HomeMy WebLinkAbout259-17 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 259-17
File Number: 2017-0660
THEATRESQUARED, INCORPORATED:
A RESOLUTION TO EXPRESS THE CITY COUNCIL'S ACCEPTANCE AND APPROVAL OF
THEATRESQUARED, INCORPORATED'S PLEDGES AND FINANCIAL COMMITMENTS AS
SUFFICIENT TO ENSURE COMPLETION OF THEATRESQUARED'S $31,500,000.00 THEATER
PROJECT, AND TO AUTHORIZE MAYOR JORDAN TO INVEST THE PROMISED $3,100,000.00 AS
CONSTRUCTION REIMBURSEMENTS PURSUANT TO THE CONTRACT OF JUNE 28, 2017
WHEREAS, Paul Becker, Chief Financial Officer of the City of Fayetteville has reviewed the
underlying documentation which supports the financial commitments and pledges necessary to complete
the project including about $21,300,000.00 in pledges and a loan commitment of$18,500,00.00 for this
estimated $31,500,000.00 project; and
WHEREAS, Paul Becker has found the financial documentation acceptable and sufficient to ensure that
TheatreSquared, Inc. has the necessary funding in place to complete the theater project as approved by
the Fayetteville City Council and Planning Commission; and
WHEREAS, Paul Becker has noted that TheatreSquared, Inc. has chosen to not require a performance
bond from the contractor because TheatreSquared believes the cost of such performance bond would be
greater than the risk of non-performance by the contractor, Baldwin and Shell.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby agrees with the analysis and
conclusions of Chief Financial Officer Paul Becker that TheatreSquared, Incorporated has acceptable and
sufficient pledges and financial commitments to ensure it can complete its theater project as approved by
the City Council and Planning Commission, and therefore authorizes Mayor Jordan to invest the budgeted
Page 1 Printed on 1216117
Resolution: 259-17
File Number.' 2017-0660
$3,100,000.00 as construction reimbursement payments pursuant to Fayetteville's Contract with
TheatreSquared, Inc. of June 28, 2017.
PASSED and APPROVED on 12/5/2017
Attest:
Sondra E. Smith, City Clerk Treasurer
Page 2 Printed on 1216117
City of Fayetteville, Arkansas 113 West Mountain Street
'C Fayetteville, AR 72701
(479) 575-8323
Text File
— File Number: 2017-0660
Agenda Date: 12/5/2017 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: C. 2
THEATRESQUARED, INCORPORATED:
A RESOLUTION TO EXPRESS THE CITY COUNCIL'S ACCEPTANCE AND APPROVAL OF
THEATRESQUARED, INCORPORATED'S PLEDGES AND FINANCIAL COMMITMENTS AS
SUFFICIENT TO ENSURE COMPLETION OF THEATRESQUARED'S $31,500,000.00 THEATER
PROJECT, AND TO AUTHORIZE MAYOR JORDAN TO INVEST THE PROMISED $3,100,000.00
AS CONSTRUCTION REIMBURSEMENTS PURSUANT TO THE CONTRACT OF JUNE 28, 2017
WHEREAS, Paul Becker, Chief Financial Officer of the City of Fayetteville has reviewed the underlying
documentation which supports the financial commitments and pledges necessary to complete the project
including about $21,300,000.00 in pledges and a loan commitment of $18,500,00.00 for this estimated
$31,500,000.00 project; and
WHEREAS, Paul Becker has found the financial documentation acceptable and sufficient to ensure that
TheatreSquared, Inc. has the necessary funding in place to complete the theater project as approved by the
Fayetteville City Council and Planning Commission; and
WHEREAS, Paul Becker has noted that TheatreSquared, Inc. has chosen to not require a performance bond
from the contractor because TheatreSquared believes the cost of such performance bond would be greater
than the risk of non-performance by the contractor, Baldwin and Shell.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby agrees with the analysis and
conclusions of Chief Financial Officer Paul Becker that TheatreSquared, Incorporated has acceptable and
sufficient pledges and financial commitments to ensure it can complete its theater project as approved by the
City Council and Planning Commission, and therefore authorizes Mayor Jordan to invest the budgeted
$3,100,000.00 as construction reimbursement payments pursuant to Fayetteville's Contract with
TheatreSquared, Inc. of June 28, 2017.
City of Fayetteville, Arkansas Page 1 Printed on 121612017
City of Fayetteville Staff Review Form
2017-0660
Legistar File ID
12/5/2017
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Paul Becker 11/13/2017 CHIEF FINANCIAL OFFICER (110)
Submitted By Submitted Date Division / Department
Action Recommendation:
Acceptance of funding obtained by Theatre5quared and authorization to reimburse Theatre5quared up to
$3,100,000 for a portion of approved contracts for the construction of the new theater project.
Budget Impact:
1010.090.6600-5740.00
Account Number
General Fund
Fund
Project Number Project Title
Budgeted Item? Yes Current Budget
Funds Obligated
Current Balance
Does item have a cost? Yes Item Cost
Budget Adjustment Attached? No Budget Adjustment
Remaining Budget
Previous Ordinance or Resolution #
Original Contract Number:
Comments:
Approval Date:
V20140710
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF DECEMBER 5, 2017
TO: Mayor and City Council
FROM: Paul A Becker, Chief Financial Officer
DATE: November 13, 2017
CITY COUNCIL MEMO
SUBJECT: Acceptance of Funding obtained by TheatreSquared and authorization to
reimburse TheatreSquared up to $3,1000,000 for a portion of approved contracts for the
construction of the new theater project.
RECOMMENDATION:
BACKGROUND:
On March 7, 2017, the City Council approved resolution 68-17 which approved a budget
adjustment to provide funding of $3,100,000 for an investment in the construction of a new
theater for TheatreSquared.
DISCUSSION:
The resolution approved by the City Council on March 7 2017, authorized the Mayor to execute
an agreement between the City and Theatresquared which was subsequently done. This
agreement provided that the City review and express acceptance of the funding obtained by
TheatreSquared to assure the City that the project had the necessary financial support to
complete the project. In my capacity as Chief Financial Officer of the City of Fayetteville, I have
reviewed the underlying documentation which supports the financial commitments and pledges
necessary to complete the project. I found the documentation adequate to insure the City that
TheatreSquared has the necessary funding in place to complete the project.
The estimated cost of the project was found to be $31,500,000 and the pledges supporting the
project were in excess of $21,300,000 at the end of October 2017. In addition, TheatreSquared
has obtained a loan commitment of $18,500,000 to complete the Project.
