Peekskill Officials to Sign Lease for the Paramount Monday

The City of Peekskill Common Council released the following statement.

Mary F. Foster, mayor of the City of Peekskill has announced that the Common Council will vote on an agreement Monday night with Red House Entertainment to lease, manage, and operate the Paramount Theater. The Paramount, one of Westchester’s important cultural landmarks and the heart of Peekskill’s downtown business district, was shuttered in the fall when its nonprofit operator ran into financial difficulty and disbanded.

Says Peekskill Mayor Mary F. Foster: "We've taken a large step forward towards reopening the Paramount Theater. I’m pleased that we’ve reached an agreement on lease terms with Red House Entertainment for the management and operation of the theater. The agreement is strong and is positioned to benefit both parties.”

Says acting City Manager Brian Havranek:  "We're thrilled that the doors of the Paramount will be open again and I’m especially looking forward to Red House's innovative marketing plans and its focus on integrating programming with other entities throughout the City."  Havranek also added: "We'd like to thank the many city employees who contributed to the negotiation process."

Says Kurt Heitmann, CEO of Red House Entertainment:  “We’re very happy to have reached an agreement with the City of Peekskill. We’re looking forward to working with the City and the Peekskill BID as we reopen the Paramount Theater. We’re very pleased that everyone has gathered together to make this agreement happen.  It’s a great day for this vintage theater to be reopening in Peekskill and the Hudson Valley.” 

Major lease details

• 17 year contract with a 10 year option
• The City will receive 5% on the adjusted gross income of ticket sales of every show
• The City will cover utilities for the first six months
• Red House Entertainment projects gross ticket sales of $900,000 in the first year (October, 2013  to October, 2014 and projects $2.2 million annually in year two)

The lease will be presented to the Common Council at a Special Meeting Monday night at 6:30 p.m. at City Hall. Upon approval, it’s expected the lease will be signed by both parties shortly thereafter.

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It's official.

 Red House Entertainment and the City of Peekskill are formalizing an agreement to operate and manage the Paramount Center of the Arts during a special meeting that's scheduled to take place 6:30 p.m. Monday at Peekskill City Hall.

Red House Entertainment was one of three organizations who submitted bids to operate the theater earlier this year.

The  Tarrytown Music Hall and the Paramount Phoenix Group were the other two bidders.

The Paramount has been closed since October, after the original management group failed to reach its fundraising goals.