Red House Entertainment L.L.C. will soon have the keys to the Paramount Center for the Arts.
The Peekskill Common Council tonight is expected to approve an agreement for Red House Entertainment to lease, manage and operate the Paramount for up to 17 years. The downtown theater at 1008 Brown St. closed last fall.
In March, the city picked Red House to run the Paramount and entered into lease negotiations.
The city will sign a 17-year contract with a 10-year option and will receive 5 percent of the gross income of every show. Utilities costs will be covered by the city for the first six months.
Red House Entertainment expects to reopen the theater this fall, and expects to gross $900,000 in the first year.
Tarrytown Music Hall and Paramount Phoenix, a group run by Peekskill restaurateur Arnold Paglia, were the other two finalists.
The recently formed Red House company was the only one of the three bidders that proposed to run the theater as a for-profit venture, with a non-profit subsidiary attached.
Red House is run by Garrison sound engineer Kurt Heitmann, who runs CP Communications, an Elmsford-based production equipment company.