Des Plaines, Rivers Casino, Onesti have plan to revive downtown theater
Des Plaines officials revealed a plan Wednesday to acquire and renovate the dormant Des Plaines Theatre with partial financial backing from Rivers Casino, then hire noted concert promoter Ron Onesti to book entertainment acts.
Mayor Matt Bogusz said he and city officials reached out to the Des Plaines-based casino some eight months ago to discuss a potential public-private partnership that would lead to the reopening of the 91-year-old downtown theater at 1476 Miner St.
The city received a letter of intent from Rivers two weeks ago, though many of the details still need to be worked out, Bogusz said.
The city shut the doors on the theater in January 2014 after owner Dhitu Bhagwakar missed a deadline to fix building code issues.
The mayor believes that under his plan, the theater could be back open by 2020.
“This is a well-designed and thoughtful approach to fixing one of, if not the most significant problem on the minds of residents,” Bogusz said.
Onesti, a Wood Dale resident who has revitalized the Arcada Theatre in downtown St. Charles since taking over operations in 2005, has previously expressed interest in running shows at the Des Plaines Theatre. He even submitted a formal proposal two years ago to Bhagwakar and city officials.
Despite years of the theater going through various openings, closings and ownership, Onesti said he thinks the venue can be successful.
“If people know the people at the Arcada are involved, the casino and the government, I think they might have a little bit more optimism than there's been in the last few years,” Onesti said.
Bogusz presented the plan to aldermen in closed session Tuesday night after the city council meeting.
City Manager Mike Bartholomew said Rivers has agreed to pay for half the costs of acquisition and renovation of the theater, up to a maximum, which Bartholomew didn't disclose.
Theater renovations alone could cost $1 million to $1.5 million, he said.
But Alderman Malcolm Chester, one of the city council members who attended the closed-door meeting, said the total cost to acquire the theater — perhaps by legal means — then renovate it and bring it up to code could be as much as $8 million to $9 million.
Add in the price for a new parking garage behind city hall, down the block from the theater, and the total cost could be as much as $15 million, said Chester, who is running against Bogusz for mayor in the next election.
Rivers so far has committed $1 million, he said.
A Rivers spokesman Wednesday declined to comment on the proposed partnership, referring questions to Des Plaines officials.
In an attempt to acquire the theater, Bartholomew said city officials would first make a purchase offer to Bhagwakar.
If he rejects it, the city would likely pursue condemnation proceedings — a process that could take up to two years, Chester said.
Bhagwakar couldn't be reached for comment Wednesday, but he has said in the past he wouldn't fix remaining building code issues without money from the city.
City officials say the city's downtown tax increment financing district could provide $3 million annually to projects, including the theater, but those funds are expected to last only until 2020 when the district expires.
The TIF revenues have been generated by increasing property values, with new property tax money that otherwise would've gone to schools and other taxing bodies being diverted into a special fund that can be used to pay for improvements to the area.
Chester said it ultimately comes down to the numbers — what the actual costs will be and how much the city can afford. But the plan, he said, is at least “a start down a very long road.”
“Any kind of participation from an outside party is obviously helpful and makes the proposal more viable,” Chester said. “At the end of the day, we have to do something. We just can't leave that property there to rot.”
As part of the theater plan, Bogusz on Wednesday also announced a proposal to provide up to $100,000 in incentives to each new restaurant seeking to open downtown. The money would be refunded to the city through food and beverage taxes. The council will consider that proposal at its next meeting Sept. 19.