Theater Woes Cast Shadow on Project

Financial turmoil in the movie theater industry that has closed many cinemas throughout the region is causing city officials to rethink the centerpiece of a massive redevelopment project proposed for Thousand Oaks Boulevard.

City Council members this month will consider reopening discussions with the developer over the theater component of a proposed $41-million entertainment and retail complex next to the Civic Arts Plaza. The 14-screen multiplex with stadium seating would add to the city’s stock of 24 screens in three theaters--none of which have stadium seating, which allows for better viewing.

The same site would also house a $65-million children’s science museum, a 300-seat Imax theater and offices for the Ventura County Discovery Center--a separate project but part of the overall effort to revitalize business on the boulevard.

Because of increasing public demand for up-to-date movie theaters--with stadium-style seats and enhanced sound systems--older cinemas nationwide have been hurt by declining attendance and shrinking profits.

That has forced several large companies--Edwards, United Artists, General Cinema and WestStar Cinemas, the parent of Mann Theatres--into bankruptcy. Dozens of theaters in Southern California, including a United Artists theater in Camarillo, have closed in recent months.

“In theaters there is no customer loyalty to one chain over the other,” said Malachy Kavanagh, spokesman for the New York-based International Council of Shopping Centers. “Customers go to the theater with the newest and latest style of seating.”

Cinema bankruptcies will affect shopping center developers, he said, but added more pain will be incurred by centers that house older theaters than ones being planned.

Still, there is concern widespread closures of screens would make it difficult to obtain financing for a new theater, though there is little doubt it would be successful at the Civic Arts Plaza site, said Deputy City Manager Jim Friedl, who is overseeing the project.

As such, Thousand Oaks Mayor Dan Del Campo said he will recommend on Dec. 12 that Councilman Andy Fox and new Councilman Edward L. Masry sit on a negotiating team to meet with the developer, Caruso Affiliated Holdings, and Discovery Center officials.

“You have to pay attention to these changes that take place,” Del Campo said. “We’ll see if we can’t tweak it and come up with a better alternative.”

Those working to raise money for the Ventura County Discovery Center are also watching the situation closely.

Mary Anne Porter, director of the nonprofit organization, said it’s too early to tell what the shakeout of the theater industry means for the planned science center.

But Porter acknowledged the Caruso project is a vital component to the entire redevelopment, which has been dubbed Discovery Park.

“The private development brings a lot of amenities to the entire site that make it a true family destination,” she said.

Rick Lemmo, a spokesman for Caruso, said the developer still plans to build the project that was approved by the council and endorsed by the community in July.

Even if the movie theater plan is ultimately scrapped, the site will include high-quality restaurants, office buildings, walking paths, a pond that can be frozen over for ice skating and specialty retail shops, Lemmo said.

According to the development agreement, Caruso must secure a movie theater operator by April. Lemmo said it’s too soon to judge whether Caruso officials could deliver an operator in that time frame. But he said one option on the table with the city will be adjusting the agreement’s deadline to allow for the cinema industry to emerge from its financial troubles.

That is the strategy recommended by Reed Henkelman, a principal at Center Commercial Realty Advisors in Camarillo.

“I don’t think it would be wise to have a knee-jerk reaction where the theater is abandoned today, when in three to five years you have a demand for theaters and that could be the very best spot,” he said. “If we have to wait to get what is the best use for that site, then let’s wait and be patient.”

There are some, however, who firmly believe a 14-screen theater is not the best use of the land adjacent to City Hall.

Councilwoman Linda Parks said she hopes the city eliminates the multiplex component, which would very likely mean a controversial seven-story parking structure could be scaled back. At least one-third of the structure was intended to provide parking for the Discovery Center and the arts plaza.

“I don’t think you need a movie theater to bring people to a science center,” she said. “I see it more as a cultural arts hub.”

Del Campo agreed, saying he doubts people who just watched a two-hour movie would want to explore the Discovery Center or the Civic Arts Plaza. He believes the arts facilities themselves, along with Gardens of the World, a privately funded six-acre garden park across the street, will serve as a large enough draw.

Parks also contends the deal the city made with Caruso was a “taxpayer giveaway,” largely because the 7.5-acre site the city initially purchased for $6 million will be leased for $1 a year.

Despite the purchase price, the value of the land has been assessed at a negative $13 million because of the use restrictions and public facilities required by the city, Friedl said.

Masry said he was most concerned about the movie theater portion of Discovery Park. He said he is looking forward to working with Caruso to consider an alternative concept.

But that is no easy task, experts say.

“There’s very limited destination retail that would work there,” Henkelman said, ruling out uses such as a big-box discount store or health and fitness club. Even a large arcade or so-called “cosmic bowling,” adding colorful lights and music to attract younger players, is still considered a secondary use.