Soundcheck Austin Sublease Fact Sheet
Agnes Varnum | Aug 25, 2009 | Comments 3
Below are facts about the Soundcheck Austin sublease that will be considered at the Austin City Council meeting on Thursday, August 27th.
Terms (AFS has provided EGRSO and COA Legal with construction drawings and unexecuted copy of the sublease)
• 27,921 base rentable square feet in Stage 4.
• Soundproofing, air conditioning and electrical upgrades.
• 7 rehearsal and recording studios ranging from 720 to 2,290 square feet
• 8 vendor showroom and office spaces, 86 lockers for equipment and set storage.
• Soundcheck will contribute $500,000 up front to pay for a portion of the improvements, plus substantial monthly rent. AFS will contribute up to $475,000.
• Five-year initial term with two five-year renewal option periods.
• The right to build an addition onto Stage 4 (subject to COA approval)
• When Soundcheck refers tenants to Stages 3 and 5, Soundcheck will provide rigging and front-of-house system, if available, without rental charge.
Allowable Uses per Sublease (compliant with Primary Lease)
• From the sublease: “The Premises may be used by SCA only for digital media and multi-media productions and support services related thereto and for no other use or purpose.”
• Examples: behind-the-scenes television specials, inserts (close-up cutaways), voiceover recording, ADR (dialogue synced to film to replace production sound), live scoring, music performance shoots, music videos, webcasting, digital soundtrack creation, still shoots and the projection of video during live performance rehearsal.
• Educational uses will include internships for college credit and free and paid workshops for professionals and youth.
Local Hiring Requirements
• 90% local if 50 or more employees; 75% local if fewer than 50 employees.
Production Impact
• Stage 4′s features can be replicated through existing vacant warehouse stock. Texas Film Commission currently has 18 such properties listed.
• A production has never chosen a different city over Austin due to Austin Studios’ being full. More important than facilities are these considerations, in order of importance: (1) Cash incentives, (2) Locations, (3) Crew.
• Austin Studios will be positioned as a production facility in the increasing convergence of digital media. Austin Studios has experienced “boom-and-bust” economic cycles. Soundcheck’s occupancy will smooth out these cycles.
Not a “sweetheart deal”
• AFS is charging substantial rates to Soundcheck. This being said, our primary lease does not mandate rental amounts, as the goal of Austin Studios is economic development.
• Soundcheck approached AFS with an offer. AFS has received no other offers to invest in a build-out and has no capital to build out on its own. AFS was able to get a 5% interest, unsecured long-term loan from a charitable foundation on the strength of Soundcheck’s commitment.
No Prop. 4 Issues
• COA Bond Counsel has reviewed and declared there to be no compliance issues.
Popularity: 1% [?]
Filed Under: Austin Studios
According to the City of Austin’s website, the bond passed by taxpayers in 2006 was for “Renovation of Austin Studios, including soundproofing, electrical upgrades and fire suppression systems. Austin Studios are City-owned buildings on the Mueller redevelopment site that are leased and operated by the Austin Film Society as part of a public/private venture. These improvements will allow the film studios to continue to operate and service film making projects in Austin and become a public resource for information about the local film industry.”
That doesn’t sound like anything Soundcheck does, based on Soundcheck’s website and publicity. The services offered by Soundcheck are provided by Music Lab, Music Makers, and Rock N Roll Rentals – all here in Austin. How exactly will Soundcheck further the development of FILM in Austin? Are you trying to kill FILM in Austin by bringing in an unrelated music company? Why will you not let FILM use Studio 4? Did the filming of Friday XIII in Studio 4 last year somehow hurt AFS?
Perhaps you should stick to what the taxpayers voted for and not change the direction of land use at Mueller. It’s sad that Austin taxpayers may not believe you next time you ask for money to increase FILM in town.
My reaction to receiving an email from one of my members asking for support for AFS at Thursday’s council meeting was to pick up the phone and call the stagehand’s local in Nashville.
I found out that SoundCheck Nashville is NOT labor friendly. Their presence in Austin will likely further erode wages and conditions.
Keith Harris
President
IATSE Local 205
This is a done deal folks. This is the beginning of the end of the Film industry in Austin. At least at Mueller.
the fact is it’s going to become a large rehearsal facility complex. There is big money in Austin that want those stages to pull this off. There is serious corruption going on and it is unfair to the public who had so much faith in the AFS mission.
I have many friends that you are going to put out of business because of your actions. It’s criminal what you are planning to do. Pure gold for you and a $100 dollars a year for us.
Thanks. Someday we’ll return the favor.