The Senator Theatre Auction and Why it Won’t Be Contested

Baltimore City and the Baltimore Development Corporation [BDC] are set to finalize their takeover of The Senator Theatre on September 19th, if no compelling objection to the ratification of the auction is filed with the Baltimore City Circuit Court by the end of Friday, September 18th.

There are numerous reasons why the manipulated results of the recent auction sale of The Senator Theatre should be invalidated by the court, but that’s not going to happen.

Here are some of the primary reasons why the auction results will not be overturned:

Circuit Courts rarely invalidate foreclosure auctions, particularly one that was initiated by the Mayor’s Office of Baltimore City after they bought The Senator Theatre’s commercial loan from 1st Mariner Bank and took on the legal position of the lender.

In these unprecedented circumstances, the City had a legal mandate as the regulated lender to follow established procedures of fairness and impartiality in conducting a foreclosure auction sale of a citizen’s private property.

The authority and responsibility to evaluate and enforce those established lender auction sale regulations, however, is ultimately in the hands of an elected Baltimore City Circuit Court judge.

It’s an outrage that the powers that be in city government and the BDC seized their long sought opportunity to take control of The Senator from its owner, who had simply sought their assistance, along with business and residential leaders, to transition the renowned theatre to not-for-profit, community-based ownership.

In their obvious effort to thwart non-profit ownership conversion of The Senator and gain full control of the theatre (and other strategically located real estate parcels owned by Tom Kiefaber), the City and BDC representatives first impugned his professional reputation through the media, as they have done to others in the past before their property is taken. They then proceeded to become the lender, pointedly undermine the validity of the recent Senator Theatre auction, and control the outcome with a clear sense of impunity.

The best shot at invalidating the auction would be an objection filed by the soon-to-be former property owner, Tom Kiefaber. Tom has made it clear, however, that he cannot object to the court’s ratification of the auction, for unspecified reasons that he refuses to delineate or discuss.

Having followed this unfolding saga and investigated the many odd and circuitous developments, it is safe to assume that Kiefaber’s uncharacteristic refusal to join an effort to resist our city government’s abuses of power is due to his apparent fear of even worse consequences for him and his family.

Tom Kiefaber, devastated by the coordinated attacks on his professional reputation and the corrupt “taking” of his beloved historic theatre by city government, is now behaving like a traumatized and fearful hostage --- one who supports terrorist demands on camera, while off-camera there is clearly a weapon threatening him and his family. It’s a heartbreaking situation for those who understand that a monumental injustice has victimized an accomplished man and his family who have done so much to benefit Baltimore City and our community.

This situation is a recent reminder that something is rotten in Gotham City.

We thought for a while that, as Baltimore City taxpayers, we might be able to put a citizen’s group together of figurative stockholders who have been financially harmed by the lender’s actions, which cheated the citizen/stockholders in an illegitimate scheme intended to benefit a few administrative insiders.

The hope was that a credible citizen activist challenge to the ratification of the auction might have legal standing to file an objection to the ratification of the auction in circuit court. We have received legal advice from more than one attorney discouraging this course of action. We’ve been told that the basic concept and the cumulative documentation that the auction’s outcome was significantly tainted both have merit, but there would be little chance that a Baltimore Circuit Court judge would rule in favor of the owner and the community over the Mayor’s office and the BDC.

Even if a citizen activist effort prevailed in court, the outcome would be to hold a new auction with significantly increased fees, and the folks pulling the levers of power in Baltimore would likely take further punitive action, to the detriment of Tom and his family, putting them in an even worse position. Perhaps that explains Tom’s aversion to the concept and his refusal to even discuss it with our group.

Despite deep concerns over ratification of the sham auction we would never risk triggering further harm and trauma to come to Tom and his family. They’ve made so many personal sacrifices to protect The Senator Theatre, and keep it open and operating in an award-winning fashion, as a classy anchor and source of civic pride since 1939. In fact, we all owe Tom Kiefaber and his extended family a huge debt of gratitude for their consistent success in keeping The Senator intact and operating for 70 years, when so many historic theatres nationwide were shuttered and abandoned.

Now we look ahead to the next step in the process. I hope that through the RFP process we can help to ensure that The Senator will be protected and continue to evolve, as envisioned by its former owner and the community, as the region’s premiere educational and entertainment venue, under non-profit ownership.

