In the Throes of Theater

Downtown Springfield’s Gillioz Theatre expects to finish 2010 in the black for the first time since reopening in 2006.

In a twisted script, its future is now marred by a year-end bankruptcy filing to stave off foreclosure proceedings for the theater and adjacent Netters Building.

Through November, the most recent data available, Gillioz was roughly $17,000 in the black with revenue of $622,913 and expenses of $606,543, said Dave Roling, chairman of the Springfield Landmarks and Preservation Trust, the nonprofit that owns the theater.

The 2010 figures were up dramatically from 2009, when the theater posted an operating loss of $352,059, with revenue of $392,460 and expenses of $744,519.

In 2008, the theater lost $213,750, with revenues of $410,613 and expenses of $624,363.
Gillioz Restoration Partnership LP, a for-profit entity, is the operating arm for the theater, Roling said, because nonprofits cannot apply for tax credits that were essential to the trust’s financial plan.

Gillioz Director of Theater Operations Michael Owens points to the 125 events booked in 2010 – about 50 more than 2009 – as the driver of the revenue increase.

“We count on events,” Owens said, noting that the theater is rented for a standard rate of $1,800 a day. “We do a pretty good mix of events. A lot of research goes into what we book, how we book it and promote it.”

Owens said the best-attended show in 2010 was the sold-out Shinedown concert in December.

So where and how did things go wrong for the Gillioz?

“That’s a difficult question to answer,” Roling said. The original strategic plan involved receiving both federal and state tax credits to offset a $10 million renovation of the 325 Park Central East structure in 2006, but the Missouri Department of Economic Development denied the state historic tax credits in September.

“Tax credits were the final punch in the belly in our ability to stay the course,” Roling said. “It was the loss of more than $1 million in actual funds to be paid back to the partnership – toward the retirement of the debt.”

The state tax credits were scheduled to go toward debt retirement, Roling said, and without them, officials were forced to cut staff and expenses. Owens currently is the theater’s only full-time employee.

“I run a business,” said Roling, division manager in the Springfield office of highway contractor Emery Sapp & Sons, “and I know what it takes to keep a business afloat to satisfy your overhead appetite.”

The years of financial shortcomings combined with the loss of credits made it clear that Gillioz would not meet expectations set two years ago, and now the trust owes $3.5 million of a $5.3 million loan by Guaranty Bank, Roling said.

The trust was about 900 calendar days behind on its loan, Roling said.

Guaranty Bank served the trust a foreclosure notice on Dec. 11 with a sale on the courthouse steps scheduled Dec. 31. A day before the sale, the trust filed for Chapter 11 bankruptcy protection as negotiations stalled with the bank.

Tough crowd
Around the corner at Landers Theatre, 311 E. Walnut St., the bulk of revenue comes from season-ticket and single-ticket sales to productions by Springfield Little Theatre, which owns the Landers, said Landers Executive Director Beth Domann.

In fiscal 2009, SLT posted a small profit of $4,668 after finishing 2008 at a $4,767 loss, according to Little Theatre’s IRS 990 forms. SLT recorded $972,561 in revenue and $967,899 in fiscal 2009 expenses, following $880,888 in revenue and $885,615 in fiscal 2008 expenses.

“The economy has definitely taken a bite,” Domann said. “This year, we feel pretty good about things. The thing with theaters– it can take one show not selling, and it can just kick you in the teeth.”

The smaller Vandivort Center Theatre, which seats 118, is managed by the Springfield Contemporary Theatre Inc., a nonprofit created in 2009.

The theater relies on ticket sales and donations, according to Rick Dines, artistic director. It rents space in the Vandivort Center, 305 E. Walnut St., from Mountain Grove-based First Home Savings Bank, which foreclosed on the building in July from previous owner Aaron Buerge.

Although he wouldn’t provide an exact figure, Dines said the nonprofit has operated at a loss since its creation.

He said Springfield Contemporary Theatre operated as a for-profit organization for 15 years before switching to a nonprofit in 2008.

He said low ticket prices for its productions mean profit margins are low. The theater company charges $22 for musicals and $18 for plays.

“What we do, in any other city, the prices would be more than double,” Dines said. “For the size of theater we are, $40 would be a regular ticket price.”

Theatergoers in the Springfield market won’t pay ticket prices higher than what SCT charges, even though productions might draw higher prices elsewhere, Dines said.

No final act, yet
Despite the recent woes at the Gillioz, Owens remains optimistic and appreciates recent support in the community, which last month responded with $1.18 million in pledges to the Save the Gillioz Fund.

Owens said events already booked into 2011 would go on as planned.

Upcoming events include political satire group The Capitol Steps, comedian Ralphie May, a Springfield Regional Opera lyric theater production of “La Boheme,” and Springfield Business Journal’s Dynamic Dozen Awards.

Members of the trust met Jan. 5 with attorney David Schroeder of David Schroeder Law Offices PC to discuss its reorganization plan, which must be filed by April 29. If approved, the plan would allow the trust to maintain ownership of the Gillioz and the adjacent Netters Building while paying back creditors.

A meeting of creditors has been scheduled for Feb. 25, according to court records.

Another meeting is planned for Jan. 11 to discuss the Gillioz operating budget, leases and other expenses with Guaranty officials, and a debtor possession account is in place for the theater to deposit all receipts, Roling said.

“The community’s done a great job stepping up and supporting the theater,” Owens said. “We’ll make it through.”[[In-content Ad]]