Title
Carolina Theatre Redevelopment Amendment
Action
Action:
Authorize the City Manager to negotiate and execute the following:
A. A second amendment to the Purchase and Sale Agreement with the Foundation for the Carolinas (FFTC) for the Carolina Theatre site, and
B. A Public Private Development agreement as authorized by City Charter Sec. 7.109 for the restoration of the Carolina Theatre to include a $4,500,000 City funding partnership.
Body
Committee Chair:
James Mitchell, Economic Development
Staff Resource(s):
Debra Campbell, City Manager's Office
Ron Kimble, City Manager's Office
Randy Harrington, Management and Financial Services
Explanation
* On April 8, 2013, City Council approved a resolution for a purchase and sale agreement with the Foundation for the Carolinas (FFTC) for the Carolina Theatre site through a sale for $1.00, contingent upon the preservation and renovation of the theatre.
* The purpose of the original agreement was to restore the historic Carolina Theatre as an iconic, community asset and support redevelopment on North Tryon.
* The Theatre will be used for the arts, rentals, convention center/tourism events, and as a community civic theatre for civic engagement, debates, panels, and citizen forums.
* In addition to the Theatre renovation, FFTC will partner with a private entity to construct a $94 million hotel above the Theatre.
* Projected construction costs for the Carolina Theatre at $56 million are higher than originally anticipated due to construction cost inflation, delayed construction due to securing the hotel, greater abatement work (mold, lead paint, and asbestos), and unanticipated structural challenges associated with a 1927 facility.
* Value engineering and project cutbacks have since reduced the total Theatre project cost to $51.5 million. The FFTC is assembling $47 million in funding for the project. This leaves a $4.5 million funding gap that the FFTC is requesting the City's funding partnership to close.
* Upon...
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