Curbed Chgo: Kanye West wants to reopen Chicago’s historic Avalon Regal Theater

What has been going on with the Avalon Regal Theater. Some new developments according to Curbed Chicago.

Kanye West wants to reopen Chicago’s historic Avalon Regal Theater https://t.co/FWZdM0zzFi pic.twitter.com/3at6vayHOH

— Curbed Chicago (@curbedchicago) September 10, 2018

The building was purchased out of foreclosure for $100,000 in 2014 by entrepreneur Jerald Gary. The South Shore native hoped to raise funds to cover numerous plumbing, electrical, and tech-related updates. As of Monday afternoon, a crowdfunding campaign had raised about $200 of its $150,000 goal. The property owner says that he already put “over $1 million” of his own money into the theater, according to the Chicago Sun-Times.

 

Gary hopes the restored Avalon Regal will be ready in time to host a holographic concert organized by Chicago rapper Chief Keef on September 26. If not, a “hologram truck” with a built-in stage is standing by as a back up and will host the free show in the theater’s adjacent parking lot, says the Sun-Times. 

Meanwhile, the building’s ornate lobby eyes a return to the lineup of the Chicago Architecture Center’s annual Open House Chicago weekend, scheduled for October 13 and 14. The site was abruptly pulled from the last year’s event to comply with a court order requiring the property to remain “vacant and secure,” reported the Chicago Tribune.

Provided the renovations move forward, the Avalon Regal would become the latest historic Chicago movie palace to see new life. Other notable projects include the ongoing redevelopment of Logan Square’s 2,900-seat Congress Theater and the recently announced rehabilitation of the massive, 4,381-seat Uptown Theater. 

[Kanye] West’s interest in the South Side venue was one several Chicago-related tweets published by the celebrity over the weekend. Additionally, West announced plans for a Chicago Yeezy fashion store as well as news that he would be teaching a course at the Art Institute of Chicago.

It's great to know Kanye West is involved in the efforts to restore and ultimately reopen the former movie palace. If the Uptown Theater can garner some excitement with rehabilitation so can the Regal.

 

What's going on with the Avalon-Regal Theater?

We've talked about the new ownership of the Regal Theater on occasion. And Worlee Glover posts on Nextdoor last month to let us know it's for sale! Whoever made the best offer has probably made it already so who knows if it has never ownership now. Regardless Worlee believes this is a tax sale...

Now I wonder what happened to Mr. Gerald Gary and those investment bonds he had been advertising.

Avalon Regal Thater offering investment bonds

Jerald Gary, the new owner of the Regal Theater on 79th at Stony Island, is offering an investment opportunity for those who want to help resurrect the theater.


This investment includes 10 free tickets (annually) and other perks.


Here is the text from their webpage (located at http://www.regaltheater.org/seatbonds ) which describes the program. The redevelopment also includes the goal of becoming the first theater in the United States with holographic projection technology  in addition to entertainment from everyone's favorite artists in R&B, Jazz, Hip Hop and Rap, as well as theater, dance, film, comedy and more

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Seat Bond Program

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The Avalon Regal Theater offers a unique opportunity for the community to invest in its success through the Seat Bond program.

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The purpose of this program is to promote self-investment and reduce reliance on government subsidies and other non-market based financing for community development in our neighborhood.

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The Seat Bond program includes 10 tickets to performances at the Avalon Regal Theater per year, in addition to invitations to exclusive investor events, VIP access to select shows, the ability to buy tickets to hot shows before they go on sell to the general public, and a named seat in the auditorium. The first class of bond holders will be recognized at the 2017 Grand Opening.

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The most important aspect of a Seat Bond is the fact that it is an investment, which means Seat Bond owners are not just patrons of, but investors in this integral part of the community.

 

Each Seat Bond is a $1,000 investment and includes:

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• 10 tickets to performances per year (does not include private events)

• 8% return on each $1,000 investment

• Return of initial investment after 1 year, with the ability to re-invest

• Embossed name plaque positioned on an auditorium seat

• Framed Seat Bond Certificate and duplicate name plaque

• Annual 1099-INT form for reporting taxable interest income

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​Individuals or organizations can purchase multiple Seat Bonds. Seats Bonds in the first three rows on the main floor are reserved for VIP members of Singularity and have a $10,000 minimum. 

