THEATRE FUNDING MOVING FORWARD

Well, it appears the lobbying efforts by owners of the LaGrange Theatre to seek some type of village financing to subsidize a nearly $3 million renovation of the 83-year-old movie house may soon become reality.

When that occurs, however, is not yet known. The Village Board is not scheduled to meet again formally until 7:30 p.m. Monday, Oct. 13.

The board, after a protracted 3-1/2-hour debate at a Sept. 29 special meeting called specifically for the purpose of discussing funding options, reached consensus on some points, bringing it close to signing off on a final decision -- even though it may only be via a 4-3 split board vote.

A majority of the board, including Village President Elizabeth Asperger, favored using Tax Increment Financing money to meet the request -- to the tune of $1 million to $1.35 million -- with a proposed structure in the agreement calling for a facade easement financed by the village and an operational covenant that assures the property will remain a theater until all or a portion of the village's investment is paid for with revenues of a 50-cent entertainment tax.

It has not yet been determined whether the financing would incorporate a mixture of TIF and General Funds or one or the other, although a majority of TIF money is likely.

Since it was only a workshop, there was no formal or final vote taken by trustees, just an informal poll and a general agreement to direct staff to prepare an intergovernmental agreement based on majority viewpoints and seek approval from the theater owners.

But before any final action is taken, some trustees wanted to see more undisclosed financial statements, credit reports and some evidence of payback worthiness before they decide how much they should give away.

Theater owners John Rot and David Rizner, who also co-own the nearby Horton's Home Furnishings on the same stretch of downtown La Grange Road, had originally asked for village assistance of up to $1.7 million of the estimated $3.1 million project cost. They said they were not seeking a bailout, but a fair shake since they represent such a unique institution.

Village staff, through a 10-page working term sheet and a 6-page memorandum not released publicly -- which Asperger said reflected discussions on the topic over the last several weeks --recommended an agreement which would have the owners fund $1.35 million of the total revised project cost and the village contribute $1.35 million with a zero-interest loan paid back using proceeds of the entertainment/amusement tax expected to generate $100,000 annually.

Village Manager Robert Pilipszyn said the parties were "unable to finalize" a village-recommended 20-year operational commitment or an agreement for Rot and Rizner to pay in full if they default on the contract.

Asperger initially called the staff recommendation "thoughtful and very prudent" and one that aims to develop a consensus among board members with vastly differing views related to what kind and how much money would be spent and the scope of the village's commitment. She later acquiesced to the compromise which, in part, would provide some funds to renovate the theater and remaining TIF surplus dollars to fund an ongoing economic development initiative.

However, disagreement over the initial recommendation, whether the funds should be in the form of a grant or loan, how much should be awarded and whether staff should have even done any more than provide data without a proposal to the board fueled the rest of the debate.

Trustee Thomas Livingston said he believed the draft agreement would have moved the board in the right direction and addressed an appropriate balance of funding sources, but Trustee Mark Kuchler strongly criticized staff's over-involvement in the board's policy decision.

"When staff advocates a position, they become advocates of the position," said Kuchler, who got fellow trustees to agree to consider the idea of La Grange purchasing a facade easement from the theater and an operational covenant that the theater would remain in place indefinitely or until the owners or future owners essentially return the village's original $1 million investment.

Trustee Mark Horvath stressed the need for a long-term commitment of the theater to remain in town if public funds are used. But he also cautioned spending TIF surplus money that rightfully should be reimbursed to tax payers.

"Just because it's there doesn't mean you have to use it," he said. TIF was designed to cure blight. We cured blight, so let's not be in a rush to spend it under the economic development banner."

And Trustee Barbara Wolf said while she doesn't support the use of TIF money,she believes there should be support for using the General Fund, which could be repaid by the new tax.

For a more in-depth story on the meeting, revisit The News blog in a couple of days.