public purpose in the leasing of the City Auditorium to AVA Presents, LLC.
He provided an overview of the history of the auditorium, Solutions Team
process, and successful vendor selection, and future Council action.
Jesse Morreale, AVA Presents, representing the vendor, identified their
qualifications, relevant experience, goals, continued evaluation, public
safety, preservation of the historical relevance of the auditorium, and
previous AVA projects.
Councilmember Williams expressed appreciation of the project.
Councilmember Donelson asked how much of the Royal Oak Theater was
preserved. Mr. Morreale stated they had to make significant changes to the
electrical, heating, and air conditioning to make it more modern for public
comfort and safety while maintaining the configuration of the building.
Councilmember Donelson asked how the City will address the long-term
infrastructure needs for the building. Mr. Trujillo stated there will be a very
robust partnership with the leasee regarding the capital infrastructure which
will be needed.
Councilmember Risley requested additional information regarding the
City’s responsibility as a landlord and the needed repairs. Mr. Morreale
provided an overview of the private/public partnership with the City
maintaining the ownership, but that AVA will take responsibility of the
maintenance and significant upgrades for the building. Councilmember
Risley stated he believes there needs to be more clarity of the lease in
order to capture the spirit of the deal. Mr. Trujillo stated they have worked
on including the responsibilities of landlord and tenant in the lease
agreement. Caitlin Moldenhauer, City Attorney, City Attorney’s Office,
stated those requirements are outlined in the second paragraph of Section
9.A. of the lease agreement.
Councilmember Henjum asked if the auditorium is located in the Downtown
Business Improvement District (BID). Jariah Walker, Executive Director,
Colorado Springs Urban Renewal Authority (CSURA), stated because it is
City-owned, it does not contribute to the BID, but it is in an Urban Renewal
designated area which is set to expire in 2031 with approximately $1.5 to
$1.6 million earmarked for that area where they could divert some of that
Tax Improvement Fee (TIF) to the City auditorium.
Councilmember Henjum stated this building is part of the Historic National
Register and asked what restrictions or benefits come from that. Mr. Trujillo
stated it allows the City to apply for grants for buildings with that
designation.
Councilmember Henjum expressed support of this proposed project.