City Manager Joseph Scherer confirmed the ongoing negotiations following this evening's council meeting.

In email correspondence with rrspin.com on May 23, Scherer said, “Since we've just begun negotiations with HSV Entertainment, it would be presumptive of me to identify any specific terms for now.”

Legally, he said, the city cannot extend the current lease so it must negotiate a new lease through June of next year.

He said this does not discount city council going back to review a proposal submitted by JP Amusements to run the theater should negotiations with HSV fail.

Asked in the correspondence what the city wanted to see out of the negotiations with HSV, which is running the venue under the name Royal Palace Theatre, Scherer said, “We hope to obtain a new lease that improves the entertainment value of the theater along with continuing to have a professional business organization operate and maintain the theater.”

The negotiations with HSV come after council at its May 20 meeting struck down a proposal from JP Amusements to run the venue.

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 recently.