Title
A Resolution Finding a Public Purpose in the Leasing of the City Auditorium to AVA Presents, LLC
Presenter:
Ryan Trujillo, Deputy Chief of Staff
Henry Martin, Director of Facilities
Kim King, Assistant Director - Parks, Recreation and Cultural Services
Body
Summary:
With the strong interest in the downtown corridor, the significant investments occurring within the area, and the termination of the last vendor agreement at the end of 2023, the City of Colorado Springs (City) conducted an extensive evaluation process of the future use for the City Auditorium using the Solutions Team model. The recommendations from this team included conducting another Request For Proposal (RFP) process which occurred in mid-2024. The Solutions Team members envisioned a collaborative approach that would meet the following goals of the RFP including:
? Activation of the venue;
? Enhancement of the vitality of this key area of downtown while also serving the needs of the community; and
? Fulfilling the mission that the Auditorium was originally built to support including a wide variety of programming such as community events and musical and stage performances.
The City has selected a vendor, AVA Presents (AVA), and is finalizing a lease agreement. Due to the existing deferred maintenance needs of the Auditorium, the City is considering an agreement that allows rental payments by way of "in kind" services in recognition of AVA's commitment to capital investment in the building. The following terms are key aspects of the proposed agreement between the City and AVA:
? Allow up to nine months at no charge for AVA to evaluate the building, conduct any necessary studies, and develop both short-term and long-term renovation plans. Rent calculations and in-kind offsets will commence upon the first occurrence of a revenue-generating event.
? Rent the space to AVA at below Fair Market Value in exchange for AVA investing capital improvements into the Auditorium, and the Cit...
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