PEEKSKILL, N.Y. - Peekskill has reached an agreement with Red House Entertainment to lease, manage and operate the Paramount Theater, the city announced.
The Common Council will vote on the deal Monday night, said Mayor Mary Foster.
"We've taken a large step forward towards reopening the Paramount Theater. I’m pleased that we’ve reached an agreement on lease terms with Red House Entertainment for the management and operation of the theater," Foster said in a statement. "The agreement is strong and is positioned to benefit both parties.”
The lease is a 17 year contract with a 10 year option. Peekskill will receive 5 percent on the adjusted gross ticket sales of every show. In addition, the city will pay utility costs for the first six months.
Red House Entertainment projects gross ticket sales of $900,000 in the first year - October, 2013 to October, 2014 - and projects $2.2 million annually in year two.
"We’re very happy to have reached an agreement with the City of Peekskill. We’re looking forward to working with the City and the Peekskill BID as we reopen the Paramount Theater," said Kurt Heitmann, CEO of Red House Entertainment. "We’re very pleased that everyone has gathered together to make this agreement happen. It’s a great day for this vintage theater to be reopening in Peekskill and the Hudson Valley.”
The lease will be presented to the Common Council at a Special Meeting Monday night at 6:30 p.m. at City Hall. Upon approval, it’s expected the lease will be signed by both parties shortly thereafter.
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