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12-08-2020 CCM Workshop (Artspace Report on State Theatre)HUTCHINSON CITY COUNCIL SPECIAL WORKSHOP MEETING MINUTES TUESDAY, DECEMBER 8, 2020, AT 4:00 P.M. CITY CENTER — COUNCIL CHAMBERS Call to Order Mayor Forcier called the meeting to order. Members present were Mary Christensen, Steve Cook, Chad Czmowski and Dave Sebesta. Other present was Matt Jaunich, City Administrator DISCUSSION/REVIEW ITEMS 1. Hutchinson State Theatre — Sustainable Facilities Analysis Matt Jaunich, City Administrator, spoke before the group. Mr. Jaunich noted that this workshop is not about the City considering purchasing the State Theatre. The purpose of the workshop is to review an analysis completed by Artspace for the repurposing of the historic State Theatre. This analysis ties back to the Downtown Master Plan and the City's Strategic Plan. Wendy Holmes, Artspace, presented before the Council. Ms. Holmes explained that the purpose of the report was to analyze the impact of converting the current three -screen movie house into a mixed -use building for a variety of community uses. The report proposes converting the main theatre into a multipurpose live theater and performance venue, retaining the first floor small theater as a movie theater, retaining the second floor theater as a movie theater with possible conversion to two apartments in 2025, retaining existing four apartments, developing a cafe in the vacant space adjacent to the resident lobby and using the lower level space for a combination of storage and artist work space. The proposed concept could be accomplished through public investment, private investment or a combination of a public -private partnership. Ms. Holmes and her partner, Naomi Marx, provided information on capital costs and revenue for each concept. Estimated total development costs for converting the main theater into a multipurpose theater and live performance space and construction costs of a cafe are $530,900. Estimated total development costs for the two apartments, which includes hard construction costs and professional fees is $585,020. Artspace also reviewed projected operating budgets, which in year one is estimated at $18,815. General discussion was held on ticket sales, cafe revenue, entertainment, etc. Council Member Cook asked if there were grant opportunities for renovations. Ms. Holmes noted that potential investors that took part in the community focus groups showed interest in opportunities. It was noted that Legacy funds may be available or perhaps from other local foundations such as Southwest Initiative Foundation. Some questions were raised about the type of live music that will perform in Hutchinson. Erica Durheim, member of the public, presented before the group. Ms. Durheim had questions about construction costs and theater space. She asked about backstage space and green room space as she didn't see any listed in the plans. Ms. Durheim also noted that she did not see any space for loading/unloading docks for bands and such. Artspace noted that construction costs mainly centered around a live performance stage only. The other items (loading dock, etc.) were not included as the analysis was to focus on converting a movie theater to a live music venue (not necessarily a performance theater). Council Member Cook noted that the next phase that the Council is going to consider is to meet with local user groups to identify items such as Ms. Durheim mentioned. Carol Johnson, member of the public, presented before the group. Ms. Johnson asked if any consideration was ever given to converting the old opera house on Main Street. It was noted that the analysis was only done on State Theatre. Ms. Johnson raised concerns with the owners of the State Theater losing any investment they have made to the State Theater. Austin Paollilo, member of the public, asked if the number of live bands performing in a year (30) being projected is conservative or generous. Ms. Holmes noted that she feels it is conservative for Hutchinson. Ms. Holmes noted that the next phase of this project would be meeting with user groups to gather information such as Ms. Durheim provided. Motion by Sebesta, second by Christensen, to adjourn at 4:55 p.m. Roll call vote was taken: Czmowski — aye; Cook — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator