The 22-page contract already signed by principles of HSV Entertainment LLC states the exercise of the option to purchase the Roanoke Rapids Theatre must occur on or before July 1, 2014.

The closing of the purchase is to be completed on or before July 31, 2014, according to a copy of the contract released this morning.

“As consideration for this option to purchase, tenant has agreed to deposit $50,000 with landlord at the execution of this lease, said sum so deposited, and any unearned rent, will be credited toward the purchase price at closing.”

If the LLC does not exercise the option or if closing does not occur before July 31, 2014, said deposits are forfeited and become the sole and exclusive property of landlord.”

The purchase price is $7,250,000. Six million dollars is allocated for land and improvements and $1.25 million for furniture, fixtures and equipment.

Under the rent category, the partnership must pay the city $12,500 each month for the first year and then $14,500 each month for the balance of the lease term.

As additional rent, the LLC must pay to the city $2 per ticket sold at the theater for the first 50,000 tickets sold and $3 per ticket for each ticket sold in excess of 50,000 tickets, the proposed contract states.

Improvements to the theater are allowed but must be done with consent of the city.

The LLC must provide a $200,000 performance bond for any damages to the venue and the property can only be used for the operation of an entertainment venue and electronic gaming per the city’s land use ordinance.

The tenant must also retain property insurance in the amount of $1,250,000 and additional insurance for any improvements. The partnership must carry liability insurance of not less than $5 million for each occurrence on an annual aggregate basis and worker’s compensation and employer’s liability insurance as required by law but no less than $1 million.

The proposed contract also calls for the tenant to carry an umbrella excess liability policy providing coverage over and above the amounts of the foregoing policies in an amount not less than $10 million.

Should the tenant sell alcohol for on or off site consumption it must carry no less than $5 million.