Showplace 5
"in financial stress"
By John Zornow

Showplace 5, a popular multi-plex theater in Newark, has asked the village for assistance in restructuring their debt load.

According to village board minutes, after a 30-minute executive session last week, the board made the following resolution.

"Whereas, the owners of Showplace 5 have notified the Village that they are experiencing severe financial stress, and

Whereas, the board of trustees has caused the financial statements of Showplace 5 to be reviewed and has also determined the financial stress exists, and

Whereas, repayments of a community development loan have been delinquent for a number of years and that due to the fiscal stress, it is highly unlikely that this situation will ever be remedied, since the village is the third lienholder, and

Whereas, it is beneficial to the owners of Showplace 5 to consolidate their debt, and

Whereas, it is beneficial to the Village of Newark to ensure that this business continues to operate, and

Now be it resolved that the Village of Newark agrees to credit $107,130.55 of interest payments previously received against the principal of the outstanding loan, bringing the outstanding loan balance down to $189,024.83; and be it further

Resolved that the Village agrees to accept a payment of $148,5000 by January 1, 1999 to reduce the outstanding loan balance down to $40,524.83, and be further

Resolved that the remaining outstanding balance of the loan against the personal property owned by the principal owners of Showplace 5, and be it further

Resolved that the Village consents to this mortgage being assumed by the bank, paying the village $148,500, and be further

Resolved that the Village Attorney is directed to draft the necessary documents to complete the transaction."

Former Mayor Susie Crothers Earl said that she still feels that the theatre is a great village asset and is happy to see that the village has been able to assist in the situation. Earl indicated that if the refinancing of debt by Showplace results in the re-payment of community development funds, then those funds will be available for other uses.

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