SAN FRANCISCO-San Francisco’s Palace of Fine Arts Theater and the Exploratorium museum are in the process of negotiating new leases with the city for the Palace of Fine Arts complex in the Marina. Since 1970, both organizations have had $1-per-year deals, but the contracts expire at the end of the year.

The Exploratorium is planning to renovate the museum, and museum officials have expressed an interest in taking over management of the theater as part of their multi-million dollar project. The group has proposed to lease the whole building, which includes the theater.

However, the Palace of Fine Arts, who has operated the theater for 30-plus years, does not want to hand over the theater. The organization received a term sheet last spring from the San Francisco Recreation and Parks Department, which is the landlord of the complex. The Exploratorium received the same sheet.

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