Memorandum 16-179 Pier One Theatre Lease

Memorandum 16-179

TO:                       MAYOR BRYAN ZAK & HOMER CITY COUNCIL             

THROUGH:       PORT & HARBOR ADVISORY COMMISSION

FROM:                 LEASE ADVISORS

DATE:                  NOVEMBER 2, 2016

SUBJECT:         PIER ONE THEATRE LEASE ASSIGNMENT & PROPOSAL

In October 2016, Pier One Theatre contacted the City Manager’s Office requesting a new lease as their existing term expires May 1, 2017; a lease proposal was received October 28, 2016 requesting another 5-year lease subject to the same conditions in their current lease.  The new Artistic Director, Jennifer Norton, will be overseeing the organization.  Improvements to the building are planned for 2017, including installation of outdoor lighting, roof repairs, door replacements, and painting the ticket booth.

The Lease Advisors reviewed the lease proposals at their November 1, 2016 meeting.  As per the Lease Policies and Procedures, the proposal must go before the Port and Harbor Advisory Commission for recommendations and then to City Council for approval.

The Lease Advisors recognize how Pier One Theatre benefits the Homer community.  They have been operating as a non-profit on the Homer Spit and leasing from the City for over 30 years.  The City will continue to seek the highest and best use of all City-owned property; the Lease Advisors agree to a short-term lease since it fulfills the current need of that lot, while also keeping the City’s interests open in case the Port and Harbor Enterprise is able to expand the Homer Marine Repair Facility (which shares the same lot).

The Lease Advisors recommend to City Council that the new lease request be granted to Pier One Theatre for an additional five year lease.  Below are some highlighted details of the proposed lease:

Sec. 1 Property:  Portion of Tract 1-A (KPB 181-031-17) consisting of 2,344 square feet (area of buildings).
Sec. 2 Lease Term & Rent:  New term is five years with no options to renew to begin May 1, 2017 and expire April 30, 2022. Rent is $1.00 per year.

Recommendation

The City Manager and Port and Harbor Staff recommends approving Resolution 16-118, awarding Pier One Theatre a five-year lease with no options for renewal, for a Portion of Tract 1-A, Fishing Hole Sub No. 2, with an annual base rent of $1.00, and authorizing the City Manager to move forward with lease negotiations and execute the appropriate documents.

Attached:          Pier One Theatre Lease Proposal

Fiscal Note:      Pier One Theatre’s Annual Base Rent will be $1.00.