The Paramount Theatre could have a new owner as soon as May if all the conditions are met.

Tuesday, October 26, 1999

The Paramount Theatre could have a new owner as soon as May if all the conditions are met.

Current owners, the Austin Area Commission for the Arts (AACA), had requested that the city purchase the building – largely as a formality – to facilitate a request by the AACA for $550,000 in state funds from the 2000 bonding bill.

In a special meeting Monday afternoon, the Austin City Council voted unanimously to authorize the purchase of the historic theater, with the following conditions:

– The State of Minnesota must approve the $550,000 in funding requested from the bonding bill;

– The Mower County Board of Commissioners must approve a no-interest loan to the AACA for half of the matching $550,000 required by the state. The city of Austin will provide the other half. The commissioners have not yet voted on the loan.

– The AACA will continue to operate the theater, and pay the no-interest loan back over a period of up to 15 years.

– The transfer of title will take place only when the city receives written notification that the funding is available, probably in May.

AACA Board Secretary Lynn Fischer was present at the special meeting and very pleased with the council vote.

"Our board had voted last Tuesday in favor of proceeding with the sale," Fischer said. "The important thing is to get the building restored and into regular use, not who owns it. Besides, if our supporters found out we didn’t take the opportunity to go for $1.1 million, they’d think we we’re crazy, even if we never get the title back."

Fischer stressed that the Paramount will still be requiring plenty of help from area residents. First to contact their county commissioners and let each one know that his constituents support the project and, second, to financially support the renovations.

"We have to pay back the city and county’s portion of the money," Fischer said, "plus there are day-to-day and operating expenses that won’t be covered by this money. This is to be used for capital improvements only."

The council had to make the decision in favor of purchasing the Paramount – for a proposed $1 – by Nov. 1 if the state funding request is to go through. The ownership change is necessary, AACA president Janet Anderson explained last week, because a facility has to be owned by a government agency in order to qualify for any funding from the state bonding bill.