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HomeMy WebLinkAboutRA Minutes 1998-03-02SRRA MINUTES (Regular) 3/2/98 Page 1 IN THE COUNCIL CHAMBER, CITY OF SAN RAFAEL, MONDAY, MARCH 2, 1998 AT 7:35 PM Regular Meeting: San Rafael Redevelopment Agency: Present: Albert J. Boro, Chairman Paul M. Cohen, Member Barbara Heller, Member Cyr N. Miller, Member Gary O. Phillips, Member Absent: None Also Present: Rod Gould, Executive Director Gary T. Ragghianti, Agency Attorney Jeanne M. Leoncini, Agency Secretary CLOSED SESSION - 7:00 PM None. ORAL COMMUNICATIONS OF AN URGENCY NATURE: None. CONSENT CALENDAR Member Phillips moved and Member Miller seconded, Consent Calendar item: ITEM 7:35 PM to approve the following RECOMMENDED ACTION 1. Unapproved Minutes of the Citizens Advisory Accepted report. Committee Meeting of Thursday, February 5, 1998 (AS) - File R-140 IVB AYES: MEMBERS: Cohen, Heller, Miller, Phillips and Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: None AGENCY CONSIDERATION: 2. AUTHORIZE REQUEST FOR PROPOSALS (RFP) PROCESS FOR CINEPLEX IN THE DOWNTOWN (RA) - File R-407 Economic Development Director Jake Ours reported the Agency had been approached by two theater companies, with the idea of establishing a ten or twelve screen, multi-cineplex in the Downtown. He stated both of the companies have made proposals, but staff felt it would be in the best interest of the City to go out and test the market, if we decide to go forward. Mr. Ours stated staff was proposing the parking structure behind San Rafael Joe's restaurant, which is City Property, be used as the base for a cineplex project, noting staff believed this was the type of project that would additionally revitalize the Downtown, and was in line with the City's Vision to get activities in the evening Downtown. He stated staff would like this project to have no impact on our traffic from 4:00 PM to 6:00 PM; to generate additional parking, so there are no parking problems related to the project; and to include some type of public participation, something additional for the City out of this, in recognition of the fact that they would be using our property for this project. Mr. Ours noted staff would like to contact known movie houses, the people SRRA MINUTES (Regular) 3/2/98 Page 1 SRRA MINUTES (Regular) 3/2/98 Page 2 who provide films throughout the Country, to test the market and see what we could get. Staff would like to prepare an RFP, bring it back before the Agency for approval, and then send it to a selected list of theater operators. Member Phillips stated he liked the idea of competition in an arena such as this, and felt going out to bid would not hurt, and could possibly help. He asked for Mr. Ours' viewpoint on the issues of screen capacity, whether we are "maxed out", what the impact would be on the Regency Theater, and the possible impact on the Northgate Theater if such a facility were brought Downtown. Mr. Ours stated at one time it had been thought Marin County was "over - screened"; however, he has been told there is a demand, particularly in Downtown San Rafael, for additional screens, and this would be a very vital film center, and add to the overall character of the Downtown. He believed there could be a negative impact on Northgate, although he could not guess what that would be, noting that would depend on how the two complexes were run. Member Heller recalled when Northgate Theaters moved into the Northgate Mall, this same question arose over the impact that would be felt by the Regency Theater, which was already located on Smith Ranch Road. Ms. Heller noted the response, at that time, was that they did not feel competition would impact one theater over the other, taking the position that more people would go to more movies more times, because there would be more movies to see. Member Cohen asked, in terms of expansion of the "A" Street garage, how would we envision this taking place? Mr. Ours stated the garage was designed to take on another level. Mr. Cohen noted the parking structure currently belongs to the City, and asked if we would be selling the structure? Mr. Ours stated the structure would likely be torn down and rebuilt, and we would either go underground or add another level on top, at least one level from what had already been proposed. Mr. Ours stated he anticipated there would be an "air rights" deal of some kind, noting there would be zero land cost, basically, and the Agency would see what kind of benefits the City could get in addition to the construction of the theater. Mr. Cohen asked if that meant the City would continue to own the parking structure after it was rebuilt and the theater was put into operation? Mr. Ours stated that was correct, noting it would still be a public parking structure. Member Cohen asked, if the current projections did not turn out or the market changed and the theater operators decided it was no longer viable to operate the theater, would the City at least have the guarantee that this will remain a public parking structure? Mr. Ours stated that was correct. Member Miller noted when Pacific Theaters first went to Northgate, the theaters at Smith Ranch Road and Northgate were able to rotate the films around, and actually increase the number of screens throughout. Tim Tarpley, head of Real Estate for United