REHOBOTH BEACH, Del. — Rehoboth Beach commissioners are set to discuss and possibly consider a proposed public-private partnership agreement with Clear Space Theatre Company on Monday, Oct. 6, following their 9 a.m. workshop meeting at City Hall.
New home would be where Cape Henlopen Senior Center stands
The proposed agreement outlines terms for a new performing arts center that would be built on city-owned land currently occupied by the Cape Henlopen Senior Center, which already has plans to build a new senior center on Hebron Road. Under the draft terms, the city would enter a 30-year triple net land lease with Clear Space, with two 10-year renewal options.
The Cape Henlopen Senior Center on Christian Street already plans to move to Hebron Road.
In the agreement as written, the city would be responsible for removing the existing senior center structure before construction. Clear Space would then construct a roughly 40,000-square-foot performing arts center.
As written, the agreement also stipulates that Clear Space would retain full independence.
"The land lease between Clear Space shall in no way impact Clear Space’s full creative autonomy in its artistic and business endeavors," the agreement states. Adding that Clear Space would select its own architect for this project. However, the agreement stipulates that a city commissioner would serve as an ex officio member of the Clear Space Building Committee to help maintain communication between the city and the organization during development.
Financials include waived permit fees and new ticket fees
Financially, the draft agreement calls for Clear Space to pay $1 per year in rent for the land lease. The city would contribute $1 million toward the theater’s capital campaign, paid in five annual installments of $200,000 beginning in 2026. The city would also waive building permit fees and collect a facility fee on ticket sales, starting at $1 per ticket in the first five years and gradually increasing to $3 per ticket over the life of the lease.
Once the facility is complete, the agreement states Clear Space would be eligible to apply for city community partner funding as a local arts institution.
Parking plans in the proposal include the possibility of surface or underground options. A designated number of spaces would be reserved exclusively for Clear Space’s use. The city's agreement stipulates Rehoboth Beach would maintain all parking revenues from the parking spots on the parcel.
Agreement comes after move to Lewes was floated
This April, Clear Space Theatre gave a presentation to the Lewes City Council exploring the possibility of a move to Lewes.
At that time, Managing Director Joe Gfaller told CoastTV Clear Space needed more space, whether that would be in Lewes or elsewhere in Rehoboth Beach.
“We’re trying to be very thoughtful about what this region is going to need, not just tomorrow or in five years, but in 25 or 35 years," Gfaller told CoastTV in April. "Because what we build, we’re going to build to be sustainable for the long term.”
Years ago, Clear Space originally intended to move to a new location at the top of Rehoboth Avenue, but that was abandoned after public pushback and a back-and-forth from the city that drew the threat of lawsuits.
Clear Space had planned to build on this lot on the 400 block of Rehoboth Avenue, but sold the property after years of pushback and back-and-forth approvals.
Clear Space sold the lot which now will be three mixed-use buildings that are currently under construction.
Agreement to be discussed Monday Oct 6
The proposed terms remain subject to further discussion and possible revision before any final approval. Commissioners are expected to take up the proposal during Monday’s special meeting.