Theatre continues to run in the red

The Roanoke Rapids Theatre continues to run in the red. The losses as of April 23 were reported at $1,005,617.  The figure does include a one time $546,986.62 expense for the settlement agreement and release from Randy Parton. The figures are for the period the city has controlled the management of the theatre. 

The one time settlement expense for Parton does not include $203,013.38 that he was allowed to keep from checking accounts for the venue. 

For the near future the outlook is not good when it comes to the cost of running the theatre. In one 2008-2009 budget scenario, the city is still developing the budget; it is projected that the theatre will cost $2,068,900.  This is only one of what may be several budget scenarios the city will consider before the final budget is adopted. 

Although the theatre has been off to a rough start the city plans to stay the course and make this a plus for the city.  According to Roanoke Rapids City Manager Phyllis Lee they will continue to operate the theatre as department of the city government while they look at other options.  

“We continue to keep all options on the table, refinancing, leasing the theatre, selling the theatre, entering into a new management agreement, and the City continuing to operate the theatre,” Lee stated in an email to the Observer.

There had been some talk of the city refinancing the theatre.  According to Lee any refinancing would be with Bank of America.  When asked if they would consider any other places to go for refinancing, Lee replied that their current debt is structured so as to make it difficult to start all over with a new bank.  She also anticipates additional cost if they went with another institution. 

When asked about the possibility of selling the theatre the Observer was told that that no specific efforts have been made to do so.  She did leave the door open if the council decides it wants to go in that direction. 

The city has always promoted the theatre and the Carolina Crossroads complex as a project that would benefit the entire Roanoke Valley. The city is responsible for the finances of the project.  After concerns from local citizens over how the theatre was being handle the city agreed to form the Theatre Advisory Committee.  The committee has twelve members all from Roanoke Rapids. 

The budget does reflect the city has apparently learned its lesson when it comes to Travel/Meetings. This was one area that Parton was criticized for abusing.  The budget shows only $10,000 for this expense. Three areas that the city does not show figures for, probably because it is difficult to project without knowing who they will be booking for the theatre, are artist contracts, marketing and riders on the contracts.  The documents provided to the Observer do not reflect any anticipated revenues to offset the projected expenses. 

From the documents provided by the city it appears that without the problems from the theatre project the city would be operating in the black.