San Bernardino EDC APPROVES REGAL Stadium 14 LEASE
“For us, this isn’t a theater deal, for us this is an economic development deal,” said Marzullo. “Without Regal, you can’t get the restaurants. Without the restaurants, you can’t get downtown to begin to expand.”
Artist concept drawings show the beautiful new entrance to the Regal Stadium 14 Theater in Theater Square in Downtown San Bernardino. Regal Entertainment Group operates 6,605 screens in 528 locations in 37 states and the District of Columbia. The theater is set to open in Spring of 2012.
Artist concept of Theater Square. “Together the Regal Stadium 14 theaters, the areas three live theaters along with new restaurants and retail expand our current downtown entertainment district and will draw more nightlife while creating the synergy to bring more restaurants, night clubs and other businesses to downtown San Bernardino”, said Marzullo.
“E” Street view of the Regal Stadium 14 theater artist concept. “Together the Regal Stadium 14 theaters, the areas three live theaters along with new restaurants and retail expand our current downtown entertainment district and will draw more nightlife while creating the synergy to bring more restaurants, night clubs and other businesses to downtown San Bernardino”, said Marzullo.
Regal Stadium 14 Theater concept shots patrons exit new restaurants in front of the theater as cars drive through the new driveway.
Artist concept drawings show the new “E” Street entrance to the Regal Stadium 14 Theater in Theater Square in Downtown San Bernardino. Regal Entertainment Group operates 6,605 screens in 528 locations in 37 states and the District of Columbia. The theater is set to open in Spring of 2012.
Artist concept drawings show the beautiful new entrance to the Regal Stadium 14 Theater in Theater Square in Downtown San Bernardino. Regal Entertainment Group operates 6,605 screens in 528 locations in 37 states and the District of Columbia. The theater is set to open in Spring of 2012.
Concept drawings show the new driveway allowing families to drop off theatergoers at the new Regal Stadium 14 Theater in Theater Square in San Bernardino. There will also be parking in front of four new restaurants including a Coffee Bean and Tea Leaf.
Artist concept of Theater Square. “Together the Regal Stadium 14 theaters, the areas three live theaters along with new restaurants and retail expand our current downtown entertainment district and will draw more nightlife while creating the synergy to bring more restaurants, night clubs and other businesses to downtown San Bernardino”, said Marzullo.
Construction continues at Theater Square in downtown San Bernardino. Construction workers have removed the old paving stones, and are replacing and expand all sewer lines and underground utilities, creating a new drive way for easy theater drop off, adding 20 – short term (20 min) parking spaces in theater square close to restaurants and creating pads for additional restaurants and retail opportunities. The Regal Stadium 14 Theater is set to open in Spring of 2012.
(San Bernardino, Calif.) The San Bernardino Economic Development Corporation (EDC) board approved the lease of 14 theaters to The Regal Entertainment Group in a unanimous vote on Tuesday night. The new theater will be called Regal Stadium 14.
The San Bernardino City Council acting as the San Bernardino Economic Development Agency approved the lease last week in a 4-3 vote.
“The lease won’t go into effect until the city Planning Commission and City Council approve a development agreement for the project,” said Emil Marzullo, the interim director of the Economic Development Agency, and chief executive officer of the EDC.
The development agreement is scheduled to go before the Planning Commission on December 15, and then to the council on January 9.
About 40 people, including 12 college and high school students, applauded the unanimous vote to lease the 14 theaters to The Regal Entertainment Group.
Several students who spoke at the meeting told the EDC board of directors that they are ready to see movies at a downtown San Bernardino theater. Many also said the theater will create jobs and bring money into the city.
Marzullo refuted several issues, which were brought up by City Attorney staff.
One issue was whether Regal has to show first-run movies. Marzullo said, “ There is no intention of the theater to be a discounted, second-run-only theater, and the economics of the deal would not support a second-run theater model.
As to the risk of the EDC subsidizing Regal, Marzullo said, “The lease actually reduces the risk, because the monthly cost of the closed CinemaStar Theater is $70,000 a month, with no income.”
