Agenda Packets - 2006/08/28 - Laserfiche WebLink

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Mounds View City Council July 24, 2006 Regular Meeting Page 24 stated that the dinner theater is looking to relocate after an issue with their space in Roseville. 1 2 Coordinator Backman stated the applicants toured the Community Center and determined it 3 would be an acceptable space for their theater. He stated it provides excellent visibility and 4 accessibility for their guests. 5 6 Coordinator Backman stated there is a proposal for a short-term lease of seven months to allow 7 the theater to finish their summer series and holiday show. He stated it would allow the City a 8 profit-generating use with low risk. He stated the agreement would allow for renegotiation of the 9 contract for a potential long-term lease. 10 11 Coordinator Backman stated that from a revenue standpoint, about 8,000 tickets will be sold, and 12 the revenue to the City in the next seven months is $34,000, on an annualized basis, it will be 13 $45,000 to $48,000. 14 15 Coordinator Backman stated that Staff recommends approval of the Oops Dinner Theater and 16 instructions to Staff to prepare a lease agreement. He stated there will be another time where the 17 Council will review the lease agreement. 18 19 MOTION/SECOND: STIGNEY/FLAHERTY. To waive the reading and adopt Resolution 6892 20 Approving the Selection of Oops Dinner Theatre as a Mounds View Community Center tenant 21 and Authorizing Staff to prepare an Interim Lease Agreement. 22 23 Councilmember Flaherty asked if alcohol would be involved with the dinner theater. 24 Coordinator Backman replied it would and explained the caterer who is interested in working 25 with the theater group. 26 27 Councilmember Flaherty stated that the lease offers the City additional time to reconsider the 28 fitness center plans at the Community Center. He asked Oops Dinner Theater about the 6.8% of 29 tickets sales that will be given to the City. Coordinator Backman replied there are some 30 discounts on certain types of tickets, such as senior citizens, youth, and large groups. He stated 31 that the discounts represent less than 20% of the tickets sold, which may reduce the net revenues 32 by the City about 2-3%. Councilmember Flaherty replied he would like more than the 6.8% 33 ticket revenue as a rental fee. 34 35 Mary Kay Fangel, of Oops Dinner Theater, explained that in addition to the 6.8%, Oops will pay 36 $1000 base rental every month. She stated they are hoping to give a discount to Mounds View 37 residents. 38 39 Councilmember Stigney stated that he would like to have access to the income statements from 40 Oops after the interim lease. Coordinator Backman replied that the theater is willing to provide 41 detailed records. Ms. Fangel replied that they would provide all financial documents to the City. 42 She stated that the caterer will be receiving the funds from the liquor and food sales will handle 43 the appropriate licensing and permits. 44 45