In Eminent Domain Step, Des Plaines City Council Condemns Theater

DES PLAINES, IL — The Des Plaines City Council moved Monday to take over a historic cinema through eminent domain by voting 7-1 to begin condemnation proceedings on the Des Plaines Theater at 1476 Miner St.

The Art Deco-style theater opened in 1925 with vaudeville and silent films. Current owner Dhitu Bhagwakar bought the theater in 2003 and showed a mix of Bollywood and other movies before getting shut down due to code violations in 2014.

Only Alderman Dick Sayyad, 4th Ward, voted against the measure, which is intended to revitalize the city's downtown but could put taxpayers on the hook in the long term.

The theater acquisition project has been a longtime goal of Mayor Matt Bogusz, who has pursued a public-private partnership with Rivers Casino for the purchase and maintenance of the property.

In August, the council approved a non-binding agreement with the casino, under which Rivers would kick in up to $2 million to buy and renovate the property, as well as annual payments of $50,000 to keep it running.

Alderman Malcolm Chester, 6th Ward, opposed Bogusz's plan when he was running for mayor, but he said a majority of residents he spoke to during the campaign supported the idea. He also cited the partnership with the casino as the key factor in changing his decision.

"They're basically sharing our risk in this process, which makes it much more viable from my point of view," Chester said. "This is a risk and I understand that, but Rivers participation reduces that risk enough for me to support it."

Alderman Carla Brookman, 5th Ward, agreed that the partnership with the casino was a major factor.

"We will have control of the property, and that's most important," she said. "It gives us the latitude to do a lot of things."

Resident Ronald Moore said he believed the council had hidden the purchase on the consent agenda, mentioning it only by its street address in the notice of the meeting. He warned against what he suggested would be a costly venture over the long term and recommended a referendum.

"Let the citizens decide whether the city should spend $2 million and who knows, after five years, how much more the city will spend in tax money to keep this thing running," he said.

Ron Onesti, owner of the Arcada Theatre in St. Charles and Evanston Rocks!, has shown interest in operating the theater if Des Plaines manages to acquire it, but other suburban municipalities have had limited, if any, success.

The move to begin eminent domain proceedings follow several months of negotiations between the city and owner of the 92-year-old vacant auditorium.

Bogusz told the Des Plaines Journal the city's appraised value of the property is between $400,000 and $500,000.

But owner Bhagwakar, who purchased the building in 2003 for $920,000 from a bank that wanted to tear down the structure and build a drive-through, has said his appraised value is $2.3 million.

He had said he was open to selling the property but described the city's offer of $450,000 as "low ball," saying there was "no way" he could accept such an offer, the Daily Herald reported.

Bogusz – who has previously described Bhagwaker as a "bad actor" – told the Journal the city's appraisal takes into account the cost of bringing the theater back into code and is a more accurate market value. He said a lawsuit to take over the property would be filed as soon as possible, calling it "a long time coming."

According to Cook County Assessor records, Bhagwakar repeatedly appealed down the assessed value of the property from $381,251 in 2008 to about $80,000 in 2011 and every subsequent year.

It was shut down in January 2014 when he failed to meet the city's deadline to fix various building code issues, including a sprinkler system near the stage, bathrooms compliant with the Americans with Disabilities Act and a fire-resistant curtain, the Daily Herald reported.

Bhagwakar also reportedly turned down takeover offers from the theater's former general manager and a local trucking company owner who said he offered him a blank check to buy the theater.

_{Top photo: Des Plaines Theater | Google Street View}