LIVERMORE -- The past, present and future of the Livermore Valley Performing Arts Center and Bankhead Theater will take center stage at Monday's City Council meeting.
At the urging of resident theater groups and members of the recently formed Friends of Bankhead and Bothwell, city staff members will recap the structure, financing and agreements that have supported the theater and led to its current perilous financial situation.
The overview comes a week after city and county representatives met face-to-face with LVPAC and the Bank of New York Mellon, which holds the note on the theater.
"It was a good opportunity for the city, county, and LVPAC to get together with the bank and set some guidelines and common goals," said Mayor John Marchand. "We're not interested in running a theater, but we are looking at any solution to make this work. ... We're getting down to crunchtime."
According to Marchand, a deal to acquire the theater and turn over operations to a nonprofit, possibly LVPAC, could come within weeks.
The center is $22 million in debt to the Bank of New York Mellon for the Bankhead and has put more than $10 million toward a proposed 2,000-seat regional theater. Plans for the larger theater were stymied when the state's Department of Finance prevailed in a lawsuit over $122 million in tax increment funds for the regional theater through agreements made with Livermore's defunct redevelopment agency. The state denied the agreements were enforceable obligations.
According to an April council staff report, officials met with LVPAC representatives, notifying them the city and county could not pay off the nonprofit's debt with public funds. However, they could use public money to purchase an asset, like the theater, if it would be used for a public purpose.
According to the report, more than $10 million in host community impact fees from the Altamont and Vasco landfills has been designated for the Bankhead. Under a lease agreement, the fees go to the bank for the bonds used to construct it, provided the building remains a community theater. The total projected revenue from landfill impact fees is estimated to reach $22.2 million by 2041.
"There may be a way to monetize those funds to allow for retiring the debt," Marchand said.
The city and county have invested nearly $8 million in the Bankhead since 2004, according to the report.
The City Council meets at 7 p.m. Monday in the City Council Chamber, 3575 Pacific Ave.
Contact Jeremy Thomas at 925-847-2184. Follow him at Twitter.com/jet_bang.
The City Council meets at 7 p.m. Monday in the City Council Chamber, 3575 Pacific Ave., Livermore