Shuttered for years, the Fortuna Theatre could be revived if a federal loan to a local foundation is approved.
A Community Development Block Grant (CDBG) application for a loan of up to $1 million to help the Fortuna Theatre Foundation buy the theater property was approved by the Fortuna City Council at a March 16 special meeting.
The theater was closed in late 2022, when a magnitude 6.4 earthquake ruptured its sprinkler system, causing extensive water damage.
“It just ruined everything — the seats, the floor, everything,” said Theatre Foundation President Linda Rasmussen. “Everything was trashed in there and it had to be shut down.”
The 88-year-old theater is owned by Cinema West, a Petaluma company that owns movie theaters throughout California.
Rasmussen said the company’s owner, David Corkill, is open to the foundation’s vision of turning the theater into a community venue.
“We’ve turned him around and he’s really become an ally to try to get this done,” she continued.
The foundation’s plans include expanding the theater’s stage.
Foundation Board Secretary Elizabeth Wardell said that will allow the theater to be used for everything from “live music” to “school plays.”
Movie showings will still be in the mix, including “classic or independent films,” she continued. “We just see it as a benefit to everybody.”
Under the federal loan application, the city would administer the loan to the foundation, allowing the theater purchase.
The city has almost $1 million in revenue from CDBG-funded projects and there’s a requirement for the money to be spent on CDBG-eligible projects.
In the theater’s case, jobs creation for low- to moderate-income residents is a primary objective.
And time is running out for proposing use of the revenue, known as Program Income, with an early April application deadline.
“We can spend the program income in combination with new funds or under multiple applications but we can’t apply for any new funds until that pot is empty or at least spent down,” said Senior Planner Katey Schmidt.
Asked about loan payback, Schmidt said the application requires the foundation to “demonstrate that they have the ability to monitor and report and utilize the funds so that they can pay back the loan.”
But if it’s not repaid, the city can put a lien on the theater property.
Repairs also need to be funded and Schmidt said future CDBG funding could play a role along with fundraising.
Filing the Program Income spending application allows the city to also apply for $3 million of new CDBG funding under the same timeline.
The council approved grant applications for removal of ADA barriers in various areas of the city and planning for housing and infrastructure improvements in the city’s General Plan Update.
During the council’s regular meeting, the Fortuna Police Department asked for and got the go-ahead to apply for federal grant funding to help pay for new police vehicles.
According to a written staff report, the city’s fleet of 19 patrol vehicles has “significant operational challenges due to age and excessive mileage.”
The United States Department of Agriculture offers grant funding to pay for 55 percent of the cost of new police vehicles and vehicle repairs. Fortuna’s application is for about $167,000.
If approved, the grant will cover “cost burdens” and contribute to the purchases of two new “Ford Police Interceptor utility vehicles.”
The department will need additional council approval for covering the portion not paid through the grant.
In recommending applying for the grant, City Manager Amy Nilsen said there is “a significant amount of need for police vehicles and there is a lack of funding in the General Fund to support the purchase of vehicles and continue the costly repairs.”
This story first appeared in The Ferndale Enterprise.