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Home My WebLink AboutIR 7504 .a 3 57 `INFORMAL REPORT TO U COUNCIL MEMBERS Na. 7504 `'of soer� To the Mayor and Members of the City Council December 6 ,1990 u i ;rExPy. Subject: PROPOSED NEW CASA_ MANANACONTRACT Attached is a history of the City's relationship with the Casa Manana Musicals , Inc. , and to operation of Casa Manana Theatre. This history was complied in 1987 when Casa requested that the City forgive rental payments for the years 1978-87 in recognition of the group's significant investment of capital improvement funds in the building. A City Attorney's opinion issued at that time stated that while the City could not legally waive its claim for back rentals, a new lease could provide for an additional term of years , establish a new schedule for installment payment of back rentals, and allow for credit to be given for future improvements made to the Theatre. Due to a change in leadership at Casa, then the Cultural District renovation and expansion plans for Casa and the subsequent bond election, a revised lease was not presented to the City Council , and the previous lease has now expired. A request recently has been received from Casa Manana Musicals , Inc. that a new contract containing the above provisions be developed. If the Council has no objections, the Department of Law will prepare a new contract , and it will be presented for Council approval within the next 30 days. If additional information is required on this issue, it will be provided. l�,8avid Ivory f� City Manager DI :gms Attachment OFFICl�l RECO"0 CITY SECRETARY I'T. WORTH, TEX. ISSUED BY THE CITY MANAGER E TH, TEXAS (245,4 Recreation Center Building and Amphitheater j On October 2, 1945, the citizens of Fort Worth approved a Capital Improvements Program authorizing the issuance of General Obligation Bonds in the amount of $500,000, for the construction of an amphitheater on the Casa Manana Site on the Will Rogers Memorial Coliseum grounds. On Friday, January 17, 1958, the council authorized the issuancee of $500,000 for construction of the Recreation and Amphitheater Theater. The Bonds were sold as a part of the $3,475,000 of General Obligation Bonds issued on February 26, 1958. A non-profit citizens' group known as Casa Manana Musicals, Inc. operates the building as leasee for the City. The group is funded by revenue from the summer musicals and contributions from citizens and businesses and enrollment fees from theatre school. The Casa Manana Playhouse division was organized in September, 1962 as an education and entertainment institution to add to the cultural development and quality of life of our children. The City entered into a lease agreement with Casa Manana Musicals, Inc. from July 1, 1958 through December 31, 1958 for $14,090.00 and $28,180.00 per year through December 31, 1962. On May 19, 1961, the Council approved a reduction in rent for the Casa Manana Building from $28,180.00 per year to $16,178.50 per year. This was to be in effect for one year only, from January 1, 1961 thru December 31, 1962. On December 17, 1962, Mr. J. H. Snowden appeared before the City Council and requested that the lease rental on the Casa Manana Building be reduced for a five-year period from the contract amount of $28,180.00 annually to $16,178.50 annually. The Council authorized a reduction in the annual lease rental amount paid. Beginning October 1, 1964 thru September 30, 1965, and amended on August 9,1971, the City entered another agreement with Casa Manana Inc. based on per cent of gross