One financial risk to the completion of the project was noted. TheatreSquared did not require a
performance bond. A performance bond is typically used in large construction projects to
financially guarantee performance by the contractor. The City is required, by law, to obtain a
performance bond from the contractor or contract manager on building construction projects
undertaken by the City. TheatreSquared did not require a performance bond from Baldwin and
Shell because it was felt the cost required to obtain the bond was greater than the risk of non-
performance by Baldwin and Shell because of their size and positive reputation.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
Recommendation:
Based on the above facts, I recommend the City Council authorize this resolution to fulfil the
City's pledge of up to $3,100,000 in construction reimbursements for the following construction
packages which were appropriately bid;
Masonry Work
Structural & Misc. Steel Material
Storefront Glazing
Metal Stud Work
This request would also allow for the reimbursement of in progress payments of work pertaining
to these packages upon completion of the work and demonstration of payment by
TheatreSquared and verification by City personnel that the work had in fact been done.
Although I don't believe the risk of non-performance by Baldwin and Shell is major, it is a risk
that should be understood and factored into this decision.
BUDGET/STAFF IMPACT:
This resolution provides for construction reimbursements of up to $3,100,000 to
TheatreSquared Inc. for the construction of a new theater on Spring Street.
Attachments:
Staff Review form
City Council Memo
Original Contract
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113 West Mountain Street
Fayetteville, AR 72701
(47% 1675-8323
Resolution: 68-17
File Nu tuber: 2017-0118
THEATRESQUARED PROPOSED PROJECT:
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT OF THREE MILLION ONE HUNDRED
THOUSAND DOLLARS ($.3,100,000.00) TO INVEST IN THE THEATRESQUARED. PROPOSED
PROJECT TO BE BUI.LTON CITY PROPERTY LEASED TO THEATRESQUARED, INC.
WHEREAS, Fayetteville has supported the performing arts for decades beginning with the funding in
conjunction with the University of Arkansas (which used a Helen Walton grant) for the construction of the
Walton Arts Center; and
WHEREAS, Fayetteville also purchased, the land upon which it built the Walton Arts Center Parking Lot
which served a vital role of providing sufficient parking to support the creation of a Dickson Street
Entertainment .District; anti
WHEREAS, Fayetteville voters dedicated millions of sales tax dollars to build the original Walton Arts
Center and recently dedicated many millions more of Hotel, Motel and Restaurant taxes to help finance
the recent substantial enhancement and enlargement of the Walton Arts Center; and
WHEREAS, the City Council approved a very long term lease of the Spring Street Parking Lot to
TheatreSquared, Inc. so it could construct a major new theater project costing about Thirty Million
Dollars ($30,000,000.00) partially funded by a Walton Family Foundation Challenge Grant of Nine Million
Dollars ($9,000,000.00); and
WHEREAS, TheatreSquared, Inc. has requested that. the City of Fayetteville commit to invest Seven
Million Dollars ($7,000,000.00) towards this project; and
WHEREAS, this significant theater project is projected to generate tens of millions of dollars in
increased economic activity in our Entertainment District during construction and about Five
Page 1 Prinfed on 318117
Resolution: 68-17
File Number. 2017-0118
Million Dollars ($5,000,000.00) annually in economic output when operational; and
WHEREAS, Mayor Jordan believes this theater project built on city -owned land will significantly enhance
Our Entertainment District and would be a wise investment in Fayetteville's future economic vitality; and
WHEREAS., Mayor Jordan fully supports this endeavor, but believes the. City of Fayetteville cannot afford
the Seven Million Dollars ($7,000,000,00) requested by TheatreSquared and instead should invest Three
Million One Hundred Thousand Dollars ($3,100,000.00) from the City's general fund reserves to help wake
the TheatreSquared, Inc; s project a reality.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1, That the City Council of the City of Fayetteville, Arkansas hereby approves a budget
adjustment of Three Million One Hundred Thousand Dollars ($3,100,000.00) to enable Mayor Jordan to
pledge and then invest that amount into the TheatreSquared, Inc.'s proposed theater project pursuant to a
proper agreement which the City Council authorizes Mayor Jordan to execute,
PASSED and APPROVED on 3/7/2017
Attest:
Sondra F. Smith, City Clerk Tream} 8111 <ttrr
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1111//11
Page 2 Printed on 318117
City of Fayetteville, Arkansas
Text File
File Number: 2017-0118
Agenda Dates 3/7/2017 Version: 1
In Control: City Council Meeting
Agenda Number: C. 6
THEATRESQUARED PROPOSED PROJECT:
113 West Mountain Street
Fayetteville, AR 72701
(479)576,8323
Status: Passed
File Type: Resolution
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT OF THREE MILLION ONE
HUNDRED THOUSAND DOLLARS ($3,100,000.00) TO INVEST IN THE THEATRESQUARED
PROPOSED PROJECT TO BE BUILT ON CITY PROPERTY LEASED TO THEATRESQUARED,
NC.
WHEREAS, Fayetteville has supported the performing arts for decades beginning with the funding in
'conjunction with the University of Arkansas (which used a Helen Walton grant) for the construction of
the Walton Arts Center; and
WHEREAS, Fayetteville also purchased, the land upon which it built the Walton Arts Center Parking
Lot which served a vital role of providing sufficient parking to support the creation of a Dickson Street
Entertainment District; and
WHEREAS, Fayetteville voters dedicated -millions of sales tax dollars to build the original Walton Arts
Center and recently dedicated., many millions more of Hotel, Motel and Restaurant taxes to help finance
the recent substantial enhancement and enlargement of the Walton Arts Center; and
WHEREAS, the City Council approved a very long term lease of the Spring Street Parking Lot to
TheatceSquared, Inc. so it could construct a major new theater project costing about Thirty Million
Dollars ($30,000,000.00) partially funded by a Walton Family Foundation Challenge Grant of Nine
Million Dollars ($9,000,000.00); and
WHEREAS, TheatreSyuared, Inc. has requested that the Cily of Fayetteville commit to invest Seven
Million Dollars ($7,000,000:00) towards this project; and
WHEREAS, this significant theater project is projected to generate tens of millions of dollars in
increased economic activity in our > ntertainment District during construction and about Five Million
Dollars ($5,000,000.00) annually in economic output when operational; and
WHEREAS, Mayor Jordan believes this theater project built on city -owned land will significantly
enhance our Entertainment District and would be a wise investment in. Fayetteville's future economic
vitality, and
WHEREAS, Mayor Jordan fully supports this endeavor, but believes the City of Fayetteville cannot
afford the Seven Million Dollars ($7;000,000.00) requested by TheatreSquared and instead should
City of Fayetteville, Arkansas page 1 P'tlnladdu! 318/2417
File Number. 2017.0119
invest Three Million One Hundred Thousand Dollars ($3,100,000.00) from the City's general fund
reserves to help make the TheatreSquared, Inc.'s project a reality:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Seetion That the City Council of the City of Fayetteville, Arkansas hereby approves a budget
adjustment of Three Million One Hundred Thousand Dollars ($3,100;000.00) to enable Mayor Jordan to
pledge and then invest that amount into the TheatreSquared, Inc.'s proposed theater project pursuant to a
proper agreement which the City Council authorizes Mayor Jordan to execute.
