Senator Theatre Reorganization Plan

We would like to express our sincere appreciation for the groundswell of support building around our current financial situation and the community consensus that abandoning The Senator to the uncertainties of an auction is unacceptable. In that light, we would like to provide the public with a status update and an outline of our Reorganization and Transitional Operations Plan.

1. Buy time to delay the foreclosure and auction process.
2. Reorganize interim operations.
3. Structure a viable acquisition model.
4. Transition The Senator to new ownership and operation.

As widely reported in the media, First Mariner Bank's recent acceleration of the foreclosure process has significantly shortened the timeline to succeed in bringing our long-envisioned multipurpose arts and entertainment transition to fruition. While this is an unfortunate complication of the situation, we believe there remains an opportunity to save the theatre from an auction sale.

We are aggressively evaluating our best options to buy the time required to reorganize interim operations and structure an acquisition that is in the best interests of the community, The Senator Theatre and its future. Short of an "angel" scenario materializing before the end of the month, it may be that a Chapter 11 filing is the best and possibly the only option for buying critical time.

Under this scenario, we would work with our creditors within the structure of the court to settle The Senator's debts, while allowing for interim operations to help pay bills, and the development of a viable opportunity for acquisition. We remain hopeful and open to any number of prospective acquisition models that may emerge through reorganization.

The costs of the reorganization process include legal and consulting fees and expenses, utilities and other essential operating expenses, interim payments to creditors, and underwriting for fundraising events. The willingness of individuals and community organizations to help fund these efforts is critical.

This approach to securing a viable community-oriented resolution of The Senator Theatre crisis is not an attempt to patch an unsustainable business model in the current economy. The process is instead focused on buying the critical time needed to develop an acquisition model that preserves a legacy and ensures the future viability of an irreplaceable cultural asset.

In the coming days and weeks we'll continue to provide updates on our evolving plans for implementation of sustainable interim programming models. The goal is to reorganize under new ownership with a viable business plan based on supplementing state-of-the-art film presentations with an expanded array of enhanced multi-purpose uses to attract new audiences in synergy with the Belvedere Square commercial district.

Why are expanded uses and new audiences so important? There is simply no long-term sustainability in an antiquated single-screen business model based solely on first-run films.

On an annual basis, first-run film grosses and the high percentage fees demanded by the studios fall short of meeting fixed monthly overhead costs, even with a significantly reduced debt load. The minimum two to four week uninterrupted runs required by the studios, combined with their substantial film rent commissions, create a significant deficit between fixed overhead and potential revenue, which simply cannot be overcome under the first-run, single-screen model.

A first-run film policy for a single auditorium facility also precludes the preemption flexibility needed to program special events that require sufficient lead time to promote and produce. Compounding these factors are industry forecasts that first-run film attendance will continue to decline as emerging technology makes content available sooner to on-demand in the home and on a wider variety of emerging portable platforms.

In the past two years of town hall meetings and round table discussions and at the recent Monday night public forum, overwhelming support was expressed for the development of a new business model based on an eclectic mix of entertainment and educational programs. Each of these programs represents an opportunity to develop an expanded audience and corresponding customer base for enhanced synergy with the surrounding businesses.

For decades we have fought to keep The Senator in day to day operation as a key economic development engine and cultural amenity anchoring the Belvedere Square commercial district. In fact, our past efforts proved to be pivotal in sustaining the commercial district's viability for a blighted decade leading up to the eventual economic redevelopment of Belvedere Square, and they remain a key factor for the area's future viability and growth. Expanding The Senator's programming to appeal to diverse niche audiences also expands the retail and restaurant crossover that benefits the surrounding businesses.

Imagination is the only limitation to what The Senator Theatre can become. A multifaceted programming approach preserves a balance between the theatre's renowned cinematic heritage and the enhanced appeal of expanded uses that will develop "Baltimore's Premiere Showplace," as a regional point-of-destination entertainment venue attracting new audiences.

The following is a brief overview of some innovative programming models to be developed. Expanded uses have their own economies of scale, audience diversity and inherent fixed costs with built in sponsorship opportunities, and potential membership bases for each model. Many of these ideas are founded in solid existing leads for booking and implementation.

Programming Models

  • Gala Film Premieres and "In Dialogue With" Q&A special events
  • Films including foreign, classic, art/specialty, spiritual cinema and niche programming.
  • Simulcasts including the HD Metropolitan Opera broadcasts, music concerts and festivals, etc.
  • "Edu-tainment" - multimedia programming integrated with school curriculums
  • Classics for Kids - enhanced learning programs featuring films in synch with school curriculums
  • Senator "Recession Buster" free screenings and special events
  • Senator Comedy Series
  • Senator Lecture Series
  • Senator Concert Series (multi-genre)
  • Corporate and Other Special Events and rentals of the facility
  • Senator Performing Arts Series (integration with university programs)
  • Senator Independent Feature and Short Film Series

@ The Senator Affiliated Programming

  • AFI @ The Senator
  • AVAM @ The Senator
  • The Met @ The Senator
  • The Stoop @ The Senator
  • The Alamo @ The Senator
  • Kids on the Hill @ The Senator
  • Creative Alliance @ The Senator
  • The American Cinematheque @ The Senator

Memberships

  • Senator Jazz Society
  • Senator Soul and R&B Club
  • Opera at The Senator simulcast series
  • Senator Film Society
  • Senator Cinema Saturdays
  • Senator Student Membership (K-12 and College versions)

While the economic crisis and the recent foreclosure acceleration by the bank is an alarming threat to the theatre's uncertain future, a collective community-based vision for The Senator can prevail. We remain confident that The Senator Theatre can and will emerge from this reorganization as one of our region's premiere multi-purpose arts, entertainment and educational venues.

Thanks again for your ongoing support and dedication to the protection and preservation of The Senator Theatre.

Sincerely,
The Senator Theatre Management