Roanoke Rapids City Council has set the public hearing for the proposal to lease the theater.

The public hearing will be held August 7 at 7 p.m. in the Lloyd Andrews City Meeting Hall on Jackson Street.

According to the notice sent today, the city proposes to lease the building for two years, with an option to purchase, the land and building, together with all furniture, fixtures and equipment to HSV Entertainment LLC.

The lease provides for a base rent of $12,500 per month for the first year and $14,500 per month for the second year.

The first and last month rent or $27,000 shall be paid at the execution of the lease.

The lease provides for additional rent to be paid based upon the number of tickets sold for the various performances or events at the theatre.

In addition, the city is requiring that the tenant post a $200,000 performance bond to insure against any damages to the property not covered by insurance and any unpaid rent.

The option to purchase is for the sum of $7,250,000 and must be exercised prior to July 1, 2014, with closing to occur on or before July 31, 2014.

The option fee is $50,000 that will be credited against the purchase price, but will be forfeited if tenant does not comply with the terms of the lease and option.

“The City Council believes that the Lease as negotiated and approved by both parties is in the best interest of the City as the City believes that it will stimulate and stabilize the local economy and result in the immediate creation of at least 25 new, permanent jobs in the City,” the notice says.

A copy of the proposed Lease is available at City Hall and on the city’s website.