Rosebud president says city residents won’t be burdened

Samantha Newburn

Rosebud Theatre’s President and Chief Executive Officer Janie Oldfield told the Effingham City Council Tuesday night if the city purchases the theater, it would not affect Effingham taxpayers.

Oldfield wanted to clarify to city residents that funds for the $3.6 million building the nonprofit group Arts Connection of Central Illinois is asking the city to purchase are to come out hotel-motel tax revenue— not the General Fund.

“And this amount is for bank notes only — not the investors,” Oldfield said.

City officials, however, have not presented a possible funding package for the proposed purchase of the theater nor has the council committed to buying the Rosebud building.

According to Oldfield, the money is to “come strictly from the hotel- motel tax fund,” and the nonprofit group that will run the theater does not intend to “impact anyone’s lifestyle with property taxes.”

Oldfield said she was happy residents were communicating their support for the theater, but said some residents seemed misinformed.

At its Nov. 3 meeting, the council heard a proposal from Arts Connection members to buy theater facility for $3.6 million, which would be paid off over 20 years at about $242,000 a year. The building would then be leased to the Arts Connection for $1 a year, allowing the theater to reduce overhead costs of rent, property taxes and









other operational expenses.

Tom Henderson, one of the Arts Connection organizers, was expected to address the council, but an emergency prevented him from being there.

According to Oldfield, an initial board of directors has been set up, with Henderson and Dr. Ruben Boyajian as co-chairs. Oldfield, who is also on the board, said about six community members have offered their time to the board, as well. According to Oldfield, organizers are looking at about 15 members for the board and would like to include Mayor John Lange and Tourism Director Kim Jansen.

Members of the nonprofit group also hope to work something out with 2010 season ticket holders who did not receive reimbursements when the theater announced it would close on Dec. 5. The reimbursements have not been made because the Rosebud is expected to file bankruptcy and cannot pick and choose what debts to repay.

The Arts Connection is hoping the city will make a quick decision on whether to purchase the building so planning for the 2010-2011 season can get underway.

The city did not take any action regarding the Rosebud, but did discuss the purchase of the theater in executive session. No action was taken.

In other business, the board:

• Approved vacating an easement on the north side of a lot located near Krispy Kreme Subdivision on the corner of Raney Street and Stevens Avenue.

• Accepted improvements and released a letter of credit for security fencing for the Rickelman Avenue standpipe and fire training center project.

• Accepted a quote from All Service Contracting Corp. for the purchase of replacement parts to refurbish the water treatment plant filters, including nozzles, washers, sand and anthracite.

• Accepted a proposal from Bodine Electric for replacement of a street light pole and foundation that was damaged in a traffic accident on Wabash Avenue.

• Amended an early retirement incentive program for certain city of Effingham employees. The agreement gives city employees who could file for early retirement extra time to do so by moving the date to submit an intent to retire to Feb. 28 because of the possible change in the form of government that may affect appointed positions.

• Authorized an amendment to a contract with Wohltman Construction, Inc. for additional work required for the Parker Drive storm water detention system project. Additional grading, seeding and purchase of materials at an additional cost of approximately $14,000 is necessary for completion.

• Approved payment to Truckomat for reimbursement of $65,539.53 for concrete work.

• Approved final payment, accepted improvements and released bond for street resurfacing on Pembroke Street, Grove Avenue, Cleveland Street and North Avenue.

• Approved a change order to add $428.73 and accept final payment, accept improvements and release bond for the 2009 TIF resurfacing project

• Transferred $300,000 from the tax increment finance general account to the Outer Belt West TIF No. 4 local account.

Samantha Newburn may be reached at 217-347-7151 ext. 131 or samantha.newburn@effinghamdailynews.com.

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