Gilbane has halted plans to transform Berkeley's California Theatre into an 18-story apartment building featuring a performing arts space. The project aimed for 211 apartments and a theater with various facilities. Financial instability plagued the project, leading Gilbane to seek tax revenue support from the city, which was ultimately not agreed upon. The founder of Rhodes Planning Group cited a weakening multifamily market and falling rents as key factors in the project's cancellation. The California Theatre has not been operational since March 2020, raising concerns about the local arts scene's future.
The development plan aimed to convert the California Theatre into an 18-story apartment structure, featuring rehearsal rooms, an orchestra pit, and live arts space.
Gilbane, the developer, withdrew from the project due to a weakening multifamily housing market, oversupply, and declining rental rates, impeding financing.
The city of Berkeley was approached for financial support through tax revenue diversion but did not finalize any agreements.
The California Theatre has remained closed since March 2020, raising concerns about the future of the arts in downtown Berkeley.
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