Expressions Of Interest: Commercial Operation of the Pálás Arthouse Cinema

Galway City Council proposes to provide to provide the ‘property’ without charge on a long-term lease to one operator. No other financial supports will be provided by Galway City Council in the operation of the property. 

The Pálás Arthouse Cinema (hereafter referred to as the ‘property’) is a three-screen, 322-seater arthouse cinema located in Galway City centre. The cinema opened in 2018 and was operated by Picture Palace Cinema Ltd until its closure in February 2025.  The property is located on Merchants Road Lower and owned by Galway City Council.  The property is a three-screen cinema with the following capacity;  Screen 1 (161 seats), Screen 2 (68 seats) and Screen 3 (93 seats) 

Additional facilities include box office, kiosk shop, kitchen, café / bar space and office space. A recent independent commercial review of the ‘property’ commissioned by Galway City Council suggested three options to consider.  These included 

• Re-opening of the property as a cultural space featuring one operational cinema with other areas repurposed for community and cultural use.

• Re-purposing of the property to become more tourism focused with a focus on cultural tourism.

• Re-configuration of the property to operate as a mix of commercial space generating annual rents combined with allocation of space for community use.

This expression of interest is not limited to these suggestions. Interested parties are invited to submit their own intended site usage concept and financially viable operational model.  The successful operator will operate the property in a manner compatible with the city's international reputation for culture and the arts. 

The property will be available to view on 18th June 2025 by appointment only.  It is highly recommended that interested parties’ avail of this opportunity in advance of submitting their proposals. Please contact events@galwaycity.ie to confirm your viewing.

1. Specification of Requirements

Phase 1 - Expressions of interest and proof of financials

Phase one will require interested parties to provide an overview of their vision for the future operation of the 'property’ supported by a robust business case. This business case will provide an overview of the year-round operational approach, demonstration of financial viability and audience generation approach.  This phase will require interested parties to demonstrate their financial capacity to operate the ‘property’.  Proof of access to funds that will underpin the financial viability of their proposal is required. Parties not in a position to demonstrate their financial capacity and proof of access to funding will be ineligible to proceed to phase 2 of the selection process. 

Phase  2 – Detailed business plan submission  

Parties who are successful in phase one and meet the financial criteria will be invited to submit a comprehensive business plan based on their proposal for site usage and the associated operational model.  Shortlisted candidates will be invited to present their business plan to Galway City Council in September 2025.  Galway City Council is not bound to accept a proposal offered by any party.

2. Expressions of Interest process

Phase 1 Award Criteria

The following award financial and business case criteria will be used to assess phase one submissions. 

1.1 Financial Capacity 

Criterion A – Financial Capacity

Interested parties must demonstrate that their proposed operational model is financially viable. Applicants must provide proof of access to funds for capital expenditure related to the configuration of the ‘property’ aligned with their operational model.  Proof of access to funds to underwrite working capital requirements must also be provided. 

Galway City Council proposes to provide to provide the ‘property’ without charge on a long-term lease to one operator. No financial supports will be provided by Galway City Council in the operation of the property. 

Failure to demonstrate proof of access to capital and funding will result in elimination from the selection process. 

1.2 Operating Concept

Criterion B – Governance / Management (Max 750 words)

Interested parties shall confirm the legal structure of the proposed operator. Interested parties must outline their experience in operating facilities and / or services of essentially similar scope and magnitude. Entities with a track record of operating/programming similar venues can point to satisfied clients for references. 

Criterion C – Business Case (2,000 words)

Interest parties should submit an overview of their proposals for the operation of the ‘property’ use of the property.  Proposals shall include, but not limited to, details of:

• Proposed core use of the property.
• Financial model linked to annual projections
• Operational model
• Audience generation and marketing
• Strategic alignment with Culture & Arts

Criterion D – Environmental (750 words)

Galway City Council seeks to meet its climate action commitments and ensure a sustainable approach to the operations of the property.  Applicants are required to demonstrate their approach to sustainability and how operations will reduce the impact on environment. 

Phase 2 – Development of detailed business plan

Parties achieving the minimum score requirements under all criteria and demonstrating their financial capacity will be invited to submit a detailed full business plan for the operation of the cinema.   The business plan should take a ten year outlook.  Successful applicants will be provided with an indicative business plan framework to use in phase 2. 

Timeframe 

The Closing date for Expressions of Interest for Phase 1 is 30th June 2025 and should be sent to events@galwaycity.ie 

All submissions shall be reviewed by Galway City Council. It is anticipated parties shall be advised of the outcome of Phase 1 during July 2025. 

It is anticipated that presentation of the business plan and clarification meeting with parties meeting the minimum scoring criteria will take place in September 2025.

Please Note: 

• The disposal of all lands in the ownership of Galway City Council and the terms of conditions of any such disposal are subject to the formal approval of the elected members of Galway City Council through a section 183.
• Any conflict of interest involving an applicant must be fully disclosed to Galway City Council. 
• Galway City Council reserves the right to withdraw this Expression of Interest (EOI) at any time, without incurring any liability or obligation
• Applicants should be aware that, under the Freedom of Information Act 2014 and the European Communities (Access to Information on the Environment) Regulations 2007 to 2014, information provided during this Competition may be liable to be disclosed. 

Architectural Drawings