Request For Board Action
REFERRED TO BOARD: April 27, 2022 AGENDA ITEM NO: 3
ORIGINATING DEPARTMENT: Community Development
SUBJECT: Consideration of resolution to finance the purchase of the Antioch Theatre by a private
investor in the amount of $350,000.00.
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Staff has been working with the owner of the Antioch Theatre related to his wish to proceed
with a sale of the movie theatre. Mr. Downey has negotiated an agreement with the prospective
purchaser, Linda Monty, who wishes to purchase the theater for $400,000.00, Ms. Monty has been
before the Village Board several times and has outlined her business plan to continue to operate the
theatre as a first run movie theatre. Based on the purchaser’s inability to obtain a private bank loan
for the purchase, the applicant is requesting assistance from the Village to finance this purchase.
Staff has explored the possibility of obtaining a $350,000 bank loan, with a $50,000 down payment
from the purchaser.
The owner of the theatre has identified that prior to Covid, approximately 20,000 tickets per year
were sold. If the Village reimposed a $1.00 tax per ticket, the ticket tax would generate approximately
$20,000.00 per year. This does not include any revenue generated from a special event tax which is
being proposed at $2..00 per ticket.
Based on the proposed outline of the loan, the loan would be paid back over a 10-year period and a
ticket tax would be reimposed to assist the purchaser to pay back the loan during the 10-year loan
period.
Staff is taking this opportunity to enclose an amortization table which shows the repayment
schedule. In addition, Staff is enclosing a copy of the Profit/Loss Statement from the current owner
prior to the Covid-breakout.
1) Village Board Staff Report
2) Resolution
3) Amortization schedule
4) Profit/Loss Statement
Based on the foregoing analysis, Staff would make the following motion:
We move that the Village Board approve a resolution to direct the Village Attorney to draft a loan
agreement with the prospective purchaser, Linda Monty for the sum of $350,000.00 for the
purchase of the Antioch Theatre.
Or
We move that the Village Board deny the request of the purchaser request for Village financing to
purchase the Antioch Theatre.
VillageofAntioch,Illinois
RESOLUTION NO. 22-
A RESOLUTION FOR THE VILLAGE FINANCING OF THE PURCHASE OF THE ANTIOCH
THEATRE BY A PRIVATE INVESTOR
WHEREAS, the Antioch Theatre has been in operation in Downtown Antioch since the
1923 and continues to operate as a movie theatre showing first run movies.
WHEREAS, the Antioch Theatre continues to be one of the commercial anchors of
Downtown Antioch and is one of the primary attractions that draws visitors to Downtown Antioch.
WHEREAS, the Antioch Theatre is operated by Tim Downey who purchased the theatre
and proceeded with an extensive renovation of the theatre.
WHEREAS, Tim Downey has entered into an agreement to sell the theatre to Linda Monty
for the sum of $400,000.00 and the purchaser intends to continue to operate the theatre as a
first run movie theater along with having live events.
WHEREAS, the prospective purchaser, is looking for the Village to work with State Bank
of the Lakes on a loan in the amount of $350,000.00 to finance the purchase of the Antioch
Theatre.
WHEREAS, the Village in consideration for the financing, would enter into a loan
agreement with the purchaser and record a mortgage on the Antioch Theatre to secure the
financing of the purchase.
