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FRIENDS OF THE ELKS THEATRE
Response to Request for
Proposal for the Development
+ of The Elks Theatre
Friends of the Elks Theatre August 3, 2015
29 South Union Street
Middletown, PA 17057TABLE OF CONTENTS
TABA Cover Letter
TABB Respondent's Organization
TABC Respondent's Qualifications
TABD Project Narrative
TABE Plans, Drawings and Estimates
TABE Financial Information
TABG Economie Impact
TABH Legal Actions
TABI ‘Special ConditionsBbEEEEEELELS
August 3, 2015
Mathew Tunnell
MICDA
30 W. Emaus St.
Middletown, PA. 17057
Re: Elks Theatre Proposal
‘Dear Chairman Tunnel
Friends of the Elks Theatre submits the attached proposal in the response to the Request
{for Proposal issued by the MICDA regarding the Elks Theatre, 4 W. Emaus St, Middletown, Pa.
‘As deseribed more filly inthe attached document, Friends ofthe Elks proposes to operate
the Elks Theatre, under a lease from the MICDA, as community owned, not-for-profit, muli-
function theatre. The theatre will operate primarily as a movie theatre that will show a
‘continuous schedule of frst-run films, classic films and host an annual film festival. In addition,
the proposed instalation ofa stage, dressing rooms and sound and lighting systems wil allow for
‘greater utilization ofthe theatre space so that it may be used by community organizations for
thet events, Such use would include recitals by local dance schools and theatrical productions by
Jocal theatre groups, including the Olmstead Players, Midletown’s community theatre. Friends
of the Flks has also been contacted by local individuals interested in producing events such as
concerts and stand-up comedy shows, which will be possible with the physical improvements
contained in the proposal
In addition, the installation of digital projection equipment in the theatre will open a range
cof other new uses during those times when films are not scheduled. This would include video
‘gaming on the theate’s screen and projection of live sporting events. These two uses are
expected to have particular appeal to students living on or near Penn State University's
Harrisburg Campus,
‘As detailed in the attached proposal, Friends of the Elks proposes the following
‘improvements to the Elks Theatre building:
Purchase and installation of digital projection equipment and a retractable movie screen
Installation ofa stage extending 8 feet in font of the existing stage
Construction of two dressing rooms in the existing wings ofthe theatre’s stage
Installation of stage lighting and sound equipment for use during live events
Purchase and installation of approximately 425 new theatre seats, possibly using a seat
design consistent with the histori character ofthe theatre
Installation of new carpeting inthe lobby, theatre aisles and stairways and possible
stripping and refinishing of the wood floors of the theatre area
‘Tye installation ofa new, historically appropriate marquce above the theatre entrance
along with illumination ofthe front, exterior fagade ofthe theatreFriends of the Elks has obtained pricing from various contractors and suppliers inorder to
provide a preliminary estimate forthe cost ofthe proposed improvements. Based upon the
information receive, the necessary budget will be approximately $370,000.
Friends of the Elks proposes a publis/non-profit partnership with the MICDA. Its
proposed thatthe MICDA retain ownership of the theater portion of the building and thatthe
Friends of the Elks enter into a lease with an inital term of ten years pursuant to which the
theatre will be operated as a community owned, non-profit theatre. All profits from the
theatre operations will be reinvested inthe theatre for future improvements. In addition,
Friends of the Elks will regularly seek grant funds and corporate contributions, conduct
periodic fund raising campaigns and hold special evens, with all obtained finds used for
theatre maintenance and improvements.
Friends of the Elks believes that the proposal being submitted will increase the utilization
of the theatre, provide substantial benefits tothe community and best assure the long-term
survival and success ofthe Elks Theatre.
Please direct any questions regarding the proposal to Gordon Einhom (geinhom@itlaw.
‘com) or Jack Raudenbush (raudenbush @raudeng.com).
Friends of the Elks Theatre thanks the MICDA for the Authority’s consideration of its
‘proposal
Respectfully,
Dock Laibutr
Jack Raudenbush
Bonn
Gordon A. EinhornRespondent's Organization
Friends of the Elks Theatre was founded and incorporated in 2003 as the Greater
Middletown Economic Development Corporation (‘MEDC’), a Pennsylvania nonproft
‘corporation. The entity was granted 601(c)(3) status by the internal Revenue Service in
2005. It was originally formed to administer the Borough of Middletown's Main Street
Program, a 5-year grant program under the Pennsylvania Department of Community
‘and Economic Development. As part of the Main Street Program, it acquired the Elks
building, which included the Eks Theatre. When the Main Street Grant Program ended,
the Elks Theatre became the sole focus of the organization and from January 2013
through April 2015 it operated the Eiks Theatre on a not-for-profit basis.
