City agrees to spend more on Balboa Theater

June Casagrande

NEWPORT BEACH -- In a decision that had arts supporters hugging and

cheering in City Council chambers, officials Tuesday agreed to put

another $1.4 million into the proposed Balboa Theater by purchasing the

building next to it.

Council members on Tuesday voted 6 to 1, with Councilman John

Heffernan dissenting, to pursue purchasing the building at 111 Main St.,

where the Orange Julius is now located.

The building is needed, theater planners and officials concur, to

provide dressing room space and restrooms for the long-dreamed-of

theater. Original plans to use the existing theater’s basement for these

purposes fell through when it was discovered that the basement would need

costly improvements.

The decision to enter into negotiations to buy “The Orange Julius

Building,” as it has come to be nicknamed, includes a plan to section off

two-thirds of the building for resale by the city. This will allow

officials to recoup some of the city’s investment.

An appraiser hired by the city has said the building is worth $1.4

million; the building’s owner, citing a different appraiser, has asked

for $1.6 million.

Added to the $480,000 the city spent in the 1990s to buy the theater

building, Tuesday’s vote is expected to bring the city’s investment in

the theater to about $2 million.

“When the arts come into an area, the area thrives,” Councilman Steve

Bromberg said, summing up the city’s main motive for the investment.

But the vote to move ahead came among grave concerns, voiced mainly by

Councilman Gary Adams, about whether the purchase would be a wise use of

taxpayer money. Scrutinizing a business plan prepared by the Balboa

Performing Arts Theater Foundation, Adams translated a number of

potential worries into conditions that the foundation must meet.

Topping that list: Adams requested better accounting of the

foundation’s fund-raising. He also asked planners to adjust the

construction costs estimated in their proposal to better anticipate

inflation. And, noting that the option of selling off two-thirds of the

111 Main St. building is one of the city’s best tools for offsetting its

financial risk, Adams asked that the building be separated sooner rather

than later.

“We need to have an agreement with the foundation that protects the

city’s interests,” Adams said.

Foundation members, flaunting the expertise of a number of new board

members, assured the council that they could meet their goals.

“Believe me when I say we’re moving fast,” foundation President Dayna

Pettit told council members.

Only Heffernan opposed the plan, saying it was the wrong time for the

city to make such a commitment, especially because parks and other city

projects are competing for funding in tight budget times.

But, pledging their faith in the dedication of the theater planners,

council members decided in their favor.

“Let me warn you, though: Your work has just begun,” Mayor Tod

Ridgeway said.

* June Casagrande covers Newport Beach. She may be reached at (949)

574-4232 or by e-mail at o7 june.casagrande@latimes.comf7 .