The village of La Grange is getting into the theater business — just barely — following Monday’s Village Board meeting.

In a 4-3 vote, the board approved an agreement between the village and Seamus Knolls with La Grange Theatre owners John Rot and David Rizner as principals, where the village will provide $1 million in tax increment spending funds to renovate the theater. In effect, the village is purchasing an easement that preserves the facade of the theater. The owners must also honor a covenant the theater remain in perpetuity until the time it ceases to operate. At that time, the owners are required to repurchase the easement for $1 million.

The owners, who have already invested $350,000 in the theater, must also put up $650,000 for renovating the building.

Trustees James Palermo, Barbara Wolf and Michael Horvath, all who have raised objections in the past for providing tax increment financing funds for the project, cast opposing votes for the agreement. Trustees Mark Kuchler, who developed the framework for the agreement, along with Mark Langan and Thomas Livingston voted in favor.

Wolf said she has been sleepless since the vote.

“I think it’s a bad idea,” she said. “It did not fall within what I consider the fiduciary responsibility to the residents of La Grange.”

Village President Elizabeth Asperger broke a tie vote among board members in favor of the agreement.

“The theater not only has iconic value,” Asperger said. “It serves as an entertainment magnet to draw people to La Grange’s shops and restaurants. I believe the theater is very important to our residents, both for its historic and iconic value, and the importance it plays in La Grange’s economic vitality.”

Rizner said he and Rot are pleased to have this phase of the renovation plan completed.

“We’re really excited,” he said. “When it’s all said and done I think we will have something the whole community can be proud of and that’s the ultimate goal. To see the final improvements happening, were very excited to get to that stage.”

The next step, he added, will be to secure the necessary permits, develop schedules and marshall forces for the project.

“Our hope is to begin as early as possible in 2009,” he said.

Prior to finalizing the agreement, the village needs to negotiate an agreement with the first mortgage lender, First National Bank of La Grange.

“In preliminary meetings, the bank has had with our village staff, the bank has suggested a complete understanding of what it is the village hopes to accomplish, and we are really in sync in terms of both parties.” Asperger said. “The mortgage lender and the village are equally interested in the success of the La Grange Theatre.”