Oxnard staff recommends $1 lease and rent forgiveness for Teatro de las Americas

Jasmine McGinty, Economic Development Manager with the City of Oxnard Housing Department, told the committee that staff recommends the City Council approve a new lease with Teatro de las Americas and forgive $15,690 in past-due rent through January 2026.

McGinty said the city owns a 1,980-square-foot building at 321 West 6th Street in Downtown Oxnard that has housed Teatro de las Americas since an initial lease was signed on Nov. 18, 2019. The original rent was set at $0.50 per square foot, which the staff report calculates as $990 per month for the space. A 2023 amendment extended the term to Nov. 20, 2024 and recognized a $35,000 rent credit for tenant improvements plus an additional $15,000 credit related to COVID-19 closures; Teatro has operated month-to-month since November 2024, the presentation said.

Staff described financial pressures at the nonprofit in 2025, including last-minute production cancellations, volunteer shortages and lower attendance. Based on Teatro-provided financial statements, McGinty said the theater reported net losses of $5,834.80 for 2024 and $5,969.84 for 2025 and carries an unpaid rent balance of $13,860 for December 2024 through January 2026 plus $1,830 from the initial lease term, totaling $15,690.

Teatro formally requested on Oct. 9, 2025 that the city forgive the past-due rent, grant daily prorated rent forgiveness for February 2026 until a new lease becomes effective, and approve a new lease with an initial three-year term plus two one-year renewal options for a maximum five-year term. McGinty said the staff-calculated daily prorated rate for February is $35.36.

Under the terms staff recommended, Teatro would pay an annual lease fee of $1 and, once profitable, quarterly rent equal to up to $2,970 of quarterly gross revenues in excess of $10,560. McGinty told the committee that this structure is intended to allow Teatro to resume payments as revenues permit while keeping the city-owned building occupied and maintained.

The staff report estimated the immediate financial impact to the general fund would be loss of $15,690 in past rent and up to 28 days of prorated forgiveness in February 2026 at $35.36 per day. Over the three-year initial term, if the revenue formula does not trigger rent payments, staff estimated a potential loss of up to $35,640; they also noted the city would save on building maintenance costs while the property is occupied.

McGinty summarized the recommendation that the committee forward to City Council authorization for the mayor to execute the proposed lease agreement (staff cited agreement number "8604") and to forgive past-due rent as described in the staff report. The presentation concluded with an invitation for committee consideration of that recommendation.

Next steps: the committee must decide whether to send the recommendation to the City Council; the transcript does not record a committee vote or council action on the recommendation.