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Home My WebLink AboutItem 03 - CU10-14 AMC Theater � '-,;G'�`!�/V�L `� CU10-14 AMC THEATER PROPERTY OWNERS WITHIN NOTIFICATION AREA SUPPORT: 1 LETTER OPPOSITION: 0 LETTERS � THE MILLS' A SIMON'Cattparry Honorable William D,Tato Mayor City of Qrapevine P.O.Box 95104 Grapevine,T�as 76099 RE; CUP Application for AMC Grapevine Theater Dear Mayor Tate: AMC T'heatros has filed a Condition�l iJae �ennit (CUP) application for its Grapevine Mills 30 Theat�e wbich would allow several of the auditoriume in the theatcr to become in-theater dining auditoriums. The Mills, as prop�rry owner, has consented to tho $ling of the applieation and has been monitoring th�application. On behalf of 'X'he Iv�ills, I would lika to thank you for always co�nsidering what is bast for Grapevine Mi11s Mall and the citizans of Grapevine. The Mills, the City and AMC all have the bes� interests of Cirrapevina at heart and in this occasion, we believe that this application is in the best interest of all, The Mitls fully supports AMC's application and believos the proposcd modifieativns will be a significant improvement for�rspevine Iv�i11s and for tho citizens of Crrapevine, Aftcr reviewing the pzoposed CUP application and analyzing its impact on �rapovine Mills, vve have canaluded that the conversion of the auditoriums will be a considarable enhancement ta the theatez and, therefore, be oxtremely positive for Grapevine Mills. The Mills and ita parent, Simon �roperty Group, have studied similar eonversions of the theatres to in-theatre dirung and we are certain that it has positive eff�cts on both theatre and mall attendance and revcnucs.For this reaeon we are supporting AMC in those changes at several other malla owned or managed by Sirnan Property C3roup. The concept being proposed by AMC is consistent with changes other theater orgaruzations are doing to modernize their facilities and remain competitivo. 'With the addition of two significant touriet attractions to Grape�vine Mills,the addition of the now in-theatre dining option at Qrapevine Mills 30 will fu�Rher add to the entertainment opportunities, Wc see it will increase patranaga of the Mall frorn pevple who have come to enjoy the other recreation amenitiea of Grapevine. It will help enhance Grapevine Mills as a major destination location in tho region. The results will be substantial for Grapevine Mills and tho community. �or these reasons, The Mills fully endorses and supports the AIvZC application. We reapectfully request that tho Planning and 7,onittg Commission reeouzmend approval and that the City Council approve AMC's CUP application, Once again, thank you for your�eadership, and please do not hesitato to call me if yau have any queetions rogarding our endvrsem,ent of this applieation, Regards, 4rcgg Goodman Presidezxt,The Mills/A Simon Company 5425 Wlscona�in�v�er�iue?Sulte 300.[h�vy Chase,MD 20815 341.968b0(� .dY.b�m�Eco � ��N wvz��s o �oa � z� � ��y '`- � ��, 3 � � � .. I � ' ��1 , Nr,r�<:EN1'EFTAitvAAEN7�NC. ' 92C Fl:AiN STkEET I KANSi+S GTY h40 cia 105 � I.f l6 221 4i)OC Honorable William D. Tate Mayor City of Grapevine P.O.Box 95144 Grapevine, Texas 76099 RE: Renovation of AMC Grapevine Theaire Dear Mayor Tate, On behal.f of American Multi-Cinema, inc., 1 wouid like to thank you for taicing the iime with us last week to discuss our pi-oposed investment in the AMC theah•e complex at Grapevine Mills. AMC appreciates your comments and can assure you that we have conducted the appropriate research on the Grapevine market in undertaking this investment. Please note that we are very excited with this �rospect and very eager to make the necessary improvements to the theat��e to make it once again the leader in the market area. Your comments were helpful in that tl�ey did give us an excellent opportunity to take a�tep back and reevaluate several issues. Accordingly, after having given serious consideration to those topics, we respectfu]ly provide the responses below. ISSUE I: Does AMC have an exit plan in the event the conversion is not successful'? RESPONSE; AMC does not typically plan for failure, but, as you stated, in any endeavor it makes good business sense to have a contingency plan in ihe event that expectations are not realized. Our proposed investment is incegral to tl�e future success of the AMC theatre and enhances our aUility to extend our lease beyond Che termination of the current lease term which expires in seven years. In this particular case, AMCs plan is to be prepared to respond to the market and implement the appropriate measures based on what the consumers want. It is important in the theatre business that options remain opeu and tl�at the operator does not commit to any one particular contingency plan in case that one alternative proves ineffective. Rather, the prudent appraach is to be flexible and adapt to ihe consumers'directions. This might involve (i) remov4l of the restaw�ant component, but retaining the alternative seating options; (ii) removal of both the restaurant component and alternative seating options; or, (iii) adapting to a new concept that satisfies consumer demands. However, in