SUBJECT: Ordinance relating to Stages Repertory Theatre; approving release of restrictive covenants on certain property located at 3201 Allen Parkway; approving declaration of use restrictions on certain property located at 800 Rosine Street; approving an escrow agreement related thereto.
RECOMMENDATION: (Summary)
City Council adopt an ordinance approving and authorizing the release of certain use restrictions on property at 3201 Allen Parkway and the declaration of use restrictions on property at 800 Rosine Street in connection with the relocation of Stages Repertory Theatre
SPECIFIC EXPLANATION:
In 2014, pursuant to a lease agreement with a purchase option for the Stages Repertory Theatre approved by City Council by Ordinance No. 2010-128, passed and adopted on February 10, 2010, the City conveyed certain property located at 3201 Allen Parkway to Allen Parkway Arts Center Inc. (“APAC”), subject to certain use restrictions relating to the operation of 3201 Allen Parkway for arts purposes (“Use Restrictions”) for a period of fifteen years. APAC subsequently transferred 3201 Allen Parkway to Stages, d/b/a Stages Repertory Theatre (“Stages”), subject to the Use Restrictions.
Stages has purchased certain property at 800 Rosine Street (“800 Rosine”), and intends to relocate the Stages Repertory Theatre to 800 Rosine. In conjunction with the relocation of Stages Repertory Theatre to 800 Rosine, Stages intends to sell 3201 Allen Parkway to a third party, and has requested that the City release the Use Restrictions on 3201 Allen Parkway before the closing of the sale. In exchange, the City will impose identical Use Restrictions on 800 Rosine for the benefit of the City for a period of twenty years.
The release and the declaration will be held in escrow until the closing of the sale of 3201 Allen Parkway pursuant to an escrow agreement between the City, Stages, and Alamo Title Company.
The Administration recommends approval of this ordinance.
cc: Marta Crinejo, Agenda Director
Anna Russell, City Secretary
Ronald Lewis, City Attorney
Gary Dzierlenga, Senior Assistant City Attorney