DEPARTMENT: Center City Development and Operations Department
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT: Magik Theater Lease
SUMMARY:
An Ordinance authorizing a new lease agreement between the City of San Antonio and The Magik Theater, a Texas non-profit corporation for the continued use of the real property located at 418 S. Alamo St (Building #225) within Hemisfair, for a twenty year term with two additional 10 year renewal terms in City Council District 1.
BACKGROUND INFORMATION:
The Magik Theater Lease Agreement was originally authorized by Ordinance 86014, dated May 8, 1997 and subsequently amended on three occasions resulting in a lease term of twenty years. Since this time, the Magik Theatre has operated at Beethoven Hall in Hemisfair Park and has offered year-round performances for school children and the general public.
Since the 20 year term of the lease expired in June of 2017 and The Magik Theater has been operating on a month to month basis with the City without a rental payment requirement. Being responsible for the maintenance of the facility The Magik Theater has been seeking philanthropic donations to improve operations, maintenance, and capital needs of Beethoven Hall. In order to attract substantial donations to improve the Beethoven Hall, donors are requiring The Magik Theater have a long term lease in place.
ISSUE:
This ordinance authorizes a new 20 year lease agreement with The Magik Theater with two additional 10 year renewal terms. In lieu of rent, The Magik Theater shall be responsible for managing and paying for all maintenance costs, repair costs, and capital improvement costs necessary during term, as well as delivering a Capital Improvement Plan and Building Needs Assessment every 5 years.
ALTERNATIVES:
City Council can elect not to approve the lease; however, The Magik Theater will not be able to effectively seek philanthropic donations to improve operations, maintenance, and cap...
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