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Martinsville RDC approves cash purchase of downtown Civic Center theater
Summary
At a special Redevelopment Commission meeting, members voted to buy the downtown Civic Center theater for $2.9 million in cash, transfer ownership to the city's redevelopment authority and lease operations to a nonprofit; staff presented a pessimistic financial projection showing short-term tightness but long-term savings vs. a bond.
The Martinsville Redevelopment Commission voted at a special meeting to purchase the downtown Civic Center theater outright with cash and transfer ownership to the redevelopment authority.
Mayor Brandon said the theater, which is under construction and will seat about 320 people, is intended to boost activity on the downtown square and provide regular weekend programming. “This will help generate activity downtown on our square,” Mayor Brandon said. “We think that within a year and a half, the theater will be able to sustain itself.”
Commission members discussed foregoing a bond issue and using available RDC cash instead. Finance staff presented a conservative, “pessimistic” three‑year cash projection and highlighted one‑time reimbursements and worst‑case operating costs. “This is a little bit of a pessimistic view, because I'd rather come to you in a year and say you have more money than I said you would, than come to you in a year and say you have less money than I said you would,” Ben, a staff member, told commissioners.
The commission heard operational plans that include leasing management to a nonprofit or a proposed arts-and-entertainment organization, contracting concessions and technical crews, and using volunteers to staff events. Mayor Brandon said organizers expect to need “anywhere from 8 to 10 volunteers for each show.” The commission also discussed hiring or naming an executive director to coordinate bookings and volunteer management and using an existing cleaning contractor for facility upkeep.
On the finances, staff flagged a reimbursable grant tied to the Civic Center that would return $275,000 if the purchase proceeds and modeled up to $360,000 of staffing and operating expenses over roughly 18 months as a conservative scenario. Paying cash would avoid roughly $200,000 in bond soft costs and reduce the total payout compared with issuing a bond; staff estimated the bond route would cost roughly $5 million over time, while a cash purchase would cost about $2.9 million up front—saving about $1.7 million in total payout compared with the bond scenario, according to the presentation.
Staff cautioned that cash balances would be tight for about six months before tax draws and other revenues restore flexibility, and that projections assumed a conservative outlook given changes from “Senate Bill 1.” Commissioners noted that a bond that drops off next year would preserve future bonding capacity for other large projects.
After discussion, a motion that the RDC purchase the theater with cash, transfer ownership to the redevelopment authority (RDA), and proceed with operations as discussed was moved, seconded and approved by the commission. The motion passed with a quorum present.
Commissioners also noted related items for future meetings, including a traffic study and a property on Ohio Street where a development option was not renewed. Staff said the commission will receive a copy of the financial spreadsheet and further details at the next meeting as the purchase is finalized.
The commission adjourned after the vote.
