The fate of Kentucky Repertory Theatre is still to be determined.
The theater and all property owned by its parent company, Horse Cave Theatre 76 Inc., was sold Dec. 6 at the courthouse door in Hart County by the master commissioner to Citizen’s First Bank for $197,000, which is $98,000 less than the actual appraised value of $295,000.
According to Jane Ann Lang, secretary for Hart County Master Commissioner George Lang, approximately 25 people turned out for the sale, but only one bid was submitted.
“No one bid but the bank,” Lang said.
Ashley Belcher, an attorney with Harned Bachert and McGeehe in Bowling Green, said property that has been foreclosed upon and sold at a master commissioner’s sale must sell for at least two-thirds of the appraisal price.
A motion on file in the Hart County Circuit Clerk’s office filed on Aug. 1 stated the theater believed the real property to have an appraised value of approximately $1.4 million.
“Citizen’s First opened the bid with two-thirds [of the appraisal price] and unfortunately no one else bid,” Belcher said.
According to Kentucky Revised Statute 426.530, “if real property sold in pursuance of a judgment or order of a court, other than an execution, does not bring two-thirds of its appraised value, the defendant and his representatives may redeem it within a year from the day of the sale, by paying the original purchase money and 10 percent per annum interest.”
Citizen’s First filed a lawsuit against the theater and Ervin Leasing Company of Ann Arbor, Mich., in March, which had filed a lien against the theater in February 2012.
The leasing company had installed an HVAC system at property owned by the theater at 103-109 E. Main St. in Horse Cave and had an agreement with the theater dated July 2008, but the bank was determined to be the primary lien holder, according to court records.
The bank’s lawsuit against the theater began the foreclosure process. The bank’s judgment was for $366,821, plus interest at a rate of 6.75 percent per annum plus attorney fees and court costs beginning in January.
The theater had issued a promissory note to the bank in the sum of $376,485 in May 2011. The theater’s board of directors made the decision in February to close the theater due to financial problems.
According to a Glasgow Daily Times’ article, an e-mail was sent to theater supporters, actors, government entities and others alerting them of the theater’s board of directors’ decision.
According to the GDT article, “The e-mail stated, ‘Economic pressure [has] made it impossible to continue.’ In addition, an announcement was placed on the theater’s website.’”
As of Dec. 12, no deed had been filed with the Hart County Clerk’s office showing the bank to be the owner of the property, which includes a parcel of land at 125 E. Water St. appraised for $30,000 and sold for $20,000; a parcel of land at 118 E. Main St. appraised at $60,000 and sold for $40,000; a parcel of land at 101 E. Main St. appraised at $45,000 and sold for $30,000; and a parcel of land at 103-109 E. Main St. appraised at $160,000 and sold for $107,000.
As for what the bank will do with the property, Belcher said on Friday no decision has been made.
Lang anticipated the bank receiving a deed for the property sometime next week.
Lyn Long, who was serving as chair of the theater’s board of directors when the theater closed, said that while she cannot speak for other board members, she personally has no plans to purchase the theater buildings from the bank.
“I am hopeful several individuals may be interested in purchasing the buildings, but I have heard no firm commitments from anyone,” she said.
Read more of this story in the print or digital Glasgow Daily Times. http://glasgowdailytimes.cnhi.newsmemory.com/