By Lori Ehde
Luverne's historic Palace Theatre is back in community hands following the annual meeting of the Blue Mound Area Theater Board Tuesday.
The Palace doors may reopen as soon as June 1, and options for management and entertainment are under consideration.
Nearly 50 people attended the 7 a.m. meeting that ended with nine new faces on the board.
BMAT Board President Mike Hesch reported the Palace had been repurchased for $60,000 - $10,000 more than it had been sold for last summer.
Minnwest Bank has extended a $15,000 line of credit, debts have been paid and roughly $5,000 sits in the account for upcoming tax and insurance payments.
In addition to ticket and concession sales, the Palace receives rent revenue from FGL Commodity Services, apartment residents and the Chamber of Commerce.
Tuesday's meeting in the library attracted a crowd of 40 new BMAT members who elected the following new board members. They are Marilyn Bloemendaal, Connie Connell, Randy Creeger (treasurer), Keith Erickson, Betty Mann, Dave Smith (secretary), Roger Tollefson, LaDonna Van Aartsen (vice president) and Ben Vander Kooi (president).
Incumbents Bob Dorn, Bonnie Jordahl and Heidi Sehr were re-elected.
Among the first items of business for the new board was to discuss future uses of the facility and ways to make it cash flow.
Many of the members supported bringing back live drama to the stage of the Palace. Many also supported continuing movies, and a majority supported both.
"In the past, there have been conflicts between the two, as I'm sure the Green Earth Players will tell you," Vander Kooi said. "We hope to bring in some people for insight on how to make it work.
The next BMAT meeting was scheduled for 7 a.m. April 8, and an evening retreat is planned to include input from Twin Cities theater professionals.
"I know I'm glad the Palace is back in the community," Vander Kooi said at the close of the meeting. "Now we have to make it work."
He thanked retiring board members for their work. They include Hesch, Grace Loose, LaJean Lammert and Verlyn Van Batavia.
Hesch told the Star Herald he enjoyed his years on the board. "Anytime you serve on a board for 18 years, it's always with mixed emotion that you leave," he said. "I'll definitely miss it."
Hesch said the timing for his retirement is good, because he's sold his Slumberland business in Worthington and plans to move to north central Wisconsin.
Background
BMAT's decision last year to sell the Palace Theatre to manager Jeremy Esser raised a public outcry, mostly from those who feared for the historic preservation of the Palace and its future as a viable business in Luverne.
Hesch said the board acted in the best interest of the Palace when it authorized the sale.
He reiterated at Tuesday's meeting the board's original rationale for the sale: Esser has proven experience in the movie business, he respected the historic nature of the building, and he was optimistic the Palace could be profitable under private ownership.
Optimism, however, didn't pay the bills, and Esser closed the Palace doors Feb. 14 after racking up $10,000 in debt.
Meanwhile, when Vander Kooi researched the bylaws of BMAT, a public non-profit organization, he learned the sale may have been illegal and contacted the Minnesota Attorney General's Office.
The state office confirmed the transaction hadnÕt taken place according to bylaws, but it is not pursuing the issue.
Instead, a letter addressed to BMAT instructed the board to adhere to its bylaws, specifically to schedule an annual meeting and board election, and to be more aggressive in seeking new members.
Prior to Tuesday's meeting Vander Kooi solicited memberships and paid dues from 40 interested community members, some of whom agreed to be board members, if elected.
"I have been amazed by the number of people expressing interest in helping out," Vander Kooi said in February. "...There's a real appreciation for the history of that building."