La Grange officials edged closer to approving financial help to the La Grange Theatre this week.

However, it became clear that some Village Board members are not yet sold on the idea of providing public support to a private business.

Village officials met Monday, Sept. 29,  with theater owners John Rot and David Rizner to dissect a 10-page memo from village staff to the board that provided a term sheet, which served as a framework for a proposed redevelopment agreement.

At the foundation of those options, the owners would fund $1.35 million of the total renovation. The village would provide a no-interest loan of $1.35 million that would be repaid through an Entertainment/amusement tax that essentially would increase theater ticket prices by 50 cents. Based on past ticket sales, the tax is expected to generate $100,000 annually.

Another six-page memo was reviewed that contained a financial analysis of potential village funding sources and four options from which the board could chose.

Trustee Mark Kuchler criticized the board and the process at that point, and raised concerns that staff was essentially instructed to give the board policy options.

“I don’t think staff should be making recommendations regarding policy,” Kuchler said. “I don’t think that’s the job of staff. I think the job of staff is to provide us with the data so we can determine appropriate policy decisions. Whether TIF funds are used or should be used is a policy decision. Everybody up here has at least a little different idea about it. There’s not a right idea or wrong idea. When staff advocates a position, it becomes an advocate of the position, as opposed to someone who is neutral providing us with the information.
“This is not a criticism of this staff,” Kuchler said. “It’s a criticism of the direction it was given.”

Kuchler then presented a fifth option to be considered. Under Kuchler’s proposal, the village would purchase a facade easement, which means the village buys an interest in the property.

The proposal also calls for the village to secure an operational covenant that would ensure the building remains a theater until such time the investment was repaid.

There appeared to be wide support for Kuchler’s proposal among the board.

Meanwhile, the board appears split on whether to provide funding through tax increment financing, or TIF, or from the village’s general fund.

In a straw poll, Trustees Michael Horvath, James Palermo and Barbara Wolf voted against providing TIF funds for the 83-year-old theater. Horvath repeatedly has stated in the past he did not see the theater as a proper candidate for the use of TIF funds.

Trustees Mark Kuchler, Mark Langan, Thomas Livingston and Village President Elizabeth Asperger favor TIF financing.

Staff also was directed to pursue discussion with theater owners related to Kuchler’s proposal and to provide more financial information related to the theater for the board to review.

Rot said after the meeting progress had been made.

“I feel like we’ve moved forward a little bit,” Rot said. “I understand there are some differences of philosophy, at some level we’re mixed up in that a little bit. But we know there’s a majority of the people in favor of working with the theater.”

The board is expected to revisit the issue when it meets Monday, Oct. 13.