Memorandum

Purpose:

The purpose of this report is to request City Council approval for a ninety (90) day extension of contract documents for the operation of Burbank Center Stage.

Background:

On March 28, 2000 City Council approved two resolutions related to contract documents for the operation of Burbank Center Stage.  Resolution No. 25,710 approved the Sublease and Master Lease Modification between the City, C.T. Operating Partnership and the Colony Theatre Company relating to the Performing Arts Center.  The second resolution (No. 25,711) approved the Theater Operating Agreement between the City and the Colony Theatre Company.  The terms for both agreements were to commence on the Occupancy Date and expire on the fifth (5^th) anniversary of the Opening Day.  The opening day was August 26, 2000, therefore the agreements terminate on August 27, 2005.

The contracts allowed the City to extend the terms for three (3) separate and successive periods of five (5) years each, upon the same terms and conditions.  However, with the approval of both the Park, Recreation and Community Services Board and the City Council, the terms could be amended, modified or eliminated.

Analysis:

In February 2005, Park, Recreation and Community Services staff received a letter from The Colony Theatre requesting the first extension.  Upon further discussions and meetings between the two parties, issues were raised regarding the terms of the agreement.  The negotiations have taken longer than expected, and a final agreement will not be completed by the termination date of August 27, 2005. 

Staff is confident that a final agreement can be completed and presented to the Park, Recreation and Community Services Board and the City Council within ninety (90) days of the original termination date. 

Fiscal Impact:

There is no fiscal impact.

Recommendation:

It is staff�s recommendation that the City Council approve a ninety (90) day extension to the contract documents for the operation of Burbank Center Stage.

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