Palace looks for options

Eagles Building still could be sold

The Lorain Palace Theater will look for options to sell the Eagles Building — possibly with the FireFish Arts group or another buyer, according to the Palace board of directors.

On April 19, the board met with Lorain Law Director Pat Riley, who spoke for the city administration of Mayor Chase Ritenauerto encourage further negotiations with the FireFish Arts organization.

The meeting came after Palace board President Jeff Nealthis week announced the theater leaders could not execute an agreement to sell the Eagles Building, 575 Broadway, to FireFish. The deal had the approval of Lorain City Council, but it did not go through.

The sale agreement had a condition for FireFish to release the Palace board from any liability under a 2009 agreement with the Ohio Facilities Construction Commission, which formerly was the Ohio Cultural Facilities Commission. The state provided up to $410,000 for the Palace Theater to acquire the Eagles Building, repayable over 15 years, and the Palace still could be liable for about $150,000 of that amount.

Riley said the city administration was not advocating for FireFish. However, Riley cited various legal conditions and argued a sale of the Eagles Building posed “minimal” risk to the Palace.

Based on information from state officials, it appeared the Palace could sell the Eagles Building to FireFish or another buyer. As long as the Eagles Building maintains its historic status, the Palace Theater would not be liable for repaying the state money, Riley said.

If the state demanded repayment, the city of Lorain would be first in line to pay it back, Riley said. The amount of money involved — $150,000 — is substantial for the Palace, but not a tremendous risk for Lorain, he said.

Lawyers often act as risk managers for clients, Riley said, and in this case, the risk is minimal.

Going back to the table with FireFish, Palace board member Dan Kelleysaid the board is willing to make it work and have a deal benefit members of the community.

But divesting the Eagles Building is necessary,

said Palace board Vice President Ken Kramer.

“We can’t afford to have the Palace run and maintain that building,” Kramer said. “We can’t afford two buildings.”

Other buyers could be interested in the Eagles Building. Neal said on April 19 he had three calls from people inquiring about the fourstory, 30,000-square-foot space.

FireFish representatives did not attend the meeting, which was a regular meeting of the Palace board. Also attending were board members Ron Wooledge, J.D. Tomlinson, Dan Gross Jr., Rebecca Rodriguez; and Operations Director Chris Pataky and Administrative Assistant Joyce Rhodes. ALL

“We can’t afford two buildings.”

— Palace board Vice President Ken Kramer