the event this concept does not satisfy our expectations to the point that it needs to cease, we con�mit to review our options with the City and Crapevine Mills LP,as our partners in the Grapevine Mills Mall develop�nent. ISSUE 2: Why is the price of tickets at AMC the highest around? RESPONSE: After our meeting, we conducted a survey of theatres in the market area and detennined tl�at although our ticket prices were in the higl�er range, they were not the highest, but�� 5882549v.3 �N r* � , � campetitive with other theatres. Additionally, the Grapevine AMC does offer a variety of discaunts to stt�dents and Senior citizens at specified times. ISSUE 3: access to the theatre fi-om the parking lot needs to be improved. RESPONSE: We have vrsited with the representatives of the owner of Grapevine Mills and disciissed improvements to the parking 1ot, signage and lighting. It is our understanding that the Mills wil] engage with a professional design fi�m to invesiigate improvements for pedestrian access froin the�arking lot to the plaza area, and for lighting and signage improvements. Further, the Mills is considering valet parking as option for customers. ISSUE 4: If AMC Grapevine has lost 40% of its business in the last 8 years, where did the business go'? RESPONSE: Our� records indicate that wrthin that same period the number of theatre locations within l l miles increased Uy over 50°/o. There has also been a di•amatic increase in market share realized by the"in-theatre dining' locations. Further, there has been an increase in alternate means of watching movies such as on-demand television and personal computer aecess. ISSUE 5: What improvements will be undcrtaken with tl�is project? RESPONSE: The proposed improvements wi11 consist of the following: i. Installation of high quality, digital pi�ojection equipment in all 30 auditoriums. ii. Conversion of fve auditoriums into the Cinetna Suites concept; which is a luxury theatre concept that consists of reclining cliairs, higher quality iood, and wait sen�ice for food and bevei-ages. iii. Conversion of eight auditoriu»ls into the Fork and Screen concept which consists of comfortaUle chairs and tables, quality food, and wait se�vice for food and bever-ages. iv. Installation of the MacGuffins restaurant in the theah•e lobby, at the entrance to the in-theatre dining area. v. AMC would ask that the items presented in this response be incorporated into the ordinance authorizing the SUP. ISSUE 6: What is the investment? RESPONSE: AMC proposes to invest a total of approximately $7.5 million dollars in this praject. Of tl�at amount, $5 million will be allocated to the In-Theatre Danixig conversion of the auditoriums and installation of the MacGuffins restaurant and $2.5 million ��ill go to the installation of digital equipinent through AMC and DC1P. ISSUE 7: ]s this a profitable concept?Will this be a successful endeavor in Grapevine? RESPONSE: As repoi�ed in many periodicals, on a natio»al level .In-Theatre Dining has expericnced consideraUle growtl� over the past few years and ihe numbers are expected to grow substantially. On a local level, it is apparent that the`Sn-theatre dinin�'concept has been successfu] in the Metroplex. Our records indicate that the box office gross for the Movie Tati�ern in Bedford increased by over 200% in the last four years and that the box office gross for the Movie Studio 58$2549v.3 f • Grill in Lewisvilte increased by over 185% percent over tl�e traditional tl�eatre concept '.hat previously occupied t3�at space. The nearest in-theatre dining location, the Movie Studio Grill in Lewisville, is over tive miles away. The AMC experience in conversion of traditional theatre� to In-Theatt•e Dining has beei� remarlcable. At the AMC 30-plex facility in Olathe, Kansas, at which we converted 13 auditoriums into the ln-Theatre Dining concept, we experienced an inerease in total revenue of 42% in a two year period. At other facilities we have converted, we have seen a 61% increase in attendance and a 1 1 f°% inerease in total revenue. We believe that the Grape��ine experience will likewise be successfiil based on our market siudies. We believe [hat the Grapevine movie-goet•s will be inclined to stay in their city and that this wil] be a successful venture. Furthei•, this i•enovation will provide an improved movie experience for Grapevine and will complement the existing and new tourist attractions in Grapevine. Please note that the installation of digital projection equipment provides the flexibilit�� of showing numerous other events not typically shown in a traditional theatre such as athletic events, concerts, and business events. We are very excited abo�rt bringing this capability to Grapevine. Once again Mayor Tate, we are gratefi�l f'or your tinle and participation in this process. Although you did raise some difficuIt issues, tl�ey proved to be constructive in the analysis of our commitment to the Grapevine Mills commercial area and ta the citizens of Grapevine. We look forward To responding to any other concerns yoa may have and thank you for your commim�ent for doing what is best for the citizens of Grapevine. Regards, ��`-1 f.