MONROE — The property where Galaxy Theatres is located has been sold by the city for $2 million to a Bothell commercial real estate company.
The Monroe City Council authorized last week the sale of 9 acres to Beta-Kelsey Station.
“The city has decided it doesn’t want to be a landlord anymore,” Monroe’s economic development manager Jeff Sax said. “That’s not a clear function of government.”
Galaxy Theatre has a 25-year lease agreement with possibility to extend it for five more years. The theater at 1 Galaxy Way off N. Kelsey Street, has been open since 1999 and has paid the city about $156,000 a year in rent.
Terms of the lease have not changed because of the sale, Sax said. The revenue from the sale is planned to be used for the city’s reserve funds, he said.
The new owners have not decided what to do with the land at this time, Beta-Kelsey partner Richard Brunhaver said.
“We are evaluating the situation,” he said.
The city gave an option to buy the property to Galaxy Theatres, which is based in California, but it declined, Sax said.
Multiple phone calls to representatives of Galaxy Theatres were not returned.
Galaxy Theatres has three venues in Washington state. The other two are located in Tacoma and Gig Harbor. It has more theaters in California, Nevada and Texas.
The real estate company representing Monroe, Newmark Grubb Knight Frank, is receiving a 3 percent — or $60,000 — commission from the sale.
Alejandro Dominguez: 425-339-3422; email@example.com.