Wheaton talks tax for theater renovation
Property owners in downtown Wheaton will be asked to share their thoughts on being taxed to aid efforts to renovate a historic theater.
On Monday, city leaders agreed to host a public hearing to decide whether to extend the life of a special service area that's the main source of revenue for the Downtown Wheaton Association. A date for the hearing will be scheduled later.
The association, which promotes downtown businesses, is seeking to have the district extended for another 20 years so it could offer financial support for a plan to revamp and reopen the Wheaton Grand Theater.
Public feedback is needed because the annual fee paid by property owners within the special service area - roughly bordered by Illinois, West and Wesley streets and Naperville Road - is set to expire next year.
Association officials say they believe property owners within the district would be willing to continue paying the yearly fee if it results in reopening the 84-year-old theater along Hale Street.
The theater could open for live performances by the end of 2011 if the Wheaton Park District follows through with its proposal to take ownership of the theater and borrow $19.3 million to renovate and expand the building.
But first, the park district needs the city and Downtown Wheaton Association to agree to provide financial "backstop" payments of up to $250,000 a year in case the theater fails to raise enough cash for the 20 years of loan payments.
Because the association needs the special service area extended to meet that financial obligation, theater supporters called the public hearing "a first step in a critical path."
"Without the SSA (special service area) in place, none of it matters," said Mike Benard, the park district's executive director. "This gets the ball rolling. If the SSA support doesn't come in, the rest of the questions don't need to be asked."
One significant unanswered question is whether the city is willing to provide the financial backstop payments.
Councilman Todd Scalzo agreed with several other council members in saying it would be appropriate for the city to get involved.
"The proposal before us tonight is a reasonable middle ground between directly putting funds into this project or not supporting it at all," he said, "which I think really would be a loss to the downtown."
Still, other members of the board voiced strong concerns about possibly spending general revenue tax dollars on something that isn't a core service.
Councilman Phil Suess said he would like to see the project move forward - but not in way that puts public money at risk.
One way the city could avoid dipping into its general fund for the payments is by taxing ticket sales at the Wheaton Grand. If a $1-per-ticket fee were imposed, it would generate $300,000 a year based on the theater's projected annual ticket sales, officials said.