Clarksville council says $6 million Theater X settlement will be placed in town accounts; officials to plan use

The Clarksville Town Council on March 17 announced it had received a $6,000,000 settlement from litigation with the former Theater X property and has deposited the funds into short-term investments while officials craft a plan for their use.

"The settlement amount that the town received in that plea was $6,000,000," Council President Bob McEwen said in presenting the agreement. Clerk Treasurer (name not specified) told the council the money was wired and immediately moved into Trust Indiana, a state-approved short-term investment pool, while staff meets with investment advisors. "We did receive by wire, dollars 6,000,000, and ... we made sure that that money was moved into Trust Indiana," the clerk said.

Council members, and the outside attorney credited with preserving the license-revocation record, praised the result. Greg Pfeiffer, the attorney who worked on the zoning violations, said the town would see a return well in excess of the legal investment and thanked prior councils for pursuing the case. The council said it will develop a public plan for how to allocate the funds and invited further discussion at upcoming meetings.

Clerk Treasurer remarks added context on the town’s overall finances: the town has seen a boost to emergency funds but faces budget pressures this year because of a new police contract (the clerk cited an estimated $840,000 added cost for the year) and a Department of Local Government Finance expectation to cut roughly $2,000,000 from the general fund. The clerk asked the council to schedule a work session to review the general fund and spending priorities.

Council members said the settlement provides a cushion but does not eliminate the need for fiscal planning; no final spending decisions were announced at the meeting.