Hudson Pacific Properties, Inc. and Cinemark Theatres have reached an agreement to keep the CineArts Palo Alto Theatre open for the next two years, while the parties undertake improvements to the building and assess the long term future of the theatre.
The decision was the result of discussions between Hudson Pacific and Cinemark over the past two months at the urging of the City of Palo Alto. Hudson Pacific agreed to make several building improvements as requested by the theatre operator. Hudson Pacific also intends to make landscaping, amenity, and other aesthetic improvements to Palo Alto Square that will not only benefit existing occupants, but also theatre patrons.
"This reprieve for the Palo Alto Theatre is the result of efforts by Hudson Pacific and Cinemark Theatres with encouragement from the City," said City Manager James Keene. “Hudson Pacific and Cinemark are to be congratulated for coming together for the good of our community. We had hoped for a longer term lease extension at this time. But the theatre will remain open and ultimately the economics of the theatre's operations will determine whether Cine Arts will remain in this location. To see a longer lease extension in the future, our community will need to actively support the theatre.”
Drew Gordon, Senior Vice President of Hudson Pacific, said: “We appreciate the cooperation and goodwill by everyone involved to make this happen for Palo Alto. The next two years are a window of opportunity to determine whether the theatre can operate in Palo Alto Square for the long term.”
Tom Owens, Executive Vice President, Real Estate, Cinemark, said: “We applaud the efforts by Hudson Pacific Properties and the City of Palo Alto to enable the theatre to continue operating. We believe the theatre can stay in Palo Alto with the community’s full support, and we look forward to the opportunity to serve Palo Alto and the surrounding region.”