Rehoboth stays firm on offer to entice Clear Space to stay
Story Location:
Rehoboth Beach City Hall
229 Rehoboth Avenue
Rehoboth Beach, DE 19971
United States
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Two weeks ago, in an effort to entice Clear Space Theatre Company to stay in town, Rehoboth Beach commissioners agreed to 80% of a proposed term sheet outlining how a public-private partnership would work.
The remaining 20% was related to the financial portion of the terms, with commissioners saying they wanted more time to consider the terms before committing the city to anything.
Ultimately, during a meeting Oct. 17, commissioners voted to keep the offer to Clear Space the same, without the additional financial considerations.
Mayor Stan Mills said the terms being offered are reasonable, and he isn’t comfortable offering more money.
During a special meeting Oct. 6, commissioners voted in favor of five sections of the term sheet – the duration of the lease, preparation of the parcel, scope of the building, parking and autonomy. One item in the finance section was approved – an annual land lease of $1.
The four remaining financials not included said the city would provide $1 million to the theater’s capital campaign; the city would waive building permit fees; the city would retain all parking revenues from additional parking spots; the city would impose a facility fee on all tickets purchased to events in the new building.
Commissioner Mark Saunders said the land is valued at $7 million. An annual lease on a property like the one being offered would be about $250,000, he said. That is a financial commitment to the project, he said.
Commissioner Patrick Gossett said in addition to the terms being offered by the city, there’s new hotel construction happening, which means there should be an increase in customers who can walk to the theater. Also, he said, a move to Lewes is full of unknowns, while Clear Space has proven to be successful in Rehoboth Beach.
Gossett said there will be room to work with Clear Space on the financials after it makes a decision, but not before. Ultimately, the decision is in Clear Space’s hands, he said.
Clear Space board members are expected to decide which location to pursue during a meeting Wednesday, Oct. 22.
Chris Flood has been working for the Cape Gazette since early 2014. He currently covers Rehoboth Beach and Henlopen Acres, but has also covered Dewey Beach and the state government. He covers environmental stories, business stories and random stories on subjects he finds interesting, and he also writes a column called Choppin’ Wood that runs every other week. He’s a graduate of the University of Maine and the Landing School of Boat Building & Design.
