The Redevelopment Authority of Butler City is seeking permission to sell the Penn Theatre on Main Street for a price lower than what's owed on the building, called a short sale.

The Redevelopment Authority of Butler City wants to sell the Penn Theatre for a price lower than what’s owed on the building, called a short sale.

“We can’t sell at a price the mortgage is,” said Art Cordwell, executive director of the authority.

Cordwell said in an interview the authority has been unable to get out of the $250,000 mortgage on the deteriorating theater, which was built in 1938.

He said the authority couldn’t find a buyer to pay the full amount for the 17,500-square-foot building, but did receive interest from someone willing to pay less.

The Pittsburgh History and Landmarks Foundation, which has the mortgage, would have to approve a short sale as well as set the price.

Cordwell said the alternative is to let the foundation take over the property, which needs work.

“The roof is leaking so bad,” he said.

The authority borrowed money in 2007 through the foundation’s loan program to buy the vacant building.

Since then, the authority has paid the foundation roughly $2,200 a month until last May after the state stopped allocating funding for the rehabilitation project.

The authority board on Monday voted to ask the foundation to approve a short sale.