City Council Backs Theater Downtown

VENTURA — With some city leaders expressing concern about the hefty price tag, the City Council on Monday night endorsed in concept a proposal to build a $5.4-million movie theater and retail complex in downtown Ventura.

City leaders and downtown merchants say a theater is badly needed to push ahead with Ventura’s redevelopment, even if it means dipping into reserves to help pay for the project.

“I think this is an exciting project and an exciting time for downtown Ventura,” said Councilman Gary Tuttle, chairman of the Redevelopment Agency, which is composed of the city’s seven council members.

Under the deal being considered, the city would spend $3.7 million to acquire and clear four properties in the 500 block of Main Street, and an additional $1.7 million to help build the proposed 1,800-seat cinema and retail complex.

The city would also spend about $2.8 million to build a 500-space downtown parking structure on a city-owned lot on Santa Clara Street, where the farmers’ market is now held.

Sitting as the city’s Redevelopment Agency, council members said Monday that the project would be a well-spent investment and a necessary one if they hope to realize the goals they have set for improving downtown.

“I think this is one of those projects where we are asked to make a judgment and there are risks involved,” Councilman Steve Bennett said. But, he added, “the city has a very good chance of making back its investment.”

While some council members and one public speaker expressed concern about the amount of money the city would be asked to commit to the project, the council voted unanimously to direct staff to continue negotiations with the developer and come back with a legally binding contract in a few months.

“This is the bitter pill you have to swallow if you are going to embark on a major redevelopment project,” Councilman Ray Di Guilio said before the meeting. “We are basically investing in ourselves.”

As proposed, Burbank-based developer Victor K. Georgino would build the 31,000-square-foot movie theater and an additional 14,000 square feet of retail stores at a cost of $5.4 million. The city would deed the land to the developer and put an additional $1.7 million toward the project. Georgino would pay the remaining $3.7 million for the theater’s construction.

The cinema would be operated by Century Theatres, which also plans to expand its existing eight-screen movie house on Johnson Drive.

If the proposal is approved by the council this summer, construction of the theater and parking structure would begin in April 1997. Both projects are expected to be completed by April 1998.

Under the plan, the Redevelopment Agency would pay a large chunk of the project, borrowing from city reserves or other funds. The money would be paid back over a 30-year period from increased property and sales tax revenue, city officials said.

The city has already set aside $1.9 million for construction of a downtown parking garage and agreed to earmark an additional $60,000 a year for the next six years to help pay for the structure. The gap in the funding is expected to be covered with other city money, officials said.

Before the deal was presented to the council, city officials asked two consultants to review the plan. Given the competitive market, they said the proposal is about as good a deal as the city is going to get.

“I think it is a very fair outline,” James D. Ludwig of KL Associates said before the meeting. “In today’s world, the only projects that make sense must make sense for all parties concerned.”

Ludwig said the theater would help spur economic growth in the downtown area by luring upscale shops and increasing sales tax revenue.

“It draws people, and it draws people who come in with the attitude of being entertained and spending money,” he said. “The spinoff benefits are where the real monumental money is going to come from.”

Consultant Dick Botti has worked on similar movie theater deals for Burbank, Long Beach and Pasadena, and told council members Monday night that in each instance the theater’s impact on downtown redevelopment met or exceeded the cities’ expectations.

Before the meeting, council members said the financial points may need to be adjusted if the project is to be approved. But they stressed the need to move forward in a timely manner.

“It is not risk free, [but] we are going to have to put our money where our mouth is,” Di Guilio said.