Lawsuit threatens cinema
Marcus says it didn’t approve The Corners plan
The owner of Marcus Theatres is threatening a lawsuit to bar a rival cinema at a new Brookfield mixed-use development that the company helped launch.
Allowing Silverspot Cinema to operate at The Corners project would violate a development agreement signed by Town of Brookfield officials and the project’s developers, including Marcus Corp., according to the Milwaukee-based company.
That contract doesn’t allow a change to the final plans for The Corners without the approval of Marcus Corp., said a letter to town officials from Greg Marcus, president and chief executive officer.
Town officials didn’t immediately respond Monday to a request for comment.
The Plan Commission last week recommended approval for Silverspot’s proposed nine-screen cinema at The Corners, a mix of apartments, stores and restaurants that began opening in April between W. Blue Mound Road and I-94, east of N. Barker Road.
The Town Board is to review that proposal at its Tuesday night meeting. If approved, the company “will be forced to pursue all remedies,” Marcus’ letter said.
Marcus also said The Corners wasn’t designed with adequate parking for a cinema, that increased traffic in and out of The Corners could “potentially be a nightmare” and that the new theater raises “structural issues” for the parking garage at The Corners.
In addition, Silverspot could fail and hurt both The Corners and other nearby theaters, the letter said.
Marcus Theatres operates the nearby Majestic Cinemas, also in the Town of Brookfield, and in August announced plans to develop a BistroPlex theater and restaurant complex at Brookfield Square mall.
Silverspot can compete with Marcus and other larger theater circuits by offering a sophisticated, upscale experience, Gonzalo Ulivi, Silverspot managing partner, said in August.
The proposed $30 million Silverspot development was announced about two weeks before Marcus Theatres announced its Brookfield Square proposal.
Silverspot’s theater would be at the east side of The Corners, above retail space located south of Arhaus and north of Von Maur, and next to Dempsey Place apartments.
The Corners site once included a Marcus cinema. It closed when Majestic Cinemas opened, and was later demolished to make way for The Corners.
Marcus was the original developer of The Corners. In 2015, Londonbased IM Properties and Chicago-based Bradford Real Estate Group LLC bought a majority stake in the project, with Marcus Corp. retaining a 10% stake.
That agreement includes an option for Marcus to sell its stake to IM Properties and Bradford Real Estate for $5.25 million after the project is substantially completed.
Megan Hakes, a Marcus spokeswoman, said she didn’t know when Marcus Corp. would be selling its 10% stake.
“The bottom line is Marcus is still very much a partner in the development,” Hakes said.
The Town Board in February 2014 approved borrowing $34.4 million to help finance The Corners, which will have an estimated property value of $176 million. That money will be repaid through new property taxes generated by The Corners.