City u! Fayetteville, Arkansas Page 2 Printed on 3!8/2017
U
city of Fayetteville Staff Review Form
2017-0118
teglstar File ID
1
3/7/2017
City Couniii Meeting Date - Agenda Item Only
3
j N/A for Non -Agenda Item
Don Marr 2%21%2017 Chief of Staff
} Submitted By Submitted Date Oivlslon j 06partment
i
` Action Recommendation:
1 Approval of a budget adjustment to assist with the construction of the new Theatre2 building,
c
t
Budget Impact;
1010.090.6600-5740.00
Account Number
General
Fund
Project Number Project Title
Budgeted Item? No Current Budget $
Funds Obligated, $
�^ Current balance $
Does item have a cost? Yes Item Cost $ 3,100,000.00
Budget Adjustment Attached? Yes Budget Adjustment $ 3,100,000.00
Remaining Budget $
11201407?0
Previous Ordinance or Resolution V
Original Contract Number: __. Approval Date;
Comments:
CITY OF
p
Te
ARKANSAS
MEETING OF MARCH 7, 2017
TO: Fayetteville, City Council
FROM: Mayor Lioneld Jordan
DATE: February 21, 2017
CITY COUNCIL AGENDA 14/MEMO
SUBJECT: TheatreSquared — Funding Request
RECOMMENDATION:
Approval of $3,1 Million dollars of general fund reserves towards the public funding goals
requested by TheatreSquared, Inc.(attached) for the construction of a new permanent premier
performing arts national theatre locatod at the corner of West Avenue and Spring Street. I. believe
this investment will cement Fayetteville's future as the Northwest Arkansas's Region Theatre
District.
BACKGROUND:'
TheatreSquared is a non-profit professional theatre in downtown Fayetteville offering an
Intimate live theatre experience. for 40,000 patrons each year, the.only theatre of its kind in a 150 -
mile radius. TheatreSquared offers visitors access to professional artists in productions that are
conceived, rehearsed and perfonned only In Fayetteville: broadly accessible ticket prices, many
of which are subsidized for Fayetteville residents; educational programs reaching 1500
Fayetteville students at no cost: and free tickets far clients of various nonprofit organizations in
Fayetteville, It is the top-rated attractieri for Fayetteville on the on-line service TrlpAdvisor, and
has received :recognition by the American Theatre Wing, founder of the Tony ,Awards, as one of
the nation's ten best emerging theatres. The organizationis currently leasing space from the
Walton Arts Center in the Nadine Baum Studio as its primary performance area, and has several
satellite locations for storing equipment, offices and other supporting activities.
Gromr1h in the organization and region suggests that the capacity of TheatreSquared has
yet to be realized. A study commissioned by the theatredetermined that their rapid and sustained
growth over the past 10 years, a tenfold increase in audience and budget since 2009, along with
national recognition and the cultural arts amenities drawing visitors to the region, compels the
organization to explore opportunities for an expanded and new permanent home. Significant
infrastructure challenges, operating constraints and immediate capacity issues emerged from this
long-term facilities plan, resulting in anew focus on building "an intimate ,�state-of-the-art, and
permanent home.."
In August of 2015 T'hotre5quared announced the award of a competitive Our Town grant
from the National Endowment of the Arts to begin the design exp{oration process. In September,
the Walton Family Foundation selected ThoalreSquared as an inaugural project for the Northwest
Arkansas Design Excellence Program, providing significant grant funding to support exceptional
architecture and design, thereby funding the design casts for the project.
(Cor;tiniUed)
Mailing Andress:
113 NN., Mountain Street wvyw.fayetteville nr,gov
Fayetteville, AR 72701
The City supported TheatreSquared in these grant applications, to provide a new, world-class
theatre in downtown Fayetteville. After reviewing several sites to. locate a new permanent home
in downtown Fayetteville, where the synergy of cultural arts, entertainment and necessary
supporting amenities are available, TheatraSquared determined the property best situated to add
to the performing arts destination that is downtown Fayetteville is a site at the southeast corner
of West Avenue. and Spring Street, home to a parking lot that was utilized as a construction
staging and Walton Arts Center staff parking for much of 2014-2015. This property offers the
appropriate size and proximity to public parking, the Walton Arts Center, Dickson Street, and other
amenities that a. downtown theatre needs to thrive,
In Octobbr 2015, the City. Council approved Resolution 188-15, expressing the City's
support of TheatreSquared and its iritent to negotiate a lease to utilize the property at the
southeast corner of West Avenue and Spring Street for anew performance facility, The mayor,
staff and City Attorney's .office have drafted and negotiated with TheatreSquared the terms of the
agreement, which were adopted by the Fayetteville City Council.
TheatreSquared received a chalionge grant frorn the Walton Family Foundation offering a
$g Million dollar 1 to 2 matching grant for the construction of a permanent national theatre home
for TheatreSquared to be located in Fayetteville. Theatre Square is seeking public funding of $9
Million, to help meet a Walton Family Foundation 1 to 2 match of $9 Million dollars and to have
public partnership in making this vision a reality. Their letter of request is for the Fayetteville City
Council to commit $7 Million dollars towards this amount; $2 Million dollars from other public
funds, and all remaining funds to be raised from generous community supporters. If they are able
to successfully raise 22.5 Million in funding, this will bring itotal investment of $31.5 Million and
the performing arts center to Fayetteville.
DISCUSSION:
Attached in this packet, is the original funding request from TheatreSquared. The
economic Impart of this investment is outlined in the packet provided. The economic impact will
be: significant and lasting, As their letter states, "...The quality .of Life in our, City will fise as
TheatreSquared offers expanded progi amming, educational opporttmities, and access to
community mamb:ers of every background,
Timing for this project is critical, as public funding is needed to raise funding to the threshold
necessary to :secure financing and begin construction work, "The construction pricing is
contingent upon hreaking ground in.. a few months" as communicated In their funding request.