In recognition of the fact that the entiy’s focus has evolved and shifted from
general community economic development to preservation and improvement of the Elks
‘Theatre, its the organization's intention to formally change its name to Friends of the
Eiks Theatre, Inc. In addition, the membership of the Board of Directors is undergoing
‘substantial change. The current Board includes Chairman Jack Raudenbush, Gordon A.
Einhorn, Esquire, Andrea Kams (Karns Market) and Michael Dalton. In addition, Carol
upp of Kuppy’s Diner has agreed to join the Board. Several additional seats are in the
process of being filed and it fs proposed that one such seat be taken by a member of
the MICDA or Borough Council,
For purposes of this proposal, Jack Raudenbush and Gordon A. Einhon are
‘authorized to negotiate on the entity's behalf. Their contact information is as follows:
Jack Raudenbush
29'S. Union St
(717) 944-0883
Gordon A. Einhom
‘Thomas, Thomas and Hafer
306 N. Front St.
Harrisburg, Pa. 17101
(717) 441-7054
(717) 576-3569 (cel)Respondent's Qualifications
The Board of Directors of Friends of the Elks Theatre is intimately familiar with
the operational requirements of a movie theatre. This experience was initially gained
from 2005 through 2012 in its capacity as landlord for the last theatre tenant, Ross
Seltzer. In January 2013, Friends of the Elks took over the operation of the theatre and
did so until April 2015. Through several years of hands on experience in the operation
Of the theatre, Friends of the Elks has expertise in all facets of theatre operations
including programming, staffing, concessions, special event planning and marketing.
‘The organization continues to have contracts in place with all major fl studios for the
‘exhibition of films and has an existing relationship with a booking agent through which
individual fime are scheduled.
While operating the theatre, Friends of the Eiks amassed an address list of more
than 500 theatre patrons to whom it sent weekly email notices of upcoming events and
show times. This list is stil active and has been used to update theatre patrons on the
progress of theatre renovations. In addition, Friends of the Elks has a Facebook page
for the theatre, which has more than 1,200 followers.
Friends of the Elks Theatre has a proven track record of fundraising capability for
the theatre. In the past, thas obtained in excess of $300,000 in grant funds used to
replace the theatre roof, repair deteriorated masonry on the exterior rear wall of the
theatre and replace the teatre's outdated HVAC system. in addition, substantial
corporate gifs were received from corporations such as Giant Foods ‘and Exelon
Corporation,BESSEEEESSES555S5S33533555553535553333335533331
Project Narrative
Friends of the Ekks Theatre proposes that the Elks Theatre be operated as a
community-owned, multi-purpose theatre, under a 10-year lease to the Friends of the
Eks Theatre, a ‘local, not-for-profit, volunteer-driven organization with a proven
‘commitment to the survival of the theatre.
‘The Elks Theatre is one of the few remaining small fown theatres in Pennsylvania
that remains in operation. Over the past 25 years, hundreds of theatres across the
country like the Elks have closed their doors, unable to keep up with changing
technology and unable to compete with national theatre chains that operate numerous,
multiscreen theatres. The reason Is simple economics. Single screen, small town
theatres are simply not viable when operated on a for-profit basis. Some of those that
remain are run as hobbies by private theatre owners who do it to preserve a bit of
history and for their love of movies. These theatres will likely disappear when their
owners retire
However, some small towns have recognized the importance of the long-term
preservation and continued operation of these theatres from the standpoint of historic
preservation and community cohesion. They recognize that these theatres are a
‘community asset and should be treated as such. In these communities, non-profit
‘organizations have been formed to take on the operations of these local, historic
theatres to assure their continued survival. Not-for-profit groups which operate theatres
like the Colonial Ineatre in Phoenbwville, Pa. and the Campus Theatre in Lewisburg, Pa:
keep these historic theatres operating through a combination of ticket sales,
memberships, corporate and local business sponsorships and grant funding. It is this
model which has been successfully used in other communities, that Friends of the Eks
Theatre proposes to implement with regard to the Elks Theatre.
Under this proposal, Friends of the Elks Theatre would enter into a ten year
lease with the MICDA for the theatre portion of the building. A nominal rental payment
‘would be made on an annual basis. This would be similar to the arrangement that the
non-profit which operates the Campus Theatre has with Bucknell University, the owner
of the theatre, pursuant to which the non-profit leases the theatre for $7.00 a year. In
liou of a market value rental payment, Friends of the Elks would commit to regular fund
raising campaigns and events and the pursuit of grant funding, the proceeds of which
would be used for maintenance and further improvements to the theatre.
‘This proposal also recognizes that as a community owned theatre, the Elks
must be more than just a movie theatre, but must serve the community as a venue for
‘other events, With the proper modifications, the theatre will become a venue for
‘community theatre performances, dance recitals, concerts and other uses.
‘These modifications and improvements will raise the visibility of the theatre and
contribute to its long term success. Like any community asset that has existed for
generations, the theatre has sometimes been taken for granted. Its local audience often
fvertooks it in favor of shopping center based multiplexes with more advanced
1projection technology and a more welcoming environment. However, this trend is
reversible, Friends of the Elks proposes a set of upgrades and modifications to the
theatre which will allow it to compete on a level playing field with newer theatres while at
the same time maintaining and enhancing the historical features of the theatre which
‘make It unique and important to the community. The improvements to the theatre will
‘also include features which will allow it to expand its use beyond that of ust a movie
theatre. Features such as a stage and sound and lighting systems will permit the theatre
to be used for a vatiely of live events, including community theatre, concerts and
comporate events.
Move Theatre Operations
Under this proposal, the Eks Theatre would remain first and foremost a movie
theatre which would show a continuous schedule of primarily first-run movies. Feedback
received from the community over the past year has made clear that the community
prefers that the theatre remain primarily a movie theatre rather than a theatre used for
live performances with fims being shown only on an occasional basis.
In addition to frst-run films, the theatre will establish a schedule for showing of
classic films and holiday-themed movies at the end of each year. Such programming
has proven successful over the past several years and will be continued and expanded.
‘The schedule of films will also include a special children’s matinee on one
Saturday of each month at which all tickets would be priced at $1 per person, These
events wil be promoted as a “Thank you" to the community and wil help re-establish
‘with the public the concept of the Elks Theatre as Middletown's neighborhood theatre.
Friends of the Elks Theatre also intends to establish an annual fim festival of the
est student films from colleges and universities in the region. Invitations for
submissions will be sent to the film departments at all colleges and universities within a
200-mile radius with the top submissions to be screened at the theatre during a
‘weekend-long event. This event will give young filmmakers a rare opportunity to screen
thelr films in a real theatre with a big screen. Because the event will be unique in this
area, it will generate positive publicity for the theatre and enhance its reputation. In
addition, because itis anticipated that participating filmmakers from outside of the area
will travel fo Middletown with friends and family, the event will be a driver of economic
activity for local restaurants and other businesses in the downtown area.
‘New Uses for the Theatre
At the present time, there Is no venue in the community capable of hosting
certain types of live events. Over the last several years, Friends of the Elks has often
been contacted by groups and individuals interested in'renting the theatre for theatre
events, concerts, fashion shows and conferences. However, most of these inquiries,
have had to be turned away due to the fact that the theatre lacks the faclities and
‘equipment to stage such events.Friends of the Elks has obtained pricing from a contractor and a designer of
sound and lighting systems and determined that the modifications necessary to make
‘such events possible can be accomplished without making major changes to the interior
of the theatre and within a reasonable budget.
Under the proposed plan, the existing stage would be extended 8 feet into the
theatre auditorium, This would be accomplished by eliminating the first two rows of the
previously existing theatre seats. This extension of the stage, along with the installation
of a retractable movie screen, would provide sufficient stage depth for the staging of live
events,
‘The construction of the stage extension could be done at a cost of approximately
$12,000,
In addition, itis proposed that stage lighting be installed along the walls on each
side of the stage. This lighting system would be controlled by a portable lighting board
located in the theatre balcony. This lighting system can be purchased and installed for
approximately $10,000.
It Is also proposed to install a new sound system, separate from the currently
existing sound system used for fis, This would provide sound amplification for bands,
speakers and other events. The proposed system would include ampifiers, speakers
‘and wireless microphones and could be purchased and installed at a cost of
approximately $60,000,
‘These proposed improvements will provide an immediate and tangible benefit to
the community. For example, within the last several months, Friends of the Eiks has had
discussions with the Olmstead Players, the local community theatre group. The
‘Olmstead Players has existed for many years and has periodically held performances at
the Middletown American Legion, the First Church of God and on the M&H Railroad.
However, because the group does not have a permanent home, it has been difficult for
itto stage performances on a regular schedule. If the proposed modifications are made
to the theatre, the Olmstead Players is interested in making the Elks Theatre its
permanent performance venue and would essentially become the theatre's resident
theatre company. This would result in increased utilization of the theatre and confer a
benefit on this local theatre group and on the community which would benefit from the
‘group's increased activity
In addition, the installation of digital projection equipment will not only allow the
showing of digital and potentially 3D films, but will open the way to new uses for the
theatre during those times when films are not scheduled. With the installation of an
Xbox or other type of game console linked to the projector, it will be possible fo offer to
‘the public video-gaming on the theatre's large screen. While this experience has been
offered at theatres in other areas, no theatres in this region currently offer this unique
experience which it is believed will be very popular for college groups and private
parties. In addition, with the installation of cable or a satelite dish connected to the
digital projector, the theatre wil be able to show certain live events as alternative
3programming. For example, with the proper licensing, the theatre may be able to show
live Penn State football on the big screen, an event which could be held in conjunction
with Penn State Harrisburg,
In addition, Friends of the Elks intends to explore co-marketing activities with
whatever business or businesses ultimately occupy the retail side of the building. In
anticipation ofthe possible lease of that portion of the building to Tattered Flag Brewery,
talks have been held with the owners of that venture to discuss ideas for coordinated
cfforts that would benefit both entities. This could possibly include a physical connection
between the two parts of the building that would allow patrons of each business to
‘easily enter the adjoining business.
Proposed Improvements and Modifications
In order to futfll the needs of this proposal, the following improvements to the
theatre are necessary:
4. Digital Projection Equipment. Purchase and installation of @
Solaria One Plus, 2K cigital projector and processor. (See attached
estimate from Integrity Entertainment Systems in the Plans and
Drawings section of this proposal)
Projected cost: $47,959.89
2. Stage Installation. Construction of a stage extension projecting
8 feet in front of the existing stage and two dressing rooms in the
stage wings. (See attached estimate.)
Projected cost $16,000
3. Movie Screen. Purchase and installation of a motorized,
retractable movie screen which can be rolled up above the stage
during lve events.
Projected cost, $10,000
4, Stage Lighting. Purchase and instalation of lighting instruments
‘and lighting board for use during live events. (See attached
estimate from My Wife's Sound Company.)
Projected cost! $10,000
6. Sound equipment. Purchase and installation of sound equipment
necessary to provide amplification during live events. (See attached
‘estimate from My Wife’s Sound Company.)
Projected cost $60,000
46. Carpeting. Purchase and installation of new carpeting in the lobby
area, theatre aisles and stainvays. (See attached estimate.)
Projected cost’ $9,500
7. Theatre Marquee. The installation of an historically appropriate
marquee above the theatre entrance. This improvement is deemed
to be critical in order to communicate to the public that the Elks
‘Theatre has been reborn and that even more improvements await
within the theatre. (The estimate provided is based upon the
reported cost of construction of the new marquee at the Embassy
‘Theatre in Lewistown, Pennsylvania, a picture of which is provided
in the Plans and Drawings section.)
Projected cost $35,000
8. _Extetior Lighting. instalation of up-lighting on the exterior facade
of the theatre in order to illuminate the brick fagade during evening
hours. Like the marquee, this dramatic lighting will signal that the
Elks Theatre has been’revlaunched and will make the theatre
building a focal point of the newly revitalized downtown area.
Projected cost: $5,000
The following improvements and modifications are also presented for
consideration. While they are not essential to the use of the theatre being proposed,
they would make more complete the refurbishing of the theatre's interior.
1. Floor Refinishing. The wood floors ofthe theatre in the auditorium
area are believed to be the original floors from the theatre's
construction in 1911. There are currently 14 layers of paint on the
floors. itis proposed to remove these paint layers to expose the
natural wood floor which would then be finished and sealed. (See
attached estimate.)
Projected cost! $15,000 (See attached estimate.)
2. Theatre Seats. The seats from the theatre which were recently
removed were purchased second-hand approximately 25 years ago
from the AMC Theatre chain. Many of these seats are in poor
condition and those that are currently in acceptable condition have
only a limited life expectancy, Therefore, it is suggested that new
seats be purchased and installed prior to the re-opening of the
theatre. Information obtained from the Inwin Seating Company of
Chicago, linois (the leading manufacturer of theatre seating)
shows that there is a range of seating avaliable at various price
5levels. Irwin reproduces historic-type seating, which has been used
in theatres such as the Majestic in Gettysburg, Pennsylvania,
‘These seats are upholstered over a wooden seat and back and at
the end of each row, facing the aisle, have a painted, cast iron end
Panel. While prices ‘for these seats vary depending on the fabric
‘selected and other considerations, the lower end of the price range
{or historic seating is $380 per seat. Assuming that there will be
approximately 425 seats in the theatre, this drives out a cost of
$161,500.
