Council Chambers, Legislative Bldg, 745 4th St., Sparks
Business Items: 6.2
The Redevelopment Agency, City, Syufy Enterprises and Century Theatres are parties to a Real Property Disposition and Development Agreement, entered into in 1996, to provide for development, by Syufy Enterprises, of the 14 screen movie theater at Victorian Square. Century Theatres now leases the theater facility from Syufy Enterprises. Pursuant to that Development Agreement, the City agreed to provide Century Theatres access to a parking structure of no less than 700 parking stalls to service Century’s Theatres’ patrons. However, the Development Agreement left open the possibility that a fee could be charged to park in the structure.
Century Theatres’ lease with Syufy Enterprises for the theater facility is due for renewal, by exercising a five year extension option at Century’s election, no later than September of 2016. Subsequent options grant Century Theatres the right to continue leasing the facility through the year 2040.
Given Silverwing Development’s proposed development plans, which include the redevelopment of numerous Victorian Square surface parking lots, Century Theatres has requested this Parking Agreement to clarify its access to the parking structure adjacent to the theater. Century Theatres has told City staff that continued free access to the parking structure for theater patrons is a factor in their decision as to whether to exercise their five year extension option in 2016.
This Parking Agreement is intended to provide Century Theatres with certainty regarding the ability of their patrons to park for free in the adjacent parking structure. The agreement would become effective upon Century providing written documentation to the City that Century has exercised its five year 2016 extension option, as permitted in Century’s “Third Amendment to Lease” agreement with Syufy Enterprises. Per the terms of the proposed Parking Agreement, free parking shall continue for so long as a motion picture theatre is operated in the theater facility or September 30, 2040, whichever is sooner.
In the 1990’s the City and Agency worked with Syufy Enterprises to develop Century’s cinema facility as an anchor for the Victorian Square redevelopment project. The cinema remains one of Victorian Square’s principal entertainment options and is important to the redevelopment efforts of both Silverwing Development and the partnership that acquired the former Bourbon Square/Silver Club property. A downtown movie theater is particularly important for attracting additional restaurants and other retail uses to Victorian Square. Staff recommends approval of the Parking Agreement because it may improve the likelihood of, though not assure, a movie theater continuing to operate at Victorian Square.
The Council could reject the Parking Agreement or modify its terms subject to Century Theatres’ consent.
I move to approve the Parking Agreement (AC-SRA-309) with Century Theatres.
Century-City-SRA Parking Agreement 7-2015.pdf