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Attach 2 - First Amendment to Playhouse Lease

Laguna Beach City Council
January 27, 2026

Document
Attach 2 - First Amendment to Playhouse Lease
Meeting
January 27, 2026
Body
Laguna Beach City Council
Original file
261 KB
Text extracted from the city's file for reading and search. Open the original on lagunabeachcity.primegov.com. That file is the official record.

FIRST AMENDMENT TO LEASE

BETWEEN THE CITY OF LAGUNA BEACH

AND THE LAGUNA PLAYHOUSE
This First Amendment (“Amendment”) to the Lease is made as of the latest date of execution by all parties as indicated in the signature blocks on the signature page hereof (the “Amendment Effective Date”), and between the City of Laguna Beach (“City”) and the Laguna Playhouse (“Playhouse”), as follows:

RECITALS
A. City and Playhouse are the parties to that certain Lease for the Laguna Playhouse, with an effective date of July 1, 2003 (“Lease”), which sets forth the lease of the Premises subject to terms therein described.

B. City and Playhouse (the “Parties”) desire to amend the Lease to assist with transitioning the operations of the Playhouse to an updated model, through a subsidy of $500,000 from the City to the Playhouse paid in two installments of $250,000. The first installment of $250,000 would be paid on or about January 14, 2026, and the second installment of $250,000 would be paid on or about May 14, 2026. In exchange for the subsidies, the Parties desire to expand the time periods during which community non-profit arts organizations can rent or otherwise access the Playhouse for performances, lectures, exhibits, and related cultural arts activities at rates reasonable to the arts organizations.

C. Capitalized terms used but not otherwise defined herein shall have the meaning given to such terms in the Lease.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree to amend, modify and supplement the Lease as follows:

1. Uses and Purpose. Section 3 of the Lease is hereby amended (with new text in underline and deleted text in strikethrough) to read as follows:

3. USE AND PURPOSES.
(a) During the term of this Lease, Playhouse shall have the use of the Premises, together with the improvements thereon. Such use shall be for the preparation, production, and exhibition of theatrical performances and other performing arts (including film) to the public. It is understood that in addition to the third party use of the premises as set forth in Section 3(b) below, the premises may be used for such purposes by other local organizations, including for example but not by way of limitation, those dedicated to concert, ballet, and opera; in such cases, Playhouse shall have the right to contract with such organizations for those uses subject to written approval of City.
(b) In 2026 and annually through the duration of this Lease, and in exchange for a one-time payment of $500,000.00 paid by the City to the Attachment 2
Playhouse over two installments (1st $250,000.00 installment paid on or about January 14, 2026, and the 2nd $250,000.00 installment paid on or about May 14, 2026), the Playhouse shall immediately begin to work with Laguna Beach community-based non-profit cultural arts organizations (“Organizations”) to identify ten (10) weeks of Playhouse venue programming time for these Organizations annually. It is a goal of this Agreement that no one Organization is able to dominate the 10- week programming time. As such, no one entity may reserve more than three (3) weeks’ time in any one year, unless Playhouse management and the City Manager agree to waive the limit because the waiver provides a larger community benefit than the limit.

Rental rates and other charges to the Organizations shall be at the lowest cost possible to cover the Playhouse’s direct expenses to support or otherwise staff the Organizations’ events. An initial rate schedule, subject to consumer price index adjustments annually (on January 1 of each year), is shown in Attachment C. The Playhouse shall provide the City with a copy of the rates paid by each Organization for its event.

Playhouse management shall use its best efforts to coordinate the Playhouse venue’s calendar twelve (12) or more months in advance of its and the Organizations’ events so as to ensure the smooth execution of events and in the case of the Laguna Beach Music Festival will use its best efforts to coordinate scheduling up to thirty-six months in advance of the Music Festival’s planned events.

By December 15 of each year, the Playhouse shall provide the City with a written schedule of the dates reserved by the Organizations for the following calendar year and shall update the schedule during the calendar year. If by the end of a calendar year the Organizations have reserved fewer than ten (10) weeks of programming for the next calendar year, then the Playhouse may book other events in the weeks not booked by the Organizations and shall provide the City written notice of the number of weeks not booked by the Organizations for the upcoming calendar year.

2. Miscellaneous.
a. Effect of Amendment. Except to the extent the Lease is modified by this Amendment, the remaining terms and conditions of the Lease shall remain unmodified and in full force and effect. In the event of any conflict between the terms and conditions of the Lease and the terms and conditions of this Amendment, the terms and conditions of this Amendment shall prevail and control. b. Entire Lease Agreement. The Lease, together with this Amendment, embodies the entire understanding between the parties hereto with respect to its subject matter and can be changed only by an instrument in writing signed by the parties hereto.
c. Counterparts. This Amendment may be executed in one or more counterparts, including the transmission of counterparts by electronic mail, each of which shall be deemed an original but all of which, taken together, shall constitute one in the same Amendment.
[Signature Page to Follow]
IN WITNESS WHEREOF, the Playhouse has caused this Amendment to be executed by its President as duly authorized by its Board of Directors on _______________, and the City of Laguna Beach has caused this Lease to be executed by its Mayor and City Clerk as duly authorized by its City Council on January 27, 2026.

CITY OF LAGUNA BEACH
Date: ___________________________ By: ______________________________ Mark Orgill, Mayor
ATTEST
By:

Ann Marie McKay, City Clerk
APPROVED AS TO FORM:

By:

Megan Garibaldi, City Attorney

LAGUNA PLAYHOUSE
Date: ___________________________ By: ______________________________ President
ATTEST
By:

Secretary of the Board
APPROVED AS TO FORM:

By:

Playhouse Counsel
Attachment C
Laguna Playhouse
Schedule of Fees* for Laguna Beach
Non-Profit Arts Groups
1-day Base Rental: $2,800.00
Base Rental Includes:

1. Access the day prior for lighting, focus, sound check, and setup.

2. Up to four (4) production staff

3. Administrative support

4. Electricity and standard utilities

5. Post-event cleaning

6. Use of in-house lighting and sound equipment

7. Website listing on Laguna Playhouse Calendar

8. Ticketing services
Additional Expenses (if required):

1. Specialty lighting or equipment not owned by Laguna Playhouse

2. Music stands and stand lights

3. Additional sound enhancement

4. Audio/Visual or projection needs
Additional Crew Labor: $28 per hour, per person
Additional.services.such.as.front‗of‗house.staffing?.marketing.support?.extended.rehearsals?.and. accessibility.accommodations.may.be.available.upon.request.and.are.subject.to.availability¡.All. additional.fees.will.be.outlined.in.advance.and.approved.by.the.renting.organization¡ The. City. Manager. and. the. Playhouse. Managing. Director. have. the. flexibility. to?. upon. mutual. agreement?.adjust.one.or.more.of.these.fees.if.doing.so.enhances.community.organizations҂.use.of. the.Playhouse¡..
\.This.Fee.Schedule.is.reflective.of.Calendar.Year.868❷¡..The.Fees.may.be.increased.annually.by.

CPI?.as.published.by.the.US.Bureau.of.Labor.Statistics.for.the.Los.Angeles.‗.Riverside.‗Anaheim. region.or.its.equivalent.should.it.ever.be.replaced¡

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