REHOBOTH BEACH, Del. - Clear Space Theatre, currently located on Baltimore Avenue, is looking to relocate and expand its operations and a proposed public-private partnership with the City of Rehoboth Beach could help make it happen.
At a special meeting Monday, city commissioners, members of the public, and representatives from Clear Space discussed a proposed 30-year lease agreement for a new theater to be built on Christian Street. The site is currently home to the Cape Henlopen Senior Center, which already has plans to relocate to Hebron Road.
Already a new location is planned on Hebron Road.
While six sections of the proposed agreement were largely agreed upon, four financial provisions raised concerns among commissioners.
The key sticking points include:
A $1 million capital contribution from the city to support Clear Space’s development campaign.
Waiving of building permit fees for the new theater.
The city maintaining all parking revenue from spots located on Clear Space’s land.
A city-imposed facility fee on all tickets sold for events held at the new venue.
"We are deeply grateful to the commissioners of Rehoboth Beach for continuing to move the ball down the field on this project," said Joe Gfaller, managing director of Clear Space Theatre. "We look forward to continued conversation to finalize the remaining points."
Gfaller also acknowledged the competing proposal from the City of Lewes, stating that Clear Space is carefully weighing both options.
"Since we have been in communications with Lewes and we have been in communications with Rehoboth, our hope is that we will be able to understand both offers and make a solid decision based on what has been proposed from both municipalities," he said.
Rehoboth Beach City Solicitor Lisa Borin Ogden noted that the Lewes offer is "strong," but Commissioner Suzanne Goode emphasized that both the public and the commission should have full visibility into what Lewes is offering, just as they do with Rehoboth’s proposal.
Local David McDonough, who attended Monday’s meeting, voiced his support for keeping the theater in the city. "I love going to downtown Rehoboth we go out to dinner and see shows. It would be a real loss if they left the city."
However, not everyone supported the project. During the public hearing portion of the meeting, two speakers claimed that it would be illegal for the city to contribute $1 million in public funds to a private organization’s capital campaign.
Commissioners voted 6–1 to create a task force that will further evaluate the financial aspects of the proposed partnership.
This is not Clear Space Theatre’s first attempt at building a new venue in Rehoboth. A previous effort to construct a new theater on Rehoboth Avenue led to four years of legal and bureaucratic hurdles, including a lawsuit and a series of denied and reversed decisions. Those plans were ultimately dropped.