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File #: 25-1184A    Version: 1 Name:
Type: CONSENT AGENDA Status: Corrected; Approved
File created: 3/31/2025 In control: Office of Arts and Culture
On agenda: 4/23/2025 Final action:
Title: Authorize the Sixth Amendment to the lease agreement with the Dallas Theater Center to (1) extend the term of the agreement through September 30, 2028; (2) continue the implementation of the Equitable Access Plan through the term of the Sixth Amendment; (3) suspend venue rental rates at the level as published for FY 2025; (4) require Dallas Theater Center, at its sole cost, to develop and implement a security plan as approved by the department Director; and (45) for the City to provide direct financial support for the extension of the lease agreement to the Dallas Theater Center to defray increased operating costs resulting from the Equitable Access Plan and the suspension of rental rate increase - Not to exceed $150,000.00 - Financing: General Fund
Indexes: Citywide
Attachments: 1. Resolution
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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STRATEGIC PRIORITY:                     Vibrant

AGENDA DATE:                     April 23, 2025

COUNCIL DISTRICT(S):                     Citywide

DEPARTMENT:                     Office of Arts and Culture

EXECUTIVE:                     M. Elizabeth Cedillo-Pereira

______________________________________________________________________

SUBJECT

 

Title

Authorize the Sixth Amendment to the lease agreement with the Dallas Theater Center to (1) extend the term of the agreement through September 30, 2028; (2) continue the implementation of the Equitable Access Plan through the term of the Sixth Amendment; (3) suspend venue rental rates at the level as published for FY 2025; (4) require Dallas Theater Center, at its sole cost, to develop and implement a security plan as approved by the department Director; and (45) for the City to provide direct financial support for the extension of the lease agreement to the Dallas Theater Center to defray increased operating costs resulting from the Equitable Access Plan and the suspension of rental rate increase - Not to exceed $150,000.00 - Financing: General Fund

 

Body

BACKGROUND

 

In September 1973, the City entered into a Lease Agreement with the Dallas Theater Center (DTC) relating to the operation of the Kalita Humphreys Theater in William Dean Park. That agreement was first amended on November 17, 1982 (Resolution No. 82-4006) reflecting DTC’s option to renew the lease for an additional term of 20 years, thereby, extending the lease to September 26, 2013.

 

Since the initial agreement, the City has executed five amendments to the contract. The first amendment was executed in 1983 increasing amount of acreage, acknowledging a 20-year renewal option. During this period, the interior of theater and lobby was altered, parking was added, and the Heldt Annex Building was constructed.

 

The second amendment was executed in 1991 to include the addition of the Heldt Annex Building to the lease agreement. The third amendment was executed in 2019 to include DTC’s responsibility to update the Master Plan for the Kalita by the end of 2020.

 

 

 

 

 

The third amendment also updated DTC’s operating model to include an Equitable Access Plan reflecting Dallas Cultural Plan’s priority of Equity and Space and right to sublease. The three-year Equitable Access Plan began FY 2023 and ends in FY 2025, including anchor tenants Uptown Players (Kalita) and Second Thought Theater (Heldt Annex Building). Additional language for DTC to maintain the Kalita in a clean, safe, condition and in good order and repair during its use of the premises. The amendment also extended the lease agreement term to June 1, 2024.

 

The fourth amendment was executed in 2021 extending the delivery requirements of the Master Plan for the Kalita due to the COVID-19 pandemic.

 

The fifth amendment was executed later in 2021 to extend the lease agreement term to June 1, 2025, as well as extend the implementation of the Equitable Access Plan by one year and defer the schedule for non-resident rentals by one year.

 

The proposed action of this item to authorize the execution of the sixth amendment to the lease agreement will extend the term of the agreement through September 30, 2028. This extension will provide a timeline of three standard performance seasons which typically run from September 1 of a given year to the following August 31. Two of these years will allow for the Office of Arts and Culture (OAC) to engage with DTC and other partners to address the complexities of the current agreement and determine the best solution for a successful, safe, accessible, and sustainable future operation of the Kalita.

 

After the initial two-year period, the third year will allow for the proper communication and planning for any given outcome to ensure that theater groups do not experience an interruption in their season planning processes.

 

OAC also took into account the timeline for the 2024 Bond Program. Currently, the 2024 Bond Program addressing repairs and upgrades to the Kalita is scheduled to begin FY 2027-28 for planning with construction beginning FY 2028-29. At the beginning of the third year of the proposed extension, which would take place at the beginning of FY 2027-28, OAC will have a clear understanding of the future operation and management of the Kalita allowing for the most efficient and relevant repairs and upgrades to be made to the facility.

 

PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)

 

On September 26, 1973, the City Council authorized a lease agreement with the Dallas Theater Center for the management of the Kalita Humphreys Theater.

 

On November 17, 1982, the City Council authorized the first amendment to the lease agreement with the Dallas Theater Center by Resolution No. 82-4006.

 

On March 27, 1991, the City Council authorized the second amendment to the lease agreement with the Dallas Theater Center by Resolution No. 91-1043.

 

On June 12, 2019, the City Council authorized the third amendment to the lease agreement with the Dallas Theater Center by Resolution No. 19-0889.

 

 

On January 13, 2021, the City Council authorized the fourth amendment to the lease agreement with the Dallas Theater Center by Resolution No. 21-0136.

 

On August 11, 2021, the City Council authorized the fifth amendment to the lease agreement with the Dallas Theater Center by Resolution No. 21-1236.

 

FISCAL INFORMATION

 

Fund

FY 2026

FY 2027

Future Years

General Fund

$50,000.00

$50,000.00

$50,000.00