TIF Report: Developer looks to buy vacant theaters, renovate Esquire

A development group wants to purchase two of Cape Girardeau�s historic theaters in the 800 block of Broadway and redevelop one of them with the aid of tax-increment financing, according to an application submitted to city hall.

TAG (Together Always Giving) Development and Cape Theaters LLC submitted the application. The effort is headed by developer Cara Naeger of Bloomsdale, Missouri.

The city council voted last month to seek tax-increment financing (TIF) proposals for redevelopment of the vacant Esquire Theater at 824 Broadway after Naeger proposed renovating the building as a concert venue for local and touring bands.

Alex McElroy, the city�s development services director, said Tuesday that Naeger�s application was the only one received by Monday�s deadline.

The city�s TIF Commission is scheduled to meet Thursday to begin reviewing the application. The final decision on whether to grant TIF assistance for the project rests with the council.

The inside of the Esquire Theater on Broadway in Cape Girardeau sits empty Dec. 9, 2011, during a previous attempt to renovate the theater.Southeast Missourian file

Cape Girardeau Area Chamber of Commerce president John Mehner said the TIF proposal only deals with the Esquire Theater. If the Broadway Theatre across the street at 805 Broadway is renovated at a later date, it would require a separate TIF application, he said.

Both theaters have been vacant for decades, are on the National Register of Historic Places and the Cape Girardeau Historic Preservation Commission�s endangered buildings list.

The Esquire Theater was constructed in 1947 and operated as a movie theater for more than four decades.

The Broadway Theatre opened its doors Dec. 24, 1921, with a full stage and an orchestra pit, enabling the theater to offer Vaudeville acts, musical productions and silent movies. It has been permanently closed since 1997, according to newspaper records.

Mehner said the developer has not purchased either theater.

Naeger proposes spending $227,000 to buy both buildings from owner Phillip Brinson.

As for redeveloping the Esquire Theater, the plan envisions spending about $2.5 million including $2.1 million just in construction costs, according to the application. That also includes $7,000 to purchase a strip of land west of the building from Southeast Missouri State University. The land would be used to expand the theater to accommodate restrooms, according to the application.

The Esquire Theater, which closed in 1985, featured a �colorful art deco facade� with neon tube lights and a ticket booth, Naeger wrote in the application.

Naeger said the restoration project would be completed in �one phase.� Once finished, it would have �an open floor plan� attracting smaller touring musical acts and bands, and boasting more than 7,500 square feet of space for weddings and other events, she wrote.

�The Esquire will be available year-round for entertainment, cultural and educational events and tours,� according to the application.

The facility would accommodate as many as 650 people for concerts as well as wedding receptions, conferences and meetings, Naeger said.

The application estimated the venue could generate $1.6 million in annual income from ticket and food sales and facility rentals. Operating expenses are projected at $1.39 million, leaving net income of more than $222,000, according to the application.

Naeger wrote parking arrangements have been made with the university and Centenary United Methodist Church for use of their nearby parking areas for Esquire patrons.

A TIF allows a developer to receive the increment gained in property taxes between the current value and the improved value and use that revenue to fund development costs such as acquisition, rehabilitation, infrastructure and parking.

City officials said a developer must show the project is not feasible without a TIF.

Naeger said the building is �in great need for TIF assistance.�

She wrote �theater revitalization is costly� and difficult to accomplish without TIF assistance.

�Theaters run on very low margins and have a high risk associated with bookings,� she said. The �high cost� of sound, lighting and construction adds to the expense, she said.

Without TIF assistance, �we will not be able to take on the project,� Naeger said.

She said TAG and Cape Theaters LLC also plan to apply for state and federal tax credits for the project.

mbliss@semissourian.com

(573) 388-3641