In Case You Missed It: Grauman's Chinese Theatre For Sale

As "AstroGirl," I would like to particularly note the following quote in this Hollywood Reporter article about the most famous historic theatre in the nation, Grauman's Chinese in Hollywood, being up for sale:

"You can't make a profit on a single-screen theater," a top industryite mused. "It's just not possible."

But the BDC and various Baltimore City officials have consistently blamed The Senator's debts on Tom Kiefaber. People more familiar with the movie industry are simply astounded that he's made it work to such a high degree for so long with debts that are so comparatively LOW.

It simply goes to show you that Baltimore City and the BDC know NOTHING about the movie industry and should NOT be trying to decide the fate of an iconic historic theatre like The Senator without expert advice from people in the industry...such as Tom Kiefaber.

Really...the mind boggles at why Baltimore City is trying to make such an important decision about such a wonderful Baltimore landmark while figuratively driving the bus with a blindfold on and earplugs in.

The Most Elegant Theatre I've Seen

In the past 3 months, I have spent a lot of time blogging about, or in the past month actually volunteering at The Senator Theatre, which is the historic movie theatre down the street from me. I've written a lot about the political situation surrounding The Senator, where the Baltimore City government is attempting to force a change in management, because of a grudge certain city officials apparently hold against the current owner.

What I haven't written about much is just why this is important to me, so it's high time I write a bit about why The Senator is so unique. I just love this place. I bought my house in part because The Senator was in my neighborhood and I just fell in love with it the first time I saw it. The Senator is an incredibly beautiful art deco movie theatre, first opened in 1939. It's got a spectacular facade with neon, and a beautiful circular outer lobby. Every line in the place is all curves.

It's perfectly proportioned and has a giant screen with a moderately sized auditorium, so that every seat in the house is a great seat. I can't overemphasize the importance of this, as many historic theatres I've been in have screens that are too small for the number of seats. The sound system and technical presentation has been consistently updated, so it's the best place to see a movie I've ever encountered. In short, the underlying structure is just amazing, and makes it the most elegant theatre I've ever seen. Someone just looking at the surface might not notice this, because there's some restoration that needs to occur. You have to really look at the structure to see how perfect this place is.

When I found out the theatre was having financial troubles, I eventually got in touch with the owner. I found out a lot about the reality of running a historic movie theatre, which is nearly impossible in today's economy. Then I found out that the owner and his staff have been making this heroic effort to keep the place in operation for many years, but the city of Baltimore has not only not been helping, they've been actively trying to drive him out of business, and as far as I can tell it's because they'd like to seize the property themselves and turn it over to a developer. My sense of injustice was engaged at that point, and I just can't stand by while Tom Kiefaber (the theatre owner) possibly loses his home and he and his staff lose everything they've worked for after trying so hard to keep The Senator available to future generations. There might be nothing I can do about it, which is frustrating, but at least I can provide some form of support.

I'm worried that the city government, which is trying so hard to take the place over, really doesn't get why it's special. People don't get the importance of saving The Senator unless they get that some things are about beauty and art and not just about money. It speaks to me that there's this incredible place that needs to be defended against the destructive, greedy focus on money for money's sake that's so prevalent.

Well, anyway, I always wanted to work in a movie theatre, so now I'm volunteering there. There are worse things in life than hanging out and eating popcorn, selling tickets and memorabilia, and watching movies. I just hope we can save this beautiful place, because it needs to exist simply because it's one of the good things in life.

Buzz Cusack Recuses Himself - But Who Is Mr. X?

Last night, the Baltimore Sun's web site reported that Charles Theatre owner James "Buzz" Cusack will recuse himself from any CHAP (Commission for Historical and Architectural Preservation) meetings about The Senator.

In another Senator development, a potential buyer who sits on a city board considering landmark status for the building's interior has said he will recuse himself from any discussion of the theater's fate.

James "Buzz" Cusack, who operates the five-screen Charles Theatre, said he will not participate in any debate over the landmark status proposal made by the city's Commission for Historic and Architectural Preservation (CHAP).

Earlier this week, Kiefaber said the board's proposal to place the Senator's interior on a list of protected properties, which would restrict changes a new owner could make, threatened to decrease the building's value and scare off potential investors.

If I understand correctly, this changes very little of substance beyond possibly public perception.

Mr. Cusack may not be going to public meetings about The Senator, but who knows what is going on behind closed doors? If Mr. Cusack was involved in the initial discussions that started this CHAP attempt to slap these restrictive controls on the interior of the building, a move that looks very much like a city government attempt to fix the auction price and scare away potential bidders, the damage may be already done. And the Sun did not report that Mr. Cusack won't still bid on The Senator at auction, so I assume he is still possibly interested.

