City council tonight approved a lease with option to purchase deal on the Roanoke Rapids Theatre, a deal the governing panel hopes will finally usher in economic development in the beleaguered entertainment district.
In voting on the matter on a 4-1 vote, council acknowledged the city was receiving fair market value for the theater should HSV Entertainment LLC decide to buy the venue after the two-year lease. Councilman Carl Ferebee voted against the final measure to approve the deal but did vote for factors stating the deal was a tool for economic development.
Approval of the deal came following a public hearing and brief closed session. rrspin.com objected to the closed session based on the belief no further closed session discussions were warranted following the hearing. While council was not allowed to discuss the evidence heard during the public hearing on the matter, City Attorney Gilbert Chichester said the panel could go into closed session to discuss procedural matters.
Chichester mapped out details of the agreement in the public hearing. One of the new details he discussed was that Bank of America agreed to the deal. “We made tremendous progress on the deal. Bank of America did not have to let this happen. It was a long and arduous process.”
With Bank of America’s blessing on the proposal, the city can sell the theater free and clear, Chichester told council. “This is important to the city because we couldn’t sell it otherwise.”
Typically, when more is owed on a building than the asking price, banks will balk, Chichester said. “We feel like we made good progress. It does appear the city has achieved a fair market price. The city had one other offer (from Lafayette Gatling) which didn’t happen.”
Welton Worhsam, a minister from Four Oaks, said during the public hearing, “The Lord does not want the Roanoke Rapids Theatre to be a place of entertainment or Internet gambling. He will not bless Internet gambling or alcohol sales.”
Kimberly Laughrey said she was bothered by this council’s perceived attitude on the matter after running on a platform of transparency. “People still feel like no one is listening to them.”
Encouraging people to come to meetings, she said, the attitude is that decisions are predetermined. “‘They’re not going to listen to me; they vote for whatever they vote for and do it behind closed doors.’”
Laughrey questioned the need for what she perceived as so many closed sessions on the matter and wanted to know what happens if HSV doesn’t come through. “I wonder if the 30 pieces of silver is worth the city losing its soul.”
William White, attorney for the LLC, explained the negotiations have been as transparent as they could, that the public knew the name and the terms long before the public hearing, something rare in these sorts of talks.
Joyce Summerlin asked whether council had seen the credit reports of the investors, to which Chichester responded the city hasn’t. He explained, however, that’s why a $200,000 performance bond is required.
White replied, “They are very successful and astute businessmen.”
Following the vote on the matter Ferebee, who served as mayor pro-tem in the absence of Mayor Emery Doughtie, said while he was glad the matter is over he would have liked to explore other options. The problem, he said, “I don’t know of any on the horizon. I would have liked to have seen additional offers. I feel due process has taken place.”
Councilwoman Suetta Scarbrough said she is glad the matter is behind the city. “I am so happy. I feel very optimistic about these investors.”
She said the LLC is already investing in the community and has agreed to be a major sponsor of Ducky Derby. “They’re already showing an interest in this community. The information I have about them is they are solid business people.”
Chichester said Bank of America is expected to sign the papers by Friday, giving the LLC the go-ahead to be in the theater by August 15.
