New Canaan council approves Playhouse Lab lease termination, narrowly OKs short-term management deal

The New Canaan Town Council on Dec. 17 approved a lease termination with Playhouse Lab LLC and then voted 9–3 to authorize a month-to-month management services agreement that lets Playhouse Lab operate the town-owned theater while the town seeks a longer-term operator.

The decisions followed a public comment from resident Roy Abramowitz and a legal presentation from attorney Doug Lamonte of Birch and Masons, who characterized the two documents as a package negotiated to "keep the lights on" during the holidays and to provide a turnkey transition until a new operator is selected. Lamonte said the lease termination is effective Dec. 2 and that the management agreement is terminable on 30 days' notice; the town issued an operator RFP with a Jan. 7 submission deadline.

Why it matters: Council members and a public speaker raised concerns about the town’s financial exposure and whether the short-term management contract contains sufficient oversight. Abramowitz told the council the original lease provided "a below market" rent of $120,000 per year for an 8,560-square-foot space (about $14.02 per square foot) and said Playhouse Lab owed roughly $340,000 to the town. Those figures were presented during public comment and attributed to Abramowitz’s review of the lease and related materials.

Council debate and dissent: Several council members questioned whether a management agreement that lets the operator keep revenues and pay operating expenses without regular reporting left the town exposed. Councilor Kim Norton said she was "not comfortable" voting for the management services agreement, citing unresolved questions about prior financial performance and private investors’ records. Lamonte said the arrangement was intended as a short-term stopgap; he also said Playhouse Lab agreed to turn over theater equipment to the town except for certain personal property of the operator.

Vote and outcome: The lease termination motion was approved unanimously. On the separate management services agreement, the council approved the motion by roll call: 9 yes, 3 no. The roll call recorded no votes from Maria Norton, Kimberly Norton and Christina Ross; other members voted yes.

What happens next: With the management agreement in place, the town will accept responses to the RFP due Jan. 7 and expects to evaluate bids for a new, longer-term operator in January. Council members said daily oversight visits and frequent staff check-ins will continue while the short-term agreement is in force.

Statements and sources: Attorney Doug Lamonte said the agreements were intended to be short-term and to facilitate a market-based transfer; Roy Abramowitz urged fuller due diligence and asked that gross receipts be applied to unpaid rent. Financial details cited in public comment (annual rent, square footage, unpaid rent) were presented to the council by the public commenter and discussed by council members; the town’s board of finance previously discussed related numbers at its meeting, including reported unpaid rent and an estimate of equipment value.