A new agreement between the city and Magic Lantern Theatres has been approved by city council, clearing the way for construction of their new four-screen movie theatre this spring.
The agreement was approved by a unanimous vote at council Monday night.
The new deal replaces a previous agreement dated July 7, 2016.
That came about when Magic Lantern made the initial announcement that they would build a new five-screen theatre on the empty lot between 11th Avenue and Railway Avenue.
The original deal called for Magic Lantern to acquire the land from the city for a dollar. But the transfer of title to the land to Magic Lantern was held up for a number of months.
Contamination was found on the western portion of the lot, forcing the theatre location to move to the northeast corner at 11th Avenue and 101st Street.
In February of last year, construction plans were altered again when Magic Lantern completed the purchase of the Capitol Theatre.
The company then concentrated on renovating and upgrading the old theatre. The Capitol was closed for three months for renovations before re-opening in June.
City manager Jim Puffalt was delighted to see the new agreement come before council.
“We’ve been able to complete all the necessary discussions and put the agreement together and present it to council today.”
Puffalt noted the theatre complex’s importance as an anchor to their downtown redevelopment efforts.
“An anchor was a huge important part of it and this is the anchor that we are looking for. We’re absolutely thrilled to be able to present this to council and encourage council to sign, and construction will start this spring.”
Director of planning and development Jennifer Niesink said the plan was to build this spring and hopefully be open by Christmas of this year.
In speaking to reporters Mayor Ryan Bater was upbeat about the agreement.
“City residents have been incredibly excited about this project and now we’re going to see it happen,” said Bater.
Bater was also upbeat about the prospect of the theatre serving as an anchor to encourage people to come into the downtown area.
It was “a much needed asset in our city’s downtown, and will do a lot to improve both the environment there but the environment for business as well.”
Much of what was in the original agreement from 2016, including the one dollar sale price for the land, is in the new deal. But it has been updated to reflect the cinema’s new location.
Bater said the new agreement also incorporates the city’s parking strategy.
“The idea was just to update it to reflect Magic Lantern’s desires, as well as the city.”
The city has already allocated money in its 2018 budget for a new paid parking lot that will be built on the west side of the lot beside Railway Ave. That will serve as the Magic Lantern parking lot when movies are shown.
Section 5.1 of the agreement between the two parties addresses the parking issue by stating as follows:
The City shall pave, light and maintain a minimum of one hundred seventy-five (175) parking stalls within two (2) blocks of the Cinema (the “Parking Lot”) for the non-exclusive use of the Cinema’s patrons. The City shall pave, provide lighting, drainage, snow removal, sweeping and maintenance to the Parking Lot. Cinema management will work co-operatively with the City on any system to monetize or control parking. Cinema patrons will be allowed free parking during their visit to the cinema regardless of the control system invoked from time to time.
Section 5.2 states:
In the event patron demand for the Parking Lot increases, making parking difficult for Cinema
patrons, supported by patron complaints, the parties shall work collaboratively to conduct a parking study or assessment to determine what additional parking is necessary. Upon completion of the study, the City shall be required to develop and provide such additional parking as determined necessary by the study for the Cinema patrons within a two (2) block radius of the Cinema.
