Staff Report.LG Theater Agreement
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/16/2021 ITEM NO: 20
DATE: November 9, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Negotiate and Execute a Donation
Agreement for the Los Gatos Theater Donation Property and Issue a Request
For Proposal (RFP) for the Management and Programming of the Theater
RECOMMENDATION:
Authorize the Town Manager to negotiate and execute a Donation Agreement (Attachment 1)
for the Los Gatos Theater Donation Property and issue an RFP for the management and
programming of the theater.
BACKGROUND:
In December 2020, Mr. Jim Goetz initiated conversations with the Town regarding the potential
donation of the Los Gatos Theater to the Town. Since that time, staff has maintained a
dialogue with Mr. Goetz and his family regarding the Town becoming the new “steward” of the
Theater. Based on those conversations, Mr. Goetz provided the Town Council with a formal
proposal for the transaction on April 18, 2021. Included in the proposal was an outline of the
Goetz family vision for the donation of the Theater to the Town which is now Exhibit B to the
donation agreement.
As stated in the proposal the desire is for the Town to maintain the Theater as a
multidimensional cultural and community meeting center.
“This represents an opportunity to provide special screenings of Hollywood premiers, develop a
family film series, cater to the needs of local teens, serve as a refuge for the three local
elementary schools with ambitions for live theater — and, of course, to host the judges of the
Holiday Children’s Parade in balcony seating.”
PAGE 2 OF 2 SUBJECT: Negotiate and Execute Los Gatos Theater Donation Agreement and Issue RFP for Management and Programming of the Theater DATE: November 9, 2021
DISCUSSION:
The Goetz family purchased the building in 2011 as a philanthropic project and completely
renovated the facility between 2012 and 2014. In addition to the movie programming, the
property currently has two retail tenants. The theater is also structured to provide several
private rental alternatives. The theater has remained closed during the pandemic.
Once the theater agreement is completed, staff will issue an RFP to solicit proposals from third
party vendors who specialize in managing and programming a community cultural venue of this
type. In addition to traditional film programming, multiple vendors exist in the area that
provide the management and all-inclusive programming of musical performances, theater
performances, comedic performances, and other cultural offerings. Examples include the
Vacaville Performing Arts Theater, San Ramon Performing Arts Center, Downey Civic Theater,
Campbell Heritage Theater, Hermosa Beach Community Theater, and Morgan Hill Community
Playhouse to name a few. It is also anticipated that the Town would occasionally utilize the
theatre for special events, and other community gatherings.
CONCLUSION:
Staff recommends authorizing the Town Manager to negotiate and execute the Donation
Agreement (Attachment 1) for the Los Gatos Theater Donation Property and issue an RFP for
the management and programming of the theater.
COORDINATION:
This staff report and donation has been coordinated with the Town Manager, Town Attorney,
Director of Parks and Public Works, Chief Building Official, and Economic Vitality Manager.
FISCAL IMPACT:
The Town may incur some initial costs during the transition but anticipates positioning the
project as financially net neutral to the Town.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Los Gatos Theater Donation Agreement
2. Exhibit B to the Donation Agreement