110 W. New York Ave.
DeLand, FL 32720
386-734-4622
BEACON PHOTO/PAT ANDREWS
Onstage — Facilities Manager Alan Ware, left, and Marketing and Operations Manager Alexa A. Baldwin, right, stand on the Athens stage as they talk about renovations to the historic theater. Behind them is the set for Jake's Women, currently running at the Athens.
BEACON PHOTO/PAT ANDREWS
Showing off the Athens — Alexa A. Baldwin, marketing and operations manager for the Sands and Athens theaters, shows off the Athens Theatre restoration from the actor’s point of view, on the stage. She’s also a co-star in the current production, Jake’s Women.
It’s only temporary
By Pat Andrews
posted Jan 31, 2013 - 12:09:36pm
Patrons of the Athens Theatre have no doubt noticed the sold-out shows — South Pacific, Hairspray and Scrooge — as well as the hundreds of local children honing their skills in packed-house productions.
The restored historic theater is a success and a popular Downtown DeLand destination. Still, the Athens hasn’t managed to fully deflect a shadow of criticism that has dogged it since naysayers first predicted two decades ago that the expensive historic restoration would never be accomplished.
The latest gossip may have been triggered by a couple of changes at the Athens: sales tax added to the ticket prices, and no beer or wine at the snack bar.
Both are tied to the complicated financing method used to raise the final $2 million to complete renovation of the historic theater and get it open in 2009.
It’s called tax-credit financing. To take advantage of federal tax credits available to restorers of historic property, the Athens had to become — on paper — a for-profit entity, for five years.
As a for-profit, the theater must collect and remit sales tax, and must pay property taxes to Volusia County. It no longer qualifies to sell alcohol under easier and less-expensive rules that apply to nonprofits.
There was some question about whether the Athens would be eligible for county cultural-arts grants, but that was cleared up, and the theater received grant funding in 2012.
Although it is complicated, the financing method is legal.
Attorney Steve Sands of DeLand is vice president of Sands Theater Co., the nonprofit owner of the Athens since 2004.
Sands explained that to finance the last $2 million necessary to complete restoration of the 1926 theater, Sands Theater Co. took advantage of the U.S. Federal Historic Tax Program by partnering with U.S.-Bancorp Community Development Corp.
A firm in Virginia pitched the concept to the Athens volunteers, and brokered the deal, which had to be approved by the Internal Revenue Service.
“For-profit entities were created to allow Bancorp to take tax credits that would not be available to nonprofit entities, and this gave the bank incentive to provide funding for the restoration,” Sands said. “Operating monies have to go through Athens Manager Inc. instead of the Sands Theater because of this structure.”
Although the nonprofit theater company is the fee-simple owner of the building, the Athens Theatre is being operated under a for-profit called Athens Owner LLC, and two related for-profits.
The structure enables U.S. Bancorp to recoup the restoration money it invested through the federal tax-credit program. But rumors that the structure is being investigated by the IRS are just not true, Sands said.
After a period of confusion over what entities were required to file tax returns, and whether the Athens or U.S. Bancorp was filing those returns, all required federal tax returns have been filed, a former board member confirmed. Negotiations are ongoing with the State of Florida over taxes that may be due on tickets sold before the Athens realized its ticket sales were taxable.
The for-profit entities should collapse in 2014, and Sands Theater Co. will be allowed to continue to operate the Athens as a nonprofit endeavor.
“That will result in a tremendous savings to us, because we’ll no longer have to pay property taxes,” Sands said.
Volusia County Revenue Division records show the Athens paid $10,734.74 in December 2012 for its 2012 property taxes, and paid $11,284.86 in May 2012 for its 2011 taxes. The records show no property-tax charges for 2002-10.
Darlene Smolik, treasurer for the League of Historic American Theatres, said the financing method used by the Athens Theatre and Sands Theater Co. has been used in many communities to restore important historic properties to usefulness.
“There is a benefit to you and I as a taxpayer to see these theaters rehabbed,” Smolik said.
She agreed the complicated structure can look “weird,” but added, it “is a very standard process in the industry.”
Agreements are set up so the nonprofit owner doesn’t lose control, even though another investor is providing money for the restoration, Smolik said. For the investor, she said, there’s risk as well as a potential reward, as there is in any investment.
Smolik said studies have shown that successful projects like the Athens eventually generate more money than the federal government loses by providing the tax credits.
