Novato Theater Company Eyes New Home; Board Member Forms LLC

As the  struggles to stage ever-larger productions in a theater space that it is outgrowing, board member and technical director Gary Gonser is trying a new tactic for expansion by establishing a limited liability corporation to purchase a mostly vacant strip mall on Nave Drive.

The mall would serve as the star vehicle for an expanded performing arts theater with a supporting cast of revenue-generating retail spaces.

Gary Gonser and business partner Ken Bacon are in escrow on the property at 5420 Nave Drive, originally listed at $2.85 million. But according to Gonser, the price was negotiated down significantly for only one of the two buildings.

Gonser is the treasurer on the board of the NTC — not affiliated with the renovation of the old Novato Theater on Grant Avenue — and is known for being the driving force in the development of the NTC Playhouse in Ignacio in 2006.

Bacon is a veterinarian and founded Central Marin Cat and Exotic Hospital in San Rafael. He is also a veteran of local theater as an actor and a producer.  The San Francisco Bay Area Theater Critic’s nominated his production of “Humble Boy” for best drama production in a small theater for 2010.

The 15,500 square-foot building in escrow, formerly a Pinky’s Pizza and Safari Jungle, was built in 1956 and is 55 percent occupied by tenants. The property was on the original list for recent housing element plan by the city of Novato but quickly dropped off the list by the City Manager’s Housing Ad Hoc Working Group, according to Dave Wallace, the city's community development director.

Gonser emphasized that this venture is still in the planning stage and escrow is an opportunity for them to complete their due diligence on the property. “Financing is still a big piece,” Gonser said.

Under the plan, there would be a 4,500 square-foot space for a main theater with 120-140 seats. Another 2,600 square-foot space would accommodate rehearsals, classes and a small theater of 55 seats.

Gonser and Bacon formed Community Real Estate Management, LLC and are looking for a minimum of 20 investors to purchase shares at $25,000 each. Four people have committed to the venture. 

The plan is to create a "theater square" that will be sustained with rental income from the leased spaces including the Novato Theater Company. Gonser said he thinks retail would benefit from placement next to a well-attended theater company and envisions arts-related tenants such as a dancewear shop, art gallery space or a coffee house.

The Novato Theater Company rents space at the Pacheco Plaza. Although a lot of work went into turning a martial arts studio into a performing arts space, Gonser said the theater troupe is outgrowing the 80-seat space with little opportunity for expansion and no long-term lease.

He added that the plaza space suffers from a small 20-foot stage, lack of backstage and dressing rooms, a tight seating arrangement and a relatively low 16-foot ceiling that can be a challenge for some of the productions that  require second-floor staging.

“We’re doing ‘Noises Off’ at the end of the season and everyone’s worried we can’t do it,” Gonser said. “We’re doing a floor and a half — a mezzanine,” he added with a laugh.

In the new space, there would be room for a 30-foot stage and the anticipated growth of the NTC and use by other performing arts organizations including the Marin Actor's Workshop and the Novato Music Association, according to Gonser.

“It will have a good lobby, separate lighting booth ... there’s even a shared kitchen.”

The Pacheco Plaza site was considered a first step toward finding a permanent home for the company after it was forced to leave the Novato Community House when the building was red-tagged by the fire marshal in 2005.

“Our first tenet was not let our subscribers down,” Gonser said.

It was during that time that the company’s fundraising arm, the Novato Arts Foundation, also made two failed attempts at securing the vacant Hamilton Theater and the downtown Novato Theater for their new home.

He acknowledged that forming an LLC and asking for investors will be a change for theater supporters who are used to making a tax-deductible donation to the NTC nonprofit. But the entities will remain separate with the LLC purchasing the property and the NTC as the anchor tenant.

“It’s a totally different concept,” Gonser said. “Now there’s a choice. You can supports the arts in a for-profit way or you can donate money to the theater to support the arts.”

Gonser said this change in approach is necessary in order to secure a mortgage.  

“You don’t get loans as a nonprofit. It’s hard to get funds for the amount of money we’re dealing with," he said. "We approached all of the banks and they said ‘It’s been nice talking with you.’ Even with our track record as a nonprofit, it doesn’t attract the big money.”

Gonser said his and Bacon’s reputations for success in the nonprofit world will help attract investors to the LLC.

“We’ve proven we can do it,” Gonser said. “We just have to do it again, a little bigger, a little better.”