Film-Tech Forum ARCHIVE: Buy vs lease, build vs renovate

This is topic Buy vs lease, build vs renovate in forum Ground Level at Film-Tech Forum ARCHIVE.

To visit this topic, use this URL:
https://ft-forum.com/ft/cgi-bin/ubb/ultimatebb.cgi?ubb=get_topic;f=5;t=002732

Posted by Martin Thuss (Member # 7976) on 11-26-2013, 04:53 PM:

Curious to know which of you own your land/building, which of you lease and which of you are somewhere in between (ground lease, for example). We are weighing our options right now (meeting with an industry consultant tomorrow to discuss this topic among many others).

Also, which of you built and which of you bought an existing building and renovated? There is no existing theatre building in our town, so if we bought an existing building and renovated, I'm pretty sure we would be looking at fairly extensive renovations.

Posted by Frank Cox (Member # 6258) on 11-26-2013, 06:23 PM:

My theatre building was vacant building that formerly housed a paint and wallpaper store. When I purchased the building it was more-or-less just one single large empty room, so I renovated it into a theatre, created a lobby, an auditorium, washrooms and so forth. A couple of years after that I decided that my lobby was far too small, so I bought the vacant lot next to me and built a new front door and lobby on that property, so now my building is a kind of a big L shape, with the lobby off to the side of the main building that houses everything else.

I bought the storefront building from the former owner, and I bought the vacant lot from the city after they repossessed it from whoever owned it before for unpaid taxes.

Posted by Mike Blakesley (Member # 26) on 11-26-2013, 07:00 PM:

There is a 3-screen theater in Laurel MT that was built in a former grocery store.

I would think, if the ceiling is high enough it would be possible to build a stadium-style cinema in just about any large room.

Posted by Louis Bornwasser (Member # 3063) on 11-26-2013, 07:55 PM:

Big problem is codes which sometimes require that no wood be allowed in building at all. Be careful. You can remodel the building and get all the permits.

Can you then get the Occupancy Certificate? If not, then admission cannot be charged.

Posted by Randy Pryde (Member # 7488) on 11-26-2013, 10:40 PM:

We have converted two buildings to stadium multiplexes. The first was a 90 year old masonry building. To get sufficient interior heights, we had to raise the walls and construct a new roof. Construction costs were similar to a brand new structure. However, there were substantial savings because we had limited site work.

The second was the conversion of an old Wal-Mart. We were able to get our ceiling heights by excavating the front half of each auditorium. Construction cost was less than new, and the existing parking lot was a big plus.

Conversions are tough and require a lot of thought to do correctly. Find an architect who has experience in theatre design, or a theatre consultant to assist your local architect.

Find out which code book your local jurisdiction uses and buy a copy. Read it cover to cover, particularly those sections that would apply to movie theatres. Most small town officials have never been asked to approve a movie theatre before. When you meet with them for your plan review, the process goes much smoother when you can respectfully quote the relevant sections of the code.

Louis has hit on a very important point. Make sure every possible official (planning, zoning, fire, health, environmental, etc.) signs off on your plans before beginning construction.

The economics are tough for a brand new building in a small market, but it is lot more fun than a conversion.