Metropolis will close next month without more funding

The Metropolis Performing Arts Centre notified Arlington Heights officials this week that it will have to close at the end of October unless the village provides almost another half a million dollars in funding.

After years of subsidizing Metropolis, the Arlington Heights village board will discuss on Thursday two options to deal with the theater's "imminent financial collapse" - whether to let the performing arts center dissolve or to pour an additional $450,000 into the theater to keep it open through the end of this fiscal year in April 2015, according to a village memo released late Friday.

"We've been putting Band-Aids on it for a long time now, so we're at the point where we have to decide," said Mayor Tom Hayes. "I don't think we can go forward with just Band-Aids anymore."

The village received a request for additional funds on Wednesday from Neil Scheufler, acting director of Metropolis. Scheufler did not respond to a call for comment on Friday evening.

Hayes said allowing Metropolis to dissolve would be a last resort and that he is hoping the theater will be able to stay open for the economic and cultural benefits it brings to the village.

If the theater closes the village would have to look for another tenant or possibly sell the building.

"I'm hoping we don't have to get to that point. I'm looking at keeping it open if at all possible," Hayes said, but added that he couldn't speak for rest of the village board. "If we really want this economic engine in the community, are we willing to stand behind it financially?"

For some trustees, the answer may be no.

Several members of the board have been critical of Metropolis as year after year the theater has asked for increases to its village subsidy, but still had economic problems. Last year, former director Charlie Beck stopped taking a salary for a short time to help the theater get by.

In May, Beck was removed from his position. In July, Metropolis requested its entire fiscal year 2015 subsidy - a total of $165,000 - in a lump sum to keep the theater open through mid to late October. Now, that money is running out.

If the village allows Metropolis to dissolve, there would be a one-time cost of $106,881 in past due maintenance fees and an annual cost of $76,416 for maintenance to the building, which the village owns. Those charges would be paid for out of the Arts & Entertainment fund, the village memo says.

"Although it would be difficult to quantify, this dissolution option would likely have an adverse effect on local restaurants and other businesses in the downtown area, which could reduce future village sales and food and beverage tax receipts," the memo states.

Hayes said that several other theaters, such as the Prairie Center for the Arts in Schaumburg and Hemmens Cultural Center in Elgin, also receive subsidies from their municipalities and are not self-sustaining.

"I don't know that any of these small theaters can be totally profitable, but hopefully Metropolis can someday be more sustainable on its own," Hayes said.

The other option is for the village to provide an additional $450,000, also out of the Arts & Entertainment fund, to keep Metropolis operating through the end of the fiscal year. "It is a lot of money," Hayes said.

The A&E fund has a working cash balance of $305,000 and a reserve of $400,000, so the village does have the ability to pay for the Metropolis request.

"This option would provide additional time for the village board to decide whether to dissolve (Metropolis) and close the theater, consider additional funding sources to provide for an increase in (Metropolis') annual operating subsidy, or to explore other agreements or structures for the theater's operation in the future," the memo says.

According to the memo, closing Metropolis could wind up being more expensive than keeping it open in the short-term because the village would have to pay back prepaid ticket subscriptions and tuition for the performing arts school.

The village board will discuss the alternatives at a special board meeting 7:30 p.m. Thursday, Oct. 2, at Village Hall, 33 S. Arlington Heights Road.