03/19/1985 - Laserfiche WebLink

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. . . ACQUISITION OF YOST THEATER - 307 NORTH SPURGEON STREET The Executive Director/Economic Development stated that in mid-1984, the Agency approved the City's participation in the H.U.D. Section 108 Loan program. He added that this program provided funds for a series of developments in the downtown area, one of which was a festival market center. He pointed out that initially staff wished to proceed with a Request for Proposal in order to find interested developers, but that, subsequently, it was decided to proceed with the property owners in the area as the developer of the market center and to try to structure a Disposition and Development Agreement that would allow maximum owner participation. He stated that, since July, staff has been working toward having the understandingsand sound draft proposal which now exists. He pointed out that staff had requested the Council to expand the boundaries of the original site to include additional properties to use in substitution for the original 108 Grant Application site. He added that one of these added properties is the Yost Theater which the owner, Louis Olivas, has requested that the Agency purchase, on a voluntary basis. In response to a question from Mrs. McGuigan, The Executive Director/Development Services stated that the Agency has approximately $2.8 million which could be used to purchase property for this development. He added that he had a list of properties which were earmarked for acquisition and would be happy to circulate it to the Agency Members. In response to questions from Mr. Luxembourger, the Executive Director/Economic Development stated that staff had been discussing with Mr. Olivos the possibility of a short-term leaseback of the theater for part-time use. He added that the theater is about 80% complete in terms of its seismic rehabilitation and that the tenant improvements would have to be geared to those programs which will be developed for the theater. The City Manager then assured Mr. Luxembourger that the theater would be assigned an inventory number at the time of outright ownership by the City, and would appear as a "line" item in the budget. In response to a question from Mr. Young, the Executive Director responded that there was a first mortgage of approximately $600,000 on the Yost Theater and that Mr. Olivos' other properties, the West Coast Theater and his residence, shared in any other encumbrance that might exist. He added that Mr. Olivos had financed all seismic work on the Yost Theater privately. The Executive Director pointed -4-