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Claremont Redevelopment Agency Agenda Report

TO

FROM

DATE

JEFFREY C

PARKER

EXECUTIVE DIRECTOR

ANTHONY WITT

COMMUNITY DEVELOPMENT DIRECTOR

MAY 9

2006

SUBJECT

RESTRUCTURING OF

CANDLELIGHT

PAVILION

REHABILITATION LOAN REPAYMENT

DINNER

THEATER

SUMMARY

Ben Bollinger Productions

Inc

is requesting a change to the terms of a

of the

160 000 business

2000

retention loan approved by the

The

loan

loan term

calls for repayment of

which

is March

2006

Claremont Redevelopment Agency on November 14

80

000

of the

loan

and

repayment

principal five years into the ten year

remaining

80 000

of the original

principal at the end of the ten year term which is March 2011

The Bollinger family is requesting a restructuring of the

25 000 loan payment now

at an interest rate of 6

they own

80 000 due this

year by making

a

and amortizing the remaining

55 000 over the next five years

The

Bollingers have offered to pledge theater production sets that

55 000

portion of the

loan

being restructured

The City

as security for the

Manager has detailed documentation describing the contents of these sets in his office

Staff Recommendation

Staff recommends that the Agency Board approve the amended terms for the

to Ben

Bollinger Productions

Inc

amendment to the promissory note

and

authorize

the

executive

director

to

ANALYSIS

This

business

retention

loan

was

made

at

a

time

when

the

owner

of the

Claremont Inn complex also owner of

Uncertainty about the future of the site

the theater building and property was in

and

resist requests by the dinner theater

Agency

loan

execute

an

surrounding

bankruptcy

caused the property owner to defer maintenance

operators to make repairs in exchange for a long

point where serious consideration was being

City

The theater operators used the loan

and remain in the City While there

original loan

security for

the Bollingers have

the

55

000 being

county

of thousands of

term lease The property had deteriorated to a given to relocating the theater outside of the

proceeds to make the intended repairs to their business

was

no property or assets

offered

to

refinanced

pledge

over

20

pledged as security to the

theater

production

sets

as

The Bollingers

These are full production sets that are rented to theaters all over the

estimate

the value

of these sets

to

be

in

the

hundreds

dollars

The property has since been purchased and the hotel is

currently undergoing

an extensive

renovation Group sales related t bus tours that stay at the inn have been particularly hard

FOR CITY COUNCIL AGENDA

ITEM

0

Claremont Redevelopment Agency

May 9

2006

Page 2 of 2

hit Construction related disruptions are expected to continue as the entire inn old school

house complex is renovated

Restructuring the loan payments will help the dinner theater

weather this temporary drop in revenue

FINANCIAL REVIEW

The Agency has adequate funds to amortize repayment of the 55 000 that would have otherwise been received as a lump payment Ben Bollinger Productions Inc has made all

interest payments in accordance with the payment schedule

LEGAL REVIEW

The revised loan agreement was reviewed and approved by the Agency counsel

PUBLIC NOTICE PROCESS

This

item has been noticed through the regular agenda

notification process Copies of this

Activity

Center Alexander Hughes

report are available at the City Hall public counter Youth

Community Center

Claremont Public Library

and the City website

ALTERNATIVES TO THE STAFF RECOMMENDATION

In addition to the staff recommendation there are the following alternatives

  • 1 Do not approve the loan restructuring

  • 2 Continue the item and request additional information

Submitted by

WfuCru

W

Anthony Witt Community Development Director

a

Brian Desatnik

Housing and Redevelopment Manager

Reviewed by

rYt

Matthew Hawkesworth

Finance Manager

c

Michael

Mick

Bollinger Vice President General Manager

Candlelight Pavilion Dinner Theater