All told, the proposal submitted by JP Amusements partners Michael Dunlow, Phillip Moncure and Jeremy Parker would have put a total of $635,000 of non-refundable money into city coffers in a two-year lease deal with an option to buy the venue, Dunlow said today.
JP Amusements submitted the first proposal a month ago. “City council told us to put our best foot forward,” he said, so the partnership submitted the second proposal.
The idea to submit a proposal to the city was born about 10 to 12 months ago, Dunlow said. “That's the biggest problem is the stability and the shows being up and down. There needs to be consistency in shows.”
Plus, he said, he and Moncure still own 120 acres of land around the theater for potential development.
Under terms of the proposal, the group offered to pay a base rent of $22,500 a month for two years with the full amount to be paid in advance.
The partnership offered to pay the city a ticket fee of $2 per ticket sold with a guaranteed payment of $5,000 per month as additional rent. That additional rent was guaranteed monthly and was to be based upon 2,500 seats per month in ticket sales whether sold or not.
The partnership agreed to pay the city gaming fees in the amount of $80,000 upon commencement of the lease as well as provide a satisfactory bond to cover excessive wear and tear and potential damage to the theater.
Under terms of the proposal, the group offered to execute an option to buy the theater during the lease term at the price of $7,250,000 and make another $15,000, non-refundable deposit upon execution of the option.
Dunlow said the group opened its books to show proof of having the $540,000 on hand to execute the deal.
“It is our goal,” the group wrote in the proposal to the city, “to produce approximately 40 to 48 shows per year.”
The breakdown of the shows would include 10 to 14 A-rated shows, which cost at least $20,000 to bring; 12 to 16 B-rated shows, which cost between $10,000 to $20,000; and 18 to 20 C-rated shows, which cost between $100 to $10,000.
“The Oak Ridge Boys Christmas Show is touring on the east coast this year and they are available for the theater,” the proposal said. “They have proven themselves at the Roanoke Rapids Theatre several times; their booking fee is offered to us at $33,000 through SRO Productions.”
JP Amusements has a working relationship with SRO Productions, working with the group for the past 10 years before selling the outdoor venue near the theater.
“I'm disappointed in the three no votes,” Dunlow said. “I'm even more disappointed if the city's other proposal isn't as good as this.”
Dunlow had worked with the city in the burgeoning stages of the Roanoke Rapids Music and Entertainment Overlay District, the city requiring him to build 200,000 square feet of retail. “I did not agree to that,” he said. “I couldn't do it. If the city could build 200,000 square feet of retail they wouldn't need to build the theater.”
A revised agreement, he said, allowed him to put forth his best effort. Then the economy tanked.
Now, he said, “We're going to push forward to bring development as the economy improves. I think people are back looking again.”
Dunlow said he could not say whether the group will entertain reopening the proposal should the city's negotiations with HSV reach a stalemate.
Dunlow said the offer they put on the table was an attempt to help sell and market the city. “I'm trying to sell our community. I am very committed to Roanoke Rapids and encourage my children to live and work here.”
For Moncure, the decision was disheartening. “I'm very disappointed that the city council did not accept our offer.”
With the entire allotment of money being non-refundable, Dunlow said the offer was a great opportunity for the city. “Even if our group failed miserably, the city would have all the money paid up front.”
