(Updated at 4:10 p.m.) Arlington County could come to the rescue for Signature Theatre‘s financial troubles.
County Manager Barbara Donnellan is recommending the county lend the Shirlington theater $5 million, to be repaid over 19 years at a low 1 percent interest, she announced today.
The Arlington County Board will decide whether to approve the theater’s new financing plan at its recessed meeting on Wednesday, Dec. 17. If approved, the county would also forgive Signature for $411,000 in unpaid lease and utility payments, and not collect rent for the term of the loan.
“Signature Theatre is key to Shirlington’s success,” Donnellan said in a press release. “This restructuring will put Signature on a sound financial footing and help ensure that it will continue to draw thousands of people to Arlington every year. This loan, which Signature will repay over the next two decades, is the basis of a responsible financial plan. It will support one of the County’s most important arts organizations, an organization that yields important cultural and economic benefits for our entire community.”
The $5 million will be allocated from FY 2014 closeout funds, Donnellan said. The loan removes Signature from consideration for future county cultural grants. Last spring, the county awarded the theater a $250,000 grant to help it pay off its real estate and business taxes.
The loan negotiations have been ongoing for several years, the county said, and include Signature’s private lender, United Bank, forgiving $2.7 million of its $7.7 million loan.
“All of us at Signature are deeply grateful to our partners at United Bank and Arlington County for working with us to ensure that Signature can continue to thrive in Shirlington for many years to come,” Signature’s Managing Director Maggie Boland said in the release. “As the largest arts organization in Arlington, and Virginia’s largest theater, we are very pleased to cement this long-term partnership with the County.”
Signature, which won a Regional Theater Tony Award in 2009, is arguably the county’s most prominent arts organization. The theater is currently hosting the world premiere of the musical adaptation of Diner. It also conducts an education program for high school students called Signature in the Schools.
Janet Kopenhaver, chair of the Arlington Commission for the Arts, says the commission enthusiastically supports the county’s loan proposal.
“On behalf of the Arlington Commission for the Arts, I want to express our total support for this agreement with Signature Theatre — a critical asset to the County’s vibrant arts community,” Kopenhaver said. “We applaud the County for considering not only protecting a vital real estate investment in Shirlington, but also supporting our nationally-renowned, Tony-award winning theater company that we are so proud to have located in Arlington County.”
Photo via Signature Theatre