City council tonight approved a lease with option to purchase deal for the Roanoke Rapids Theatre.

The potential owners of the venue, HSV Entertainment LLC out of Arkansas, will have to put up a $200,000 performance bond and a $50,000 option up front, according to amendments made before a vote on the matter.

The deal, which was approved by a 4-1 vote, with Councilman Carl Ferebee casting the dissenting ballot, also calls for the LLC to pay the first and last month’s rent up front, City Attorney Gilbert Chichester said following the more than two hour meeting, most which took place in closed session.

That figure is $27,000. It represents $12,500 a month rent for the first year and $14,500 a month rent for the second year.

Also included in the deal is a $2 per 50,000 tickets sold fee the city will receive, which will later be boosted to $3 per 50,000 tickets sold.

In all, the company will have to pay $57,000 up front, $257,000 if it were agree to pay the performance bond in cash rather than taking it out in the form of an actual bond.

The purchase price, if the LLC decides to buy is $7,250,000, minus the money that is initially put down.

William White Jr., a Roanoke Rapids attorney who has been representing the LLC throughout the negotiations that began in March, said his clients have already signed the contract.

City council must hold a public hearing to garner citizen input before Mayor Emery Doughtie can sign the contract. Ten days notice must be given.

White said his clients are ready. “Time is of the essence.”

White said once the paperwork is completed then their timetable will be released. He said while his clients are not entertainment specialists, “They have the ability to hire the best in the business. They’re businessmen. They think the concept is good. They think they can turn it around so it will do what it’s supposed to do.”

White has spoken about his clients’ plans in previous public meetings and the LLC’s plans hinged on last week’s city council approval of Internet gaming within the entertainment and music district.

Chichester said the performance bond was a critical piece to approval of the contract. “It was important to city council that they were willing to put up a $200,000 performance bond in the event of any property damage or the LLC failed to follow through.”

Principles in the LLC include the names Patrick Vota, J.T. Smith, Greg Hasley and Jay Hickey, Chichester said.