Chris Scully and Charles Smith, the co-owners of Flagstaff’s Orpheum Theater, recently received a tax break to keep their theater open.

The Orpheum was one of three businesses to receive a waiver on its government property lease excise tax, the other two being Joy Cone and Nestle Purina Petcare Company.

Vice Mayor Al White said the owners approached the city council about the financial crisis and the council voted five to two in favor of the break.

“The Orpheum got a tax break because they were able to prove to us that our investment in the building would guarantee improvement in the building, as well as the impact downtown,” White said. “The impact downtown is substantial as far as them going out of business. If it failed, other businesses would be hurt as well.”

The tax break grants the Orpheum an eight-year break from the excise charge. But White said the waiver is not without conditions. The owners must invest a certain amount of money in the building and provide use of it to the community.

“It basically makes the property a government asset,” White said. “They’re relieved from taxes for eight years, and during that period there are a number of performances and steps they have to accomplish. If they blow them, they lose the break.”

Bryan Kinkade / The Lumberjack

Scully said the theater will undergo many improvements in the short term.

“We’re gonna do everything from painting to repairing bathrooms,” Scully said. “We’re already repaired the roofing.”

Scully said he is optimistic about the financial future of the Orpheum, but he said nothing is certain.

“We’re not sure the Orpheum can stay in business as it is,” Scully said.

White said a few other companies have complained in regards to the fairness of the system, but he said any business can get the same break if it proves to the city council they need it. The majority of the surrounding businesses are supportive of the waiver due to the amount of business the Orpheum brings them.

Tim Hay, the general manager of Maloney’s Tavern, disagrees with the break the Orpheum received and said he feels the tax payers’ money shouldn’t have to support the theater.

“I think it’s not right that my tax money is going to the fact that they can’t pay for the building; it’s not my fault,” Hay said. “We already pay for enough slackers.”

Lynda Fleischer, the owner and manager of Altitude’s Bar and Grill, said she is nothing but supportive of the tax break the Orpheum received. She said she feels the theater benefits the community in many ways.

“As a business owner, I feel it provides entertainment, and it gets people out of their homes, and they go out to dinner,” Fleischer said.

White said he agrees the theater brings a great deal to the city and said he
feels the surrounding businesses would be negatively impacted if it were to close.

“A lot of businesses downtown would be affected by seeing the number of customers drop off,” White said. “It could lead to a downward economic spiral. People come up from Phoenix for shows…and while they’re here, they stay in our hotels, eat at our restaurants, and buy food and buy retail items in our stores.”