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Item No. 15 <br />TO: Mayor & Council <br />FROM: John Godwin, City Manager <br />SUBJECT: GRAND THEATER MANAGEMENT AGREEMENT <br />DATE: July 24, 2018 <br />BACKGROUND: We have been working with a group for several years to develop a plan to get <br />the old Grand Theater facility rejuvenated and ultimately back in operation. For about a year we <br />have been specifically working on an agreement between the Paris Grand Theater Project, Inc., <br />which has organized as a 501(c)(3) not-for-profit corporation, and the city. The theater is a <br />potential gem for our downtown; reopened for theatrical performances, meetings, movies, etc. it <br />will become a huge draw and have a tremendous impact on development of the entire area. <br />STATUS OF ISSUE: Although much more detailed, the agreement is somewhat similar to that <br />which we have in place with the chamber of commerce for operation of the Love Civic Center in <br />that although the city retains ownership, the organization takes over the facility's operations and <br />maintenance as if it were theirs, though of course in this case the city provides no funding. The <br />agreement specifies the duties, rights, and authority to improve and repair the theater, as well as <br />operate it as the organization sees fit. The city retains the right to approve restoration plans, <br />enforce all relevant codes, and use the facility from time to time at no charge. There are <br />reasonable insurance requirements, a plan to develop a capital maintenance reserve, and other <br />common sections in the final negotiated agreement. In order to provide the organization <br />sufficient time to fund -raise (donations, grants, endowments, etc.), organize, invest in and <br />complete work, and maintain on-going operations, the initial agreement term is for thirty years, <br />with two ten-year extensions available at their option. <br />Julia Trigg -Crawford will be present at the council meeting in support of the agreement and to <br />make a brief presentation on behalf of the theater group. <br />BUDGET: NA <br />RECOMMENDATION: Approve attached agreement. <br />