HomeMy WebLinkAboutCC_2021-02-23_MinutesPUBLIC COMMENT PROVIDED BY EMAIL
C. MANAGEMENT REPORTS
C-2
SUBMISSION FROM: Jason Nelson
From: Jason Nelson <jason@oakcreekco.com>
Sent: Tuesday, February 23, 2021 3:19 PM
To: City Clerk <cityclerk@atascadero.org>
Subject: Item C-2
Hello,
My name is Jason Nelson, my family owns the Colony Square property. I assist in managing the
property along with Pacifica Property management. The collective work to acquire the
property represents 15 years of efforts. As the theatre has been shut down by State law since
mid-march they have been unable to pay rent since then. The lender on the property is now
moving towards foreclosure which would be the first pandemic related foreclosure in San Luis
Obispo and surrounding Counties. Hope is on the way for the movie theatre as the latest
pandemic relief pass included funding for theatres and other public venues shut down by the
pandemic to be able to receive funds to pay for back rent and al low the theatres to open again
once it is safe.
Please pass this resolution to assist us in our efforts to stabilize the property as a grant funding
is on the horizon and shows great promise.
Thank you for your consideration.
Jason Nelson
The Oak Creek Company
Cell: 805-202-9384
Office: 805-845-4411
jason@oakcreekco.com
SUBMISSION FROM: Larry Cavaletto
From: Larry Cavaletto <cavaletto@cox.net>
Sent: Tuesday, February 23, 2021 2:48 PM
To: City Clerk <cityclerk@atascadero.org>
Subject: For tonight's meeting Feb 23, 2021 2. Resolution to Support the Galaxy Theater and Colony
Square Commercial Properties During Covid-19
For tonight's meeting Feb 23, 2021
CITY OF ATASCADERO CITY COUNCIL
AGENDA
Tuesday, February 23, 2021
City Hall Council Chambers, 4th floor 6500 Palma Avenue,
Atascadero, California
2. Resolution to Support the Galaxy Theater and Colony Square Commercial
Properties During Covid-19
I am Larry Cavaletto, my family and I worked with Jeff Nelson and his family for the last 15 years
to put them and us in a position to create Cinema Square LLC and buy the Cinema Square property that
includes the theatre and other businesses.
It would be heartbreaking and terribly unfair to have this property taken by
a lender because of the pandemic when no one has done anything wrong.
I urge you to pass this resolution.
Larry J Cavaletto
587 Christmas Tree Lane
Santa Barbara, CA 93111
805-452-2804
SUBMISSION FROM: Debbie Arnold (emailed from Jeff Nelson)
From: Jeff <jeff@jeffnelsonlaw.com>
Sent: Tuesday, February 23, 2021 2:47 PM
To: City Clerk <cityclerk@atascadero.org>
Cc: Phil Dunsmore <pdunsmore@atascadero.org>; Heather Moreno <hmoreno@atascadero.org>;
Rachelle Rickard <rrickard@atascadero.org>; Micki Olinger <molinger@co.slo.ca.us>;
darnold@co.slo.ca.us
Subject: Atascadero item C-2 Feb. 23, 2021 Colony Square
Dear City Clerk,
Please include this letter from Supervisor Arnold in the record and read it too if you can.
Thank you very much.
Jeff Nelson
Cinema Square LLC
Cell (805) 698-0795
COUNTY OF SAN LUIS OBISPO
BOARD OF SUPERVISORS
Debbie Arnold District Five Supervisor
County of San Luis Obispo Government Center
1055 Monterey Street | San Luis Obispo, CA 93408 | (P) 805-781-4339 | (F) 805-781-1350
info@slocounty.ca.gov | slocounty.ca.gov
February 23, 2021
To Whom it May Concern,
As the Supervisor representing the Fifth District of San Luis Obispo County, including the City of
Atascadero, economic resiliency during the Covid-19 shutdown has become very important to
me.
