Title
A Resolution Amending the Lease of the City Auditorium to AVA Presents, LLC to Extend the Rent Abatement Period to April 1, 2027
Presenter:
Kim King, Assistant Director - Parks, Recreation and Cultural Services
Kellie Billingsley, Real Estate Services Manager
Body
Summary:
Since signing the lease on September 9, 2025, AVA Presents, LLC (AVA) has been working to reopen the City Auditorium. This has involved structural studies, engineering evaluations and ultimately beginning renovations of the City Auditorium including removing the 1923 seats in the main arena area, painting throughout much of the facility, and installing new flooring. Due to the extensiveness of the upfront work and several unforeseen delays, AVA is requesting an amendment to their lease to have the rent abatement calculation extended to April 1, 2027, rather than the initial date of June 9, 2026.
Background:
To gain a better understanding of the City Auditorium’s maintenance needs, AVA has spent the past year generating specific plans and timelines to allocate resources, generate revenue, and enhance full facility usage. With respect to short-term and long-term maintenance plans, AVA has completed numerous studies of the building and developed a short-term and long-term plan to address maintenance and other needs. In addition to deferred maintenance and repairs, AVA believes that innovations in design of the public and backstage spaces will enhance the Auditorium’s desirability both to patrons and performers, and that unique uses such as regional Mexican music, cirque du soleil style events, and other diverse programming will greatly enhance community contributions.
These efforts, along with starting to remodel the facility, have taken longer than originally anticipated. As a result, AVA is requesting an extension of the rent abatement period in recognition of the fact that the site has not begun operations and is not yet generating revenue. It is anticipated revenue-generating activities will begin no later than April 1, 2027.
Previous Council Action:
City Council approved the original lease agreement associated with the City Auditorium through Resolution No. 90-25 dated July 8, 2025.
Financial Implications:
Activating the facility and addressing the City Auditorium’s significant deferred maintenance needs are at the heart of the lease agreement established with AVA. Renovation efforts to date have been funded entirely through AVA.
City Council Appointed Board/Commission/Committee Recommendation:
The Parks, Recreation and Cultural Services Advisory Board was made aware of the request for an extension of the rent abatement period at its September 10, 2027, meeting. Consensus of the Board was to support the request based on AVA’s efforts to date.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move approval of the resolution amending the lease of the City Auditorium to AVA Presents, LLC to extend the rent abatement period to April 1, 2027.
Summary of Ordinance Language
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