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The Avalon Regal will feature entertainment from everyone's favorite artists in R&B, Jazz, Hip Hop and Rap, as well as theater, dance, film, comedy and more. The theater will also be the first in the United States to have holographic technology. This is truly an exciting and historic opportunity for the community.

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See the video below for a tour and interview with Avalon Regal Theater owner, Jerald Gary.

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Interview: rollingout.com/2017/09/23/avalon-regal-theater-owner-desires-the-communitys-help/​

The Seat Bond program is only accessible through this website. Seat Bonds are available on a first-come, first-served basis. You cannot choose specific seats for your name plaque and Seat Bonds do not represent seating assignments for events. Seat Bonds are non-transferable.

 

E-mail info@regaltheater.org for more information.

So the Regal Theater is on its way back...

[VIDEO] I wish I hadn't slept on this. Giving props to Worlee for finding this one as it's certainly hoped that the Regal Theater instead of remaining vacant and unused will become one of the south side's greatest assets. Before discussing the recent article it was my goal to find anything earlier and found this Crain's article from last year. It also contained the video you see above:

The 29-year-old businessman, a pilot and drummer in a local rock band, purchased the New Regal for a song, paying $100,000 in a foreclosure deal that closed last month. He and his business partners expect to pour close to $5 million into refurbishing the theater, mainly to repair its terra cotta exterior.

Jerry Mickelson's Jam Productions Ltd. will help oversee operations at the New Regal. Mr. Gary has a long relationship with Chicago-based Jam, having interned there one summer while a student at the University of Illinois at Urbana-Champaign.

Mr. Gary hopes to purchase adjoining property and build restaurants nearby to make the corner a destination. The recently opened two-mile extension of South Lake Shore Drive will help, he says.

"We really want this to be a spark to a firestorm of development that we think can occur in this area simply because of the low barriers to entry," he says.

It almost makes me wonder if Mr. Gary had been reading this blog.

Here's the most recent development also via Crain's:

The owners of the New Regal Theater have launched a Kickstarter campaign to raise $100,000 to renovate the South Shore landmark.

Donors will get special access to the theater with their gift. A $25 donation will get you two passes to a movie, and a $5,000 gift will allow the donor to rent out the elaborate lobby for a night.

That's half the going rate, says Jerald "J" Gary, president of Community Capital Investment Partners, which last year purchased the theater for $100,000.

The fundraising effort will repair the sound system, projection technology and washrooms.

"We're trying to reactivate the theater. We need to do some minor repairs before we can hold events," Gary said.

That's a fraction of the project's $5 million price tag. The company hopes to invest another $4.9 million in the theater.

Mr. Gary according to the article wants to open this venue up for film exhibition, cultural events, and theater productions once the expected renovations are complete. I would also be very curious about any potential development surrounding the theater and the types of businesses they could occupy.

WATCHDOGS: Tally in Illinois grant-fraud probe so far: 13 charged, $16M embezzled

I'm going to focus on one case amongst others mentions and this involves the former owners of the Regal Theater near 79th & Stony Island. We've posted about this before and it seems like quite a mess because it involves government grants:

Defendants: Margaret A. Davis and Tonja Cook, of the Chicago chapter of the National Black Nurses Association

Filed: June 9, 2011

Charges: Mail fraud and money laundering

Details: Davis pleaded guilty, admitting that, with help from Cook, she siphoned about $500,000 in state grant money for “personal use,” including mortgage and credit-card payments. Cook, who also pleaded guilty, said “thousands of dollars” in grant money under Davis’ control went to pay campaign workers for former state Sen. Rickey Hendon (D-Chicago), who helped Davis win a $460,000 grant in 2006. Hendon hasn’t been charged with any wrongdoing.

Status: Davis to be sentenced Oct. 8; Cook Oct. 15.

Defendants: Former County Club Hills police Chief Regina R. Evans and her husband, Ronald W. Evans Jr., former inspector general for the south suburb

Filed: April 4, 2012

Charges: Conspiracy, wire fraud and money laundering

Details: The Evanses admitted spending about half of a $1.25 million commerce department grant on gifts for family members and friends and to pay off personal debt, including a mortgage on the New Regal Theater on Chicago’s South Side. State Sen. Donne Trotter (D-Chicago) helped the couple’s not-for-profit organization, We Are Our Brother’s Keeper, get that state grant, which was to be used for a job-training program that was part of theater restoration efforts. Trotter has not been charged.

Status: Regina Evans to be sentenced Oct. 15; Ronald Evans Dec. 2.

