Most of Beach Theatre loan has yet to be repaid

Last Updated on Friday, October 05, 2012 11:09 am Written by Mary Linehan Friday, October 05, 2012 11:07 am

CAPE MAY – A $100,000 loan taken by the Beach Theatre Foundation in 2009 in an attempt to preserve the theatre has matured, with just over a quarter of the funds paid back to the city.

“(Oct. 1) has come and gone and I’m wondering how much of that hundred grand that was all due has been paid,” asked Deputy Mayor Jack Wichterman at Tuesday’s work session at City Hall. 

City manager Bruce Macleod reported that the city had previously received $27,000 from the Beach Theatre Foundation, and another $2,000 has come in since then.

“I did send a letter asking them to be in touch with us,” said MacLeod.

“What is our next step, Tony?” asked Wichterman of city solicitor Anthony Monzo.

Monzo said the city’s next step would be to send a demand letter. The letter would inform the foundation that the loan has matured, that it is due and payable in full, and set out a reasonable period of time for payment.

According to MacLeod, any legal action to collect would involve seeking judgments against the “individuals who made guarantees and did not satisfy them.”

In its bid to preserve the theatre, the Beach Theatre Foundation borrowed $100,000 from the city in 2009. The group used the loan proceeds, which came from a state Department of Community Affairs Small Cities grant, to pay rent on the building while seeking a developer to purchase and restore the building. The foundation organized movie showings during that summer.

The Beach Theatre Foundation was created in 2007 to preserve and restore the historically authenticated Beach Theatre and utilize the complex as a state-of-the-art showcase for cinema and the arts. The group had hoped to establish the theatre as a center for film history, preservation and restoration, as well as for independent film-making and education.

The 860-seat Beach Theatre opened in September, 1950, with a showing of "Father of the Bride.” The building was designed and built by architect William Harold Lee, and was part of the William C. Hunt chain of theaters throughout New Jersey and Pennsylvania, according to historical information compiled by the foundation.

Last September, all but the building’s façade was demolished. The facade still stands, now empty of any retailers.

Residents have questioned when tenants will be found for the property, or if it will be improved. Last month, city council reported on improvements made to the appearance of the partially demolished property.

“There were concerns about the rear of the property in the way that it looked. Particularly whether there would be grass and weeds and trash and debris,” said MacLeod. “I think since that time, the property has been cleaned up. There’s been a fresh coat of paint – single color in nature…and the land area, I believe, has had some fresh concrete placed on it to give it a secure and firm appearance.”

“There has been an effort to clear the area of trash and debris,” said MacLeod.