Sparks Redevelopment Agency Meeting (following the City Council Meeting) 10/10/2016 2:00:00 PMMonday, October 10, 2016 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV
Business Items: 6.2
A Business Impact Statement is not required because this is not a rule.
This agenda item asks the City Council and Redevelopment Agency to enter into a parking agreement whereby the city agrees to continue providing free parking for the movie theater in the adjacent, city-owned Victorian Square parking structure. The proposed parking agreement would be effective upon approval of the City Council and Redevelopment Agency Board but would automatically terminate unless the movie theater has reopened for public operation by December 31, 2017. Beyond that date, the agreement will remain effective for so long as a motion picture theatre is operated in the theater building or September 30, 2040, whichever is sooner. The city retains the right to charge a fee for parking in the parking structure, on a permanent or intermittent basis, to users who are not customers or employees of Syufy or its tenant.
The Redevelopment Agency, City of Sparks, Syufy Enterprises and Century Theatres are parties to a (1995) Real Property Disposition and Development Agreement, to provide for development, by Syufy Enterprises, of the 14 screen movie theater at Victorian Square. Pursuant to that Development Agreement, the city agreed to provide the theater access to a city-owned parking structure of no less than 700 parking stalls available to the theater’s patrons. However, the Development Agreement left open the possibility that a fee could be charged to park in the structure.
Syufy sold the Century Theaters business to Cinemark in 2006 and leased the Victorian Square theater facility to Cinemark for a period of ten years. Cinemark’s lease of the Victorian Square theater is lapsing as of September 30, 2016 and so the theater is closing. Syufy Enterprises has informed the city that it is negotiating with a prospective new operator for the theater or, alternatively, is considering operating the theater themselves. Syufy has stated to city staff that the continued availability of free parking for the theater in the city’s parking structure is essential to securing a new operator or a decision on their part to operate the theater. Accordingly, Syufy has requested that the city and Redevelopment Agency enter into the proposed parking agreement.
The Council and Redevelopment Agency approved a similar parking agreement with Cinemark in August of 2015. That agreement failed to become effective, however, because Cinemark did not extend their lease with Syufy Enterprises.
Syufy Enterprises has requested this parking agreement to secure continued free access to the parking structure adjacent to the theater owned by the City of Sparks. Syufy has told city staff that continued free access to the parking structure for the theater is essential to securing a new operator or a decision on their part to operate the theater.
This proposed parking agreement would become effective upon approval of the City Council and Redevelopment Agency Board but would automatically terminate unless Syufy has provided sufficiently specific documentation to the City that Syufy or a third party will operate a movie theater and the movie theater has reopened for public operation by December 31, 2017. Beyond that date, the agreement will remain effective for so long as a motion picture theatre is operated in the theater building or September 30, 2040, whichever is sooner.
As noted above, the Council and Redevelopment Agency previously approved a similar, but never effective, parking agreement with Cinemark in August of 2015. The primary difference between the Cinemark and Syufy agreements is that in the latter the city retains the right to charge a fee for parking in the structure, on a permanent or intermittent basis, to users who are not customers or employees of Syufy or its tenant after providing notice to Syufy. In addition, the city retains the right to charge theater patrons whose vehicle occupies a space(s) in the parking structure for longer than 4 consecutive hours or theater employees whose vehicle occupies a space(s) for longer than 8 consecutive hours. The parking agreement also states that the city is responsible for lighting and maintenance for the parking structure.
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. Until its recent closure, the cinema has remained one of Victorian Square’s principal entertainment options. Reopening the cinema 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 re-opening at Victorian Square.
The Redevelopment Agency could reject the parking agreement or modify its terms subject to Syufy Enterprises’ consent.
I move to approve the parking agreement between the City of Sparks, the Redevelopment Agency and Syufy Enterprises.
Parking Agreement - corrected.pdf