Expressions of interest for the Monarch Theatre are now being accepting by the City of Medicine Hat, which is seeking a new owner or operator for the historic film house on Second Street downtown.--News Photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
City Hall is reopening the issue of Monarch Theatre to another round of proposals after talks this fall with an unnamed party broke off.
That was outlined at Monday’s public services committee meeting, where council members said they are hopeful a new owner can be found, but also outlined that an historic designation protects the facade and building, but not the interior, or its use as a cinema.
Administrators say that will be part of a new evaluation process for interested buyers, but the largest factor in the decision is a buyer’s financial ability to close the sale and keep it open.
“I’m sure there will be a way forward,” said Coun. Alison Van Dyke, who felt administrators are balancing a number of requests from council about preserving the building while finding a new operator.
“For me, it’s important to protect the interior as well, but that’s not covered by the historic designation.”
The city acquired the 1912-built theatre in the summer of 2020 for a total cost of $205,000 from the previous owner, the City Centre Development Agency, and received eight formal expressions of interest last spring.
That led to further discussions with one party.
“We were unable to arrive at a mutually agreeable arrangement and therefore are recommending that a request for proposal process would be the next step,” said public services division head Brian Mastel.
“We’ve established that there is interest in the community, and there may be others.”
New submissions would require more detailed plans for the theatre, which council had previously signalled should remain open as a public venue to support general activity in the downtown core.
The documents would also include weighting how city administrators would evaluate bids, including financial aspects, use of the facility, the ability of the buyer to follow through, and preserving the historic building.
“We want it known that we want the building preserved, as long at it’s transparent in the contract, I’m happy to see that move forward,” said Coun. Allison Knodel.
The immediate plan for the theatre is for the community development office, which also oversees the Esplanade Theatre and Co-op Place, to stage an event in the space every four to six weeks. That could put the operations budget at $75,000 on a yearly basis.
Since the purchase the city has spent $19,000 on maintenance, utilities, insurance and upkeep. An inspection report states about $375,000 in roof, lighting and exterior work will be needed within five years.
“There’s some latitude,” Mastel said. “Our expectations for intended use (in the new bid outline) would help give us insight into (any) modifications.”
Committee chair Coun. Ramona Robins said the theatre was purchased by the previous council group, and while the current group has discussed many possibilities for the space on Second Street, it is time to move the issue along.
“Now we have to make a decision,” she said. “It took us a while to get here, and hopefully there are still some dreamers out there who will submit, and we’ll see the Monarch return to an active space.”
The city’s purchase included $145,000 in cash along with cancelling $60,000 in debt still owed to the city by the CCDA from a 2009 loan to acquire the theatre.
All CCDA assets were forwarded to fund business development grants offered by Community Futures Entre-Corp in 2020.