Still, let's assume for a moment that Mr. Cusack is not the prime mover behind the CHAP move. He may not be. My gut tells me that he's not the heavyweight player we're looking for in this questionable move by city government. So who is Mr. X? Who is behind this?

Let's assume for a moment that it's really one of the CHAP commissioners and that it isn't Mr. Cusack. Who do we have left? Does anyone know if any of these people might have a motive to fix the auction of The Senator?

This really CHAPs my hide!

This latest development in the Senator saga really CHAPs my hide.

What’s up with the CHAP notices that have recently been posted on the front of The Senator Theatre?

For those who don’t speak acronym, CHAP is Baltimore City’s Commission for Historical & Architectural Preservation. In 2007, they added The Senator to their “Special List,” which was created just for the theatre, and now they’re attempting to slap restrictive controls on any interior modification to this privately-owned property. It seems that this alarming attempt to seize municipal control over The Senator’s interior spaces is unprecedented. Libertarians, are you reading this?

That’s right. With this proposed legislation, Baltimore City is saying that whoever owns The Senator Theatre will have to make specific permit applications to CHAP for ANY modification of the interior of the theatre, and at the commission’s discretion, it can hold up a permit for up for six months while CHAP takes public input on proposed modifications to private property. Whoa. Are there any constitutional lawyers in the house?

And get this: The Senator is the only building in Baltimore on the “Special List.” Just The Senator. Now isn’t THAT special?

From a preservation standpoint, The Senator Theatre building is already protected. It has been on the National Register of Historic Places since 1989, and it was placed there after owner Tom Kiefaber successfully campaigned to get it listed.

As Lewis Carroll would say, the city’s actions regarding The Senator Theatre are getting “curiouser and curiouser.”

An inside source in city government tells me there are staff members in the planning department who are quite upset over the heavy-handed machinations of a particular powerful CHAP commissioner that the source would not name.

Seems like this reportedly scary honcho has everybody afraid to blow the whistle on what looks like a blatant attempt to fix the auction of The Senator.

I’m told that this mysterious CHAP commissioner is the sole prime mover driving this highly questionable effort forward, which will seriously undermine the bottom line value of The Senator, intentionally or not. Let’s face it: would you bid on a building if you knew you potentially faced six months of red tape for any modifications of its interior beyond routine maintenance?

A quick investigation of the CHAP website turned up an interesting fact: Mr. James “Buzz” Cusack sits on the commission. Excuse me if this seems like the kind of thing that gets taken off of government web sites after bloggers notice them. I took a screen shot.

The Baltimore Sun has reported that Mr. Cusack, who runs the Charles Theater, a rival to Tom Kiefaber over the years, has announced his intention to be one of the bidders on The Senator if it goes to auction. So, is Buzz Cusack the mysterious commissioner who is conducting this railroad train? If not, then who is? Anyone out there know who sponsored this action by CHAP? Pray tell.

Another article in the Baltimore Sun reveals that Kiefaber is not happy about CHAP’s attempt to place restrictive controls over the renowned theatre that he and his family have lovingly preserved since 1939.

Kiefaber said a plan to preserve the building's interior, however well-intentioned, contributed to his decision to stop showing first-run films. The proposal, by the city's Commission for Historic and Architectural Preservation, would severely restrict any structural changes that could be made to the Senator's interior. In the long term, Kiefaber said today, that would affect the building's value by limiting a prospective buyer's options. In the short term, he said, the move scared off an investor whose capital could have helped Kiefaber meet payroll for his 23-person staff.

So just the specter of this controversial CHAP action scared off an investor? Well surprise, surprise. So that’s why The Senator closed down so suddenly for the first time in seven decades with no warning.

And why does the City now seem to be backing off their well-publicized “offer” to Kiefaber that would have him sign over The Senator to a non-profit and allow him to keep his home?

Is it just a coincidence that Deputy Mayor Andrew Frank’s prediction in the Sun of when the mid-April auction will take place also coincides with the date set for the upcoming CHAP hearing? Maybe it’s just my paranoia about the way our fair city operates behind the scenes, but this whole affair is starting to reek of something foul.

When I asked Kiefaber about all this, he (uncharacteristically) said very little and looked a bit rattled by the inquiry. Is it just me or do Tom’s public statements lately about these matters seem like a captive’s communications from a kidnapper’s lair?