Artists, reported it was their belief the area is under -screened, and could easily absorb ten to twelve more screens. Referring to the question of the potential impact on Pacific Theaters, he noted there are over 350 United Artists theaters around the Country, and they have found that in areas where other theater compounds have been built by competitors, the experience is either one end of the spectrum or the other. Mr. Tarpley stated it was very hard to determine, although they have typically found they can operate well within a zone with another complex, noting it builds competition; it helps the community, as far as having more films available, and more choices as far as the SRRA MINUTES (Regular) 3/2/98 Page 2 SRRA MINUTES (Regular) 3/2/98 Page 3 location; and it also helps to suppress the pricing, from the standpoint of the community itself. Mr. Tarpley stated United Artists was very interested in San Rafael, noting they have studied San Rafael and the Marin marketplace for a long time, and believe there is a good opportunity to compete very favorably in this marketplace. Mr. Tarpley stated they thoroughly endorse the idea of an RFP for potential selection of a theater operator for Downtown, and they are quite interested in participating in that. Member Phillips asked how United Artists saw themselves in competition with the Rafael Theater? Mr. Tarpley stated they saw a cineplex as an enhancement, noting they actually operate a lot of art theaters in close proximity with their first -run theaters, and believe they work well hand- in-hand. Mr. Tarpley noted there was a polarization of people who go to art theaters versus the first -run theaters, and while some do cross over these two types of products, they have found they are selling to two different marketplaces, and serving those marketplaces separately. Mr. Phillips asked if this meant they did not see themselves as a direct competitor? Mr. Tarpley stated they believed it was an enhancement, noting, as an analogy, it would be the same as having several restaurants in the same proximity, which creates a strong dynamic. Mr. Tarpley addressed the capital investment United Artists was projecting for this type of theater complex, stating it would be in the range of approximately $15 million, just for the theater. He noted they would be more than willing to work with the traffic and engineering departments relative to the concern of the traffic during the Monday through Thursday rush hours. He stated they were very sensitive to that, noting it is as important to them that it works well, because they do not want to create a venue people cannot get to. Member Phillips asked if the $15 million included rebuilding the parking garage? Mr. Tarpley reported it would, and would also include public improvements that have been discussed with the Agency, as well as expansion of the parking capacity. He stated it was important to them to make sure they do well with regard to ingress and egress, and parking capacity, stating they felt extraordinarily dedicated to each of the communities they participate with, noting they would produce letters from other towns and municipalities in which they operate in the downtown areas. He noted they were also architecturally sensitive, and even though they have a prototype for their theaters, they like to blend in to make things work, especially in the main streets of the United States. Robert Herbst, representative from the Real Estate Department of Pacific Theaters, stated he had also been working with the Redevelopment Agency regarding this site, noting they have submitted a Letter of Interest. Referring to the question of whether Marin County is under -screened or over -screened, Mr. Herbst stated it has been their position for some time that Marin County is under -screened. He noted this was particularly true when considering where the movie industry has gone over the past two or three years, which is in the direction of megaplex theaters with stadium seating and plusher seats. He stated that within the industry they have found these new types of theaters are growing, with increased movie attendance, which he expected here. At the same time, he acknowledged there would likely be an impact on their Northgate Theaters, noting this project might lead them to close the Regency Theater. He pointed out their original plan had been to operate the Regency and Northgate Theaters together as a 21-plex, noting that had been successful. He stated it was SRRA MINUTES (Regular) 3/2/98 Page 3 SRRA MINUTES (Regular) 3/2/98 Page 4 clear a Downtown San Rafael theater site would be a "free" theater zone, and would be able to play all the movies that are played at Northgate. He noted this would be good for the Downtown, but could take away business from Northgate. However, he pointed out there would be more choices for the movie goers, with more show times and a choice of going to Northgate or to the Downtown. Mr. Herbst agreed a first -run theater in the Downtown would not be in competition with the Rafael Theater, noting Pacific Theaters has been a supporter of the Rafael Theater, and has supported it financially, as well. He stated the Rafael Theater will provide a good opportunity to show different types of films than will be shown at a standard megaplex. Chairman Boro asked that