receipts(1.57 up to $400,000.00, 207 of $400,000.00 to $450,000.00, and 257 over $450,000.00). This new agreement also changed the reporting period of the Casa to that of the City. The August 9, 1971 requested amendment provided annual rental payments to the City not to exceed $30,000.00 for the years 1971, 1972, and 1973, which were due and payable on or before December 31 of each year; and that the annual rentals after 1973 and annually for each succeeding year through December 31, 1987 not to exceed $25,000.00. The City Council approved the requested amendment. On December 23, 1974, the council approved another amendment changing ISECRETARY -- the annual payment from a maximum of $25,000.00 to a minimum annual OFFICI �payment of $25,000.00. It was to remain in effect until 1975. CITY On February 24, 1975, the council amended the contract with Casa to provide a flat annual payment of $25,000.00 per year and extend the FT. YL life of the contract from December 31, 1987 to December 31, 1989. Oak jl' CSRS, ��,�� On January 27,1977, Council deferred the payment, due on December 1976, until September 1, 1977. On January 3, 1978, Council cancelled the rental payments due for the years 1976 and 1977, a total of $50,000.00. In reviewing the records for receipts from the Casa Manana Musicals since 1977, no payments have been recorded. The attached analysis shows the total debt payments requirements verses the amount of receipts from Casa Manana. AM. OF RICO 0 CITY SECktsI FT. WORTH, TEX. Casa Manana Debt Issued March 1, 1958, $500,000.00 Series 93 e T Receipts Receipts 0 r y Year Ending Interest From vs 09-30 Rate Principal Interest Total Casa Manana Debt d f' goo J 1958 $8,575.00 $8,575.00 $0.00 $8,575.00 � r 1959 4% $20,000.00 $16,750.00 $36,750.00 $28,180.00 $17,145.00 O � 1960 4% $20,000.00 $15,950.00 $35,950.00 $28,180.00 $24,915.00 1961 49 $20,000.00 $15,150.00 $35,150.00 $14,090.00 $45,975.00 1962 4% $20,000.00 $14,350.00 $34,350.00 $16,178.50 $64,146.50 1963 49 $20,000.00 $13,550.00 $33,550.00 $8,089.25 $89,607.25 1964 4% $20,000.00 $12,750.00 $32,750.00 $8,089.25 $114,268.00 1965 4% $20,000.00 $11,950.00 $31,950.00 $32,357.00 $113,861.00 1966 4% $20,000.00 $11,150.00 $31,150.00 $12,310.42 $132,700.58 1967 4% $20,000.00 $10,350.00 $30,350.00 $12,728.89 $150,321.69 1968 4% $20,000.00 $9,550.00 $29,550.00 $28,968.86 $150,902.83 Sub-Total $200,000.00 $140,075.00 $340,075.00 $189,172.17 $150,902.83 1969 3.25% $20,000.00 $8,825.00 $28,825.00 $27,467.27 $152,260.56 1970 3.259 $20,000.00 $8,175.00 $28,175.00 $30,573.48 $149,862.08 1971 3.25% $20,000.00 $7,525.00 $27,525.00 $12,072.91 $165,314.17 1972 3.25% $20,000.00 $6,875.00 $26,875.00 $30,000.00 $162,189.17 1973 3.25% $20,000.00 $6,225.00 $26,225.00 $30,000.00 $158,414.17 1974 3.25% $20,000.00 $5,575.00 $25,575.00 $3,314.94 ffJJ $180,674.23 1975 3.25% $20,000.00 $4,925.00 $24,925.00 $25,000.00 $180,599.23 1976 3.257 $20,000.00 $4,275.00 $24,275.00 $25,000.00 $179,874.23 1977 3.25% $20,000.00 $3,625.00 $23,625.00 X0.00 $203,499.23 1978 3.25% $20,000.00 $2,975.00 $22,975.00 $0.00 $226,474.23 1979 3.25% $20,000.00 $2,325.00 $22,325.00 $0.00 $248,799.23 1980 3.25% $20,000.00 $1,675.00 $21,675.00 $0.00 $270,474.23 1981 3.25% $20,000.00 $1,025.00 $21,025.00 $0.00 $291,499.23 1982 3.25% $20,000.00 $375.00 $20,375.00 $0.00 $311,874.23 Sub-Total $280,000.00 $64,400.00 $344,400.00 $183,428.60 $311,874.23 1983 .25% $20,000.00 $25.00 $20,025.00 $0.00 $331,899.23 ' Sub-Total $20,000.00 $25.00 $20,025.00 $0.00 $331,899.23 $500,000.00 $204,500.00 $704,500.00 $372,600.77 $331,899.23