Another concern is that Regal’s lease requires the City not impose a living wage ordinance. “That’s not an issue in San Bernardino as we are currently one of the most affordable city’s in Southern California. That provision is for cities like Irvine where the cost of living is significantly higher,” said Marzullo.
Mayor Patrick Morris, Rikke Van Johnson, Tobin Brinker and Dennis Craig supported the theater lease as a catalyst to help downtown San Bernardino attract more restaurants and businesses.
“For us, this isn’t a theater deal, for us this is an economic development deal,” said Marzullo. “Without Regal, you can’t get the restaurants. Without the restaurants, you can’t get downtown to begin to expand.”
“Regal Theater Group proposes to open 14 renovated theaters in May of 2012. Five national restaurant chains are slated to open at the same time,” said Marzullo.
At the same meeting the EDC also approved an agreement for exclusive rights to negotiate with restaurant/retail tenants at Theater Square with the Yavitz Companies. Yavitz has successfully created major retail/entertainment developments in Southern California including the Grove in Anaheim.
Sandra Yavitz, company president said, “Five national restaurant chains are currently interested in Theater Square. The restaurants includes: The Coffee Bean and Tea Leaf, a Sports Bar, a Mexican restaurant, an upscale hamburger restaurant, and a sandwich/deli restaurant chain.“
The EDC will retain ownership of Theater Square, including the theater and the restaurant sites.
“Together the 14 Regal Theaters, the areas three live theaters along with new restaurants and retail expand our current downtown entertainment district and will draw more nightlife while creating the synergy to bring more restaurants, night clubs and other businesses to downtown San Bernardino”, said Marzullo.
He added, “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.”
Parking will not be a problem at Theater Square. “There are more than 1,500 free parking spaces available within two blocks including: parking in front of the theater and restaurants, onsite in the parking lot beside the theater, across Fourth Street at the Carousel Mall parking lot and across “E” street at the state building parking structure. The state building parking lot is used for evening and weekend performances only, “ said Marzullo.
The total cost for the theater square is projected at $7.7 million. Costs are as follows:
1. New parking lot on “F” Street: $260,000
(Recently competed) Tax Increment (T.I.)
2. Theater Square Design/Engineering Construction: $3,450,000
(Now under construction) 2010 Recovery Act Bond Funds (T.I.)
Theater Financing
EDC $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
What is the exit Strategy for the EDC? “The plan is to establish a rental income base and after two years operating profit, we will sell the theater complex at market value with a tenant that is the industry leader. With the Regal lease in place and generating profits, the theaters future value will be significantly higher than the current estimated value of $11 million,” said Marzullo.
“I am excited that this Spring San Bernardino High School and college students will join the rest of us in watching Men in Black 3, Transformers 4 along with the rest of the summers blockbuster moves at newly renovated, first class theater just a short drive from our homes,” said Marzullo.
For more information on Theater Square call Kathy Robles at (909) 663-1044.
About the San Bernardino Economic Development Corporation
The City of San Bernardino Economic Development Corporation is a focused, diversified organization whose mission is to enhance the quality of life for the citizens of San Bernardino by creating jobs, eliminating physical and social blight, supporting culture and the arts, developing a balanced mix of quality housing, along with attracting and assisting businesses both independent and through public-private partnerships.
About Regal Entertainment Group:
Regal Entertainment Group (NYSE: RGC) is the largest motion picture exhibitor in the United States. The Company’s theatre circuit, comprising Regal Cinemas, United Artists Theatres and Edwards Theatres, operates 6,605 screens in 528 locations in 37 states and the District of Columbia. Regal operates theatres in 43 of the top 50 U.S. designated market areas. We believe that the size, reach and quality of the Company’s theatre circuit not only provide its patrons with a convenient and enjoyable movie-going experience, but is also an exceptional platform to realize economies of scale in theatre operations. Additional information is available on the Company’s Web site at www.REGmovies.com .
Trackback from your site.