Looking to keep an arts presence in downtown Rehoboth Beach, city commissioners have agreed to pursue a public-private partnership with Clear Space Theatre Company.

In August, Clear Space Managing Director Joe Gfaller went before city commissioners to say the theater was in the beginning stages of a market study to find its next home.

During a meeting Dec. 20, City Manager Taylour Tedder said the Clear Space study is nearing completion, and has identified a potentially suitable location within city limits – a triangle-shaped, city-owned lot that fronts Christian Street and comprises a parking lot, the Cape Henlopen Senior Center and the Anna Hazzard Museum.

The senior center was founded in 1966 and has been located on Christian Street since 1981. Its lease with the city runs through 2030. About two decades ago, the Cape Henlopen Senior Center was given six acres of land off Hebron Road outside Rehoboth Beach with the express purpose of building a new home.

Mayor Stan Mills said his goal is to keep Clear Space within city limits. He said he’s interested in pursuing the triangular lot because he thinks there’s enough space for the city to build two levels of underground parking, while Clear Space builds what it needs above.

Commissioner Suzanne Goode said she liked the idea of exploring the use of that area because the city already owns it and she is in favor of a center for the arts. There could be state and federal funding for the city’s portion, she said.

Tedder confirmed he and staff are exploring grant opportunities for this project and others.

At the Dec. 20 meeting, Gfaller said he is grateful the city is considering the partnership. No decisions have been made, but when the study is complete and the theater is evaluating which move to make, this will be an important data point, he said.

This vote does not make the final decision for the theater, but Clear Space is also happy to work in good faith with the city toward that decision, said Gfaller.

Commissioner Patrick Gossett said he was in favor of working with the theater because it’s a valuable partner and an economic driver. However, he said, as the theater and staff work on terms for the partnership, it would be good to know what exactly the theater is asking from the city.

For example, said Gossett, does the theater want to be able to own the land at some point, and does it anticipate the need for variances to build what it wants?

Following the favorable vote, Tedder said he would return to commissioners with a term sheet for final approval before moving forward.

Clear Space has been looking for a new home for many years. The theater was founded in 2004 and has operated in Celebration Mall on Baltimore Avenue in Rehoboth Beach since 2010. The theater tried to build a new home at 413, 415 and 417 Rehoboth Ave. in the years immediately before COVID, but ultimately, that didn’t come to fruition after years of pushback from neighbors concerned about parking and other issues. All three properties are now slated to have three-story, mixed-use structures built on them.

Clear Space is working with consultant Theatre Projects, an international organization that’s helped create performing arts/cultural arts centers at the University of Delaware and University of Maryland, and in Philadelphia, Kansas City, Orlando, London, Bahrain and Cyprus.