City frees Proctor’s from deal Long-ago agreement nearly prevented loan to theater BY KATHLEEN MOORE Gazette Reporter
A long-ago deal between the city and Proctor’s Theatre nearly lost the theater a critical bank loan this year. The theater had to get $2 million in additional loans, on top of the $22.4 million it has already spent for its massive million building project. The cost overruns were due to a rise in the price of steel and other materials. But when Proctor’s sought to borrow the $2 million by putting up pledges and $150,000 in state historic development grants as collateral, the state objected. Its grants could not be used to back the loan because of a minor hold placed on the theater title in 1979, state officials said. The Schenectady City Council eliminated the problem this week by relinquishing its hold. Council members said they hadn’t even known they had such a link to the theater. The hold dates back to 1979, when the city was about to demolish the long-vacant theater, which it owned. A group of residents formed the Arts Center and Theatre of Schenectady to save the historic structure, buying it from the city for $1. As part of the sale, they signed legal documents saying that if Proctor’s ever again stopped operating as a theater, the city could buy it back for $1. They didn’t expect the tiny note on the title to someday stop Proctor’s from finishing its biggest expansion ever. But that’s what it nearly did, as Proctor’s tried to find the funding to fi nish its new black box theater and IWERKS theater. Proctor’s workers took the problem to city Corporation Counsel L. John Van Norden, who told Schenectady City Council members that — as far as he could see — there was no benefi t in keeping the hold. “The financial companies that Proctor’s desperately needs to work with to finish its renovations project want this removed,” he said. “And it’s not terribly valuable — it doesn’t make any sense. If Proctor’s were to close, it’s going to be heavily encumbered. We would be stuck with that debt. The city isn’t in a position to run a theater anyway.” Unlike the situation in 1979, Proctor’s is now protected as a building on the National Register of Historic Places, making it difficult to demolish. “The city could do a lot to protect it. The city could take it under eminent domain. It’s a historic property so the city would have to approve demolition,” Van Norden said. Council members agreed. “If Proctor’s ever fell into the worst scenario, I believe it would end up back with the city anyhow as an abandoned property,” said Councilman Gary McCarthy. “That’s how we got it originally.” And the new renovations, even though they are costing more than expected, are worth the loss of the hold, he added. is moving Proctor’s from an excellent regional facility to the potential to be recognized as a national landmark,” he said. Work went on while the legal issues simmered, and both theaters will open in September, Proctor’s Chief Executive Officer Philip Morris said. IWERKS was originally scheduled to open in June. Proctor’s will hold a grand opening Sept. 29 and 30. The theaters will actually be done far sooner — workers will finish construction within three weeks, Morris said. Then Proctor’s will install its equipment, including retractable seating in the black box theater. By early September, Morris expects both theaters to be ready for their first performances.
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BIGK75
July 27, 2007, 9:39am
Guest User
As far as Proctors is concerned, they just bend over and smile when it comes to money.
After all, isn't that why the Christmas Holiday Parade was rescheduled?
SCHENECTADY Proctor’s plans big ‘ta-da!’ Gala, tour, movie to mark end of renovations BY MICHAEL LAMENDOLA Gazette Reporter
Five years and more than $26 million later, Proctor’s Theatre will raise the curtain Sept. 29-30 on its completed renovation and expansion project. The two-day celebration begins with a fundraising gala Sept. 29, complete with dinner and dancing on the main stage and the premiere of the new 450-seat Iwerks Theater with a movie. The next day Proctor’s will host an open house and offer tours of the newly expanded main stage and its backstage and the upstairs dressing rooms. There also will be demonstrations of different stage functions and a chance to see an Iwerks movie. The open house is scheduled for 1 to 6 p.m. “There are still a lot of people who have never been backstage. When you are sitting in the audience and watching a show, you never see the big picture behind the scenes,” said Proctor’s spokeswoman Kathy Jarvis. Tours are also planned of the second floor of 440 State St. and its 100-seat acoustic theater, formerly occupied by Proctor’s business office. “We will have playwrights and art directors talking about how to put a play together,” Jarvis said. Proctor’s famous Wurlitzer organ, “Goldie,” will provide musical accompaniment during the tours, Jarvis said. Goldie once provided music and sound effects for silent movies. “It has all the stops to mimic sounds such as train whistles and horse clops, and it plays every single instrument in an orchestra,” Jarvis said. The Muddy Cup Cafe should be open by the end of September in The Arcade, which has expanded to include an adjacent building formerly occupied by the defunct Carl Co., Jarvis said. The cafe specializes in eclectic entertainment, food and coffee. It will be owner Jim Svetz’s fifth location in the Northeast. Northeastern Fine Jewelry, the second store in The Arcade, is expected to open sometime after September, Jarvis said. Delays in preparing The Arcade for occupancy dogged the project and led to Clark Music Centers’ decision to pull out in March as the third tenant. Proctor’s is using the space for art activities. The Arcade was initially scheduled to open in May. Jarvis said the Iwerks Theater will feature two movies shown in rotation for a year: “Bugs 3D: A Rain Forest Adventure” and “Forces of Nature.” Shows will be open to the general public Tuesday, Saturday and Sunday and to school groups on the other weekdays, she said. “It will be part of an educational experience,” she said. Proctor’s expects to finish work in The Arcade in time for its first-ever conference on Sept. 9, Jarvis said. The Alliance of New York State Arts Organizations will bring up to 300 people to the three-day conference. The alliance will use the Iwerks Theater, which converts into meeting space. Proctor’s has booked a second conference for Sept. 12-13, involving between 150 and 200 people. With the completion of the project, Proctor’s expects to provide continuous entertainment throughout the year. While its theater season runs through early June 2008 with nothing scheduled after that, the Iwerks Theater and the Muddy Cup are scheduled to be open seven days a week throughout the year. Muddy Cup expects to offer performances by singers, musicians, comedians, poets and actors as well as working artists, painters and sculptors. Other downtown venues will are expected to open soon to offer dinner and music throughout