Hits: 0
WPCNR STAGE DOOR. By John F. Bailey. March 5, 2006: County Legislator Harriet Cornell, Orangetown Supervisor Thom Kleiner and Nyack Mayor John Shields want the Helen Hayes Theater sale to Milbrook properties stopped and the theater opened up for bid to the public. The three will plead their case before two Assistant Attorneys General in White Plains Wednesday as the controversial sale continues under review.
Nyack Mayor John Shields reported exclusively to WPCNR Sunday that he, Rockland County Legislator Harriet Cornell, and Orangetown Supervisor Thom Kleiner, and Nyack Mayor John Shields have scheduled a meeting Wednesday in White Plains with Assistant Attorneys Generals Gary Brown (who originally approved the sale in January), and Tom Hoffay in White Plains to acquaint them with the reasons why the sale to Milbrook properties should be disapproved.
Shields said the hope was the Attorney General’s office would issue a show cause order to the Rockland County court to disapprove the sale, and perhaps open it up for bidding to the public. Mayor Shields said he had not spoken to Elliot Spitzer, the Attorney General personally, but assumed Mr. Spitzer was aware of the matter.
The Pikus family which owns Milbrook Acquisitions is a heavy contributor to the Democratic Party, having contributed approximately $27,300 to Democratic candidates since 1999.
Attorney General’s Office Assumed a Profit on Sale.
Shields said he had been told Assistant Attorney General Brown had approved the sale because there appeared to be nothing illegal about the sale and because a $1.4 Million profit appeared to have been realized on the sale of the theater.
However in public forum two weeks ago it came to light in statements made by the Board of Directors of the Helen Hayes that in addition to paying off the mortgage on the theater of approximately $2.8 Million, that $700,000 in debt also had to be paid off with the proceeds, and already had been paid out of the $700,000 down payment tendered by Milbrook Acquistions, eliminating virtually all the “profit” apparent from the sale.
It is not clear whether Assistant Attorney Mr. Brown in approving the sale had examined the IRS Form 990 Helen Hayes filed for the year 2003-2004 in October, 2005, showing Helen Hayes had accumulated $1,351,986 deficit as they went into the 2004-2005 year.
In 2004-05, Helen Hayes purchased their building from the previous owner for $2.8 Million. However, in November, White Plains Performing Arts Center severed their relationship with the Company, forcing the theatre to close because White Plains had been paying half the salaries of 7 of the Helen Hayes staff, according to Tony Stimac and sources familiar with Helen Hayes dependency on White Plains money.
Pushing for Disapproval.
Shields also said he hoped the Attorney General’s office would retract their approval, because a formal $5 Million offer had been made by Rosie and Kellie O’Donnell and rejected by the Helen Hayes Board of Directors within the last week because of the contract in force. He also said two other operators had been found who were submitting proposals.
Shields told WPCNR that he felt the Helen Hayes Board of Directors needed come up to its full compliment of Directors (10), before evaluating proposals, and noted the short board was another reason for the sale to be disapproved.
The O’Donnel Turn Down.
Shields told WPCNR that the Board of Directors has already turned down a firm, documented offer for the theater citing the present contract as the reason. The O’Donnells of Nyack offered $5 Million plus $500,000 in improvements to the theater.
WPCNR notes that the $5 Million offer would have, if accepted by the Helen Hayes Board, provided a $1 Million budget, plus $500,000 of physical improvements, according to news reports. The present $3.7 Million sale leaves little working capital and demands substantial new investment by any new operator of the theater who seeks to rent the theater from Milbrook after the sale is closed.
Shields explained to WPCNR that the theater was never offered to the general public, and that his government found out about the Board’s “quiet” sale to Milbrook, only by discovering the sale when papers were filed.
Lawyer Confirms Privacy of the Sale.
Laura Weiss, a member of the Board of Directors, confirmed the private nature of the Helen Hayes sale by stating at the public forum on the theater closing February 15, that she personally had brought in Milbrook, notifying them the property was available because the Helen Hayes Board of Directors could save several hundred thousand dollars on debt if they could raise the cash within a week. She had thought of Milbrook as a possibility, a firm for whom she handled legal work in the past. Ms. Weiss noted at the forum that she had done all her legal work on the Helen Hayes-Milbrook contract pro bono.
Present Board of Directors to Evaluate
Proposals to Run Theater, Shields Says.
Mayor Shields also reports to WPCNR that the Helen Hayes present Board of Directors is making the decision on what proposals would be accepted to rent the theater. Shields said the Board is short four persons of the ten required on the Board, and he felt the Board should appoint new members. He also said he felt that Milbrook, the new prospective owner should make the decision on who should rent the theater if the sale goes through, not the present Board of Directors.
Helen Hayes Board of Directors, who expressed publicly they would all resign from the board after the sale was completed, and that the theater needed “new blood” according to Walter LeCroy, has a option to rent the theater in the contract.
Board Has First Option to Rent Theater
The Helen Hayes Board of Directors expressed publicly February 15, they would all resign from the board after the sale was completed, and that the theater needed “new blood” according to Walter LeCroy, one of the directors.
The Board of Directors, despite all saying they wanted to leave the Board February 15, have an option to rent the theater.
Deborah Darbonne of Friends of the Nyacks confirmed this to WPCNR Saturday with this statement on the situation exclusively to WPCNR:
“The Helen Hayes Theatre Company Board has an option to continue to use the Helen Hayes Theatre as a theatre. That option expires 30 days after the sale of the theatre complex to Milbrook. Friends (of the Nyacks) continues to talk with the Helen Hayes Theatre Board to encourage them to accept additional proposals for use of the theatre beyond the board’s announced deadline.(Editor’s Note: the deadline has been extended to March 26).
The mechanics of how a proposal for use of the theatre is “accepted” during the option period would have to be discussed with the Helen Hayes Theatre Board and Milbrook.
If the option is not exercised and expires, there will be futher discussions with Milbrook, the prospective owner. Milbrook has indicated its willingness to work with Friends of the Nyacks to allow for continued use of the theatre as a cultural/performing arts center/theatre.”
So You Want to be in Show Business?
Proposals Aired in Public Forum April 5.
The Friends of the Nyacks have guidelines issued by the Helen Hayes Board of Directors as to how to submit a proposal to run the theatre. The submission deadline is March 26. All proposals meeting basic submission guidelines will be presented to the public in an open forum the Friends of the Nyacks will stage on April 5.
On April 10, the “Friends” will submit all proposals with comments to the new owner of the Helen Hayes Theatre.
Among those the Friends of the Nyacks website lists as being interested in forming “a consortium” to run the theater are Greg Karr, Tim Brady, The Rivertown Film Society, Off World Theatre, Children’s Theatre, and Elmwood Playhouse.
The proposal guidelines on the Friends of Nyack website (www.friendsofthenyacks.org) poses these dollar challenges: the prospective operator(s) should expect costs of operating and rent to be approximately $850,000 a year ($71,000 a month), a number supplied by The Helen Hayes Theatre Company, according to the Friends of the Nyacks website.
The theatre impresario-to-be needs to submit an abstract (Executive Summary) of 250 words; a Statement of Need –how it fits the community, 250 words; Project Description; organization information; Project Schedule –time to implement; Budget, high level summary budget; Biographies, and a conclusion.
