By Lori Ehde
The marquee is blank and the doors are locked at Luverne's historic Palace Theatre - at least until this summer.
Meanwhile, the owners, Jeremy and Rachel Esser, are considering selling the business back to Blue Mound Area Theatre Corporation, the non-profit organization that sold it to them last summer.
BMAT met with the Essers Monday, Feb. 11, and were told the Thursday, Feb. 14, showing would be the last for a while.
Background
For more than 25 years, BMAT owned the Palace and existed for the purpose of protecting the theater's interest.
It leased the movie business to various managers, including the Essers who started in June 1999.
BMAT board members decided to sell it last year to the Essers because it was becoming increasingly difficult to manage as a board, according to BMAT chair Mike Hesch of Luverne.
"It's virtually impossible to find people to serve on boards like that," Hesch told the Star Herald in August.
"We wanted to see it back in public hands rather than maintain it ourselves."
The board at the time felt comfortable selling the Palace to the Essers because they had a strong reputation in theater management and because they had assured BMAT of their intent to preserve the historic nature of the building.
The purchase price was $50,000, and the agreement, signed July 25, 2001, included stipulations to protect the Palace and gave BMAT first right of refusal if the Essers were to sell it.
Community 'outrage'
Since the sale, however, community response has been negative, the most vocal of which is Luverne's Ben Vander Kooi.
His father, Ben Vander Kooi Sr., incorporated BMAT in 1971 and in 1978 Ben Jr. became involved in saving the Palace from bank foreclosure.
"This has been a major part of my life, going back 30 years," he said.
He said he and other community members were outraged to hear BMAT had sold the Palace without seeking public comment. In fact, in researching 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 replied to Vander Kooi earlier this month confirming the transaction hadn't 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.
Public meeting
A meeting has been tentatively scheduled for 7 a.m. Tuesday, March 26, possibly in the Rock County Community Library.
Vander Kooi is urging public participation in this meeting. "It's a chance for the people to express their feelings about how the corporation has been run and to express their opinion about the Palace itself - who should operate it and how it should be operated," he said.
"It's the best opportunity for people to get involved," he said. "If people don't show up, it will speak volumes."
He said he hopes a board is elected that will be more responsive to the community, "so everyone has a voice but no one person has control."
Meanwhile, Vander Kooi has solicited memberships and paid dues from 40 interested community members, some of whom are interested in becoming board members.
"I have been amazed by the number of people expressing interest in helping out," Vander Kooi said. "I'm amazed because the board has said no one is interested. There's a real appreciation for the history of that building."
Any member can be elected to the board, and all members can vote.
Current BMAT board members, in addition to Hesch, include Bonnie Jordahl, Grace Loose, LaJean Lammert, Bob Dorn, Verlyn Van Batavia, Heidi Sehr, Keith Mundahl and John Bowron.
'A tough go'
Hesch told the Star Herald Monday that he blamed Vander Kooi and his supporters for sabotaging Esser's efforts by stirring public concern over the Palace sale.
"I feel really bad for Jeremy. He's the one who's going to be the loser here," Hesch said. "I think what Ben did is wrong. I think he basically destroyed JeremyÕs business."
He mentioned that, as well as other market factors, such as the Sept. 11 terrorism and the opening of the Verne Drive-In Theater for poor business.
The Star Herald was unable to reach the Essers for comment, but the Palace reportedly owes money to area businesses and is behind on its utility bills.
Terry Vajgrt serves as legal counsel for BMAT and confirmed that the group is negotiating buying the Palace back from Esser.
"I think he's having a tough time making a go of it," he said. "Unless and until the theater gets broader public support, it's going to be a tough go, regardless of whether it's owned privately or publicly."
Despite accusations that the board is not open enough to the public, Vajgrt reiterated BMAT's intent. "Obviously BMAT wants to ensure the theater stays a viable part of the community," he said.
He added that he hopes Tuesday's meeting is well-attended, which would indicate public commitment to the Palace.
"I would hope the meeting would provide an opportunity to refocus our efforts, as a non-profit organization and as a community, to save the theater," he said, adding that if a new board is elected, recognition would be given to current board members for their efforts.
"If there's increased interest by a number of people in the community to serve on the board, then that's a good thing," Vajgrt said. "If the sale of the theater awakened public interest, that's also a good thing."
Palace history
The Palace was built in 1915 by Herman Jochims, was intended 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 among theaters nationwide.
According to the terms of the July 2001 purchase agreement, Esser owns the Palace Theater building, the second-story apartment and the Palace Museum space.
The Blue Mound Area Theater Board kept ownership of 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.