Laserfiche WebLink
MINUT~S <br />CITY COUNCIL <br />MAY 13, 1998 <br />Fahey pointed out that the only thing the City has received is a sketch <br />plan. The other items requested that are critical to the analysis of this <br />project have not been submitted. Fahey asked if the City has the numbers <br />it needs to analyze whether or not the project works tinancially. <br />Rusty Fifield reported thaC the City l~as nothing oCher than Yhe fact that <br />Kim Wise has said he would talk to Cinemark about the lease. Cinemark <br />would make annua] lease payments to the City. However, the City is not <br />completely sure what the lease payments would cover. The lease <br />payments would be used to pay a portion of land acquisition as well as <br />public improvement costs. The City would issue bonds and buy the <br />property and clear it. The City would receive payments from the <br />development group for a portion of the development costs. The remainder <br />of the cost would be supported by the lease with Cinemark. Then the <br />development group would enter into a pay-as-you-go and they would <br />receive TIF assistance to write down the rest of the land cost. <br />Fifield indicaCed tl~at a 60,000 square foot theater would cash flow and <br />provide the City with the dollars to pay its obligations plus provide <br />additional incentives for the rest of the site to develop. <br />Pahey asked Fifeid what his analysis was based on. <br />Fifield replied that he has not received anything from Cinemark other than <br />the concept that was presented. <br />Moarn reported that Cinemark is the #1 financially-rated movie theater <br />group in the country. Last year they built 14 stadium-seat theaters. <br />Cinemark is a so(id entity with good credit. Moarn reported that the board <br />of directors has approved the site in Little Canada. <br />Fahey asked if Ylie City {ias a letter from Wise indicating that the board of <br />directors 6as approved the project. The Administrator rePlied that the City <br />has the letter from Kim Wise, and he read this letter for those present. <br />Fahey asked who would be the development team for the project. <br />Moarn reported that Cinemark would develop the theater, and he would <br />develop the office/retlil buildings. Moarn reported that he would have to <br />have a building 50% leased before he would begin construction. Moarn <br />anticipates $1S per squ2re foot net rents. <br />Fahey reported that other developers have said that the area cannot sustain <br />$15 rents. <br />