A photo of the concession counter at Carson Valley Cinemas included in an appraisal.
Johnson Perkins and Griffin
An appraisal of Carson Valley Cinemas came in at $300,000 higher than the asking price, clearing the way for the county’s $2.9 million purchase for a performing Arts Center.
Reese Perkins of the firm of Johnson Perkins and Griffin found that the property was worth $3.2 million as of Jan. 22. Under state law, the county isn’t allowed to pay more than the appraised value of the building, but it can pay less.
The appraisal confirms that owner Kelly Bland is offering the property to the county at a discount.
According to the appraisal, the net operating income for the cinemas is $230,341 a year.
Built in 1998, the cinemas consists of 23,026 square feet in the eight theaters and a 3,680 square foot mezzanine.
On Thursday, Douglas County commissioners are scheduled to discuss approving the purchase agreement for the property.
The item includes authorizing County Manager Jenifer Davidson to sign the agreement and a request to augment the room tax budget $25,000 for the earnest money deposit.
Bland of Mahalo NV said cinema operator Russ Levinson’s lease for the 26-year-old theater expires at the end of March.
There is a possibility that the theater could continue operating until the county releases the $2.9 million on July 1.
Critical to that process is determining a nonprofit to partner with to operate the theater.
The Carson Valley Arts Council is the most likely contender for that, but a request for proposals closes on Friday to see if there are any others.
The arts council spent 16 of the two decades it has been in existence working to get the Copeland Building into shape to be a mid-sized venue. However, converting the warehouse located near the Minden-Gardnerville line into someplace with 200-300 seats has been slow and could cost up to $12 million.
President Brian Fitzgerald said that the cinemas checks a lot of boxes for the performing arts center.
Funding for the purchase will come from $5.3 million in room tax reserves generated during the pandemic when Community Services was mostly shut down and hotels reopened to record occupancy.