yellowstone County News. All parties who had previously expressed interest, were personally notified via email. The City received two responses to the RFP to lease the theater by the December 8, 2017 deadline and received no bids to purchase the building.
The proposals to lease the property, from Vintage Theater Partners, LLC and Art House Cinema & Pub, were distributed to and reviewed by members of the Ad Hoc Committee. A meeting was held on December 12, 2017, and the committee decided that presentations by each proposer would be requested. Presentations were made by the two proposers on January 4, 2018. The Ad Hoc Committee met on January 10, 2018, to make a recommendation to Council, which is to accept the proposal from Art House and to negotiate a lease and operating agreement between the City and the non-profit company.
Both documents were advertised November 17 and 24, 2017, in the Yellowstone County News. All parties who had previously expressed interest, were personally notified via email. The City received two responses to the RFP to lease the theater by the December 8, 2017 deadline and received no bids to purchase the building.
The proposals to lease the property, from Vintage Theater Partners, LLC and Art House Cinema & Pub, were distributed to and reviewed by members of the Ad Hoc Committee. A meeting was held on December 12, 2017, and the committee decided that presentations by each proposer would be requested. Presentations were made by the two proposers on January 4, 2018. The Ad Hoc Committee met on January 10, 2018, to make a recommendation to Council, which is to accept the proposal from Art House and to negotiate a lease and operating agreement between the City and the non-profit company.
ALTERNATIVES ANALYZED
Council may:
- Proceed with contract/lease negotiations with Art House Cinema and Pub; or,
- Reject the Committee's recommendation and proceed with contract/lease negotiations with Vintage Theater Partners, LLC; or,
- Reject both proposals and provide staff with further direction.
FINANCIAL IMPACT
The RFP indicated that the property would be leased to a proposer for five (5) years, with an option to renew for up to five (5) one-year terms for $1/year. The intent is that the Proposer is responsible for all expenses related to the Babcock Theater, and also retains net revenues from its operation. The Council approved $500,000 in the FY 2018 budget for capital replacement/improvements and discussed budgeting the same amount in FY 2019. The Council approved a payment of about $127,000 for the Green Room, located next to the theater, and associated personal property, leaving a balance of $373,000.
RECOMMENDATION
The Ad Hoc Committee recommends that the City Council approve the Art House Cinema & Pub proposal and to negotiate a lease for the Babcock Theater property.