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Syufy, reassured the audience that his company puts about 5 million dollars a year back into existing theaters, through remodels, retrofitting, replacement of seats and other accessories. Syufy also added that it was part of their business plan to maintain the facilities that their company owns. Syufy clarified that the company was founded by his father, and has been in business for 50 years. Additional reassurance comes from the fact that within the lease agreement, there will be a clause making the developer as well as the occupant accountable for the appearance of the structure. • What is the plan to keep youth from R rated movies? Syufy, stated that this is a really tough issue because if someone really wants to get into an R rated movie, they probably will. However, what the theater does is checks the ID's at the box office, check the tickets at all check points, ushers wonder through the hallways and only 15% of the titles at any given time are R rated. Most films that come out are PG 13, because of the broader audience. Recently, the National Association of Theater Owners adopted a standard for placing trailers, because one of the current problems is that you take your child to a PG 13 film, but an R rated trailer is playing on the front. Consequently, the Syufy Company does is places their own trailers, so that no R rated trailers are placed prior to the PG 13 movies. • Does the theater ever adjust starting times to respond to the transit and train schedules? Syufy explained that the Syufy Theaters have never been in a position of such proximity to the train station. Of course, in this context the opportunity does present itself to looking at the schedule of the train and making sure it is convenient to coordinate the arrival train time with the theater schedule. However, with 20 screens there are multiple starting times, and generally there will be something on that appeals to the public. • The Hollywood Reporter article indicated that 16 to 18 screens is ideal for seating, what is the formula for seats, and why 4200 seats; what are the components that make most cinemas work? Syufy said that the numbers of 16 to 18 screens is simply ideal. However, in this particular setting the Syufy's know that it will need 20 screens because of the local market, and in order to properly serve the demand. This assumption is based on observations of number of people going to the movies, and based being aware of what the potential for this area is. This knowledge is also based on a number of indicators, i.e. demographics, natural barriers (streets that people won't cross), educational level, diversity, economic status (median income, etc.) etc. Based on these factors the company figures out how much each person will spend annually on movies. From that number conclusions are draws as to the expected attendance and revenues. REGULAR COUNCIL MEETING MINUTES DECEMBER 4, 2000 PAGE 8 MINUTES Book No.58 Page NO. 270