in the RFP process we include a question asking each company how their presence might enhance the Rafael Theater, and the annual production of the Mill Valley Film Festival, and asking them to describe how they would participate in that. Member Heller asked if the RFP could also include the possibility of fundraising opportunities for non -profits and schools? Mr. Ours stated it could. Linda Bellatore stated she had been a member of the original Vision Committee, and felt this would be a good project for the Downtown. She noted that when the Committee worked on the Vision, they came up with the "Alive After Five" campaign, and also addressed housing projects, which seem to have been fulfilled; however, she felt we were lacking in a retail component, and asked the Agency, as proposals come forward, to keep in mind that we need more retail, and something to generate activity in the daytime. She noted she currently has no reason to go Downtown during the day, and believed the City needed to become proactive in its approach to attract retail, not big stores, but small retail, such as gift shops and things that will attract people to the Downtown during the day, and carry over into the evening. Ray Taylor stated he was a movie buff, and also liked to see projects that end up enhancing San Rafael. He suggested if the Agency decides to request proposals, that we ask the respondees to be very explicit about how they would respond to two very specific issues. First was the parking and traffic. He noted ten screens could mean approximately 2,000 seats, or 1,000 cars, and he believed we needed to pay close attention to where we would put those cars, and how they will get into and out of the neighborhood, because it is already congested Downtown. Referring to his second concern, Mr. Taylor felt we should ask how the proposers would deal with appropriate competitive programming. He noted we currently have 21 screens in San Rafael, and 47 in the County, and all 47 are equally accessible. He noted once he is in his car, on his way to the movies, it does not matter to him whether he goes to Smith Ranch Road in San Rafael, Rowland Boulevard in Novato, or Northgate Mall, and because there are always more screens than films showing, he usually has a choice of going two or three places to see the same film. Therefore, his decision ends up being where he can go with the least hassle, and be able to get in and out, and park easily. He stated the proposed complex for Downtown is going to have to be able to compete against that. He noted if the choice were there now, he would probably go to Northgate, because it is just easier to park and get into the theater than it might be to drive Downtown. Mr. Taylor pointed out the City is supporting the Rafael Theater in the SRRA MINUTES (Regular) 3/2/98 Page 4 SRRA MINUTES (Regular) 3/2/98 Page 5 Downtown, and he felt programming for the cineplex should reflect not being in competition with the Rafael Theater, so we do not just move business across the street. Melany Kramer reported Cinema West was going to try to have four screens at the Fairfax Theater instead of the two they have now. She noted the issue was currently before their Planning Commission, and asked if that had been taken into consideration? Chairman Boro stated the Agency was aware of that. Ms. Kramer asked if this was part of what the theater operators were addressing? Chairman Boro stated San Rafael was not trying to compete with Fairfax, nor did the Agency feel anything they did in Fairfax would compete with San Rafael. He noted the theater operators have stated they made their assessments on the marketability of a potential cineplex, based on their studies, and he believed they were aware of what was going on in the County. Member Cohen made an observation in thinking about a choice between Northgate and Downtown, stating one of the things about Northgate that has always amazed him was if you go to a movie at night, everything else is shut down, and there is no incentive or opportunity to go into any of the shops, or even the food court, noting at night it becomes strictly a theater with a lot of extra building attached to it. He did not believe that would happen Downtown, and saw this as bringing people to the Downtown. He acknowledged that this was not retail, but noted he did not feel it was in a space where retail would really work, on top or underneath the parking structure. Mr. Cohen believed this would really help in the "Alive After Five" component, and would be a boost to local restaurants. In addition, he noted if there were retail establishments willing to stay open in the evening, he believed this would draw potential customers for them. Member Cohen moved and Member Heller seconded, to authorize staff to prepare and issue a Request for Proposals for development of a cineplex project at the current site of the Lootens and Third Street parking structure. AYES: MEMBERS: Cohen, NOES: MEMBERS: None ABSENT: MEMBERS: None 3. AGENCY MEMBER REPORTS: None. Heller, Miller, Phillips & Chairman Boro There being no further business to come before the Redevelopment Agency, the meeting was adjourned at 7:58 PM. SRRA MINUTES (Regular) 3/2/98 Page 5 SRRA MINUTES (Regular) 3/2/98 Page 6 JEANNE M. LEONCINI, Agency Secretary SRRA MINUTES (Regular) 3/2/98 Page 6