NOW, THEREFORE, BE IT RESOLVED, by the Mayor and Board of Trustees of the
Village to Approve a Resolution that directs the Village Attorney to prepare a Loan Agreement
between the Village of Antioch and Linda Monty for the purchase of the Antioch Theatre in the
amount of $350,000.00
PASSED this _____ day of April, 2022
AYES:
NAYS:
ABSENT:
Scott J. Gartner
Mayor
ATTEST:
Lori K. Romine
Village Clerk
Mayor
Scott J. Gartner
Clerk
Lori K. Romine
Trustees
Brent C. Bluthardt
Petrina Burman
Mary C. Dominiak
Ed Macek
Mary J. Pedersen
Scott A. Pierce
874 Main Street | Antioch, IL 60002 | P: 847.395.1000 | F: 847.395.1920 | www.antioch.il.gov
REPORT TO: VILLAGE PRESIDENT and BOARD OF TRUSTEES
FROM: Michael S. Garrigan, AICP, CNU-A, Community Development Director
DATE: April 22, 2022
SUBJECT: REPORT TO VILLAGE BOARD
Antioch Theatre
Background
The applicant, Linda Monty, is seeking assistance from the Village of Antioch to proceed with
the purchase and preservation of the Antioch Movie Theatre. The purchaser has agreed to a
purchase price of $400,000.00 and has agreed to a down payment of $50,000.00. The balance
of the purchased price, $350,000.00 would be financed by the Village of Antioch through a loan
with a local bank. The requested loan would be paid back by the purchaser from a re-imposed
ticket tax on movies and special theatre events.
The owner of the theater identified that they sold 20,000 tickets in 2019, the last normal
year, prior to Covid. Based on a $1.00 tax, a reimposed ticket tax would generate
approximately $20,000 per year.
Staff has been working with the State Bank of the Lakes on a potential loan that would provide
the Village with a way to finance the purchase of the theatre without using money from the
Village’s general funds. The applicant and seller have provided the Staff with a repayment
amortization schedule and Staff is taking this opportunity to attach this schedule for the Village
Board’s review and consideration. The amortization shows a ten-year repayment schedule.
To secure the loan, the Village would enter into a loan agreement with the purchaser and secure
the theatre with a mortgage. The purchaser would be obligated to make a monthly payment of
$2,252.00 which would service the Village’s monthly loan obligation.
The Seller and purchaser have outlined the following point as it relates to this proposed Village
loan to the purchaser:
That the Antioch Theatre continues to draw visitors to Downtown Antioch and is a major
economic development attraction in the Downtown.
That Downtown movie theatres continue to be threatened due to economic trends and
municipal governments need to find a way to partner with individual investors to save
these unique businesses.
That the Village previously worked with the Seller to save the theatre and to proceed with
an extensive renovation of the Antioch Theatre.
That as of this date, no private investor has expressed any direct interest in saving the
theatre without some type of Village assistance.
That based on discussions with several local banks, there appears to be no interest Iin
a private bank loan.
That the applicant is not requesting a business grant related to this business and is in
fact requesting a loan that would be paid back over a period of ten (10) years at a rate of
4.70%.
Adaptive reuses of empty movie theatres are challenging, and vacant theatres often
remain vacant or attract non-commercial uses.
One of the expressed concerns by the Village Board relates to the long-term viability of the
Antioch Theatre and the potential of the Village owning the theatre if the purchaser defaults on
the proposed repayment schedule. Based on this expressed concern, the seller has provided
the Staff with a “Profit/Loss” statement for the last normal year, prior to the Covid lockdowns.
This statement shows that the theater was profitable and there is potential for additional revenue
through increased sponsorship and additional marketing. Based on the request of several
trustees. Staff is enclosing a copy of this “Profit/Loss” statement for the Village Board’s
consideration. In addition, the seller did provide Staff with an appraisal that shows that the sales
price is equal the appraised value.
Over the past eight months, Staff has been working with the seller of the Antioch Theatre on
several different options to keep the theatre open to the public. These options ranged from
partnering with Antioch High School, to creating a Not-for-Profit Foundation that would operate
the theatre. As highlighted above, Staff’s concerns related to the Village financing the purchase
of the Antioch Theatre relate to the following:
Based on the foregoing analysis, if the Village Board supports the financing of the purchase of
the Antioch Theatre by the prospective purchaser, Linda Monty, Staff would recommend the
following motion:
We move that the Village Board approve a resolution to direct the Village Attorney to
draft a loan agreement with the prospective purchaser, Linda Monty for the sum of
$350,000.00 for the purchase of the Antioch Theatre.
Or
We move that the Village Board deny the request of the purchaser request for Village
financing to purchase the Antioch Theatre.
