Paramount Operators Defend Soliciting $1M from Investors
Several eyebrows were recently raised in Peekskill after it was learned the operators of the Paramount Hudson Valley Theater were seeking $1 million from investors by next year.
However, the principals of Red House Entertainment, which took over the former Paramount Center for the Arts on Brown Street in July, and city officials maintained it was understood from the onset that Red House would be looking for financial backers.
“This is a positive. I would be concerned if they didn’t have prospectives,” said Mayor Mary Foster. “We knew from the beginning they would be looking for investors.”
In offering documents outlined by Red House at the end of August, the Garrison-based company states it has a goal of raising $500,000 by the end of this year and $500,000 in 2014. The proceeds will be held in escrow until at least $250,000 has been raised, at which point Red House may access the funds.
“An investment in the interests involves significant investment risks and is suitable only for individuals who could afford to hold the interests for an indefinite period of time and could afford a complete loss of their investment,” the offering documents state.
Red House has projected losing almost $230,000 this year, but is looking to bounce back in 2014 with a profit of more than $65,000 and more than $767,000 in 2015. It has a 17-year lease with Peekskill. Kurt Heitmann, executive director of Red House, said investors play a key role in the success of the theater.
“Every smart business looks for investors and strategic partners,” Heitmann said. “We have big plans for this theater and we said all along we would be looking for a few key individuals to share our vision. Already we have upgraded the sound system and seating and we have much more in the works for the theater. Investors help accelerate our vision. We are operating smart and will continue to grow.”
Foster said she is satisfied with the direction Red House is taking the Paramount and their involvement with downtown businesses.
“They are booking and selling out 75% of the seats and they are hitting a market,” Foster said. “We’re happy with what we’re seeing.”
Not so happy is Republican mayoral candidate Frank Catalina, who claimed Red House lacks the experience of the Tarrytown Music Hall, which was bypassed by Peekskill in favor of Red House, to book high profile talent.
“They have the marquee lit up, so I’m happy about that, but they don’t seem to have the acts that Tarrytown has or the old Paramount,” Catalina said. “I’m told when you’re doing comedy shows that’s the bottom of the barrel. We were desperate so we gave them a very favorable deal. We gave the house away. Only time will tell if they were the right people.”
Abigail Adams, director of marketing, communications and box office for Red House, said many top performers are booked 18 months in advance, although she noted Charlie Daniels and Joan Rivers have been signed for future appearances at the Paramount.
“It’s all about being a resource for the community and that’s very important, so when you’re building programming you’re going to see a lot of comedy, you’re going to see a lot of jazz,” she said. “We’re also exploring what the community needs are.”
Heitmann said since many promoters were “burned by the last regime” at the Paramount, Red House needs to “reestablish trust and viability.” He stressed Red House also takes pride in providing a venue for top notch stand-up comedy.
“We are very proud of the artists we have had on the stage and the following we are building,” he said. “How disappointing that this land marked treasure should become a target for political in-fighting. This theater is a revenue engine for the city. Red House Entertainment is there for the City of Peekskill and the community it believes in. We are out there every day and will continue to be and deserve support, not behind the scenes politics that deflect from the real importance of this cultural institution.”
Rick has more than 40 years’ experience covering local news in Westchester and Putnam counties, running the gamut from politics and crime to sports and human interest. He has been an editor at Examiner Media since 2012. Read more from Rick’s editor-author bio here. Read Rick’s work here: https://www.theexaminernews.com/author/pezzullo_rick-writer/