Additionally, establishing Fayetteville as the year-round regional theatre district, helps provide
diverse performances fuefing our downtown economic engine, drawing national arts tourists who
are already traveling to our region for Crystal Bridges and many other cultural: and entertainment
experiences and to experience Fayetteiville's unique sense of place.
Mike Harvey, the Chief Operating Office and current Interim Director for the NW Arkansas Council
provided information from Economist Kathy Dock of the University of Arkansas Center for
Business and Economic Research projects that states during construction alone this new building
to be located In Downtown Fayetteville will generate $50:8 Million dollars in economic output and
over 350 jogs. Arid once the doors are open the economic impact will continue to pay back for
decades to conte, .starting at $5 Million dollars of economic output in the theatre's first year and
growing each subsequent year.
(Continued)
I This will become a publicaiiy ovined building on public lands. Providing public funding helps make
this prefect a reality, for an organization who was recognized by American Theatre Wing, (founder
of the Tony Awards), as one of the nation's ten best emerging theatres, reaching over 16,000
Arkansas students In over 70 schools, and providing programming and educational opportunities
to an annual audience of over 40,000 individuals.
The City's "Fayetteville First" Economic Development Plan, adopted by the 2016 City council,
and specifically Speaks to the City supporting this type of investment. In the Arts and Culture
Facus area, the Plan states:
i
The nonprofit arts and culture sector is a significant "industry" In the Northwest Arkansas
i area, generating over $45 million in total economic activity. This Includes nearly $31 million
by nonprofit arts and cultural organizations and more than $11 million In event -relaters
spending by their audiences, supporting nearly 1.500 full-time Jobs, generating nearly $30
million In househofdlncome to local residents, and delivering $4.0 million in local and state
government revenue. The see ort and_hLrLher enhancement of the Fayetteville arts and
cultures environm$)�t is_crr`tical.
And. it also specifically states:
Action Item: Support Cultural Arts District development, The Fayetteville Cultural Arts
District was established by the City Council in August 2007 (Resolution No. 1.6647) and
encompassed cultural anchors In the downtown area such as the Wallon Ails Center and
the Biair public Library as well as multiple arts galleries and the revitalized Mill District
nrrrr$, area[res._ and ctallerrosJ as wall as libraries, historical museums and educational
institutions. The district should also include restaurants, nightclubs and other Farms of
popular entertainment,
This city is well on the way to its new goals for entrepreneurial services as the Startup City of the
South and the non-profit, 501(c)3, TheatreSquared is one of the city"s original startup companies,
literally a troupe of entrepreneurs who have built this theatre from concept to reality and into its
next phase of success -- "scaling up," as they say in the startup culture.
As the Mayor, I fully support this endeavor, as we believe the economic and cultural impact of an
expanded, unique theatre in. the downtown can be a significant draw for tourism and economic
development to the City, supporting restaurants, shopping and other establishments.
TheatreSquared has agreed to fundraise and construct a major theatrical performance facility on
the premises, including other customer convenience facilities such as a coffee shop or restaurant,
retaillgift shop, and a residential facility for performing artists and related persons,
TheatreSquared may also provide fagilities for collaboration, community activities, educational
programming, and gathering spaces. Additional delails regarding the programming of the planned
spaces will be described by TheatreSquared.
(Continued)
BUDGET/STAFF IMPACT:
While I wish that. I had the ability to provide the entire $7.0 Million dollar request, it is
incumbent upon me to make sure that I bring forward a plan that helps us advance our goals,
but that does .not put the city in a position of unsustainable financial security.
We have many competing priorities, and one of those will be discussed in this very
agenda — the ability to attract, retain and grow the best and brightest talent available to service
our citizens. And to do so, this will be an on-going reoccurring expense that we must also plan
for and be able to financially:sustain. I do not want to risk using our full reserves and to leave
no funding flexibility in case of uncertain financial times. We have a new Federal administration,
with many changes taking place that could impact the. City financially, and I must consider that
as well as we move forward with this request. And additionally, there are always the unknowns.
But given all these factors, I still believe that we can succeed in maintaining our fiscally
conservative, balanced budget commitment while continuing to make sound investments like
TheatreS.quared, much like the investment we made in Kessler Mountain Regional Park and the
adjacent land we were able to preserve to make our mark as.a multi -state regional player.
1. believe this is an important project that we should support and I recommend that we
provide $3..1 million dollars from reserves as a one-time expenditure to support and advance our
economic development arts & culture plan. This $3.1 million dollar investment along with the
lease•of a valuable public parking lot for the construction of this facility in Fayetteville clearly
shows my commitment to TheatreSquared and their project, and to our goal of Fayettevllle
becoming the performing arts capital of the region.
This is an investment in our future — estimated economic impact of over $381 Million
dollars over the 50 year life of the lease. The City'will be making �a sound long-term investment,
This investment generates $4.9 Million in annual economic output, and over 152 new jobs in just
3 years and continuing year after year, And this project also has an immediate economic
impact of. 350 jobs during construction and 50.6 Million dollars of Lconomic Impact during
construction. As Mayor I believe this is the type of return on investment we want to see and the
type of investment that drives growth for .our future while implementing the economic
development plan we adopted.
Attachments!
Letter of Request
Economic Impact Information
Project
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With designs complete and a recent $12.6 mlllion ecrmmitrnont to TheelreSquared
from the Wallon Family Foundation to help build a permanent, premldr national
theatre In Northwest Arkansas, we. write at a crucial moment.
We believe that Fayetteville has the opportunity to cement Its future as our
region's theatre district-- with year-round, diverse performances fueling our
downtown's economic engine and drawing hundreds of thousands of the national
arts tourists who are already travelinglo visit Crystal Bridges. We hope to help -
anchor this theatre district by building Thea lreSquared's future, pnfmanent home
here In Fayetteville.
We ask for your partnership In funding this major economic development initlative
and making this vision possible. The Foundation's commitment Includes a $9
m1111on, cne-to-two challenge to our community. We ere seeking public funds to
provide a second, equal $$ million commitment toward alis three-part, challenge. We
ask for your leadership and1he support of tate Fayetteville City Council to make a.
significant Investment of $7 million toward this public funding goal,
We are working to raise the third part.of remaining funds from generous community
supporters. In all, $g million in public funding will activate $22.5 trillion in private
funds, all raised by ThaatroSquanad, to kering this $31.0 million facility to Fayetteville
—which will become a publicly awned building constructed on pudic land. Tits
economic Impact,'autlinod in the following pages, will be significant and lasting. The
effect on local businesses will be profound, The quality of life In our city will also rise
as TheatreSquared expands programming, educational offerings, and access to
community rnembersof every background.
