Eagle 6 Theater seeks loan forgiveness with city of Streator

The Streator Eagle 6 Theater is seeking $48,963 in loan forgiveness on a $150,000 revolving loan with the city of Streator if it accepts a payment of $65,000 to settle the loan.

The remaining balance of the loan is $113,963.

The City Council will consider this proposal 1:30 p.m. Tuesday, March 8, at its regular committee of the whole meeting at City Hall, 204 S. Bloomington St.

In 2016, the city issued the loan to Beautiful City LLC as part of the redevelopment of the cinema building in Northpoint. Loan payments have been made up-to-date, said City Manager David Plyman.

In addition to the loan, the city provided Beautiful City with $340,000 to cover TIF eligible expenses, Plyman said. Under this agreement, the city has an obligation to reimburse the developer 50% of any portion of the increment from the project that exceeds the project’s TIF debt service obligation. The increment triggered by the project has not yet triggered this reimbursement obligation, Plyman said.

The city manager recommended the City Council reject the settlement.

Eric Gubelman, of Eagle Theaters, told the city 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.

Along with the theater’s proposed settlement of the loan, the City Council will consider an agreement with Streator Youth Baseball, sewer rate increases and its strategic goal planning at its Tuesday meeting.