Cusack, of the Charles Theatre, predicted that the next owner will have to pour money into the building, fixing a leaky roof, replacing seating and stucco on the exterior. "By the time you renovated it, you'd have the same [financial] problems Tom had," Cusack said, who added that $800,000 was well above what he could have afforded to pay.
Baltimore became financially involved with the theater in 2002 when the city guaranteed half of a $1.2 million loan extended to Kiefaber by 1st Mariner Bank. Kiefaber defaulted on that loan this year. Faced with losing the $600,000 that the city guaranteed, Dixon decided instead to purchase the mortgage for $950,000. City officials said they would not sell the theater for less than that.
The state and a law firm also had liens on the property, but Wednesday's auction wiped the debts from the property title, Frank said. The city will not take possession until the sale is ratified, a process that can take between 60 to 90 days.
Several bidders said they came to the auction to demonstrate their interest in running the theater but did not have serious intentions to buy it at the sale. Edward L. Dopkin, who registered as a bidder and owns a catering business and several restaurants on Cold Spring Lane in Roland Park, said his partner would "disown him" if he bought the theater. He added that the limited parking and other restrictions on using the building made him hesitant. "There were a lot of 'what if's,' " he said.
Movie-goers typically park at a lot across the street owned by David Cordish, and continued access to it is not guaranteed unless the building is used as a theater.
Cordish, who was in Korea on a business trip, said in an e-mail that he would be interested in operating the theater as a nonprofit. "Under these conditions, we would run the theater as a public service or trust," Cordish wrote.
Another registered bidder, Nick G. Contis, a real estate developer from Harford County, said the theater is "screaming for a nonprofit environment."
He recently purchased the State Theatre in Havre de Grace, a 1920 movie house that was constructed by Kiefaber's maternal grandfather, and said his plans for the Senator would include using the space as a performing arts venue.
Several officials came from nearby Loyola College, though they declined to give their names. The college leadership had said they might bid but they did not, said Courtney Jolley, a spokeswoman. Jolley said they will consider responding to the request for proposals, or RFP, that the city plans to issue seeking potential owners or operators.
Clark, of the BDC, believes it will take roughly six months to review and award such a request. She added that she has already circulated a draft RFP among some community leaders to get their input.
