It took six years for the Pacific Repertory Theatre to renovate and reopen the Golden Bough Playhouse; the original building permit goes back to 2019.
"What none could have anticipated was the unprecedented escalation in construction costs that followed—supply-chain disruptions, wage increases, fuel costs, insurance hikes, and five years of inflation across every trade," wrote Founder and Executive Director Stephen Moorer in a letter dated April 17 to the Carmel City Council, requesting a waiver of $196,649 in permit fees PacRep was due to pay. "As a result, the total project budget has grown [from $2.5 million] to over $13 million, even though the project itself experienced few changes."
The request led to an interesting discussion during the Carmel City Council's special meeting on Aug. 3, where Moorer and many members of PacRep's board of directors appeared, pleading their case.
Acting City Administrator Brandon Swanson reminded the council members that the renovation has been under review since 2019, and despite the claim that the project experienced few changes over the six years, staff's review of the permit history indicates it evolved substantially.
There were seven planning applications, which created various modifications to the originally approved project; four separate building permits that were ultimately consolidated into a single master permit; and three building revisions, with changes to the project continuing through July 2024. Each revision required additional staff review, plan checking, coordination with consultants, inspections, meetings with PacRep's design team and permit administration. Hundreds of documents were reviewed by City staff.
"One hundred individual inspections were made," Swanson reported, "not to mention all the consultations and site visits conducted as a courtesy"—plus $18,000 paid to outside firms that reviewed the project.
Swanson reminded the council that permit fees play an essential role in Carmel's budget and are calculated based on a percentage of a project's value. A project worth $13 million therefore generates significantly higher fees than one worth $2.5 million.
The Golden Bough Playhouse renovation project has received some waivers from the council in the past—$1,005 in planning permit fees and a $13,000 waiver in building permit fees, both in 2020.
The council seemed supportive of PacRep and the project, acknowledging there was precedent for waiving fees, after the council recognized in 2020 that the community benefits from the arts and from protecting historic sites and buildings.
That said, "I'm concerned to not create a precedent," said Councilmember Bob Delves, positioning himself as the "financial hard edge," or the conscience of the council. "I'm struggling to go yes on this," he added, pointing out that PacRep was hardly isolated when it comes to the obstacles the project encountered during the pandemic.
"I'm not going to be a relief to Bob's hard edge," said Jeff Baron, who also said he was one of the three councilmembers in 2020 who voted to reduce the fees by fifty percent. He described PacRep's request as "do what you want and ask forgiveness later" behavior.
Councilmember Alissandra Dramov suggested a 25% reduction of the $196,649 and a payment plan to help PacRep pay off its debt. Mayor Dale Byrne acknowledged an appetite to increase the waiver to 50%, leading to a 4-1 vote that halves $200,000 in pending fees and a promise of discussions to set up a payment plan.
The fact that PacRep operates the City-owned Outdoor Forest Theatre in Carmel certainly played a role in the council's decision. PacRep is planning to bring more expensive lighting to the beloved outdoor venue, increasing its value. If bogged down by permit fees, it might not find enough money to do so.