Ridgewood advances bond ordinance to secure option for Warner Theatre purchase

Ridgewood’s Village Council on Sept. 24 adopted on first reading a bond ordinance (No. 4060) to authorize up to $2,600,000 toward the possible acquisition of the Warner Theatre and set a public hearing for Oct. 8, 2025.

Bond counsel Matt Jessop said the Ridgewood Arts Foundation needs site control to apply for New Jersey Economic Development Authority (NJ EDA) tax credits, but it cannot safely buy the property without assurance it will receive or be able to monetize those credits. "To apply for tax credits, we need site control, but we don't want to pay for site control until we have tax credits, so the village has stepped up to play a critical role," Jessop said.

Under the documents presented, the village would pay the seller $250,000 for a one‑year option to close on the property; that $250,000 is nonrefundable and does not reduce the $2,500,000 purchase price if the option is exercised. Jessop said the ordinance also approves a purchase and sale agreement held in escrow; if the option is triggered, the purchase agreement "goes live immediately." He described the plan as assignable to the Ridgewood Arts Foundation as Plan A, with the village stepping in temporarily only if the Foundation cannot monetize tax credits quickly enough to close.

Jessop explained the bond ordinance is structured to comply with state and local budget law, which requires an appropriation before a municipality may enter a contract obligating future spending. "You are not allowed to sign a contract that requires you to spend money unless you have an appropriation in your budget against which you can spend those funds," he said. The ordinance authorizes bonds or notes to provide that appropriation and a funding cushion; the ordinance title states $2,600,000 is appropriated while the purchase price under the sale agreement is $2,500,000 and the $2,475,000 figure in the ordinance describes the amount of bonds or notes authorized.

During public comment, a Ridgewood resident, who identified himself as Boyd, asked whether the previously adopted $250,000 bond ordinance had already been approved and whether the current ordinance was for $2.5 million or $2.6 million. Jessop confirmed the $250,000 option bond had been adopted previously and clarified the $2.6 million figure on tonight’s ordinance includes issuance and related costs; the underlying purchase price is $2,500,000. When asked for the total cost if both amounts were included, counsel and staff confirmed acquisition plus option would total $2,750,000 (purchase price plus the option payment).

Residents also asked about the risk that the village could become a permanent owner if the Ridgewood Arts Foundation dissolved after acquisition. Council members and staff repeatedly said the plan is for the Foundation to acquire the property; the village’s ownership would be short term and the intention is to convey the property to the Foundation once funds are available. Jessop added that the village is well below statutory debt limits and characterized the $2.5 million temporary increase in borrowing as not jeopardizing the broader capital program.

The council moved and seconded the first reading of ordinance 4060; roll call votes were recorded in the affirmative and a public hearing was scheduled for Oct. 8, 2025. As part of the same portion of the agenda, the council adopted by single consent vote several related resolutions, including an endorsement of an application to the New Jersey Department of Environmental Protection regarding parkland disposal, support for the NJ EDA CAFE Grant application for the Warner Theatre renovation, and authorization of a $125,000 down payment resolution to fund the statutorily required 5% down payment on the bond ordinance.

What the council did not do tonight was execute the final sale. The ordinance on first reading creates the appropriation and authorizes the bonds or notes needed to support a temporary purchase if required, but the purchase will proceed only if and when the option is exercised and the conditions in the purchase option and sale agreements are met.