Steve Sands noted the financing structure doesn’t stand in the way of West Volusians supporting the Athens Theatre. Sands Theater Co. is still a nonprofit, 501(c)(3) organization.
“People can still make tax-deductible contributions to the Sands for the Athens,” Sands said.
Reader Comments
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@ Actor
Who cares? Why don't you get on the roof and act like you are fixing it? Act like a worker and fix it.
If that dump was torn down years ago as it should have been you would not have that problem.
Athens Theatre is a disgrace...millions have been wasted on it.
Do a PLAY about the taxpayers having to pay for that worthless ugly brick building that serves as a tax dodge.
Tearing that dump down would be entertaining and valuable...who needs that money hole....in a DEPRESSION.
@ Andy Ferrari
As if anyone thinks your name is real, I suppose you drive a Ferrari.
The Athens Theatre is no jewel it is an ugly rectangular brick building that should have been bulldozed years ago.
What does the Athens have do do with culture? What, the culture of exploiting the taxpayer maybe.
Let the culture BUMS at the Athens support that joke culture dump with their own money.
Arts and Culture BUMS.....get off welfare, quit living in the past.
I really could care less about what Elizabeth Stetson would have LOVED. Andy tell me why you think if it ok for our government to take money out of my pocket and from my business, money that I would have used for my childrens' education, and give it to these so called non-profits that are of interest to YOU and not me. If you want it you pay for it.
Second, Athens Theatre is a jewel of DeLand, and Elizabeth Stetson would have LOVED that our community engaged in theatre arts, culture and more.
Shame on all of you who post on here that are so scared to be bullies you hide behind fake names.
MONEY PIT!
I saw movies in this theater as a child, and as an adult when it was redone the first time. While it's nice to restore the theater and have shows, it certainly should not take the amount of money and years it has taken.
The funny thing about the hoity toity artsy people in Deland is, they're still in Deland. They wouldn't even be considered cultured or wealthy or important in any other city. It's all in their heads. LOL
@ WOW...@ Martha Careful
Wow says " there can be culture in the midst of mediocrity". Let the 'Culture Crowd' pay for their own version of culture and quit taking money from the taxpayer for this 'cashbox culture' business.
The Arts and Culture community needs to stand on its own two feet and get off of County Welfare. The worthless Volusia County Cultural Council gave away $610,000 to these culture beggars last year.
Meanwhile....tax paying businesses and individuals are just hanging on.
Taxpayers need to get on the internet and look up their County Councilmembers and protest these giveaways from the Volusia County Cultural Council to these tax exempt culture BUM non profit businesses countywide.
Culture Bum Businesses need to get their claws out of the county treasury permanently, not one dime of taxpayer money should be given to theses culture bums.
WOW says this has created a "ton of business"....good, then get off county welfare..Culture BUMS.
How much have the taxpayers thrown into this NON PROFIT/PROFIT HOLE? How much through the ECHO grant giveaways and the worthless Volusia Cultural Council?
The Athens Theatre is another Arts and Culture socialist business that begs from the government.
Arts and Culture Non Profit BUM HUSTLERS could never make it in the marketplace without government handouts.
The TON of MONEY is actually a TON of Socialist ILLUSIONS about a liberal arts culture that is on government welfare.
If the fruitcake/actors at the Athens Theatre want to dance around on stage... fine, just get off government welfare assistance.
Just remember many taxpayers are sick of wasting money on this garbage...there is a recession on.
People are broke, businesses are shutting down and crooks are stealing everything...that is the show that is going on.
The Show must go on !! The real SHOW is a sick American culture that is addicted to entertaining itself. This nation is in a state of financial collapse...lets do a show on that.
Perhaps a play on real taxpaying businesses having to support non taxpaying bum non profit businesses that become a tax dodge for some bogus scam!
The Athens FLIM FLAM theatre...making a ton of money....sure... a comedy about wasted taxpayer money.... and a tax dodge.
Great staff, great productions, a good night out every time we have been.
Cindy, I agree. Great shows, great season, looking forward to Jake's Women Feb 9th. I enjoyed a glass of wine at intermission but I am there for the show, not the alchohol.
Keep up the good work Athens, we appreciate it!
I disagree with the Athens ultimately not having to pay property taxes; a little clique runs the Athens, average Joe has no say in what happens, and average Joe is helping foot the bill.
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