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Future of Penn Theater debated

Damage will be repaired; buyer still sought

The Butler Redevelopment Authority plans to fix some recently discovered damage to the Penn Theater that was caused by vandals. However, the group has struggled to find a buyer for the building or find another way to get out from under the sizable loan debt incurred from buying the Main Street theater.

Veronica Walker, acting authority executive director and operations manager, told board members Thursday that a hole was recently found in the building's facade near the entrance. Authority maintenance staff will fix the damage.

Board member Tom Donaldson called for a renewed effort to sell the building.

He said the authority hasn't made a payment on the loan since 2013 and, if left vacant, the building could deteriorate and become an eyesore on Main Street.

The authority borrowed $290,000 from the Pittsburgh History & Landmarks Foundation to buy the building in 2009. Currently, $250,000 remains outstanding on the loan principle and $15,000 a year in interest payments continue to accrue. The total debt stands at $325,000.

Donaldson even suggested demolishing the building.

Solicitor Tom Breth said tearing down the building wouldn't relieve the authority of its debt, but Donaldson said it might be easier to sell a vacant lot.

Donaldson said several potential buyers expressed interest in the building over the years, but a sale has never come to fruition.

He said he believes there is someone, or some entity, with deep enough pockets interested in buying the building and putting it back into use.

Authority officials said the building hasn't been listed with a realtor since about two years ago.

Board member Cheri Readie said the building was discussed Monday at the first meeting of a group of local officials and organizations.

She did not reveal many details about the discussion, but said the group wants to develop a strategic plan for attracting more businesses downtown and sees the theater as a “central hub.”

In other business, Walker told the board that the $298,504 Community Development Block Grant application has been submitted to the Pennsylvania Department of Community and Economic Development. She said the department should send the authority a contract for the grant in March. The grant proposal includes $214,774 for repaving Kaufman Drive and five other streets, $30,000 for housing rehabilitation, and $53,730 for authority administrative and auditing costs.

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