By Meredith Cohn and Sam Sessa and , meredith.cohn@baltsun.com and sam.sessa@baltsun.com|January 29, 2009
Days after the city offered to save the Senator Theatre by turning it into a nonprofit business, owner Tom Kiefaber said he is working with the mayor's office to finalize the deal "as soon as possible."
But gaining nonprofit status would likely mean big changes at the historic theater. As a nonprofit, it would not just show movies; it would need to provide educational and cultural programming as well. The new status would also mean a new role for Kiefaber, who would give up day-to-day control of the movie house, which has been run by his family for decades.
"I'm encouraged that the city is responding positively to help the Senator Theatre," he wrote in an e-mail yesterday. "The plan makes a great deal of sense for all concerned."
The city's plan, detailed in a letter by Deputy Mayor Andrew Frank, would give $320,000 in the form of a no-interest loan, provided Kiefaber turns the theater into a nonprofit corporation - something Kiefaber has talked about for years and began exploring in earnest last year.
Fran Holden, executive director of the League of Historic American Theatres, a membership group based in Baltimore, said the key to success will be the plan.
"What do you want to do? What purpose do you want to serve?" she said. "The business plan and passion that Tom [Kiefaber] has had is not sustainable in the community. But you can't say 'Let's become a nonprofit and our troubles are over.' It's not easier to run a nonprofit."
The Senator has struggled financially for years. It received nearly $110,000 in community donations in 2007 to stay in business, and accepted a city guarantee for half of a $1.2 million loan from 1st Mariner Bank in 2002. Even this support did not help keep the theater afloat for long. In a news conference last week, Kiefaber again appealed to community members and government officials for help.
"The theater is a sick patient," he said at the time. "Decisive action is called for, and time is of the essence."
Nonprofit status is becoming a more common path for historic businesses struggling to compete in a tough economy, according to Dianne Chipps Bailey, an attorney at the Charlotte, N.C.-based Robinson, Bradshaw & Hinson who advises nonprofits. She has no connection to the Senator.
