Update, Dec. 4: The City Council approved the lease terms on Thursday night by a unanimous vote.

Previously:

CLARKSVILLE, Tenn. (CLARKSVILLENOW) – The city now has a written agreement with the Roxy Regional Theatre that would pave the way for the city to build the long-planned Performing Arts Center, with the Roxy becoming the leasing tenant, managing events at the facility.

At Monday’s executive City Council meeting, council members were presented the lease agreement.

Essentially, the lease would set up the Roxy similarly to the Customs House Museum and the Ajax Turner Senior Citizens Center, where the city owns the building, and the building is leased out to a board and director to manage operations, City Councilman Jeff Burkhart said.

“After three years, we’ll get some additional rent on ticket sales and some other rental revenue,” Burkhart said.

The dates for the lease will be added as an amendment before a vote on the lease is taken on Thursday, Mayor Joe Pitts said. The lease won’t be signed until the city purchases and takes ownership of the building, which could happen as soon as January.

Pitts wanted to get the relationship defined in the form of a lease before the City purchases the property. Also, the City can’t spend money on design until it owns the property.

“I am excited about the opportunity to give the Roxy Regional Theatre a world-class facility and provide our community another destination point in our historic downtown,” Pitts said Tuesday morning.

What’s in the lease

The 25-year lease gives the Roxy three fiscal years of rent payments at only $1 per year. After that, the Roxy will pay to the city 5% of any revenue beyond the “break even” costs of operating the center.

The Roxy’s books will be audited each year by a third party.

The Roxy will make all decisions about their productions, according to the lease. “The Lessor (the City) shall not have the ability or any controlling interest in the artistic integrity or productions of any event … Sole discretion of productions shall be at the discretion of the Lessee (the Roxy).”

The City will also have the right to reserve six dates per year for events or activities in the property.