City could consider new offer to sell Roanoke Rapids Theatre
Roanoke Rapids leaders could consider a new offer Thursday evening to sell the city's troubled music theater, which is costing taxpayers millions of dollars each year.
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Mayor Emery Doughtie said an undisclosed group of investors are interested in a lease-purchase agreement with the city to buy the Ronaoke Rapids Theatre.
The group wants to continue using the facility as a music theater but also wants to supplement the business with electronic gambling.
The city borrowed $21.5 million in 2005 to build the theater along Interstate 95 in an effort to attract tourists and help boost the economy.
But with a combination of low ticket sales, management changes and attempts to sell the 1,500-seat venue, the city never generated enough money to pay off its loan.
That forced city leaders to increase the local sales tax rate. Residents are now paying nearly $2 million a year.
A lease-purchase agreement for the theater wouldn't be the first.
Several years ago, Lafayette Gatling, a Chicago businessman, entered into a $12.5 million agreement, which the city terminated in 2010 because Gatling failed to pay more than $500,000 in back rent.
Roanoke Rapids agreed again in November to sell the music theater to Gatling for $7.1 million in cash, but it never happened.
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