Laserfiche WebLink
File Number: 17-560 <br />and Curtain Call Performing Arts. Curtain Call is a nonprofit organization that holds the lease for <br />the facility and serves as its operator. The BAL was represented in these discussions by Dan <br />Dillman, a member of Curtain Call’s Board of Directors whose family owns the building, and Chris <br />Crow, another member of the Curtain Call Board of Directors. <br />Analysis <br />Needs - Although the current ownership has been successful in revitalizing the BAL and <br />expanding programming in recent years, the facility has significant deferred maintenance. The <br />Dillman family, which owns the building, also faces a December 2017 balloon payment on the <br />building’s mortgage of approximately $400,000. The BAL’s representatives have indicated that <br />additional operating funds would enable them to secure more ambitious programming, ultimately <br />increasing operating revenues and enhancing the theatre’s long-term viability. <br />Financial Status - Staff performed due diligence on the property and requested a Title Report <br />from First American Title Insurance Company for the BAL, 14808 East 14th Street. The Title <br />Report (Attachment 1) states the following: <br />- Lien of defaulted taxes for fiscal year 2010 are due for an amount of $42,439.51 (currently, <br />according to the Alameda County Property Assessment Information the amount has been <br />reduced to $13,359.96). <br />- A certified copy of a judgment or an abstract thereof, recorded July 6, 2010 as Instrument <br />No. 2010186885 by American Express Centurion Bank for an amount of $10,969.49 <br />- A certified copy of a judgment or an abstract thereof, recorded February 21, 2012 by <br />AT&T Advertising for an amount of $30,463.40 <br />The total amount of debt due is currently $54,793.85. Because those obligations predate any <br />potential loans from the City, they would need to be repaid first if any future act of default on the <br />$400,000 loan were to result in a forced sale of the property. As discussed below, the market <br />value of the BAL in its current condition exceeds the total amount of any existing and proposed <br />City-issued debt on the property. <br />To understand the current market value of the BAL, staff requested an Appraisal Report from The <br />Schmidt-Prescott Group, Inc. Based on that report, the property is valued at $1,090,000. The <br />appraisal report (Attachment 2) indicates that the theatre use is the highest and best use for the <br />property, in its current state. Most existing theatres operate as movie or performance theatres. <br />There are few economically feasible alternative uses. Absent any parking, few retail users would <br />be interested in the property, and they would likely have to obtain a conditional use permit to <br />support a retail use without parking. Several theatres that have been converted to other retail uses <br />in recent years were vacant and non-operating prior to sale. The appraiser concluded the highest <br />and best use as improved is to continue the current theatre use. <br />The appraisal indicates that the property has value in excess of the amount of the proposed City <br />loans. Although the intent of any financial assistance from the City is obviously to enable the BAL <br />to thrive under its current ownership, the appraisal suggests that, if an event of default were to <br />Page 2 City of San Leandro Printed on 10/10/2017 <br />211