Tirn'ing is critical, The city"s commilmenl will raise funning past the throshnld
needed to secure financing and begin work, aur conslructton prl'cing depends on
breaking ground In a few months' time. With construction picking up region -Wide,
we've been advised that a delay would result In a significant cost increase.
With your partnership, we sea the emergence of a true theatre district that defines
our city as an arts daslinallon for generations. The city's commitment is crucial to
making this vision a realfly. Thank you for your consideration,
Sincerely,Y,CF,�( //
. Alin l /!IN i� �.,,.
Bob Ford Martin Miller Lynn Carver ' Her hey � arnur
Arttstic Director Executive Director Board President Gonti TW6lty Task Force
RECEIVED
14
Th eat re S,( I (�t
[:LB 10 Mir
ellyar'ycrrFvlpF.
MAYO rfy.4Froer:
theatresquared The Honorable Lioneld Jordan
pp sox aiea City Hall, 113 W. Mountain Street
Fayelteville, Aa 72702 Fayetteville, AR 72701
February 15, 2617
ournotstage.org
Dear Mayor Jordan,
"Here on ibis corner .Ni Pe In our-
i:!»nnlunity--we .9Ra, „germ Weat
hornsror remarkable thpt+'e; clone
Nell 6110 with passion
�Ne sea a orepiQrnatinnai tneotre
rr, NoWf lWeSM(konSli '
With designs complete and a recent $12.6 mlllion ecrmmitrnont to TheelreSquared
from the Wallon Family Foundation to help build a permanent, premldr national
theatre In Northwest Arkansas, we. write at a crucial moment.
We believe that Fayetteville has the opportunity to cement Its future as our
region's theatre district-- with year-round, diverse performances fueling our
downtown's economic engine and drawing hundreds of thousands of the national
arts tourists who are already travelinglo visit Crystal Bridges. We hope to help -
anchor this theatre district by building Thea lreSquared's future, pnfmanent home
here In Fayetteville.
We ask for your partnership In funding this major economic development initlative
and making this vision possible. The Foundation's commitment Includes a $9
m1111on, cne-to-two challenge to our community. We ere seeking public funds to
provide a second, equal $$ million commitment toward alis three-part, challenge. We
ask for your leadership and1he support of tate Fayetteville City Council to make a.
significant Investment of $7 million toward this public funding goal,
We are working to raise the third part.of remaining funds from generous community
supporters. In all, $g million in public funding will activate $22.5 trillion in private
funds, all raised by ThaatroSquanad, to kering this $31.0 million facility to Fayetteville
—which will become a publicly awned building constructed on pudic land. Tits
economic Impact,'autlinod in the following pages, will be significant and lasting. The
effect on local businesses will be profound, The quality of life In our city will also rise
as TheatreSquared expands programming, educational offerings, and access to
community rnembersof every background.
Tirn'ing is critical, The city"s commilmenl will raise funning past the throshnld
needed to secure financing and begin work, aur conslructton prl'cing depends on
breaking ground In a few months' time. With construction picking up region -Wide,
we've been advised that a delay would result In a significant cost increase.
With your partnership, we sea the emergence of a true theatre district that defines
our city as an arts daslinallon for generations. The city's commitment is crucial to
making this vision a realfly. Thank you for your consideration,
Sincerely,Y,CF,�( //
. Alin l /!IN i� �.,,.
Bob Ford Martin Miller Lynn Carver ' Her hey � arnur
Arttstic Director Executive Director Board President Gonti TW6lty Task Force
n,.1h!.3}..
Founded in 2005, Theatre5quared (T2) is a professional theatre company offering live
productions and educational programs for an annual audience of 40,000. The American
Theatre Wing, founder of the Tony Awards, has recognized T2 as one of the nation's
ten best emerging theatres, highlighting the company's success both on stage and in
reaching 18,000 Arkansas students In more than 70 schools.
i! !. °';l!;�.^::} o .;',;�!.•t. „f„ 4,L N
Theatre.Squared fills a crucial niche as a contributor to Fayetteville's quality of life;
The company's unique combination of professional theatre, locally produced, in an
intimate performance space is not replicated by any amenity within 150 miles: The
theatre employs paid, career professionals to create°each production entirely new.in
dowtown Fayetteville, This singular arts experience is highly valued by T2's audience
— a remarkable 96% of attendees surveyed in the 2014/1.5 Season responded that they
were likely to recommend the theatre to a friend. T2 is currently Fayetteville's #1-rated—
attraction
1-ratedattraction on TripAdvis.or, and contributes $3.1MM in economic activity year-round to the
local economy,
T2 took a major step to broaden access for community members of diverse incomes and
backgrounds by launching Lights Up! for Access In 2016. Lights Up! offers free tickets
tai clients of regional non -profits including 7Hills Homeless Shelter, NWA Single Parent
Scholarship Fund, NWA Women's Shelter, Feed Communities, Lifestyles, and Ozark
Literacy Council. The program also provides $5 tickets to any community member with
a SNAP (or food stamps) benefit card, and $10 tickets for young Arkansans. Lights Up!
is already making a measurable impact on the quality of life for thousands of lower-
income community members who would be. otherwise unable to attend,
4100 Corporate Center Drive
Suite 205
Springdale, Arkansas 72762
The Honorable Lloneld Jordan, Mayor
City of Fayetteville
113 W. Mountain St.
Fay0ttevllle, AR 72701
February 13, 2017
Dear M,ayor.Jordan,
On behalf of the Northwest Arkansas Council, I, write to strongly endorse Theatresquared's .
request for an investment of city funding to leverage multiplied private matching dollars
and construct a permanent new economic development engine for our region and state — a
50,000 square -foot cultural facility which will be home to our state's second year-round
Professional theatre, Theatre5quared.
This Is a shovel -ready project that soundly delivers on our priorities of economic
development, physical infrastructure, and workforce development, Economist Kathy
Deck df the University of Arkansas Center for Business and Economic Research projects that,
during construction alone, this new bullding will create $50.6 million In economic output In
Arkansas as well as 350 jobs. And, once the doors are open, our Initial Investment:wiII
continue to pay back and multiply for decades to come, starting at $5 million In economic
output.during the theatre's first season and growing each subsequent year.
A top -tier regional theatre will help us attract more jobs and more 21St century businesses .
to our state, while enhancing quality of life to help us retain the best talent. It willalso
greatly advance our state's position as a destination for cultural tourism, as visitors boo_ k
their hotel stays longer to see a show and spend more dollars at local businesses.
