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Joliet Council approves $2 million interim loan and grant extensions for Rialto Square Theatre to keep HVAC work on schedule
Summary
The Joliet City Council approved a $2 million intergovernmental loan and agreed to extend previously approved Rialto grants so the Rialto Square Theatre can complete HVAC renovations interrupted by asbestos remediation. Rialto leaders said litigation and grant timing create uncertainty; council members pressed for clearer collateral and assurances.
The Joliet City Council on June 16 authorized a $2 million intergovernmental loan to the Will County Metropolitan Exposition and Auditorium Authority (Rialto Square Theatre) to keep an HVAC renovation project moving while related litigation and insurance reimbursements are finalized. Rialto executive director Wade Walsh told the council the work is time‑sensitive and that a construction pause would force cancellations and damage the theater’s ability to attract future shows.
The request followed a 2024 asbestos remediation that forced the theater to close for months and redirected Rialto funds intended for HVAC work to cleanup. "No HVAC means no shows," Walsh said during a presentation, adding that the theater spent more than $1.7 million cleaning the facility to meet Illinois EPA requirements. He said closing bids for the HVAC work totaled about $9 million, with roughly $3 million from county grants, $3 million from state grants and prior city grants and $1.7–2.2 million intended from Rialto reserves.
Council members pressed Rialto representatives about collateral and the unsettled litigation. One council member expressed concern that part of the proposed collateral is contingent on future grants and could effectively obligate future councils. Rialto board president Bob Filotto said the litigation is near resolution and called the loan an "insurance policy" to prevent another closure and loss of momentum.
The council approved both the loan ordinance and a related resolution to extend previously approved grant funds (2024 and 2026 grant lines) so Rialto can access existing city-allocated money this year. Staff clarified the two items are distinct: one is a loan; the other formally authorizes the city manager to allow Rialto to spend prior-year grant money that was not expended in 2024.
The loan and grant extension passed by roll call. Mayor Mary Terry D'Arcy and a majority of councilmembers voted in favor; one or more members registered dissent during the debate. Councilmembers said they supported preserving the theater as an economic driver for downtown Joliet but asked staff to monitor collateral, timelines and the litigation outcome closely.
What’s next: City staff will finalize loan documents and continue to track the Rialto litigation and grant disbursements. The council directed staff and Rialto leadership to provide follow-up information about the timing and any required future actions.