Irwin Seating, of course, also manufactures standard theatre
seating which is upholstered over plastic seats and seat backs and
have a plastic or wood veneer end panel. This seating starts at a
price of $250 per seat, driving out a cost of $106,250 for 425 seats.
‘The total cost of the proposed improvements, including new, historic-type
seating and floor refinishing, is approximately $370,000.
Conclusion
‘The Friends of the Elks Theatre submits that the foregoing proposal is realistic
‘and achievable in terms of its scope and the budget proposed. If adopted, the plan will
reestablish the Elks Theatre as a focal point of Midaletown's downtown area, assure the
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Under this proposal, it is proposed that the theatre's long-term survival be
assured by maintaining it as a community-owned theatre. It is therefore proposed that
the theatre portion of the building remain under the permanent ownership of the MICDA,
‘and that it remain so even if the retail section of the building is sold to a private party at
a later date.
It is further proposed that as the owner of the theatre building, the MICDA fund
the permanent improvements which are needed to resume theatre operations. Friends
Ot the Elks Theater proposes to enter into a 10-year lease of the theatre at a nominal
Ghnual rent and will operate the theatre on a notor-profit basis. All revenue. from
Speration of the theatre which exceeds operational expenses will be reinvested! in the
fheatre fo cover maintenance costs and to fund further theatre improvements. in
tution, 28 a non-profit entity, Friends of the Elks Theatre will regularly apply for grant
funding, seek corporate contributions, conduct periodic fund-raising campaigns and hold
Special events, fr the purpose of raising additional funds for future improvements to the
theatre.
Friends of the Elks Theatre has identified the following grant sources for capital
improvements:
‘+ The Pennsylvania Historical and Museum Commission. Grant funds for
the theatre have previously been received from this source,
= Save America’s Treasures Program administered by the National Park
Service.
+ Lewis J, Appell, Jr, Preservation Fund for Central Pennsylvania of the
National Trust of Historie Preservation. This fund has provided grants to
other histori theatres in Pennsylvania.
‘+ BonTon Stores Foundation. The foundation provides general support and
special project grants for various categories including community arts and
historic preservation.
+ Foundation for Enhancing Communities. Grants are awarded to
‘organizations in central Pennsylvania counties, including Dauphin County,
{or projects related to youth, disabled, seniors, minorities, community arts
or historical projects.
1s The George Frey Trust. This Middletown based philanthropic organization
was contacted prior to sale of the Elks Building to the MICDA and
fexpreseed interest in providing funding for improvements to the theatre.
'A public relations and marketing plan will be developed to publicize, the
reopening of the theatre. This will include contact with print and broadcast media to
‘iobtain the greatest possible exposure. At the local Ievel, events will beheld to generate
interest in the renovation and fo mobilze volunteers who will utimately become a key
‘component of theatre operations, marketing and fund raising. There will also be
outreach to area non-profits and other entities to make them aware of the theatre's
‘availabilty for their ovm events. Film events will be marketed in large part through social
media, including targeted marketing via Facebook to individuals with an expressed
interest in classic films. All events will be marketed through the Friends of the Elks email
list which currently has over 500 subscribers and which will be expanded as a result of
the publicity of the reopening of the theatre.
‘Sources of funds for operational assistance and future improvements are
identified in the list above and will be expanded. The uses for funds obtained will be
determined by the requirements of the donors/grantors. Prior grants/contrbutions for the
theatre have been received from Dauphin County, State sources and private
‘corporations and itis anticipated that this support will continue.
It is anticipated that if this proposal Is accepted, a realistic time frame for the
reopening of the theatre would be in the Spring of 2016. This would coincide with the
beginning of the Summer 2016 movie season.Economic Impact
The revitalized Elks Theatre will be a community-owned and operated faciity
whose mission is to serve the community It will provide a space for other non-profits to.
host events and to enhance the community through thelr organizations. it will provide a
‘meeting space for local businesses and community organizations. It wil also be a link to
the history of the Borough of Middletown.
‘As a focal point of the revitalized downtown area, the Elks Theatre will attract
ccustomers to the area who will patronize local restaurants and other businesses. With
the proper programming, audiences for the theatre will not be limited to those living in
the immediate area. From past experience, itis known that when the theatre has shown
classic fms, patrons have traveled from as far as Philadelphia, Baltimore and Scranton
to atiend these events.
In addition, a revitalized Elks Theatre will be a “quality of life" attraction that will
serve to attract quality businesses and individuals to the area,Legal Actions
‘The respondent has never been a defendant in a civil or criminal action or @
debtor in bankruptcy.
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=Special Conditions
No special conditions are contemplated at this time.
Gok ecsndecbowe __
Jack Raudenbush
ee Gordon A. Einhorn