Title
Consider approving Resolution No. 2015-042 authorizing a License Agreement with the Farmers Branch Community Theatre, Inc, d/b/a The Firehouse Theatre, for use of property located at 2535 Valley View Lane; authorizing termination of prior agreements with the Farmers Branch Community Theatre, Inc.; and take appropriate action.
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BACKGROUND:
In 2011, the City moved forward with the construction of a new Fire Station #1 on Webb Chapel because it was determined that the original Fire Station #1 on Valley View was over 50 years old, was deteriorated, unfunctional and was not fit for City operations. At the time, the plan was to tear down both the old fire station and the administrative building behind it.
A group of citizens came forward and asked if they could use the facility as a community theatre. The City Council supported the advancement of the arts and asked City Administration to draft an agreement which would allow the theatre to take over the building as is with the idea the Firehouse Theatre group would raise funds to renovate the facility for their use.
Over time, the group was successful with their productions, but unable to raise enough funds to bring the facility up to reasonable code standards. Therefore, this year the group came forward and asked for a revamped agreement with the City to make the theatre more viable. At this time, the City Council asked City Administration to develop a new agreement which would require the City to be responsible for the maintenance and upkeep of the building, which would relieve the theatre group of considerable expense.
City Administration drafted such an agreement and presented it to the Firehouse Theatre Board of Directors. The group reviewed the terms at their June board meeting and accepted most of the terms presented by the City with some requested modifications. These modifications include:
1. Changing the agreement from a license to a facility use agreement
2. Deleting all sections concerning the further expansion of the facility
3. Changing the responsibility for the payment of utilities from the Firehouse Theatre to the City (estimated cost $25,000 to $50,000 annually)
4. Changing the $1 per ticket proposed facility charge to reduce for children's productions and raising complementary tickets threshold from 5% to 10%
Attached is the proposed agreement as requested by the Firehouse Theatre Board of Directors.
DISCUSSION:
The proposed agreement is included as directed by the City Council. It was written with the intent to match the direction of the governing body, with input from the community theatre.
In making this decision, the City Council should consider the success of the Firehouse Theatre, their importance to the community, and the theatre's importance to the Mustang Crossing area.
Additionally, the City Council should be aware of the significant change to the relationship the new agreement forges between the City and the Firehouse Theatre. Significant in this change is the cost the City budget will be responsible for with the new arrangement.
Kevin Muenchow, Fleet & Facilities Director, has presented the cost to bring the facility to minimal levels to operate as a viable theatre. Additionally, the City will become responsible for the ongoing maintenance and upkeep (including utilities) under the new agreement.
Conversely, the agreement provides some revenue back from ticket sales for the use of the building.
RECOMMENDATION:
With all of these considerations in mind, the City Council is asked to provide direction concerning the proposed Facility Use Agreement for the outdated Fire Station #1 located on 2535 Valley View Lane.
ATTACHMENTS:
1. Resolution No. 2015-042
2. Firehouse Theatre License Agreement