Council approves additional funds and contract amendments to finish Plaza Theatre rehabilitation

The City Council on March 27 approved staff recommendations to authorize contract amendments and an additional appropriation to advance rehabilitation of the historic Plaza Theatre with the goal of substantial completion by October and public programming beginning in December.

Staff asked the council to authorize: (1) Amendment No. 4 to the architect’s agreement with Architectural Resources Group (ARG) to cover additional site visits and design for a new west-entry courtyard (ARG amendment requested: $270,761); (2) a task-order increase for Dudek (on-call engineering and specialty inspections) for approximately $397,500 to cover extended construction oversight and closeout; (3) an advance from the Plaza Theatre Foundation of $750,000 to keep schedule momentum while the foundation completes pledged fundraising; and (4) city approval of equipment substitutions and essential code/fire-safety work, funded by an additional appropriation from the city’s deferred-maintenance internal service fund. Staff said the requested appropriation would result in an overall contingency on the project of about 20%.

Teresa Gallivan, assistant city manager, described the request as a one-time package to keep the project on an aggressive schedule and to capture efficiencies by completing some construction and equipment upgrades while the contractor and trades are on site. Chris Mooney, the city’s finance director, summarized the overall financing: the original project budget combined private fundraising led by the Plaza Theatre Foundation (about $9.5 million in this phase plus previous fundraising) and prior city appropriations that brought the total program budget near $34 million. The foundation has transferred $8.75 million to the city so far and continues to raise naming and donor commitments, staff said.

Foundation representatives told council fundraising momentum is high: Mark Hamilton, foundation treasurer, said the board has conducted donor tours and large donor events and had sold nearly $900,000 in seat-naming opportunities and more than $10 million in larger naming commitments; Hamilton said philanthropic momentum recently produced a $1 million gift from a supporter who also pledged a $1 million match. John Bolton, the theater general manager working with Oak View Group, said the foundation and operator have announced roughly 30 shows to date and early ticket sales are strong.

Council members asked about specific cost categories, oversight and schedule. Staff said the additional consultant hours reflect the extension of the construction schedule from an earlier February target to an October substantial completion date; Dudek’s scope assumed the earlier schedule and needs to be extended. City project managers said Dudek and city staff are monitoring hours closely and that multiple city project managers are assigned to oversee progress.

Motion and vote: council moved to accept staff’s recommendations, authorizing the architect amendment, the Dudek task order, an advance of foundation funds, equipment substitutions and the additional appropriation from the deferred-maintenance fund, and delegating city-manager authority to execute amendments and change orders as needed. The motion passed on a council vote; staff said the city will apply identified savings and the incoming foundation funds to reduce the net city appropriation needed as pledges are received.

Why it matters: the Plaza Theatre is a major downtown redevelopment component; staff and the foundation said completing the project on the advertised timeline preserves scheduled programming and increases the likelihood of additional revenue and economic activity downtown.

Ending: foundation leaders and staff reiterated that most funding remains private, that the foundation has made sizable payments already and that private donations and tax-credit instruments remain part of the financing plan.