Gatling misses February payment
Current bill for theater: $196,406.98

by The Daily Herald Staff Report
Published/Last Modified on Saturday, March 6, 2010 8:50 PM EST

ROANOKE RAPIDS — Entrepreneur Lafayette Gatling and his company, L&M Hospitality RR LLC, are late in making the February payment to the city for the purchase of The Roanoke Rapid Theatre.




Advertisement
The company failed to make the $98,203.49 payment on Feb. 1, and as of Friday afternoon was still in arrears. Additionally, the March payment — an additional $98,203.49 — was due last Monday.

Letters warning of the late February payment have been sent to Gatling and City Manager Paul Sabiston said he has talked with Gatling and his representatives. “They are hoping to make the payment — or perhaps both payments, next week … But there have been no promises,” Sabiston told The Daily Herald Friday.

Mayor Emery Doughtie said the city wants to “keep the lines of communication open.” Asserting the city is committed to “making this work,” Doughtie added, “But we have an obligation to the taxpayers and this can’t go on indefinitely.”

Gatling, a Northampton County native and successful Chicago businessman, entered into a lease-purchase agreement with the city in March 2009.

The theater’s price tag $12.5 million and to date Gatling has paid Roanoke Rapids more than $1.2 million, according to city records.

In December, Gatling formally approached the city seeking a renegotiation of his lease payments. In the city’s perspective, any such change would require a change in its agreement with Bank of America, which holds the $21.5 million bond package used to build the theater and fund its original start up costs when it was The Randy Parton Theatre. Those talks are still under way.

The monthly payment on the bond borrowing is paid with the money from Gatling and a contribution from the city treasury. In an earlier interview with The Daily Herald, Sabiston said in addition to the Gatling payment, the city’s annual costs are $400,000 escalating to $500,000 over time.

In a business plan submitted to the city, Gatling’s experts asserted the lease agreement needed to be changed. “This lease alleviated the requirement for the city to pay market based property management costs and also created lease revenue for the failing theater. While overall a terrific outcome for the city and its bank, the lease generated more than $1.4 million in losses for L&M.”

Blaming “the combination of a prolonged recession, a difficult investor and credit market and the well-recognized challenges of The Roanoke Rapids Theatre” for giving L&M Hospitality an altered “economic outlook and stabilization line,” the report warns, The consequence of limited seating and market caps on revenue potential offered by its two most viable scenarios, does not provide “an adequate incentive for L&M to continue the operation without a material adjustment in the nature of the lease agreement.”

Those negotiations are continuing as are Gatling’s talks on expansion and financing.

Neither Gatling nor a spokesman for L&M could be reached for comment Saturday morning. The City Council is expected to hear a report on the payment problems Tuesday.

Copyright © 2010 Roanoke Daily Herald

Comments

    Entertainer wrote on Mar 20, 2010 8:02 AM:

    " Hopefully Roanoke Rapids is not including the theater proceeds in it's budget. Nothing is garanteed in the entertainment business. "

    Dan Smith wrote on Mar 17, 2010 10:48 PM:

    " Wait a minute? "payment to the city"? You mean the city didn't actually sell the theater? The taxpayers are owner financing the theater? And at half price?

    I don't recall the specific language detailing the taxpayers are financing the theater. Can anyone in leadership give the people a straight answer? "

    Rose wrote on Mar 16, 2010 10:53 PM:

    " There is no need to point fingers at how or why the theater was begun. It is here, it's a dept that must be paid.
    City should take back theater and, let public works keep it clean. Hire a manager (don't pay a pile of money to this manager). Hire someone with experience and don't hire a production co. It can fly, it must fly, if not I am afraid the city and tax payers are done for... "

    lee wrote on Mar 16, 2010 10:48 PM:

    " It is a shame about the theater. It is a beautiful, state of the art theater. I believe Mr. Gatlin evidently doesn't know how to book talent. There have been very few shows at the theater since Mr. Gatlin took "possession". No wonder he can't make the payments, no shows, no money. I will have to give Mr. Gastlin a pat on the back...he has paid a lot of money, the city didn't have too. What the city ought to do, is take the theater back, hire a manager, not a production company and try and make it work. Form a theater committee, people that have experience in music and theater. It can still work. You can't just shut the doors, the city will still have to pay for it. "

    Anthony Afterwit wrote on Mar 16, 2010 5:57 AM:

    " @Gabrielle: There is EVERY reason to post that story as a headline. It's a publicly owned building that was purchased with public money. The public has the right to know every little nuance about every aspect of the theater, and I praise the editor for keeping the public informed. "

    whosbusiness wrote on Mar 12, 2010 10:47 PM:

    " quote from anonymous " whose business is it that he missed the payment. what can u do to help him make the payment. people need to mind their own business. "
    Anyone that lives inside of the city limits of Roanoke Rapids has a stake in this business. Our tax base was put up as the collateral for this boondoggle. So yes, it is everyone that lives here business. We need to pay attention when those payments are not made, or not on time. What kind of penalties are being accrued, as well as interest on late, unpaid payments. If it didn't concern the citizens, they wouldn't care, but out tax values have grown beyond the actual property value and the tax increase was just a slap in the face after the increase in value. All to pay for something you say we should just mind our own business. IT IS OUT BUSINESS. "

    needs news wrote on Mar 11, 2010 5:24 PM:

    " Why print that Mr. Gatling is late. Are you going to start printing everyone who is late with a payment. The citizens of Roanoke Rapids need to be glad that a buyer was found. "

    PM wrote on Mar 11, 2010 4:15 PM:

