Clear Space, Rehoboth continue to explore partnership

Rehoboth Beach and Clear Space Theatre Company officials continue to discuss how a public-private partnership could be formed that, in theory, would keep the theater downtown and increase the number of pay-to-use parking spaces on city-owned land on Christian Street. At the center of the discussion is the future of the Cape Henlopen Senior Center, which has been located on that specific city-owned land for decades.

Clear Space has been exploring the building of a new home for years. There was an attempt to build on three western Rehoboth Avenue lots, but it ultimately failed. Last August, the theater announced it was undertaking a market study to determine how to find its new home. In late December, city and theater officials agreed to investigate what a public-private partnership would look like because a potentially suitable location within city limits had been identified – 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. At that meeting, commissioners tasked city staff to work with the theater to see what kind of terms could be drafted.

Clear Space Managing Director Joe Gfaller and staff returned in early March to discuss a draft agreement with commissioners. Their proposal is a 30-year triple net land lease, with two 10-year options. As proposed, the lease would commence upon Clear Space’s receipt of a certificate of occupancy for the new facility.

In the draft lease, Clear Space said it would commit to construction staying within the city’s 42-foot height restriction, except for the fly loft above the proscenium theater that would be no taller than 62 feet above grade.

As drafted, the city would maintain all revenues from parking at the new performing arts center, but also provide a $1 million contribution to the theater’s capital campaign.

Clear Space proposed the city should waive all application and permitting fees. 

There was some dialogue about the details, but the main focus was the future of the senior center, because it has an existing lease with the city until 2030, and there are a lot of unknowns about how it's going to get the funding to build a new home.

Mayor Stan Mills said this was the most critical issue, but he has no intention of booting the senior center out.

Gfaller also recognized the uncertainty of the timeline for the senior center and didn’t want to be seen as pushing the senior center out, either. However, he said, the longer the senior center’s unknowns linger, the harder it is for the theater to move forward.

There was a brief discussion about additional parking. Ideas about building some underground parking had been floated earlier, but City Manager Taylour Tedder said that would be cost-prohibitive and he wouldn’t recommend it. He estimated the city would gain 44 additional spots with a new arrangement at ground level.

In an interview following the meeting, Cape Henlopen Senior Center Board President Greg Murphy said the organization is ready to move forward on construction, but the problem is funding. Curb cuts and stormwater infrastructure have been installed at the Hebron Road site outside town, and plans have been approved, but the senior center was hoping a large federal grant worth $3 million to $5 million would spur the start of construction, he said.

“All we know, at this point, is that the federal grant stream has been shut down,” said Murphy. “We have a shovel-ready project, and we’re ready to go as soon as we get the money.”

Murphy said the senior center has $1.5 million in the bank earmarked for the project, and a handful of private individuals have expressed interest in supporting the senior center, but on the condition of federal funding. People want to make sure it’s going to be built before donating, he said.

If the federal funding ever comes through, work will begin quickly, said Murphy. The senior center would have one year to spend the grant monies, which means things could have to be added later, but there would be a building in place within one year, he said.

Senior center officials continue to explore alternative sources of revenue, and to advocate for themselves with state and federal legislators, said Murphy.

“We’re going to keep pushing,” said Murphy.

During the March meeting, Gfaller said the theater’s board was planning to make a decision on whether to move forward with the city later the same month.

In an April 3 interview, Gfaller said the board decided to postpone a decision on the Christian Street property until city commissioners decided on more details related to the agreement. It’s likely to be on a city agenda soon for more discussion, he said.

As for the senior center, Gfaller said everyone is aware of the timeline, and negotiations would have already stopped if that was going to be a deal-breaker from the beginning.

Gfaller said the theater continues to explore other options for a new home, but declined to comment on specifics. This option was brought up in the context of a public-private partnership, so it had to be discussed in public, he said.