The fact that a public Investment will activate a major private Investment makes tifnely
action crucial. I appreciate your support for this project and welcome any questions you
may have,
Sincerely,
Michael E. Harvey
Chief Operating officer
Northwest Arkansas Council
P. 479.582.2100 F, 479.582.1919 www,nwacouncll.org
4
t
1. Construction Impact
The $31.5 million construction project to
build a 50,000 square. -foot theatre build -
Ing In Northwest Arkansas will generate:
Y
$51-0.6 mi-flion
ECONOMIC OUPUT IN ARKANSAS
350 jobs
FTE DIRECT, INDIRECT AND INDUCED
UA CENTER FOR BUSINESS AiVb '
9CQNQMIC RESEARCH ANALYSIS
"We estimate. that the total economic
output frgm the construction actiylty
wpuld be $50.6 million. The Investment
would generate 350.4 jobs for one .year-
-212.6 direct jobs, 70.5 indirect (in the
supply chain) jobs, and 67.4 induced (from
consumer spending) jobs. Tax revenues
would be on the order of $3.2 million;"
Director Kathy Deck
11. Annual Economic impact
l I C. � ; =
In I
—
$ 4.9 m III I'l O:n
2020 ECONOMIC OUPUT
'
193M
152 .obs
"STEVE
2020 FTE JOBS
CLARK, Fayetteville chamber
president, said people From out of town
might go to the venue to eat, see a show
and experience the city. 'While they're
sitting there, they say, 'You know, this might
be a good place to live;' he said, 'So, from a
Chamber of Commerce perspective, .we are
d
$3811 1 Hion
thrilled..,'
"'The
new theater will create permanent
50 -YEAR ECONOMIC OUPUT
Jobs and will become a major source.
of revenue, pride and service to the
SOURCE: Arts & Economic Prosperity IV, based
on the rigorous research findings from 182 study
community; Clark said. 'I'm looking forward
to being there on opening night in 2019."'
reglons Including Northwest Arkansas.
NWA Democrat Gazette,. Jan.,: 18, 2016
114? 11,7
Dear Mayor Jordan,
I heard the great news last week that TheatreSquared had received $12.5 million in
grants from the Walton Family Foundation to build a 50,000 square -foot home in
downtown Fayetteville. Just a Mock from Dickson Street. I understand the grant
includes a $9 million challenge to our community,
I'M writing in strong support of your efforts to help take up this challenge and fund this
project, Ifs vital that we keep this nationally recogntzed theatre In downtown Fayetteville
and seize the chance to create a unique space that wlil dray hundreds of thousands of
people to downtown Fayetteville in the next decade.
The economic development argument is strong — a $50 million ona•tiri a impact from
construction, and then $5 million a year pumped into our local economy -Dickson Street
merchants will feel the impact firsthand, as will businesses across our city.
As you know, I've been on Dickson Street since 1980, and I've seen what a difference
the arts make for local businesses. The City, the University, and the Walton family made
a commitment that transformed our downtown when we handed together to build the
Walton Arts Center. Twenty-five years of solid growth for our downtown is compelling
evidence that investing in the Arts pays us back.
Our region is changing. Today, we have an opportunity to make Fayetteville and its
performing arts and theatre district a year-round engine for local businesses in the
downtown and Dickson Street area. Making this vision a reality will have an impact on
Fayetteville and everyone who flues here. It will also make us a can't -miss destination
for the hundreds of thousands of arts tourists already flocking to Crystal Bridges.
Opportunities like this are rare. I encourage you to he bold. You have nay support and
the support of our DSMA members. As we position ourselves for generations to come, I
fool this project gives us the opportunity to create something very, very special,
Sincerely,
/ f r
-- /,1De�% 114101
Owner, Bordinos Restaurant & Wine Bar
President, Dickson Street Merchants Association
The path to a new, permanent home for TheatreSquared began with a vision statement
drafted by a group of community members and artists in March 201s:
"We see TheatreSquared as its own center, a destination and a place of origin.
The work created here will draw audiences from near and far, and be our
region's export to the world's theatre centers.
WO see a gathering place—a theatre commons -that is welcoming and
fascinating, alive with activity,, A building that draws tho eye and evokes
curiosity.
Here on this corner —here in our community—we see a permanent home for-
remarkable
orremarkable theatre, done well and with passion. We see a premier national
theatre in Northwest Arkansas,"
With support from the Walton Family Foundation's Design Excellence program,
TheatreSquared .announced the selection of a world-class design team in November
2015. London-based theatre planners Charcoalblue — who served as theatre planners
for the Royal Shakespeare Company's new Courtyard Theatre, the Young Vic, two
new venues at London's National Theatre, and the 2014 RIBA Sterling Award-winning
Everyrhan Theatre, among many others — were selected to lead the design team.
New York -based Marvel Architects was selected from over 70 international applicants
to design the theatre building. Marvel's portfolio includes a new Brooklyn Public Library,
the national competition -winning entry for the new Constitution Gardens on the
National Mall, a master plan for Playwrights Horizons, and the beautiful new home for
the storied New York theatre, St. Ann's Warehouse.
I
S.ha>rpridge
Febnrary 13, 2017
Mayor Lioneld Jordan,
City of Fayetteville
1.13 W. Mbuntain Street
Fayetteville, AR 72701
Dear Mayot Jordan,
2062 S. Smokehouse Trail
Fayetteville, AR 72701-7723
(479) 267-3205
Frank Sharp fsharp@pgtc.com
Sara Sharp - sdharp@pgtc.com
Gopv
You and the council 'arc too young to remember., about thirty years ago the 0 , of Fayetteville took a
giant, courageous step in support of the arts. The City and University each Taut up five million
dollars—tbat's $9 million in today's dollais--to build an arts center. It was -a huge act of faith, as
our arts center comnuttee had really done rnothi,ng but meet and plan)
It turned out that the funding needed a third leg of a "three-legged funding stool". Generous
donors - under the persuasive Billie Jo Starr:- raised private money to provide that third leg of the
stool. This combination of City, Usrrvetsity and private: funds made possible the creation of the
Walton Arts Center, one of 1he. important factors in malting northwest Arkansas one of the top
places in the nation to live!
The City now has another, challenge in support of the arts. Unlike our committee years ago, Theatre
Sgcrared has proven itself with eleven successful seasons and an annual budget of two million
dollars. And amazingly, this young organization has come to the city with an offer to provide two
leg's of a thee -legged funding stool on its own — and then some.
