Human Services CommitteeJune 3, 2013

Consideration of Piven Theatre Construction Loan

For ConsiderationOrdinance 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”

Summary of Proposed ProjectPiven seeks to renovate space to:

Create 200 seat black box theatreAdditional office spaceIncrease classroom spaceCreate larger rehearsal space

Total Cost is estimated at $3.55 MillionSeeking a $2.2 million loan from CityPiven will raise $1.35 million in a

combination of: cash, pledges, private financing, and in kind contributions.

Summary of Proposed Loan & Lease AgreementCity 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

Loan DetailsTotal Loan $2.2 millionInterest rate is 2.0% per annumPiven must raise $355,000 in cash prior to

the City loaning the money. Loan payments start 2 years after

construction is completedLoan secured by fixtures, equipment, and

personal property

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)

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

Estimated Economic ImpactCurrent 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