SWAMPSCOTT — The Select Board met Monday to approve a temporary lease agreement with the Swampscott Center for the Performing Arts at the former Hawthorne-by-the-Sea property, moving forward with the effort to bring activity back to the long-vacant site.
The agreement follows a months-long process that began earlier this year, when the town issued a Request for Proposals seeking short-term uses for the property. In early March, the Select Board voted to move forward with the performing arts center proposal, and attorneys for both sides have since worked to finalize the terms of the lease.
Town Administrator Nick Connors said that the town’s lawyers had sent a final version of the lease to the performing arts group and expected that agreement to be signed shortly.
Members of the Select Board have framed the temporary lease as a way to activate the property in the next coming months and generate some revenue for the town while broader redevelopment plans are still taking shape.
Under the agreement, the lease is expected to run through June 30, 2028 — consistent with the timeline approved by Town Meeting. The performing arts group’s original proposal valued the lease at $300,000, significantly higher than the only other bid submitted during the RFP process.
The draft lease lists the rent agreement at $10,000 per month, with about 26 months left on the short-term agreement. Members of the Select Board estimated that the total benefit to the town between rent collected and insurance saved would be over $600,000.
The Swampscott Center for the Performing Arts is led by Executive Director Johnny Ray, who operates several hospitality and entertainment venues across the North Shore, including the Beacon Restaurant, the Warwick Theater, and the Music Emporium in Marblehead.
Plans for the site outline a mixed-use concept combining dining, entertainment, and cultural programming. The proposal includes a full-service restaurant, a dedicated performance space for live music and events, a cafe, and a nautical-themed museum and gift shop component.
Supporters of the project have pointed to its potential for drawing visitors to the waterfront while creating a new cultural destination in town. The inclusion of a full-service restaurant is also expected to generate local meals tax revenue.
“I think the intent here is to enter into an agreement that is going to financially benefit the company and the town,” Select Board member MaryEllen Fletcher said.
Although Fletcher and other board members acknowledged that the numbers from meals tax were not exactly predictable, the overall financial benefit of the town was something members said they had a hard time ignoring.
The condition of the existing building has also been a factor in discussions, with the lease structured around the use of the property largely as-is. That approach is intended to allow activity to resume at the site without requiring significant upfront investment from the town.
The lease includes a provision wherein the lessee could potentially withdraw if there is significant damage totaling over $30,000 that are not related to the day-to-day maintenance and operation of the property. That point in the contract caused some unease with the board, with Danielle Leonard voicing her concerns on the town’s financial responsibility.
“How do you qualify that? It could be anything,” Leonard said, concerning the “extraordinary repairs” clause. “The condition of the building … that’s the whole point. We’ve known this all along.”
Connors mentioned that the language in the lease was specific in freeing the town of too much potential liability, and that the extraordinary repairs clause was a “must-have” provision of the lease on the side of the performing arts group.
Ultimately, the Select Board voted unanimously to approve the contract, despite the reservations.
“I am still in the position that we have to try… we are putting ourselves in the best potential financial position.” Chair Katie Phelan said.
Once approved by the performing arts group, the lease will clear the way for Ray and his team to begin preparing the space for operations, with further details on timing and programming expected to follow.
The Select Board has spoken publicly to say that they plan to begin the RFP process for long-term use of the Hawthorne space soon after this contract is finalized.