Unfortunately, time is shortl Theatre Squared needs to meet its challenge grant, to not. let its
construction costs balloon with a delay; and tb break ground in June. I hope that you can f{guzc out
a way to give Theurr� Sguand the money it needs to construct a world-class theater and continue the
terrific progress we have made here its. Fayetteville: in maintdping out qualify of life.
si ftyc -u!y,
sliiit Sharp
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ski
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Due to a highly cost-efficient design, TheatreSquared's average cost per square foot
(CSF) compares: favorably to the national average cost of performing arts building
projects; coming in nearly 30% below industry comparables in construction cost.
$ 7 7'0/sf $550/sf
Average CSF of nationally benchmarked TheatreSquared new building
performing arts projects project,. 100% DD Pricing
Source: Dharam Cost Consulting Source: Baldwin & Shell
Sustainable through-and-through, the project ,exceeds national standards with repur-
posed building materials, all -LED lights, furniture milled from trees on site, enhanced
commissioning, and efficient systems. Behind the building, an artist's patio will be'coh-
strutted out of reclaimed brick from a historical structure that once stood near the old
Fayetteville Depot,
With high acoustic requirements and reduced glazing, the building's thermal efficiency
is unusually high. Design choices have also le -d to sustainable construction and long-
term operation, with few added ornamental finishes, very little drywall, and little need
for high-VOC paints and coatings. ; Reducing added finishes also allows for the .use of
primarily local and regional materials. With these factors, along with low -flow plumbing
fixtures, local species planted on grounds, re -use of concrete formwork as a construc-
tion material,, and other innovations, Northwest Arkansas's new regional theatre will
also be :a regional model as a sustainable building project,
D
k � i
UNIVEELS ITY 0
ARKANSAS.
Office of the Chancellor
January 18, 2011
The Honorable Lioneld Jordan
City of_Fayetteville
tq West Mountain Street
Fayetteville, AR 72.101.-6083
Dear .Mayor;
As Chancellor of the University of Arkansas, I am writing to you today to
express my full support behind TheatreSquare&s c0arts to secure
funding for a future permanent home. Recognizing the tremendous
benefits the new building -will have on Fayetteville and Northwest
Arkansas, the Walton Family Foundation has committed w.5 million to
support its construction. 1, too, believe this new venue will benefit our
city and region by strengthening the tourism base„ enriching culture
across Arkansas, and yield economic benefits to the city and region.
Also, we want the U of A to be able to offer our current and prospective
students, faculty, and staff the opportunity to attend performances in a
quality setting that will enhance their cultural experiences. This new
theatre space has the potential to do just that.
I took forward to our continued partnership with Ta in a new state-of-
the-art facility that will help make the city and university even betterl
Siii A �cIy,
Jasi; rig 1 . Steinmetz, PhD
Clttcti;� lr�;'
c: Martin Miller
425 AdmlmWf ion Building , 1`,WJtevd1v., All 72701 . 479 525 =4H8 a uwsv.ixurl:.edu
71., Uni-1,tynjAAenvmnn+ryBmoppp.n..nly/uJfruiai.a'nt iioo mryGrtmo
9
NVACCESS
Theatre.squared's education programs already serve 18,000 students each year —
but the theatre lacks any dedicated space for Its education programs in Fayetteville,
and so all of its workshops and performances must be conducted in makeshift
spaces within schools (and often outside of Fayetteville), The new facility will allow
the theatre to host far more of its educational programs in downtown Fayetteville.
The theatre's tickets for its rnainstage performances are more accessible than ever,
with free tickets for low-income clients of community organizations, $5 tickets
for SNAP (or food stamps) benefit recipients, :as well as $10 tickets for young
Arkansans. The broad use ofthese access programs is currently limited, however, by
the capacity of the theatre's current venue and by third -party. ticket fees added to
low-cost tickets. These constraints will be erased in the new facility.
In the new theatre center, always -open public gathering and meeting spaces will be
a year-round resource for the community, supporting access and creating a sense of
true public ownership.
We believe that theatre, done well and with passion, can transform lives and
communities. This significant initiative will be transformative for Fayetteville Your
support will help us cement Fayetteville's role as our region's theatre district, will help
unify Dickson Street, the Library, and the Square as part of one "supremely walkable"
arts district (Fayetteville Downtown Master Plan), and will raise the quality of life for
citizens of Fayetteville for decades to come, We appreciate your consideration of this
proposal and look forward to a continuing conversation;
2Q.,0 b8� �
CERTIFICATE OF
FUNDING
Theatre Squared, Inc., an Arkansas nonprofit corporation ("Company"), does hereby
certify to the City of Fayetteville, Arkansas ("City"), that Company has in hand, either in the form
of cash, lines of credit or pledges, a majority of the funding needed for Company to construct a
theatrical performance facility on the land leased by Company from City.
IN WITNEMtl
WHEREOF, this Certificate of Funding is executed by Company on this
day of , 2017.
THEATRE SQUARED, INC.,
an Arkansas �mjod liability company
STATE OF ARKANSAS
)ss. ACKNOWLEDGMENT
COUNTY OF WASHINGTON
Director
On this day, before me, a Notary Public, duly commissioned, qualified and acting, with
and for said County and State, appeared in person the within named Martin Miller, to me well
known, who stated he was the Executive Director of Theatre Squared, Inc., an Arkansas limited
liability company, and was duly authorized in such capacity to execute the foregoing instrument
for and in the name and on behalf of the company, and further stated and acknowledged he had so
signed, executed and delivered the foregoing instrument for the consideration, uses and purposes
therein mentioned and set forth.
IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this SV
day of_ ' f'1G;, 2017.
Notary Public
My commission expires:
` 02 FI - r�-o`7-- �.•��i;:i #� DIANN ON �
A 1, PRES C
(SEAL) ?� '"" MY COMMISSION 412386454
EXPIRES. February 28, 2022
Washington co
RECEIVED
JUN 0 12011
CONTRACT
This contract is entered into and agreed to by and between the City of
Fayetteville and Theatre Squared, Inc., an Arkansas corporation upon this
contract's execution by both parties.
WHEREAS, on June 7, 2016, Resolution No. 12116 was passed by the
City Council which authorized Mayor Jordan to sign the Lease
Agreement to lease the Spring Street parking lot to Theatre Squared, Inc.
