Wheaton group wants tax district extended to help theater rehab
A downtown improvement group has stepped forward to aid efforts to renovate and reopen a historic Wheaton theater.
But the Downtown Wheaton Association won't be able to keep its pledge to help underwrite a loan for the Wheaton Grand Theater unless the city extends the association's main source of revenue: a special taxing district that funds promotional activities for downtown businesses.
In the meantime, city council members will take at least two weeks to decide what actions, if any, Wheaton will take regarding the proposed renovation of the 84-year-old theater along Hale Street.
"I think it's important that the community come to closure on this," Councilman Phil Suess said. "Either this is something we're willing to move ahead with or we're not. I think we should move rapidly to make that decision."
Waiting for the city's response are officials with the Wheaton Park District, which is proposing to take ownership of the theater and borrow $19.3 million to renovate and expand the building.
If approved, the plan could open the theater, which is being used part-time by a church, for live performances by the end of 2011.
The Grand Theater Corp., the not-for-profit group that oversees management of the theater, would pay an annual licensing fee to the park district. Money raised from the fee would be used by the park district to repay the 20-year loan.
Still, the park district needs the city and Downtown Wheaton Association to both agree to provide financial "backstop" payments of up to $250,000 a year in case the theater fails to raise enough cash for the loan payments.
Association officials say their group has signed on to serve as the first backstop. But since most of the group's funding comes from a special service area set to expire in 2011, it needs help from the city council.
It's requesting that the life of the special service area be extended for an extra 20 years. The group also wants the district's boundaries - roughly bordered by Illinois, West and Wesley streets and Naperville Road - expanded to include the former Hubble Middle School property and Central Park site.
While DWA officials say they believe property owners within the district would be willing to continue paying the annual fee if it results in reopening the theater, a public hearing would be required to get feedback.
Meanwhile, Wheaton Chamber of Commerce officials are voicing their support for the park district's proposal.
"The chamber recognizes that the theater can be a significant catalyst for the revitalization of the downtown, as well as an economic boon for our local businesses," said David Frazza, chairman of the chamber's board of directors.
Wheaton Councilman John Prendiville said he agrees it's "essential" for the project to move forward, adding that he believes it would be appropriate for the city get involved.
"It would be great if private development could handle it," Prendiville said. "But sometimes you do need a little bit of government assistance to get something going."
Help; Theater could open by 2011