Fresno closes in on $6.5 million purchase of Tower Theatre. Here’s what’s in proposed deal
The Fresno City Council will vote Thursday on an agreement to buy the Tower Theatre for $6.5 million to preserve the historic character and use of the theater.
The complicated purchase proposal includes provisions for Sequoia Brewery and Me-n-Ed’s Pizzeria but not Adventure Church, which has attempted to buy the theater for more than a year, according to draft documents obtained by The Bee.
The historic theater has been a flashpoint of controversy for more than a year after Adventure Church’s plans to purchase the building became public.
That sparked weekly protests outside the building. Business owners and community activists voiced their concerns that the church’s purchase would change the character of an area known for its nightlife, arts community, and progressive politics.
Fresno’s LGBTQ community has been particularly vocal in preserving the zoning of the theater, which prompted white nationalist groups to push back and defend the church.
The issue turned to the courts when Sequoia Brewery argued — and an appeals court eventually agreed — that the theater owners acted in bad faith by negotiating with the church since the brewery had first rights of refusal.
Adventure Church is suing the Tower Theatre owners for breaking a purchase agreement.
Early Monday, Fresno City Councilmembers Esmeralda Soria and Miguel Arias issued a joint statement on the potential purchase.
“Tower Theatre is a historic icon for the community, and I am very pleased this item is being brought before the City Council for our consideration of the purchase of Tower Theatre for the community’s use and enjoyment,” Soria said in the statement.
“The Tower Theatre has been the economic anchor for our Tower District for generations. Our small businesses and residents want to preserve our historic jewel so they can continue to invest and thrive in the Tower District,” Arias said.
Fresno Mayor Jerry Dyer said Monday morning that should the City Council approve the purchase agreement, his administration will ensure the rules and regulations outlined in the resolution are followed.
“The Tower Theatre’s status has created a tremendous amount of controversy during this past year, including legal proceedings over its proposed sale,” Dyer said in a statement. “City leaders’ overarching desire is to ensure all groups have equal access to the theater, as well as to preserve this crown jewel in the heart of our city.”
Fresno’s proposal to purchase Tower Theatre property
Under the city proposal, Fresno would purchase the entire Tower Theatre property, including the theater, Sequoia Brewery, Me-n-Ed’s, other restaurant spaces, and 180 parking spaces. The purchase would be funded by a combination of general fund money and Measure P funds, the city’s parks tax that also earmarked some money for arts. The purchase price takes into consideration lease revenues.
The proposed resolution ensures the public would have continued access to the theater and parking lot.
Sequoia Brewery will purchase its portion of the property for $1.2 million and receive credits for improvements made to the property and legal fees. The city will finance the net purchase price of $950,000 for Sequoia Brewery.
As part of the sale agreement, if approved, the city would indemnify and defend the Tower Theatre owners and Sequoia Brewery if Adventure Church pursues legal action against them.
The city council also will vote to establish the preservation of the theater and its historical uses for public benefit so it will remain a community and cultural arts resource. The vote also will give direction to preserve the interior and exterior historical characteristics and features and protect community access rights.
An attorney representing J&A Mash and Barrel, which owns Sequoia Brewery, called the deal a “win-win” on Monday after the new broke.
“This is an excellent result for our client and for the Tower community,” said Kimberly L. Mayhew, an attorney with the firm Lang, Richert & Patch. “Sequoia’s contractual rights were honored, and the Tower Theatre will be available for the public to use and enjoy. It’s a win-win. Our client will be giving back to the community by donating all of the funds that were generously given by Sequoia’s supporters to benefit the arts in the Tower District.”
Adventure Church lawsuit
The church previously had a purchase agreement to buy the theater for $4.8 million. The church has hosted its Sunday services in the theater for over a year now.
A city staff report says a purchase agreement between the church and theater owners expired in March 2021 without the church depositing the full purchase price for the property during escrow. Lawyers for the theater also said in court previously that the deal to sell the theater expired.
That’s a point Adventure Church disputes in its lawsuit.
“AC unequivocally disputes the Tower Parties’ statement that the sale of the property is dead. AC is ready, willing and able to complete the purchase of the property and intends to do so,” according to the lawsuit.
The church’s leaders state in the lawsuit that they are open to the idea of allowing J&A Mash and Barrel, the brewery owners, to buy the property where the brewery is located if that is what it wants.
The city appears to expect legal action from Adventure Church since the city’s purchase agreement includes indemnifying the theater and brewery owners.
Adventure Church, in a statement through its lawyer Monday, maintained its argument that its purchase agreement with the theater did not expire.
“The city of Fresno and the Tower Theatre owners will be required to compensate our client for all damages if the city of Fresno induces a breach of that contract, or conducts inverse condemnation of its rights to acquire the Tower Theatre property,” the statement said.
The church indicated its legal battle is not over.
Historic theater
Haley White, the creative director for the arts activism collective the Fools Collaborative, said the group is cautiously optimistic. The group has led the protest effort against the theater sale to the church.
“At this point in the fight, city acquisition seems like a very good solution to all the heartache of the last 15 months,” White said. “None of us who are involved in supporting the Tower community feel like this is the end of the fight, though. It’s more like this is possibly the close of one chapter and the start of something else. Those of us who are organizers, along with the business owners, home owners, and community members who support us, will still be paying very close attention to what happens moving forward.”
The theater was built in 1939 as a movie theater managed by the Fox West Coast Theatre Corporation, according to the city staff report.
The theater is listed on the National Register of Historic Places. A certified historic rehabilitation included updates to the facility for live performances. The rehabilitation received several awards in 1991. Since then, it’s been used for both live performances and movie screenings.
The theater is built in the “streamline moderne” style and is the only dramatic example of that style in Fresno. It includes six circular murals in recessed niches inside the auditorium painted in fluorescent pigments, which are then illuminated with ultraviolet light sconces.
The Tower Theatre was only the second theater in the nation to use ultraviolet light as an ornamental device.
This story was originally published April 18, 2022 at 5:55 AM.