By Lori Ehde
Luverne's historic Palace Theatre is now in private hands - but it's nothing the patrons will notice, according to new owner Jeremy Esser.
He and his wife, Rachel, have leased the Palace from the Blue Mound Area Theatre Board since June 1999.
They had also operated the Iowa Theatre in Sheldon where they live, but Esser said they're selling that one and will concentrate efforts in Luverne.
Buying the Palace was an attractive option for the couple, since they wanted to build equity for future theater opportunities.
"This will be cheaper for us, and having some property will help us out on the business side," he said.
"That way, if I'm ever interested in owning a theater somewhere else, that helps me out."
From the perspective of the Blue Mound Area Theater Board, the time had come to sell the Palace.
"We wanted to see it back in public hands rather than maintain it ourselves," said Mike Hesch, board president.
For nearly 25 years, the board has owned the Palace and has existed for the purpose of protecting the theater's interests.
But Hesch said it was becoming increasingly difficult to manage as a board. "It's virtually impossible to find people to serve on boards like that," he said.
Two years ago, Luverne native Tom Brakke offered to buy the Palace but said he wasn't contacted this time around to see if he was still interested.
"Personally, I'm not offended they didn't contact me, but I think other community groups may have had an interest as well to see that there's proper protection of the theater," Brakke said Tuesday.
"We had intended to put a fair amount of money into the structure, and I'm not sure the new owners will do that. Our primary interest was in protecting the Palace, so we proposed very strict covenants to do that."
Hesch said negotiations with Brakke fell through because the two parties couldn't agree on a price.
This time, Hesch said, "We agreed on a price."
The purchase agreement for $50,000 was signed with Esser on July 25.
Several stipulations were written into the contract to protect the Palace, and the board has the right of first refusal, if the Essers decide to sell it.
Hesch said the board will invest the money into CDs for the next few years, until it's clear the business is on firm financial footing.
Then, he said, the earnings will likely be invested in a local historic preservation fund.
"I think he'll do a good job," Hesch said about Esser. "He has a lot of experience with theaters, and he's done a very good job so far. I'm extremely optimistic things will go well for him."
Theater Board member Bonnie Jordahl said all board members were present when the decision was made to sell, and all supported the decision.
Further, she said the board has grown to trust Esser and his management style and his respect for the historic value of the theater.
"He has given his word that he won't do anything drastic. He appreciates the Palace Theatre as it stands," she said.
"We are behind him all the way, and should he ever want to not keep doing this, it comes right back to us, which is assuring."
Other Theater Board members are Grace Loose, LaJean Lammert, Bob Dorn and Verlyn Van Batavia.
Esser has been involved in the theater industry since he was 16 years old working at his hometown theater in Nebraska City, Neb.
Since then, he's worked his way up through management positions at 12 different theaters in the past 10 years.
In his years of experience, Esser said he's never seen a theater with the appeal that the Palace holds.
"It's a very, very nice theater. There's just no other theater like it," Esser said. "It's one-of-a-kind in the sense that it has an operable stage and dressing rooms, a balcony, the unique bathroom location and the art mural on the wall."
He said any plans for additional screens would be accomplished through neighboring property. "The main auditorium won't be touched," he said.
The Palace was built in 1915 by Herman Jochims, primarily for the presentation of stage plays by traveling theater troupes and for "moving pictures," then an up-and-coming form of entertainment.
Its history is one thing that makes the Palace so unique. The next-oldest theater he has worked in was built in 1945 and has since been modernized.
Esser now owns the Palace Theater building, the second-story apartment and the Palace Museum space.
The Blue Mound Area Theater Board still owns the contents of the museum, which include mementos of the vaudeville days, the days of silent movies and early sound movies. It occupies space that once served as a ballroom.
The Essers are planning to host an open house at the Palace during Tri-State Band Festival activities on Sept. 29.