SUBJECT/RECOMMENDATION:
Title
Review request submitted by Ruth Eckerd Hall, Inc. for the suspension of Reserve Fund payments required by the Capitol Theatre Operating Agreement until 2020 and provide direction.
Body
SUMMARY:
Ruth Eckerd Hall, Inc. has submitted a formal request to suspend payments to the Reserve Fund until 2020.
The Capitol Theatre Operating Agreement required a Reserve Fund to be used to the meet the costs of operation and maintenance of, and to pay for city approved capital improvements to the Capitol Theatre to the extent there are insufficient gross revenues generated at the Capitol Theatre. This is to be established through deposits made by Ruth Eckerd Hall, Inc (REH). The initial Operating Agreement required $3,000,000. This amount was reduced to $2,750,000 when the Fifth Amendment to the Operating Agreement was approved in December, 2014. To date, the City has received $1,250,000. The next installment payment of $500,000 to the Reserve Fund is due on December 17, 2015.
APPROPRIATION CODE AND AMOUNT:
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USE OF RESERVE FUNDS:
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