    " The ongoing outrage about the Roanoke Rapids Theater will continue to degrade its potential for success as it erodes public support and conveys negativity to promotors of events who otherwise might be enlisted to sponsor an event. The Theater needs better local enthusiasm, support and sponsorship and not just be aligned as a component of City Government. It should be locally sponsored as an area resource, not a liability, and also aligned with other local foundations and non-profit programs in the area. Local groups are already hard at work promoting theater and cultural activities, including the Lakewood Theater group in Littleton. They should be enlisted as champions of area wide theater and their enthusiasm should be harnassed to generate area wide activities to support both the Lakeland and Roanoke Rapids Theaters depending on the size of events. Other organizations like the Community College and Regional Hospital should be included and might benefit from having a location for larger eductional programs, community gatherings, corporate exhibits and meetings. The ability to market the theater for private and public functions for residents and visitors of the Roanoke Lake and Lake Gaston areas needs to be better explored with local sponsorship, not just the current management company. If the facility gets used and the public comes to see it as an true asset, it may actually help turn around the image of theater and the area for other cultural events and shows. Right now the angst and hand wringing is totally counter productive to getting the public on board, and the negative publicity will constantly keep users and backers of events from looking at the theater as a positive place to plan an event. "

    Hugh wrote on Mar 10, 2010 9:45 PM:

    " Any attempt that an investor makes to pull the Roanoke Rapids theater out of the red is always minimized by a herd of misinformed locals who don't support the theater. They would rather complain and attack when they find that mistakes are being made. Gatling has paid more than 1.2 million dollars on that building. He misses one payment and he's crucified. Who else would be willing to do invest that much in Roanoke Rapids, NC? "

    poor tax payer wrote on Mar 10, 2010 9:40 PM:

    " how this man plan to make payments when the hardly ever any show looks like ticket sells would help this guy keep this place seem no one know when something going on till it came and gone durling the day it alway cars and buses there but it dont seem to be nothing to it "

    Brenda Phillips wrote on Mar 10, 2010 7:10 PM:

    " I didn't think that building this theatre was a good idea from the get go. Now like the other people have posted, it's was a bad deal, none of our business concerning his payments. The embarassment isn't on Mr. Gatlin, it's on the idot's that wanted a way to make more money. They say that money is the root of all evil. Way to go city council. "

    Curious wrote on Mar 10, 2010 6:29 PM:

    " After reading anonymous's comment "whose business is it anyway...." I was left wondering....are you a TAX PAYING citizen of Roanoke Rapids? "

    RR Citizen wrote on Mar 10, 2010 11:23 AM:

    " Without other family attractions, the theatre is destined to fail AGAIN. There is no sustainability in an ill-conceived theatre located in the middle of a corn field surrounded by NOTHING! "

    Amazing wrote on Mar 10, 2010 7:00 AM:

    " Apparently, there is no one in this area familiar enough with the entertainment business to produce success from failure. "

    Observer wrote on Mar 10, 2010 6:56 AM:

    " Thanks to Mr. Gatling for trying, but don't forget, how this situation began. "

    Gabrielle wrote on Mar 9, 2010 8:05 AM:

    " There was no reason for this article to be plastered as a headline. It seems as if the local media capitalizes on embarrassing headlines. This is the same small town negativity that has caused the theater to fail as well as other business venues in the area. I understand that there are concerns that should be addressed, but that is not the way to do it. "

    Halifax County Tax Payer wrote on Mar 8, 2010 2:30 PM:

    " And somehow you seem surprised. Has this not been enough of a boondoggle?

    A contract should have never been entered into; not with Gatling, not with Parton. This has been nothing more than a colossal waste of our money.

    Where are those promised jobs? You can't collect a bill. I would be highly surprised to see a job! "

    anonymous wrote on Mar 8, 2010 11:00 AM:

    " whose business is it that he missed the payment. what can u do to help him make the payment. people need to mind their own business. "

    EZ wrote on Mar 8, 2010 7:29 AM:

    " Here we go again! "

    Roanoke Rapids Citizen wrote on Mar 7, 2010 4:50 PM:

    " Roanoke Rapids City council are the idiots who wanted this place built in the first place with Randy Parton.The way i see it, its just a waste of money. "

    Jim wrote on Mar 7, 2010 10:48 AM:

    " What a waste of money for the town of RR. Just turn it into the Town Hall, at least it would be used for something. "

    Get Real wrote on Mar 6, 2010 9:26 PM:

    " If the payments are not being made, then find another buyer. "

Write a Comment

Comment posters are responsible for the opinions they express and the accuracy of the information they provide. We urge comment writers to treat this as a public forum where manners matter. We encourage a collegial, non-insulting tone. All readers comments must be approved by our staff before posting to the Web site. They review submitted comments periodically during the day for offensive or off-topic content before posting. Be aware, in accordance with the Communications Decency Act and provisions upheld in judicial appeal, that you are responsible for comments posted on this Web site. The Daily Herald is not liable for messages from third parties.

DO NOT POST:
* Potentially libelous statements or damaging innuendo.
* Obscene, explicit, or racist language.
* Personal attacks, insults or threats.
* The use of another person's real name to disguise your identity.
* Comments unrelated to the story.
* Personal Information (phone numbers, addresses, etc.)

Opinions, advice and all other information expressed in rrdailyherald.com's reader comments represent the individual's own views and not necessarily those of the Daily Herald. The Daily Herald does not endorse and is not responsible for statements, advice or opinions offered by anyone other than authorized Daily Herald spokespersons.

Your thoughtful contribution to the online discussion is appreciated.

(optional)