Consideration of Piven theatre construction

1. Human Services Committee
June 3, 2013
Consideration of Piven Theatre Construction Loan

2. For Consideration
Ordinance 43-O-13: “Authorizing the City Manager to
Negotiate and Execute a Lease and Construction Agreement
with Piven Theater Workshop”
Resolution 8-R-13 “Authorizing the City Manager to
Execute an Amendment of a Lease Agreement with Piven
Theatre Workshop, Inc”

3. Summary of Proposed Project
Piven seeks to renovate space to:
Create 200 seat black box theatre
Additional office space
Increase classroom space
Create larger rehearsal space
Total Cost is estimated at $3.55 Million
Seeking a $2.2 million loan from City
Piven will raise $1.35 million in a combination of: cash,
pledges, private financing, and in kind contributions.

4. Summary of Proposed Loan & Lease
Agreement
City Construction Responsibilities for the entire building:
Roof repair and asbestos and lead abatement
30 Year Lease with 4, 5-Year Extensions (up to 50 years)
Tenant to construct the proposed improvements and
contemplates completion by Winter 2014
Tenant Contribution to Capital Improvements

5. Loan Details
Total Loan $2.2 million
Interest rate is 2.0% per annum
Piven must raise $355,000 in cash prior to the City loaning
the money.
Loan payments start 2 years after construction is completed
Loan secured by fixtures, equipment, and personal property

6. Rent Details
2013: $60,000 per annum ($10,000 in cash/$50,000 credit
for in kind work)
2014+: $60,000 per annum ($20,000 in cash/$40,000
credit for in kind work)
Loan repayment period: $1.00 per annum
2043 – 2063 (Option Periods): $100,000 per annum
($75,000 in cash/$25,000 credit for in kind work)

7. Activities to Date
Noyes Cultural Arts Center floor plans have been revised
(Attachment 2 to Transmittal Memo/pg. 249-251 of packet)
Piven: removal of intention to occupy studios 217 and 218
on second floor and agreed to occupy basement studio space
in B13 in the proposed renovations
Rent: Piven will be paying rent before and after the loan
repayment period
Fleetwood Jourdain

8. Estimated Economic Impact
Current estimate of 32-37 FTE and PTE employees spend
$83,200 and $96,200 per year in Evanston
Growth in employment this number could grow over
$100,000
30,000 patrons annually could result in $612,900 of impact
for economy