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Goshen Theater group secures loan to help purchase downtown landmark

Goshen Theater Inc. now hopes to complete purchase by end of March


Posted on Feb. 11, 2014 at 9:39 p.m.

GOSHEN — A step was taken Tuesday, Feb. 11, in the effort to get the Goshen Theater operating again.

Goshen Theater Inc., the group looking to renovate and reopen the downtown landmark, secured a loan from the city's redevelopment commission to help purchase the building from the current owner, Downtown @ 808 church.

Gina Leichty, President of GTI, asked the commission for a $150,000 loan, which would cover 75 percent of the $200,000 price the church is asking for.

That's down from Leichty's original wish that the commission would contribute 87.5 percent of the purchase price but still a boost toward buying the building.

The remaining $50,000 will be raised through a fundraising campaign.

Other terms of the loan include a 3 percent interest rate and no payments for the first two years of the loan.

The purpose of delaying payment would be to provide GTI some breathing room as they work to get the building operating in the interim while they mount a fundraising campaign to cover the costs of renovation.

Interest will still accrue during those two years, with a balloon payment coming to the commission after six years.

The commission will also hold the mortgage on the building.

Currently, a hazardous materials study is being conducted on the building, and GTI is also working at raising $200,000 needed to reopen the theater for arts and entertainment activities.

Last week, GTI received a $50,000 pledge from the city council that will be used as a matching source when applying for the rest of the grants that will help cover the costs of operation.

With the redevelopment commission's unanimous approval of the loan to actually acquire the building, Leichty said the sale could close by the end of March.




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