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Gillioz set for foreclosure, owners look to community

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The Springfield Landmarks and Preservation Trust was served foreclosure sale notice on Dec. 11 for the Gillioz Theatre and the adjacent Netters Building by Guaranty Bank. Without community involvement, Guaranty will foreclose on the properties Dec. 31.

The Gillioz Theatre will hold a news conference today at 4 p.m. at the Gillioz auditorium to address details of the foreclosure notice.

The theater's original strategic plan involved receiving both federal and state tax credits to offset the $10 million renovation in 2006, but only federal tax credits were received. The Missouri Department of Economic Development denied state tax credits, leaving a void in the plan, according to a news release.

Nancy Brown Dornan, board member and former president of the Springfield Landmarks and Preservation Trust, said the tax credit delays have been the biggest ongoing problem for the buildings.

"It diverted energy from operations and bookings to tax credit discussions, which was intense and approached from a variety of different angles," she said.

As to particulars of the foreclosure notice, Dornan deferred comment to Springfield Landmarks and Preservation Trust President Dave Roling.

Roling could not be reached before deadline.

Although he wouldn't say how much was still owed by the preservation trust, Guaranty Bank Senior Vice President Dana Elwell said if funding isn't received, the bank would take possession of the properties through foreclosure and put them on the market.

In the news release, Roling said the board has identified a donor who would help recover the costs needed to ward off the foreclosure.

"When it became apparent that we would not obtain well over $1 million in tax credits, we sought out a possible donor to buy out the debt," he said. "The board has identified a donor who has committed a significant amount for the purchase of the theater and Netters Building from the bank.

"But that amount, to date, is not sufficient to settle the debt, and thus we need the community's help in raising additional funds to purchase the note."

Michael Owens, Gillioz director of theater operations, is currently the only full-time employee.

Gillioz Theatre Executive Director Jeff Jenkins resigned his position in late August, citing his want to focus on The Skinny Improv, which he founded, and personal projects.

The theater has had financial woes since reopening in 2006. In 2008, operating revenues failed to meet expectations. Theater officials at the time said it still owed about $4.4 million to Guaranty, about $140,000 to board members who made personal loans and another $20,000 in deferred maintenance work.

According to The Daily Events, publisher of legal notices, the Springfield Landmarks and Preservation Trust owes about $5.3 million.
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