Classic Hits 103.9 WLPO

News from the Illinois Valley

Peru discusses Amuesment Tax and movie theater incentives

Posted by wlpo on January 27, 2015

Keeping a movie theater in Peru will likely mean the city will have to offer an incentive to the developer. City officials and their attorneys have been working on a development agreement with DMAR, LLC to have a new Carmike Cinemas built north of Hy-Vee.

DMAR wants to buy the land, build the theater, and sell it to a company that would lease it to Carmike Cinemas according to attorney Doug Schweickert. He explained the situation during a city council meeting Monday night.

Schweickert says they have tried to get the theater to stay in the mall but the theater doesn’t plan on staying. Their mall lease expires at the end of 2015.

City officials want to at least keep the theater in Peru, but according to Schweickert the developer wants an incentive. The proposal as it stands now would have the city giving the developer $875,000 after the first ticket sells. Schweickert says the developer had wanted the money sooner but the city wanted a performance bond.

Movie-goers would be making up the incentive by paying a seven percent Amusement Tax. The tax would be collected by the theater and paid to the city. The council could have approved the tax Monday night but didn’t take action.

Once approved, it could start as soon as March 1. Events held by non-profit clubs and schools would be exempt.

Sorry, the comment form is closed at this time.

%d bloggers like this: