Theatre’s future not guaranteed, city says

Plaza is not obligated to retain cinema space

Owners of the downtown World Exchange Plaza have no obligation to retain space for a movie theatre, according to a recent city staff report.

Members of council’s finance committee asked for clarification on the World Exchange development agreement that was hashed out and updated several times over the past 25 years or so.

The clarification further jeopardizes the uncertain future of the existing and popular downtown movie theatre, which could be shut down when the current lease expires at the end of the year. Empire Theatres, the group that has operated the cinema for years, has walked away from many of its theatres in a mass exit from the industry altogether.

This move, coupled with plans for a luxurious theatre experience at Lansdowne Park, has threatened the World Exchange theatre, despite its significant popularity. In September, finance committee members were approached by World Exchange management group representatives, who asked for clarification about the permitted uses in the plaza as they had already received inquiries about transforming the theatre into office space.

“A theatre/cinema use was not identified in the city’s objectives for the project, nor included as a requirement of the (request for proposal) process,” the staff report concludes.

At least for now, however, the big screen has been saved by Landmark Theatres, the Calgary-based cinema chain that took over Empire’s lease until it runs out Dec. 31. Landmark’s chief operating officer, Neil Campbell, has already stated publicly that the company would like to operate a theatre at the World Exchange.

There could be difficulties, however, with a luxurious cinema planned at Lansdowne that could include top-notch seating, quality food and possibly alcohol beverage sales.

Another possible problem could come up with both theatres fighting over popular movies. Distribution deals often prevent movies from being shown at different theatres located within a few kilometres of each other. This could create significant trouble for Landmark and whoever operates the Lansdowne cinema.