Cape Coral City Council agreed that city contributions to both the Cape Coral Historical Society, Inc. and Cultural Park Theatre Company, Inc. should be $45,000 annually.

City Assistant Manager Connie Barron said the license agreements came before Council Wednesday because discussions began 10 to 11 months ago regarding language that was in the leases for the Historical Society and the operation of the historical museum, as well as Cultural Park Theatre Company for the operation of the theater.

The term sheets that were compiled and presented to Council will be used to develop the actual license agreements. The agreements, which were for 49 years previously, are now for 10 years, effective Jan. 1, 2025, with three five-year renewal terms for a total of 25-year agreement.

A license agreement was created to provide the city with a little more control over the facilities and bring some commonality to all the agreements.

Both of the agreements include a $3,000 deductible associated with maintenance and repairs. If the repairs exceed $3,000, the city will cover the amount above and beyond $3,000.

Barron said it also includes the organizations putting aside funds for any capital improvements. If they have net income above and beyond expenses without the city’s donation counted in, 50% of the net income is to be placed into a capital reserve fund.

“We are requiring both of the organizations to provide business plans and financial statements that we will be reviewing with them and meeting with them on a quarterly basis,” Barron said.

City staff will revisit the agreements every three years to see if there needs to be any modifications for the maintenance, or city contribution.

Both of the organizations will be responsible for the non-ad valorem taxes — fire and stormwater.

The Cape Coral Historical Society, Inc. taxes are about $1,000 and about $2,000 for the Cultural Park Theatre Company, Inc.

There was also added language for beer and wine sales to ensure there is proper licensing on the property.

The majority of the council agreed that the organizations should be open a minimum of 10 hours a week.

Barron said the license agreement should be ready for Council consideration by October.