Defendants: Regina R. Evans and her brother Ricky McCoy, former executive director of We Are Our Brother’s Keeper

Filed: March 19, 2013

Charges: Money laundering, conspiracy, obstruction of justice and witness tampering

Details: The former County Club Hills police chief and her brother admitted conspiring with an unnamed witness to create a story for investigators that falsely claimed the $1.25 million commerce department grant was used for job training. Her brother also admitted taking part in the money-laundering scheme.

Status: Regina Evans to be sentenced Oct. 15; McCoy Jan. 4.

Defendant: Jeri L. Wright, daughter of the Rev. Jeremiah Wright

Filed: April 10, 2013

Charges: Money laundering and making a false statement before a grand jury

Details: Wright, described as a “close associate and friend” of Regina and Ronald Evans, is accused of aiding the Evanses in their money-laundering scheme.

Status: Trial set for Oct. 16.

It's interesting that Donne Trotter's name was brought up we may already know of his legal issues involving almost taking a gun on a flight at O'Hare Airport. If there are legal people reading this blog, on what basis could the State Senator have been charged in this case?

Chicagoist noted this and this is a last minute addition to this post. It involves former State Rep. Constance Howard:

Defendant: Lloyd Kelly, former executive director of the Let’s Talk, Let’s Test Foundation, an AIDS awareness group

Filed: July 11, 2012

Charge: Mail fraud

Details: Kelly is accused of illegally spending grant money on things including his home and office rent for since-retired state Rep. Connie Howard (D-Chicago), co-founder of Let’s Talk, Let’s Test.

Status: Trial set for Oct. 1

Defendant: Retired state Rep. Connie Howard (D-Chicago)

Filed: July 17, 2013

Charge: Mail fraud

Details: The South Side Democrat admitted skimming tens of thousands of dollars from a charity golf outing for “personal and political use, including expenses associated with the promotion of her campaign.”

Status: Sentencing set for Nov. 21.

What would you like to see around the Regal Theater?

Photo via Vertin Valuation Services

In light of the potential purchase of the Regal Theater located at 1641 E. 79th Street, I've been wanting to do a post about what would you like to see around that venue. The Regal has been compared to the long shuttered Uptown Theater which recently has been getting more attention. The main comparison is cost in the long run perhaps it costs much less to get the Regal up to speed than it is the Uptown.

Let's also keep in mind that in addition to the Uptown Theater there are other venues nearby such as the Rivera Theater and the Aragon Ballroom all located not far from the intersection of Lawrence/Sheridan. That area is getting more attention recently because there are plans to create something of an entertainment district in that area. Perhaps that same potential could be found near 79th/South Chicago.

DNA Info mentioned that a soul food restaurant could be coming across from the Regal at a site located at
1638 E. 79th St. which used to be home to a Leon's BBQ joint which is long gone. Of course this of concern to another restaurant who used to get sales from the Regal Theater crowd but has lost some business because of it's closure in 2003.

Now the question becomes other than restaurants what other businesses would benefit from the hopefully eventual reopening of the Regal Theater?

Crain's: Local investor to buy historic New Regal Theater

Regal Theater by nvaughn

Yesterday it was going around that music industry power couple Jay-Z & Beyonce were set to buy the Regal Theater located near 79th & Stony Island. That rumor was smashed into pieces and in Crain's today it appears that there is another interested party in that venue:

A local real estate investment firm is taking a swing at a challenging South Side property: the New Regal Theater.

Chicago-based Community Capital Investment Partners LLC has a contract to purchase the historic venue at 1645-55 E. 79th St. in the South Chicago neighborhood, according to sources familiar with the transaction.

The deal appears to be a new direction for Community Capital, which describes itself as an affordable-housing developer on its website.

Jerald Gary, listed as the firm's president and chief investment officer on the website, was not available for comment today.

A spokesman for the Federal Deposit Insurance Corp., which owns the property, declined to name the theater's purchaser.

Built in 1927, the New Regal is known for its distinctive Moorish-style architecture. It once showed movies, and famed musicians including B.B. King and Smokey Robinson played concerts at the property, which has 2,400 seats, over the years.

Having been shuttered under the ownership of Ed and Bettiann Gardner in 2003 and subject to foreclosure under new ownership more recently it was put on sale by the FDIC who currently owns the property for $100,000 according to Lee Bey. Let's hope under new ownership, this venue will be back in business in the near future.