It has come to my attention that the property owner of the Galaxy Theatre located in Colony
Square is hoping to delay the foreclosure process of this key property in downtown Atascadero.
I understand that this business property has qualified for SBA grants for businesses that
suffered a 90% reduction in revenue during Covid-19 closures. It is also my understanding that
the property owner has tried to work with the lender to delay payments until grant
opportunities are exhausted. The Galaxy Theatre has been closed due to Covid19 for all but 3
days over the past year.
This commercial property is vital to the success of the Colony Square, a property of great
importance to the economic well-being of downtown Atascadero.
It is my hope that the Lender for the Cinema Square LLC property, site of the Galaxy Theatre,
work with the property owner as they seek grant funding to meet their financial obligations. At
a time when many businesses are struggling through no fault of their own, we need all
economic partners working together, including the banking community, to ensure an economic
recovery in San Luis Obispo County.
Thank you for your consideration.
Sincerely,
Debbie Arnold
District 5, County of San Luis Obispo
SUBMISSION FROM: Jordan Cunningham
From: Handley, Kristen <Kristen.Handley-Polster@asm.ca.gov>
Sent: Tuesday, February 23, 2021 5:05 PM
To: City Clerk <cityclerk@atascadero.org>; Phil Dunsmore <pdunsmore@atascadero.org>; Heather
Moreno <hmoreno@atascadero.org>; Rachelle Rickard <rrickard@atascadero.org>; Micki Olinger
<molinger@co.slo.ca.us>; darnold@co.slo.ca.us
Subject: Atascadero item C-2 Feb. 23, 2021 Colony Square
Importance: High
Dear City Clerk,
Please include this letter from Assemblyman Jordan Cunningham in the record and read it too if
you can.
Thank you very much. Please reach out if you have any questions.
Best,
Kristen
Kristen Handley
District Director
Assemblyman Jordan Cunningham
(805) 549-3381
Kristen.Handley@asm.ca.gov
1304 Broad Street
San Luis Obispo, CA 93401
February 23, 2021
The Honorable Heather Moreno
Mayor, City of Atascadero
6500 Palma Ave
Atascadero, CA 93422
Mayor Moreno:
I have recently been made aware that the Galaxy Theatre located in Colony Square is in danger
of going through the foreclosure process from their lender, a Wall Street lender in the state of
New York. The property owner is seeking to delay the foreclosure process to allow for the
application and award of grant funding, and is seeking City support to encourage a delay on the
foreclosure on a property that has been substantially impacted by COVID-19.
The Galaxy Theatre is one of the most significant tenants this complex and provides the largest
portion of rental revenue for Colony Square. During the pandemic, Galaxy Theatre, to no fault
of their own, was unable to pay rent. According to the property owner, this loss of revenue
significantly impacted the owner’s ability to make mortgage payments on this portion of the
commercial center.
The Colony Theatre and the rest of Colony Square is the hub of the downtown area and vital for
the growth of the City of Atascadero. It is imperative that the theater be able to survive the
COVID-19 pandemic and return to opening as soon as allowed.
Earlier this week, the Legislature passed SB 87, a bill which I coauthored that would create a
grant program specifically for small businesses impacted by COVID-19. If given the time to apply
for and receive funding via this new grant, the Galaxy Theatre could have enough funding to
help pay its back rent and keep the property out of foreclosure.
The New York lender is prohibited under New York law from foreclosing on any New York
properties, so is taking is opportunities out of state. This lender has no idea of the importance
of this theater to the survival and recovery of the City of Atascadero from this pandemic. Many
grants, State, Federal and local are newly available that would remedy this situation if given a
chance for the process to complete. This includes the Shuttered Venues Grant.
I am asking that the lender work with the tenant of the Cinema Square LLC and refrain from
foreclosing on the property during this pandemic until the grant funding process has been given
a chance to play through. New York may not know how important this theater and commercial
center is to our City of Atascadero, but we realize its critical impact on the entire downtown
footprint.
Sincerely,
Jordan Cunningham
Assemblyman, 35th District