� George Patterson cc: City Councilmember Darlene Freed City Councilmember C. Shane WiIbanks City Councilmember Chris Coy City Councilmember Sharron Spencer City Councilmember Roy Stewart City Councilmember Mike Lease Mr.Bruno Rumbelow, City Manager 5882549v,3 �3 " � �Z �� POLICIESAND PROCEDURES AMC has successfully operated restaurants and in theatre dining for over 10 years without incident or violations.These concepts successfulty integrate dining into traditional theatre operations.In fact, in- theatre-dining operations have been considered "restaurants" by licensing authorities in AZ, IL,CA,OR, FL and TX. Food and Beverage revenues account for 60-709'0 of total�evenue(Alcohol sales account for 10-20%of Food&Beverage sales)and box office admissions account for the remaining 30-40%. By this measure,meal service is not secondary, but primary to the concept.AMC's Alcohol Control Plan includes the following key tactics: Age Restriction—Guests to Fork&Screen locations must be 18 or older unless accompanied by a parent or guardian.The target demographic for in theatre dining is primarily adults. Unsupervised teens are not allowed into these auditoriums. Identification must be presented when tickets are purchased and when tickets are torn to ensure compliance.Additionally,associates must by 18 years of age to sell, pour alcohol,or remove open alcohol containers after the film is complete. We maintain a st�ict recruitment selection policy in support of our alcohol control plan. Auditorium Environment—Given the strong food service focus in the auditorium,there are several key differences between this type of auditorium and a traditional theatre auditorium: • Seat Count—Seat counts are reduced by 50-709'o to accommodate a space fo�guests to eat in the auditorium.Thus,an auditorium that would normally seat 100 traditional guests will only have capacity for 35-50 guests.This allows for greater circulation of servers and wpervision of guests. � Light levels—lighting levels are 10-15%brighter than a traditional auditorium to allow servers to deliver food and drinks safely and to allow guests to eat while the movie is playing. This also allows servers to easily identify any potential compliance problems. In-Theatre-Service—Due to the heavy emphasis on food service,the allocation of staffing and interaction with guests is similar to that of a traditional restaurant(Outback,Applebee's,Chili's�.Please note the following: • Servers—Servers have primary responsibility for checking ID's when alcohol is ordered.We will check ID for any guest who appears to be under the age of 30.We will have one server staffed for every 20-30 guests and servers and runners are in and out of the auditoriums � � � � � ' i � � , . . . • • . continuously throughout the film.Servers,with support from management,retain primary responsibility for monitoring the auditoriums to ensure compliance. • Serve�Training—Servers undergo mandatory TIPS(Training for Iniervention Procedures) training.TIPS is a skills-based, alcohol training and certification program that is designed to prevent intoxication, underage drinking,and drunk driving by enhancing the fundamental "people skills"of servers,sellers and consumen of alcoholl. Upon hire,all servers sign an acknowledgement form that states that failure to follow AMC's rules, policies and procedures provided in ou�alcohol control plan and tactics will lead to immediate appropriate disciplinary adion, up to and including termination. Guest Interaction—Servers have assigned sections of each theatre to collect orders and run prepared food and drinks.Servers interact with guests at the following intervals: • 1Nithin 5 Mfnutes of Seating—Greet guest and place drink order • Within 10 Minutes of Seating—Drink orders are received and food orders are placed • �thin 15 Minutes of Food Order—Prepared food arrives • Pe�iodically During the Film—Consumed food is pre-bussed • Within 30 Minutes of End of Movte—Checks are delivered and payment collected • Within 15 Minutes of End of Movie—Receipts are delivered to guests Hours of Operation—Local or state regulations for the cutoff of alcohol sales vary by location. Respectful of this,each week,when preparing our film showtime schedule, every effort is made to ensure that all shows that begin before the alcohol cutoff time are finished to allow guests to exit the building before the cutoff time. In the event that we have a feature with an unusually long length, servers will pick up all open alcohol containe�s well in advance of the cutoff time. Alcohol Compliance Monitoring—All associates that seroe,sell,handle,or monitor guests purchasing alcoholic drinks play a vital role in enforcing alcohol policies.Servers have primary responsibility for ensu�ing compliance but theatre specific tactia may call for additional designated associates to be responsible for: • Ensuring guest compliance with alcohol policies • Monitoring and preventing alcohol consumption by minors • Ensuring alcohol is consumed in designated areas only • Ensu�ing guests do not leave the premises with alcoholic beverages �u TIPS Alcohol Training Online Site�http://www.tipsakohol.com�. � ■ e � � � � , s . --• . �