City Council on Tuesday unanimously approves loan to help improve downtown theater
“I want to applaud the public interest that has followed the Old Town Warren Theatre owners’ request for a $6 million loan to fund improvements to their theater in Old Town Square. Public feedback is essential to our democracy and to this council’s decision-making process.
But at the end of the day - after the citizens have spoken and after city staff has done its due diligence – the members of this City Council are the seven people who were elected and entrusted to make such decisions.
We understand the magnitude of our responsibility as public servants who oversee the taxpayer treasury.
A primary responsibility of the Wichita City Council is economic development – the fiscal duty of using public resources to support local businesses, create jobs and improve the quality of life of Wichitans. To meet those goals, this City government and municipal governments across the country employ various economic development tools. Economic development is proven public policy.
The $6 million Warren Theatre loan embraces that tradition of proven public policy. It is targeted economic development: it enhances our community goal of continuing downtown revitalization efforts.
The Warren loan represents a sound investment in Wichita’s premier entertainment district, the city’s top destination spot that has enjoyed national recognition and top planning awards.
The Warren loan reflects the importance of downtown revitalization which is crucial to Wichita’s overall economic health. Downtown revitalization brings more businesses and more people to our core area, leading to rising property values, growing sales tax receipts and generating other revenue that benefits taxpayers and the overall community. Studies show that cities with vibrant downtowns have a better shot at recruiting new businesses, new jobs and young urban professionals – goals of the regional improvement project known as Visioneering Wichita.
The Warren loan also embraces another proven city government tradition. It is a public-private partnership – one that will protect dollars taxpayers have already invested in Old Town Square.
Having realized the benefits of a revitalized downtown, we must protect investments already committed downtown.
We must protect downtown investments with the same community collaboration and collective focus we recently summoned to protect our investments in the aviation manufacturing sector and in our model affordable airfares initiative.
Warren Theatre is part of a special tax district, which captures the increasing property taxes from revitalized areas to pay for improvements in those areas. A previous City Council approved this special tax district in 1999, investing $9.4 million in land acquisition, construction for a 500-car parking garage, street improvements and the popular central plaza located south of the theater.
The previous City Council’s investment has proven to be a wise one.
The Warren Theatre sits in an area that suffered from abandoned warehouses, homelessness and a lack of vision. Today, the area is a top destination for families, working professionals and especially young people who gravitate there on weekend nights throughout the year.
Warren owners requested the low-interest loan from city government after potential lenders told them their borrowing interest rates would be too high. The owners are seeking the low-interest loan to refinance their existing loan and fund needed improvements. Those improvements would add another theater, add conference room space and install the latest digital theater equipment.
The loan has safeguards that protect taxpayers’ investment. Those safeguards include using the theater as collateral and securing the legal personal guarantees of the theater’s reputable partners.
This council is poised to express its steadfast support for the Warren Theatre. The Warren has become a fixture in the general Old Town Area and it is the anchor tenant in Old Town Square, offering entertaining movie options, a familiar marquee and a homegrown brand name in luxury theaters that cities across the nation are seeking.
In approving the requested loan, this City Council is not only showing its steadfast support for the Warren Theatre, it’s showing its steadfast support as well for a revitalized downtown, for public-private partnerships, for the goals of Visioneering Wichita and for a proven tradition of economic development - which has supported our local businesses, created jobs and enhanced quality of life for Wichitans.”
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