Mayor Jordan signed this lease on June 9, 2016 to be effective upon the
approval of Theatre Squared, Inc,'s large scale development and its
certification to the City that Theatre Squared, Inc. "has the finances in
hand or properly pledged to the City's satisfaction to construct a
substantial (majority) portion of its project."; and
WHEREAS, pursuant to Resolution No. 68-17 passed by the
Fayetteville City Council on March 7, 2017, the City approved "a budget
adjustment of Three Million One Hundred Thousand Dollars
($3,100,000.00) to enable Mayor Jordan to pledge and then invest that
amount into the (City -owned) Theatre Squared, Inc.'s proposed theater
project pursuant to a proper agreement .... "; and
WHEREAS, Theatre Squared, Inc. desires to raise sufficient resources
to construct its proposed theater project upon the City's property leased
to Theatre Squared, Inc. and operate its theater to bring additional
customers into Fayetteville's Entertainment District and provide them
with excellent theatrical performances; and
WHEREAS, the City of Fayetteville and Theatre Squared, Inc. desire
to enter into this contract to authorize the City of Fayetteville to invest
up to Three Million One Hundred Thousand Dollars ($3,100,000.00) into
Theatre Squared, Inc.'s proposed theater project (hereinafter, "theater
project") to be constructed on City property leased to Theatre Squared,
Inc.
IN CONSIDERATION OF AND IN AGREEMENT WITH THE
TERMS, CONDITIONS, PROMISES, COVENANTS AND
OBLIGATIONS within this agreement and the Lease Agreement, the City
of Fayetteville and Theatre Squared, Inc, promise and covenant as follows:
1. Theatre Squared, Inc. promises to raise in cash, loans and/or
financial commitments acceptable to the City of Fayetteville sufficient
funds to complete the construction of its proposed theater project as
presented to the Fayetteville City Council and approved by the Fayetteville
Planning Commission. The acceptability of any and all financial
commitments and the sufficiency of approved funds to complete the
theater project shall be within the sole discretion of the City.
2. The City of Fayetteville shall express its acceptance of the funding
obtained by Theatre Squared, Inc, as sufficient (with the addition of the
City's investment) to fully construct the theater project and thus justify the
investment of the City's Three Million One Hundred Thousand Dollars
($3,100,000.00) to help complete the theater project by the passage of a City
Council Resolution to that effect and the Resolution's approval by Mayor
Jordan,
3. Theatre Squared, Inc. shall properly bid in accordance with state
purchasing laws and City of Fayetteville requirements at least such
portions of the project (as agreed by both parties) which may then be
authorized for payment by tax dollars.
4. Upon passage of the Resolution referred to in paragraph 2 and the
proper bidding referred to in paragraph 3, the City of Fayetteville will then
promise to pay the amount of the lowest responsive, qualified and
responsible bidder for those agreed to portions of the construction contract
to Theatre Squared, Inc. for the sole use to pay such approved contracts
until the City has invested the Three Million One Hundred Thousand
Dollars ($3,100,000.00) previously agreed upon. Theatre Squared, Inc.
promises to use these City funds solely and exclusively to pay the agreed
upon qualified contracts. It is anticipated that at least one of these
contracts will have to be funded both by the City and Theatre Squared to
enable the City to invest its full $3.1 Million into this project.
W
5. Theatre Squared, Inc. promises that it will timely complete the
theater project as presented and described to the Fayetteville City Council
and approved by the Planning Commission and agrees that it has the
exclusive obligation to satisfactorily perform and accomplish (possibly
through its architect, general contractor or contract manager) the following
duties and responsibilities related to the design, construction and
completion of its theater project on the corner of West Avenue and Spring
Street:
a. Complete and adequate architectural and engineering design of
the overall project, building, and each component therein;
b. Preparation of adequate bidding contracts and proper
specifications of all components and materials to be used in the
project;
c. Proper legal selection of the of the lowest qualified bidder for
any portion of the project in which funds from the City of
Fayetteville shall be invested; .
d. Geotechnical and soils testing necessary to ensure a proper,
stable, adequate and secure foundation for the project;
e. Testing and inspection of all materials to be used in the project;
f. Testing and inspection of the installation or use of all such
construction materials to ensure compliance with the contract
and proper construction techniques;
g. Complete and proper compliance with all requirements of the
large-scale development approved by the Fayetteville Planning
Commission;
h. Complete and proper compliance with all applicable provisions
of the Unified Development Code and obtaining the
appropriate Certificate of Occupancy from the City;
L Proper and complete payment of all contractors,
subcontractors, materials suppliers and professional service
providers;
j. Resolution, settlement and/or payment of all legitimate claims
related to the construction of the theater project;
k. Prompt and full payment of all applicable taxes (including
assessed millage taxes) on the property, building, furnishings
and equipment therein.
6. Theatre Squared, Inc. agrees that the City of Fayetteville has no
responsibility or liability for any of the obligations listed in
paragraph 5 and that the City of Fayetteville's sole responsibility is to
invest its Three Million One Hundred Thousand Dollars
($3,100,000.00) pursuant to paragraph 4 of this contract.
7. Theatre Squared, Inc. agrees to indemnity and hold harmless the City
of Fayetteville, its officers and employees from any and all claims,
demands, liabilities, and costs including attorney fees related to the
design and/or construction of the theater project.
8. Theatre Squared, Inc. agrees that all the terms, conditions and
promises contained within the Lease Agreement with the City of
Fayetteville executed on or about June 9, 2016, for the premises upon
which this theater project will be built are also specifically agreed to
by Theatre Squared, Inc. and will be fully and properly performed as
an additional major consideration provided to the City of 1~ayetteville
for the City's $3.1 Million investment into this theater project.
9. Theatre Squared, Inc. expressly acknowledges and agrees that at the
end of its leasehold the building, fixtures and all other improvements
shall revert to the full occupation, control and ownership of the City
of Fayetteville without the payment of any consideration to Theatre
Squared, Inc.
10.Theatre Squared, Inc, agrees to fully and timely pay any secured
indebtedness on its theater project and prevent any foreclosure of any
such mortgage or other indebtedness secured by the project or the
premises upon which the theater project will be constructed.
11.Theatre Squared, Inc. agrees to fully and promptly comply with the
Arkansas Freedom of Information Act and acknowledges that its
documents, reports, statements, etc. relating to the use of the City's
In agreement with all the terms, conditions, promises and agreements
previously stated, we sign our names below and expressly covenant that
we are legally empowered to bind the entity for which we sign.
THEATRESQUARED, INC.
Printed name
Title: _kG'c��Ve
Date: June , 2017
WITNESS:
CITYj0FFAY.TTEV'LLE
r•
By:
AN
Mayo
ATTEST:
By:
City Clerk .
hate: June 2017
Pruned name
Title:. Gc00 F ��
Date: June 2017
ti���issotiri�►r�
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