May 07, 2025
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Streator council not on board with forgiveness of Eagle 6 loan

City manager will present theater operator with other options

By Derek Barichello
Operators of Streator Eagle 6 asked to settle a $150,000 loan with the city of Streator with a payment of $65,000 — but the City Council said Tuesday it is not willing to accept it.

Operators of Streator Eagle 6 asked to settle a $150,000 loan with the city of Streator with a payment of $65,000 — but the City Council said Tuesday it is not willing to accept it. (Derek Barichello - dbarichello@shawmedia.com)

The Streator City Council agreed it was willing possibly to extend the terms of a $150,000 loan from its revolving loan fund to Streator Eagle 6 movie theater, but council members were not on board with a $65,000 settlement proposed by the theater.

After hearing the council’s thoughts on the matter Tuesday, City Manager David Plyman said he was going to share the information with Eric Gubelman, who owns the theater, and report back to the council.

The remaining balance of the loan is $113,963, with a balloon payment of $83,000 due in September 2026.

In 2016, the city issued the loan to Beautiful City LLC, operated by Gubelman, as part of the redevelopment of the cinema building in Northpoint. Loan payments are up to date.

Mayor Tara Bedei said she was leery of forgiving the loan, because she didn’t want to set a precedent for others. Councilman Brian Crouch agreed and Councilman Matt McMullen said he believed loans should be paid back.

Gubelman told Plyman in an email his company has kept the Streator theater alive during the pandemic, has a plan for long-term success, and a viable financing proposal that is coming up short.

Plyman recommended the council not to forgive the loan. He said the council could seek to offer some level of forgiveness, and he could look into if American Rescue Plan Act funds would be available to do so, but he also warned the city will need to be careful with how it spends those funds, especially with a decision imminent regarding the city’s 911 ambulance service. The theater has received $25,000 in COVID-19 recovery funds, the council acknowledged.