Subject:
Title
Capital Project Funding Agreement with the Board of Trustees, St. Petersburg College for renovations to the Palladium Theater.
label
Recommended Action:
Recommended Action
Approval of the Capital Project Funding Agreement with the Board of Trustees, St. Petersburg College (SPC) for renovations to the Palladium Theater that will transform the facility into one of the region’s top theatrical performing and recording spaces.
• The agreement with SPC is for $2,500,000.00 and supports renovations to the Palladium Theater as part of the Capital Projects Funding Program.
• Convention and Visitors Bureau staff negotiated the terms for a maximum return on investment for the County.
• Payment will be on a reimbursement basis at project completion.
• Tourist Development Council recommended five capital projects for funding on February 19, 2025, including the Palladium Theater renovation.
• Board of County Commissioners approved the five projects on March 25, 2025, for a total of up-to $26,400,000.00 in funding.
• Funding for this Agreement is not budgeted in the Convention and Visitors Bureau FY26 Adopted Budget in the Tourist Development Tax Fund and would necessitate a budget amendment if this project is approved.
Agreement for a not to exceed amount of $2,500,000.00 is effective for three years from the date of execution by the County with construction anticipated to commence no later than July 31, 2026; Authorize the Chairman to sign and the Clerk of the Circuit Court to attest.
Body
Strategic Priorities:
Prosperity and Opportunity
3.2 Provide and promote tourism opportunities
3.5 Foster business growth
Summary:
Summary
This agreement provides support for renovations to the Palladium Theater. This project has met the criteria defined in the Capital Projects Funding Program Guidelines (Guidelines) and includes tourism promotion benefits negotiated by the CVB. Renovations include new seating and redesigned stage and acoustics that will transform the facility into one of the region’s top theatrical performing and recording spaces.
The Agreement with SPC will commence upon final execution and will be in effect for three years. SPC anticipates starting construction no later than July 31, 2026. In accordance with the Guidelines, payment will be made on a reimbursement basis at project completion.
Body
Background Information:
The Capital Project Funding Program is one of the programs administered by the CVB on behalf of the County that awards funding to eligible capital projects that have met the criteria as defined in the Guidelines.
On March 25, 2025, the Board approved a maximum of $26,400,000.00 in funding for five capital projects, including $2,500,000.00 for the Palladium Theater. During contract negotiations, standard insurance terms were amended as the Palladium Theater is owned by a public entity that is self-insured. The revisions were reviewed and approved by County staff. In addition, the CVB negotiated tourism promotion benefits for a maximum return on investment for the County. Tourism benefits include permanent signage, use of event space, collaboration on joint marketing campaigns, branding and content links, collaboration on media tours and more, as detailed in Exhibit B. This Agreement is effective for three years from the date of final execution with construction starting no later than July 31, 2026. Payment will be made on a reimbursement basis at project completion, in accordance with the Guidelines.
The Palladium Theater renovations include new seating with improved sightlines, a redesigned stage and hall, and state of the art acoustics. These improvements will allow SPC to expand their business model to offer artist recording sessions, streaming, video recording, mixed media and other projects that previously weren’t possible.
Fiscal Impact:
Total cost: $2,500,000.00
Funding to support the Capital Project Funding Agreement in the amount of $2,500,000.00 is provided through the Tourist Development Tax Fund.
Staff Member Responsible:
Brian Lowack, Director, Convention and Visitors Bureau
Partners:
Tourist Development Council
Attachments:
Capital Project Funding Agreement
Capital Projects Funding Program Guidelines