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LEASE AGREEMENT WITH LIVE NATION WORLDWIDE, INC. – FOX PERFORMING ARTS CENTER & RIVERSIDE MUNICIPAL AUDITORIUM City CouncilJune 11, 2024Community & Economic Development Department RiversideCA.gov2
KEY FOX HISTORY
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FOX BACKGROUND 1929Opening of FoxPrior to 2005Privately Owned February 2005Acquisition of Fox 2005 – 2009Visioning, Design and improvements to Fox January 2010 – 2013 Operation and Management by FX2013 – 2023Operation and Management by Live Nation RiversideCA.gov4
KEY RMA HISTORY
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RMA BACKGROUND 1928Opening of RMA Prior to 2005Privately Owned 1997 – 2010Operation and Management Agreement by Robert Stein Group2010 - 2014 Convention Center use while under construction2014 – 2023 Operation and Management by Live Nation RiversideCA.gov6
SITE MAPS
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IMPROVEMENTS•Painting the Fox •Replacement of Carpet•Electrical (stage) at RMA •Sound and Lighting at Fox RiversideCA.gov8
DISCUSSION October 2021: Received Letter of Intent November 2021: Received Direction for NegotiationsJanuary 2022 – November 2023: Negotiations (took longer due to health issues of staff and staffing changes) June 2023 – June 2024: Amendments to Operation and Management Agreements 5/30/2024
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•Initial Term: eight (8) years with one eight (8) year option •Base Rent: –Years 1 through 5: $200,000–Years 6 through 10: $225,000–Years 11 through 16: $250,000•Additional Rent: $2.00 per paid ticket with promoted events •Six (6) uses per year by Landlord KEY TERMS RiversideCA.gov10
KEY TERMS (CONT.) •Fox Theater Foundation MOU and office space•Complimentary Tickets: Twenty (20) open to public and presented or promoted by Live Nation •Broadway in Riverside: Good faith effort to ensure events and programming annually 5/30/2024
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FISCAL (CONT.)
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FISCAL – PROPOSED LEASE
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General Fund SubsidyNow: All programming and Operations All maintenance, Insurance; and Debt Service Proposed: Limited maintenance Insurance; and Maintenance FISCAL- COMPARISON RiversideCA.gov14
Strategic Priority 1 – Arts, Culture, and RecreationGoal 1.1Strategic Priority 5 – Environmental Stewardship Goal 5.4Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATIONS1. Approve a Lease Agreement with Live Nation Worldwide, Inc.for the operation and management of the Fox Performing ArtsCenter and Riverside Municipal Auditorium for the initial term ofeight (8) years through June 30, 2032;2. Authorize the City Manager, or his designee, to executerenewal term, up to one (1) consecutive term administratively;and3. Authorize the City Manager, or his designee, to execute anynecessary financial, or legal documents, including making minorand non-substantive changes to execute the agreement.