Sandusky State Theatre gets $5M

SANDUSKY — The Sandusky State Theatre recently snagged $5 million in state tax credits, giving board members a reason to celebrate after months of uncertainty. "We are grateful for the support of our partners at the state, federal and local levels," board chair Colleen Shay Murray said. "The theater is such an important part of our region, and we're proud that our elected officials recognize the impact it will have." Shay Murray recently became the theater's board chair after the term of the former chair, Kim Redfern, expired. "Kim did wonderful work on behalf of the community," said Tim Parkison, a board spokesman, thanking Redfern for her dedication. Awaiting a decision Parkison, like Shay Murray, agreed that the support is key for the theater as it awaits a decision on a claim against the general contractor for the repair and renovation project for failing to finish the job at the negotiated price. "The surety bond claim is proceeding in a positive direction," Parkison said. "They are proceeding with their due diligence, and it's progressing in a positive way. We're feeling pretty optimistic. We've had good communication with the bonding company." The theater was nearly destroyed in June 2020 when a freak windstorm ripped off the roof and sent debris flying down onto the stage and in the area surrounding it in the first block of Columbus Avenue. Initial damage estimates exceeded $17 million. But post-pandemic inflationary pressures resulted in increasing costs, prompting the theater board to seek a guaranteed contract price from the general contractor, GC3 Builders. Most of the cost is covered by insurance, and GC3 is a contractor out of West Des Moines, Iowa, that works with insurance companies and clients that suffer large losses. GC3 Builders has not responded to questions and written inquiries about its dispute with the theater board since work on the project was halted in July. The guaranteed renegotiated price for the project was about $25 million, which included historic preservation and upgrades to the venue, including a second stage. The board fired GC3 Builders, which has since filed a lien on the property claiming more than $2 million in unpaid invoices for work that's been completed. Three other contractors also filed liens, bringing the total claims at more than $4 million. The theater board contends those invoices are paid or are otherwise covered under the guaranteed contract. If money is owed, it is owed by GC3 to the subcontractors, not the board, the board claims. The $5 million tax credits the state announced this week, described the project as a restoration and renovation that includes modernizing non-historic areas, a 35,000-square-foot addition with an art gallery, a second venue, handicap accessible upgrades, expanded restrooms and concessions. Aid given to the arts The theater's tax credit came from a recent round of state-issued awards. The Ohio Department of Development announced more than $33 million in tax credits through two tax credit programs aimed at developing a strong film industry in Ohio. The Ohio Motion Picture Tax Credit Program money — about $26 million — was awarded to 14 projects. The recently launched Ohio Film & Theater Capital Improvements Tax Credit Program total tax credits were for four projects and valued at $7.3 million to support capital improvement projects used in the production and postproduction motion picture or Broadway theatrical industries. "These awards help ensure that Ohio is represented in stories that capture the hearts and imaginations of audiences around the world," said Gov. Mike DeWine. "We're not just supporting productions — we're building an industry that will keep jobs in our state for years to come." The tax credits give the state a seat at the table in the arts and entertainment industry, according to Lydia Mihalik, director of the Ohio Department of Development. "Our film tax credits bring producers and stars to Ohio, and they create opportunities for the local businesses, skilled trades and creatives already here," Mihalik said. "The expansion of film incentives to include capital improvements ensures that productions can find all of the resources they need to succeed in the heart of it all."