Springfield businessman and property investor Robert Low has purchased the Gillioz Theatre out of foreclosure.
Low, owner of trucking company Prime Inc. and properties including Biloxi, Miss.-based Palace Casino, has agreed to lease back the theater to the nonprofit Springfield Landmarks Preservation Trust. The lease agreement is said to "significantly reduce" the trust's monthly mortgage payments. The group had been paying $14,000 per month. In addition, the lease agreements with other tenants in the Netters-Gillioz Building - Ozarks Technical Community College, Dublin's Pass Irish Pub and Dining by Design - are not slated to change. Trust officials declined to disclose purchase or lease details during a news conference held this morning at the downtown theater, and Low was not in attendance.
Operations of the theater will continue to be managed by the trust, which comprises board members Philip Rothschild, director of the entertainment management program at Missouri State University and board president; Dave Roling, Springfield division manager for Emery Sapp & Sons Inc. and board vice president; John Housley, attorney with Lowther Johnson Attorneys at Law LLC; and Bill Dunton, a partner with Abacus CPAs LLC. The 325 Park Central East entertainment icon had been scheduled for a Nov. 15 foreclosure auction after Guaranty Bank elected to call the mortgage due on the property. That auction, however,
was postponed, and would have been held today if not for Low's offer.
“(Low’s) role was one of coming forward with the capital to enable this transaction to occur. I think he had enough confidence in Bill Dunton and his business relationship with Robert Low and the composition of this board, that he’s willing to be hands-off and let the management of this theater and the programming that we do here carry forward,” Roling said.
He said it was a challenge to keep paying the $14,000 per month mortgage, and with the new lease agreement in place, making ends meet would become much easier.
“Our budget is no different than your household budget … and that became challenging after awhile,” Roling said. “This is not an easy business. On this board, we have a (certified public accountant), an attorney, a department head and a (construction manager). This is a tough, tough business."
Rothschild compared the trust's efforts to that of a baseball team’s pitching staff.
“Dave Roling, in my view, was our starting pitcher. He delivered many pitches to possible boards, tenants and navigated a variety of circumstances through at least seven innings. Coming down the stretch, Bill Dunton was the set-up pitcher. He set up the arrangement with Mr. Low, let him know about the need, and of course he stepped up. And in the ninth inning, John Housley stepped up as our closer – literally navigating the close of the property in four days,” Rothschild said. “I came off the bench whenever needed.”
Low's purchase represents the second close call for the theater since it reopened in 2006 following a $10 million, 15-year rehabilitation. In December 2010, the trust filed for Chapter 11 bankruptcy reorganization to avoid foreclosure by Guaranty - which held a $4.7 million debt against the property - after a failed attempt to receive historic state tax credits complicated the theater’s financial standing, according to bankruptcy filings and
Springfield Business Journal archives.
Despite complications, the trust claims an average 58.8 percent increase in programming revenue during each of the past five years, as well as a 390 percent increase in events from 2009, according to a news release.
The ornate theater, which was originally built in 1926 by Monett businessman M.E. Gillioz for $300,000 but had ceased hosting performances by 1980, reopened in October 2006, according to SBJ archives.[[In-content Ad]]
