Wheaton won't pay for report on Wheaton Grand

Wheaton City Council members are refusing to pay for a new report that concludes a historic downtown movie house isn't capable of generating the revenue needed to fund its proposed restoration.

The $28,500 study by Chicago-based Market and Feasibility Advisors was supposed to help officials decide once and for all whether reopening the shuttered Wheaton Grand as a live theater could be a financial success. Previous studies by two other consultants came to opposite conclusions.

Instead, Councilman John Prendiville says Market and Feasibility Advisors failed to fulfill its obligation under its agreement with the city. So while Wheaton in June paid roughly $13,000 toward the total cost of the report, Prendiville and three other council members — Howard Levine, Tom Mouhelis and Todd Scalzo — this week voted against making a second $13,000 payment.

Prendiville said he doesn't believe the company did enough work to support its conclusion, adding that the report “was prepared in an unprofessional manner.”

“The report is worthless in my opinion,” Prendiville said. “I am sorry that we paid them $13,000 earlier. I don't think we got a viable report here. I can't agree with putting taxpayer money toward something like this when the work product was not what we requested.”

Dan Martin, managing principal with Market and Feasibility Advisors, declined to comment about the decision to withhold the payment.

City Manager Don Rose said it will be up to the consultant to decide how he wants to respond. “I'm sure he believes he's fulfilled his obligation,” Rose said.

City staff members recommended paying the bill. And Mayor Michael Gresk and Councilman Phil Suess said the company provided a service and should be paid.

“It's an embarrassing situation for the city,” Suess said. “It gives the impression that the city doesn't live up to its contractual agreements.”

Suess added that he expects the bill will get paid eventually.

In the meantime, a debate is expected to ensue over the report's conclusion that a revamped Wheaton Grand would “at best, operate on a break-even basis and would be unable to pay the annual debt service.”

Officials were considering the possibility of helping the not-for-profit Grand Theater Corp. borrow $10 million to restore and reopen the Wheaton Grand as an 860-seat venue.

But first, they wanted a third consultant's opinion.

Several years ago, C.H. Johnson Consulting issued a report claiming the Wheaton Grand could compete “as one of the premier theater venues in the region.” Then last year, Jim Hirsch, a consultant hired by the park district, concluded that a plan to restore the theater is considered “risky” by experienced venue operators.

Suess said the new report shows there simply isn't a funding source for restoring the theater. However, Prendiville said he believes the report's conclusion should be taken “with a very, very large grain of salt.”

“I don't think you can base a decision on this consultant's report,” Prendiville said. “This report doesn't give us the firm basis to make any kind of decision, even if we were in the position to make one.”

Either way, Prendiville and Suess agree that any proposal to help the Grand Theater Corp. is dead because the not-for-profit group no longer owns the theater. The bank chain that owns the building along Hale Street is trying to sell it.

“It's a dead issue until there is an entity that comes forward with a plan,” Suess said. “At that time, the city can look at that plan. But in the absence of an entity coming forward with a plan, it's a dead issue.”

Prendiville said the situation is “very frustrating” because he thinks a live theater could have been the centerpiece for economic development in downtown.

“I don't fully give up hope that something could happen there,” he said, “but clearly the original idea is dead.”

Report: Councilman isn't ready to give up on theater