Lorain Palace Theatre
Lorain Palace Theater – FAQ's
Q. How does the Palace Endowment Fund work?
A. The Palace Endowment Fund was started in @1980 by a group of very forward thinking individuals in the community. The value of the Fund has grown to over $2 million. In 2002, the Endowment Fund was turned over to the Community Foundation of Greater Lorain County to manage and maintain. The Palace is very pleased with the Community Foundation’s management of the Fund. The Palace cannot remove the principal in the Fund, but does receive annual payments of the interest generated by the Fund. At the beginning of each year, the Palace receives a check to assist with the cost of operating the theatre.
Q. Where does the money go?
A. It is very expensive to operate a facility the size and age of the Lorain Palace Theatre! Here are a few of the larger expenses:
• $70,000 for utilities (i.e.) gas, electric, water, phone and sanitation expenses
• $30,000 liability insurance (health insurance for the 2 fulltime employees has been discontinued)
• $150,000 for payroll including the Palace Youth Theatre staff and all of the part time staff that works on a “as needed” basis
• $200,000 for other expenses such as advertising, legal and professional fees, film rental, purchase of concession items and other goods and services
• $30,000 for building maintenance and repair
• The Palace operating budget is usually $500,000 to $600,000. As you can see, these expenses take up a very large portion of the budget. This year, costs have been trimmed to keep expenses down.
Q: Why has the Lorain Palace Theater’s income decreased so much?
A: As many of you know, the Lorain economy has been facing some hard times in the past few years, which leaves fewer businesses left in downtown Lorain for residents to enjoy.
Q: In light of its current financial situation, how was the Palace able to purchase the Eagle’s building next door?
A: The Palace was issued a state grant for a total of $410,000 – $300,000 to purchase and renovate the Eagle's building. This is all part of a greater goal to bring the arts back to Lorain, and attract more pople to the downtown area. A Morning Journal article on the Eagle’s building dated July 17, 2008 stated:
“City Council''s Federal Program and Economic Development Committee are expected to review an ordinance that would allow the city to accept the state grant when it meets next Monday, Gilchrist said. If the ordinance is approved, the money would be loaned to the Palace Theatre and interest on the loan would be waived as the city''s contribution, according to Gilchrist and the ordinance... Corporate and private funding will also be pursued, and the renovations will be done in stages with approval of the board and Handyside.”
http://morningjournal.com/articles/2008/07/17/top%20stories/19856294.txt
Q: Why doesn’t the Palace just raise movie prices?
A: In theory this seems like a good idea, but it is the Palace’s goal to match the $3 admission for all ages with its competitors, the Apollo Theater in Oberlin and the Amherst Cinema. Profit derives from concession stands more than admission costs, and the Palace has raised prices in that area.
Q: Perhaps the Palace should bring headliners or newer movie releases to draw in larger crowds?
A: Unfortunately, new releases and popular performers cost money. Due to the costs of the theater’s utilities and staffing, the Palace budget cannot handle high performance fees, especially when there is no guarantee that there will be a large attendance. People tend to forget that the Palace is more than just a movie theater – which is one of the reasons why they play movies after they have been in theaters for a while. The Palace gets the film for a lower cost, which helps them sell tickets at a lower price than other cinemas.
Event Schedule
MOVIE: The Expendables
9/10/2010 7:00 PM
MOVIE: The Expendables $3. Alll Ages
MOVIE: The Expendables
9/11/2010 7:00 PM
MOVIE: The Expendables $3. Alll Ages
MOVIE: The Expendables
9/12/2010 7:00 PM
MOVIE: The Expendables $3. Alll Ages
Movie: Alpha and Omega
9/17/2010 7:00 PM
Movie: Alpha and Omega $3.00 All Ages
Movie: Alpha and Omega
9/18/2010 7:00 PM
Movie: Alpha and Omega $3.00 All Ages