PRESS RELEASE: Representatives of the Wayne Theatre Alliance board and staff met with VCDC (Virginia Community Development Corporation) Friday. In short, we have not been able to close on the loan. There are any number of reasons, the least being a changing landscape of IRS regulations that has made U.S. Banc hesitant to move forward without numerous clarifications of tax law. The result is that we have been unable to provide guarantees to Mathers that we will have sufficient funds to pay for continued construction. As of Friday, they have closed down their construction operations. The Gauldins (owners of Mathers) remain very committed to the project and are anxious to return.
In our meeting, we made it clear that we will put no more funds into the project until we have a guarantee from VCDC that we are going to closing.
This means that we will not have a certificate of occupancy this December and the project completion date is now early 2015 with opening in late Spring of 2015. VCDC remains interested in closing the project loan and has told us how much additional money we will have to raise in order to move forward. We, in turn, expressed our need to have their commitment that we will have a closing if we can raise the funds. We will wait until next week to share the numbers but wanted you to have this update and information.
It will be critically important that we keep focused on ways to raise the funds and not be distracted with the size of the challenge in front of us. The use of these tax credits, as cumbersome as they are, still represents the best way to fund our theater.
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