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for placing trailers, because one of the current problems is that you take your child to a PG 13 <br /> film, but an R rated trailer is playing on the front. Consequently, the Syufy Company does is <br /> places their own trailers, so that no R rated trailers are placed prior to the PG 13 movies. <br /> • Does the theater ever adjust starting times to respond to the transit and train schedules? <br /> Syufy explained that the Syufy Theaters have never been in a position of such proximity to the <br /> train station. Of in this context the opportunity does present itself to . looking at the <br /> schedule of the train and making sure it is convenient to coordinate the azrival train time with <br /> the theater schedule. However, with 20 screens there are multiple starting times, and generally <br /> there will be something on that appeals to the public. <br /> • The Hollywood Reporter article indicated that 16 to 18 screens is ideal for seating, what is <br /> the formula for seats, and why 4200 seats; what aze the components that make most <br /> cinemas work? <br /> Syufy said that the numbers of 16 to 18 screens is simply ideal. However, in this particulaz <br /> setting the Syufy's know that it will need 20 screens because of the local market, and in order to <br /> properly serve the demand. This assumption is based on observations of number of people <br /> going to the movies, and based being aware of what the potential for this area is. This <br /> knowledge is also based on a number of indicators, i.e. demographics, natural barriers (streets <br /> that people won't cross), educational level, diversity, economic status (median income, etc.) etc. <br /> Based on these factors the company figures out how much each person will spend annually on <br /> movies. From that number conclusions aze draws as to the expected attendance and revenues. <br /> Syufy clarified that the most successful components in having a successful theater are, amongst <br /> many other things: location, and making sure that all the blockbuster movies aze offered. As far <br /> as revenue per seat and per screen it really varies dramatically from one place to the next. <br /> However, in this setting the Syufy's Enterprises are certain that this project will be successful, <br /> and have no doubts that it will revitalize the downtown of Redwood City. <br /> Tim Kelly, from Keyser Marston Associates, Inc., Economic Development Consultant <br /> addressed the council and responded to the next set of questions. The first question involved <br /> speaking to the issue of the "health" or lack of health of the industry when one operator controls <br /> the mazket (monopoly). Kelly's response included statement that clarified that in the history of <br /> theaters control of a certain region is not uncommon. The major challenge is that operators <br /> have a tendency to not upgrade and upkeep the physical facility of existing theaters, this in <br /> terms of the technology available. This includes: digital sound, stadium seating, wide screen, <br /> etc. Sometimes there also is a lack of number of screens, and other times there is a lack of <br /> proper maintenance of the theater. However, today the consumer is demanding state of the art <br /> theaters. Therefore, the consumer is driving the quality of the theaters. <br /> The second question answered by Kelly requested that the expert present data about cities <br /> where cinemas have failed. Kelly, stated that the only cinema he is awaze of that failed is the <br /> downtown United Artists cinema in downtown San Jose. Some of the reasons for its closure <br /> REGULAR COUNCIL MEETING DECEMBER 4, 2000 <br /> MINUTES PAGE 8 <br />