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