West Valley City OKs deal that may keep current Hale theater until '38

West Valley City • City Council members on Tuesday approved a new lease amendment for Hale Centre Theatre that could keep that venue in the community through 2038.

Still up in the air, though, is whether the nonprofit theater company will build a second, much larger facility in West Valley City or Sandy. With all of their shows selling out, Hale officials envision building a multistage venue with about 1,900 seats — about triple the current number — in one of those cities while maintaining the theater near 3500 South and Interstate 215 in West Valley.

West Valley bonded for funds in 1997 to help build the theater in the Decker Lake development, and Hale leases the building from the city, which uses the rent payments to pay for the bonds. The original agreement had three long lease renewals over 34 years, with the current sublease expiring at the end of 2016.

The amendment provides shorter renewal periods and gives Hale the option of taking ownership of the building in 2028. Under the arrangement, West Valley would fund up to $500,000 in repairs to the building's heating and air conditioning system, carpet, paint, asphalt and marquee sign. The cost would be spread over 22 years.

The arrangement will become official once the amendment is signed. The city and theater negotiated the terms in past weeks.

The competition for the new theater continues. As part of that effort, the West Valley City Council, sitting as the Redevelopment Agency board, voted unanimously on Dec. 4 to authorize preparation of a plan for an Entertainment District Community Development Area (CDA) along Decker Lake Drive. Creating a CDA would allow the use of tax increment — the taxes generated from the increased assessed value of a property within the area — to provide infrastructure and to promote expansion at the site, which includes the Hale theater.

West Valley officials would like the new theater to be built in the CDA. One possible location is a parcel adjacent to the current theater that includes the Hollywood Connection Entertainment Center.

Sandy officials, who met last month with Hale representatives, are touting location to land the theater. They want the theater to go on 11½ acres at 9950 Monroe St., a site that would provide prime visibility along Interstate 15. Under that scenario, the theater would be able to expand over 5½ acres, with the remaining land set aside for other development.

pmanson@sltrib.com

Twitter:@PamelaMansonSLC