REPORT TO THE CITY COUNCIL
FROM: GEORGEANE A. WHITE, City Manager
Office of Mayor & City Manager
BY: RUTH F. QUINTO, CPA, Assistant City Manager
Office of Mayor & City Manager
SUBJECT
Title
Approve a professional services agreement for three years with two one-year extensions with 809 Olive Avenue, LLC, to provide operations and management services of the Tower Theatre and Lounge with a fee equal to 12% of the gross receipts estimated for the first year at $159,480 (RFQ No.100722RQ) (District 1)
Body
RECOMMENDATION
Staff recommends Council approve a professional services agreement for three years with two one-year extensions with 809 Olive Avenue, LLC, to provide operations and management services of the Tower Theatre and Lounge with a fee equal to 12% of the gross receipts estimated for the first year at $159,480.
EXECUTIVE SUMMARY
On July 22, 2022, the City of Fresno closed escrow on the purchase of the Tower property. The City now seeks to contract with an Operator which can deliver a broad array of cultural, educational, entertainment, sporting, meeting, conference, and events for the region's residents, while optimizing revenues available for reinvestment in the facility. Proposals were submitted by eight vendors and an evaluation committee determined 809 Olive Avenue, LLC, provided the best value to the City and recommends the City enter into a professional services agreement for three years plus two one-year optional extensions. The evaluation committee report is attached to this staff report.
The Operator will be paid 12% of gross receipts as an operations and management services fee. The City is anticipating an average of five events per month during the first year of operation. Based upon this assumption, the City reasonably anticipates a net positive cash flow (after expenses) at the end of year one.
BACKGROUND
On July 22, 2022, the City of Fresno closed escrow on the purchase of the real property at the intersection of Ol...
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