the week as well. The Proctor’s project occurred in phases, starting with a major expansion of the stage to accommodate Broadway shows. The fi nal phase involved renovating the adjacent, 70,000-square-foot Carl Co. building for eating, drinking, arts, retail and supporting businesses. The project also involved creating a power plant and the Iwerks Theater between Proctor’s and the new Movieland Cinema at Broadway and State Street. The project, when announced five years ago, had a price tag of $22.4 million. Rising material prices, work schedule conflicts with other projects downtown and required upgrades to the downtown electricity grid serving Proctor’s added $3.6 million to the cost. Metroplex Development Authority provided $9.5 million toward the project. Proctor’s raised $12.5 million through an ongoing campaign and loans. Proctor’s also secured $4.6 million in tax credits given by the federal government for preserving a historic building. Proctor’s made $4 million when it sold the credits to Sherwin-Williams Co. The federal historic preservation tax incentives program is designed to help historic properties, which are often tax-exempt, generate subsidies from the private sector by selling tax credits.
Proctor’s expects to finish work in The Arcade in time for its first-ever conference on Sept. 9, Jarvis said. The Alliance of New York State Arts Organizations will bring up to 300 people to the three-day conference. The alliance will use the Iwerks Theater, which converts into meeting space. Proctor’s has booked a second conference for Sept. 12-13, involving between 150 and 200 people.
I hope these people don't venture from the 2 block of State Steet. And that they know where the 'safe' areas of Schenectady are. Why the heck would a group want to go to downtown Schenectady when they can go on Wolf Road? Well, perhaps I feel this way since I live here in the area and know the history. Who knows...maybe it will work?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Northeastern Fine Jewelry, the second store in The Arcade, is expected to open sometime after September, Jarvis said.
How the heck did they get Northeastern Jewelers to move off of Union Street? Perhaps Metroplex gave them a good chuck of change, huh? Like they did Villa Italia.
I have always gone to Northeastern Jewelers on Union Street..A fine jewelry store....I will think twice before I have to pay to park downtown and walk through the proctor's arcade to get there. It was much more convienient on Union Street. Too bad!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Someone told me that Northeast Jewelers was going to stay on Union Street and just open another in the arcade. That was their take on it anyways. But honestly, I still don't see the advantage here. BUT, I've been wrong before...if you can believe that.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Proctor’s Theatre must be applauded for continuing its long-standing weekly fi lm presentations. For the poor, it is a gift; for the aesthete, it’s a chance to see films as they were meant to be seen. And for the $3 admission price, one can visit a beautifully renovated museum of American architecture. DAVID CHILDS Johnstown
SCHENECTADY Proctors showcases its GE Theatre Expanded entertainment site takes part in state arts summit BY JUSTIN MASON Gazette Reporter
For Philip Morris and Proctors , Sunday was a day of firsts. It was the first chance the chief executive officer was able to publicly showcase GE Theatre and it was the first time a film was shown on the new addition’s wide screen. But more importantly, Sunday marked the first-ever conference at Proctors since the theater and surrounding buildings underwent a more than $30 million expansion project aimed at revitalizing Schenectady’s long-dormant downtown area. “This is a field day of firsts for us,” he explained to a crowd gathered in the new theater Sunday for the Alliance of New York State Arts Organizations’ Arts Summit. Through Tuesday, Proctors is hosting the summit, an event that explores methods of using a vibrant arts community to bring economic prosperity to the surrounding community. Executive Director Judith Kaufman Weiner said Proctors is a shining example of how art can be used to bolster the vitality of communities. “We’re bringing together people from around the state to share their experiences in using the arts as an economic draw for revitalization,” she said. “It’s very important to showcase a success story that use the arts to revitalize and shape a community.” The summit also hosted the first public speech by Heather Hitchens, who was appointed the executive director of the New York State Council on the Arts last month by Gov. Eliot Spitzer. The former head of the Meet the Composer arts organization replaced Kitty Carlisle Hart, who died in April at age 96. During her speech, Hitchens urged the state to increase funding for the council, asked that greater attention be given to artists struggling to get by and an expansion of aid for arts education in New York schools. She also focused on evolv- ing new methods of using the arts as an economic driver. “We need to explore how our efforts in this area can be revitalized and refreshed,” she told the crowd. “Don’t continue sticking in old molds and old models.” Though some cosmetic work remains on the expansion project, the roughly 110 people attending the conference were treated to a glimpse at what the future has in store for Proctors. Following an afternoon of speeches at the GE Theatre, patrons were treated to a short display by the Braemar Scottish Dancers near Proctors’ new box office, a spacious area abutting a polished indoor walkway lined with small shops and buffering the 93-room Hampton Inn. When attendees returned for a town meeting event a half hour later, they witnessed the speed by which Proctors’ staff can transform the space from a conference center to a theater. In less than a half hour, workers replaced the round tables and plush chairs with the theater’s 430 retractable stadium seats. Schenectady Mayor Brian U. Stratton said the example of Proctors shows how important arts can be in bringing vibrancy back to a downtown region. He described Proctors as the “magnificent gem” and as a cornerstone of the city’s resurgence, which continues today. “What you are seeing is a $30 million part of the $200 million invested into downtown since 2004,” he said. “And we’ve got much more to come.” The conference comes just two days before a county Legislature resolution that would bring a $450,000 grant to the theater to cap off its expansion project. Chairwoman Susan Savage said the funding will bring to full circle a relationship between the county and Proctors, which started with the legislature’s initial $1 million contribution to the project. “Proctors has been the cornerstone of the county’s economic revitalization effort,” she said in a statement issued Friday. “This resolution will provide the funds to assist in the completion of the expansion project to further enhance the economic revitalization of Schenectady County.”
