12.12.2011 SBRDA No Comments

Facts sheet for Theater Square and Regal Theater Lease

Theater Square – Regal Theater Lease Overview

Overview

  1. The movie theater currently has 20 screens. The San Bernardino Economic Development Corporation (“SBEDC”) will keep 6 theaters and convert 4 into restaurants or retail.
  2. The SBEDC retains ownership of Theater Square including the theater and the restaurant sites.
  3. The SBEDC proposes to lease 14 theaters to Regal Theater Group, the largest theater group in the United States.
  4. One SBEDC retained theater will be used as a flex theater for meetings, events and small events like a comedy night
  5. One SBEDC retained theater will be used by the California Theatre of the Performing Arts
  6. The Regal Theater lease was approved by the City Council acting as the Economic Development Agency on November 21st by a 4 -3 vote.
  7. The Regal Theater lease will go to the SBEDC board for approval on Tuesday November 29th at approximately 4:00 p.m. at 201 North “E” Street Third Floor, San Bernardino, CA – Conference Room
  8. A lease agreement for exclusive right to negotiate with restaurant/retail tenants will also be submitted for approval at the SBEDC board meeting.
  9. If approved, Regal will start construction in approximately 30 Days
  10. If approved restaurants/retail construction will start construction in approximately 30 Days
  11. The SBEDC is responsible for external construction.
  12. Regal Theater is responsible for internal theater construction.
  13. Restaurants/retail developers will responsible for internal construction
  14. There are three additional theaters in a few blocks of Theater Square.
    1. The California Theatre next door
    2. The Fox Theater on Court and D Street
    3. The Sturges Center for Fine Arts at 780 North “E” Street
  15. Together the Regal Theaters, the live theaters and new restaurants and retail expand our current downtown entertainment district and will draw more nightlife and create the synergy to bring more businesses to downtown San Bernardino.   This strategy has worked effectively for Old Town Pasadena, the Gas Lamp District in San Diego, the Promenade in Santa Monica, and other communities across the country.

Restaurants

A lease agreement for exclusive right to negotiate with restaurant/retail tenants will also be submitted for approval at the November 29 SBEDC meeting. Restaurants will be in theaters 2, 20, 18 and 19 facing the front of Theater Square.

We currently have five major brand name chain restaurants interesting in opening at Theater Square.

  1. Sports Bar
  2. Mexican restaurant
  3. Upscale hamburger restaurant
  4. Coffee restaurant
  5. Sandwich/Deli chain

External Construction

  1. Open the front of four theaters and add two story windows for restaurant rental space.
  2. Remove and replace all paving stones. Old paving stones going to the San Bernardino Parks and Recreation Department for additional projects.
  3. Replace and expand all sewer lines and underground utilities
  4. Add 75 parking spaces on “F” Street
  5. Add 20 – short term (20 min) parking spaces in theater square close to restaurants
  6. Create pads for additional restaurants and retail opportunities
  7. Change building title to allow 4 restaurants to have separate ownership from main theater
  8. On the west side of Theater Square, create new temporary pocket parks with benches etc . . . for families to relax between performances.   These sites will become a restaurant at some time in the future.

Regal Internal Construction

  1. New box office attached to the theater
  2. New concession stand in the front portion of the lobby
  3. Remove side concession stands and build additional bathrooms
  4. New digital projectors
  5. New digital THx and Dolby Sound
  6. New seats
  7. New carpets
  8. New large format theater Regal’s RPX
  9. New lighting
  10. New paint
  11. New décor
  12. More . . .

Parking – over 1,500 Parking spaces are now available within 2 blocks

  1. Onsite in the parking lot beside the theater
  2. In a new parking lot behind Stater Bros. (75 spaces)
  3. Across Fourth Street at the Carousel Mall parking lot
  4. Across E street at the State Building.  For evening and weekend performances only.

Cost

  1. New parking lot on “F” Street:                                               $260,000

(Now under construction)                                                      Tax Increment (T.I.)

  1. Theater Square Design/Engineering Construction:                  $3,450,000

(Now under construction)                                                      2010 Recovery Act Bond Funds (T.I.)

Theater Financing

SBEDC                 $1.41 million:              New Market Tax Credit (Grant)

$3.29 million:              2010 Recovery Act Bond Funds (T.I.)

Subtotal           $  4.7 million

Regal                     $1.24-$3 million:         Corporate

Total               $7.7 million

Project Income      $8.5 million:                Over 10 years plus 15% percentage rent

Target Opening Date

Estimated theater and restaurant opening May of 2012

Exit Strategy

After two years operating profit, the SBEDC will sell the Theater complex at market value. Current value is estimated to be $11 million.

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