When Menlo Park resident Andy Duncan first came forward with his plans to restore the Park Theatre and turn it into a dance studio, he asked the City Council only for nods of approval.
But in August, he upped his request and said he needed $500,000 from the city to make his plan a reality.
Now, he has a new plan: The city should buy the 60-year-old theater for $2.2 million, and lease it to him.
The council could consider Mr. Duncan’s latest proposal as soon as Sept. 25.
Talking to a handful of residents at a Sept. 12 community meeting in the Burgess Recreation Center, Mr. Duncan unveiled a plan to restore the exterior of the deteriorating movie house on El Camino Real, and remodel the interior to make way for the Menlo Park Academy of Dance. The dance academy is currently housed a block away from the theater, and co-owned by Mr. Duncan’s mother.
Mr. Duncan suggested the city buy the theater and the land from the current owner, Atherton resident Howard Crittenden, for $2.2 million. He’s proposing that the city then grant him a 55-year lease, so the Menlo Park Academy of Dance can move into the space.
Mr. Duncan said he would pay the city $750,000 upfront, plus ongoing payments yet to be determined to lease the property. He said he would foot the bill for restoring historic elements of the building, including the exterior, the neon sign, the ticket booth, and the lobby. The costs of restoring the theater and converting it into a dance studio are estimated to be $2.5 million, Mr. Duncan said.
Still public funds
Last month, Mr. Duncan asked the City Council for a $500,000 grant or loan for his project, but many residents have expressed major concerns with giving taxpayer dollars to a private business.He called his new proposal a “win-win,” stating that the theater would be restored, and be the city’s to keep once the lease ends.
“Under this plan, we keep the Menlo Park Academy of Dance in downtown Menlo Park, and the city gets a restored theater at a major discount,” he said.
But other than Mayor Kelly Fergusson, council members have hesitated to support a plan that requests the city pitch in financially.
“Again, I have great reservations with the city being a partner in a private business enterprise,” said Councilman John Boyle.
Councilman Andy Cohen said he didn’t see much in the way of “public benefit” in Mr. Duncan’s latest proposal.
Councilmen Richard Cline and Heyward Robinson said they needed more details on the proposal before making a decision.
Precedent?
Mr. Duncan and Mayor Fergusson said there is a precedent for the city buying land and leasing it to a private business: the city owns the property at 1000 El Camino Real — the site of an office building built by Matteson Reality.City Attorney Bill McClure said in the 1970s, the city did purchase — and still owns — the 1000 El Camino Real site, but the city acquired the land during efforts to re-align Ravenswood Avenue with Menlo Avenue.
The land was not acquired in conjunction with Matteson Reality, but the city opted to lease the property, at market-rate rent, after the road work was completed, Mr. McClure said. He said the lease lasts through 2037.
Correction
The Almanac reported in a Sept. 12 story that Councilman Richard Cline was opposed to using public funds to help restore the Park Theatre. The story should have read that Councilman Andy Cohen, not Mr. Cline, was opposed to the plan.