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
SCHENECTADY COUNTY With $450K grant, Proctors comes full circle BY MICHAEL LAMENDOLA Gazette Reporter
“The county started us and it finished us,” said Proctors CEO Phillip Morris. The one-time grant closes out Proctors’ fundraising effort and its $30 million project, and it also covers the project’s final costs, Morris said. It comes from the county’s surplus. County Legislature Chairwoman Susan Savage, The circle is complete. Seven years ago, the Schenectady County Legislature gave Proctors $1 million to jump-start a project many hoped would revitalize the city’s decaying downtown. On Tuesday night, the Legislature gave Proctors D-Niskayuna, said Proctors asked for the money, another grant of $450,000 to close a project that and “we are happy the county is able to help them complete their project.” The county gave Proctors a $1 million grant in 2000 to help launch the project, which local offi - cials said is helping revitalize downtown. “This has been a community enterprise like no other I have ever seen, and it’s been an amazingly powerful one,” Morris said. Legislator Gary Hughes, D-Schenectady, said “we are only part of the way there. We need to build on the success of Proctors and develop diverse arts and entertainment” venues in the county. To help this occur, the Legislature Tuesday also amended 22-year-old legislation that places a tax on hotel and motel room occupancy. The county levies a 4 percent surcharge on overnight stays in hotels and motels, the so-called “bed tax.” The amendment provides Proctors with a guaranteed annual amount of $200,000 through 2022 and increases the pool of money available to support other arts organizations. Proctors received $175,000 in 2006, “our best year,” Morris said. It is expected to receive close to $200,000 this year, and more than $3 million over the terms of the agreement. County Finance Commissioner George Davidson said he projects the county will receive $340,000 this year in total bed tax receipts and approximately $350,000 next year. It received $325,000 in 2006. The 93-room Hampton Inn, which opened this year, is expected to boost bed tax receipts, as will general increases in room prices, Davidson said. County Attorney Chris Gardner said that when the bed tax legislation was adopted in 1985, Proctors received 80 percent of the total. Minority Leader Robert Farley, RNiskayuna, said the county Legislature enacted the bed tax specifically to aid Proctors, which was in such dire financial straits years ago that it might have been demolished. The Legislature modified the agreement several years ago, dropping Proctors’ take to 60 percent, Gardner said. “This would make it a flat $200,000 in lieu of the 60 percent,” he said. “We will now have more to expend for all of the arts, not just Proctors.” The county awarded $51,149 to 28 nonprofits this year and $37,500 to 22 organizations last year. Morris said members of Proctors’ board are happy with the new agreement. “We are locked in, it is a good arrangement,” he said. Proctors uses the bed tax receipts for general operations. When the Proctors’ project was announced in February 2003, the initial price tag was $22.5 million. Morris said the project’s true cost, however, was “$26 million from the beginning,” which included projects that would be done if money became available. “We believed we could raise $22.5 million, so that was all we committed to,” Morris said. “After we received the federal historic credits, the board went ahead with the full plan.” Proctors also received grants of more than $9.5 million from the Metroplex Development Authority and from state and federal sources, in addition to more than $8 million raised from the public, Morris said. The final costs reflect increases in building materials and unforeseen expenses, such as the installing of power transformers and other electrical gear to power an entire city block, Morris said. “The original budget is four years old,” he said. The Proctors project involved reconstruction of the stage to accommodate major Broadway shows, installation of a 450-seat multipurpose Iwerks theater and redevelopment of the former Carl Co. building into retail and convention space. Originally a vaudeville theater, Proctors was built in 1927. It is listed on the state and federal Register of Historic Places.
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