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MINUTES <br />CITY COUNCIL <br />MAY 27, 1998 <br />the theater land wouid be owned by the City and leased to Cinemark. The <br />lease payments mlde by Cinemark would be subject to net reduction in <br />property taxes with the balance goin~ to the City to retire its bonded debt <br />issued for property acquisition and other public improvements. The lease <br />would match up with the bond term. Wise pointed out that Cinemark is an <br />investment-rated company. Cinemark is proposing that after 20 years the <br />City retires the bond and Cinemark could continue to extend for five year <br />periods by paying 5% percentage rental plus actual pro rata real estate <br />taxes. Cinemark would pay for insurance, utilities, cost to maintain the <br />building 1nd the parl<ing lot. The only thing taken from the lease payment <br />would be the propeirty taxes durin~ the TIF. At the end of the lease, it is <br />tl~e City's land with a buildin~ on it. <br />Wise reported tl~at Cinemark wants to make sure that the surrounding <br />devetopment is compatible with the theater. Cinemark does not want a <br />liquor store or pawn shop next to its movie theater because they view the <br />area as a family environment. I-Iowever, that doesn't mean there couldn't <br />be a restaurant that serves liquor in the redevelopment area. For Cinemark <br />to mai<e an investment in the area, they want the right neighborhood look. <br />Wise indicatecl that Cinemark wo~ild assemble a development team for the <br />ballnce of Che improvements on the north and south tracts, and have used <br />a couple of firms in the Midwest for other projects. The development <br />group would pay the difference on land acquisition costs and what can be <br />fimded under bond proceeds. However, this would be st~uctured to allow <br />for reimbursement Uirou~h surplus tax increment. Wise reported that <br />Chris Mo1rn's involvement would be necessary from the office <br />deve]op~~~ent point-of-view. A retail specialist would also likely be <br />brought in. The types of development that Wise envisioned in the area <br />would indude 2 bookstore, pottery barn, small retail users such as a coffee <br />shop, greeCing clyd store, and restaurants. Wise indicated that this would <br />be an excellent opportunity for a local operator such as The Venetian Inn <br />to stay in the project. Wise reported that Cineinark would not want to see <br />fast food in the 1rea, but rather sit-down, casual dining. <br />Wise pointed out that 75% of the business to a movie theater occurs <br />during about 25% of the time. A movie theater is typical(y busy after 6:30 <br />P.M. on Fridays, 1nd 1l1 day on Saturdays and Sundays. Mondays through <br />Thursdays parking would be very under-utilized. Therefore, office <br />buildings are good complimentlry uses for the area. This also results in <br />lunch business for restaurants during the week, and lunch and dinner <br />business on the weekends. The thelter wil] ~enerate traffic in off-peak <br />times and will not add to rush hour traf6c problems. <br />Wise indicated thlt Ci~~emad< would expect the theater to attract 1 million <br />people per year. Again, 75% of the business will occur on the weekends. <br />3 <br />