Theater companies shoot for 40th St. site

Cinemagic has the right to make the first offer to open its doors there. If you love movies, the University's newest plans for revitalizing the 40th Street area may be right up your alley. Although no plans have been finalized for the project, Angelica Film Center and Sundance Cinemas, two theater chains that focus on artistic movies, have expressed interest in building new theaters near 40th Street, University officials said. The companies have not yet signed a formal letter of intent with the University because Cinemagic 3 at Penn -- which has the right to make the first offer on any 40th Street property -- may decide to expand there. "We are extremely happy with the theater, and we want to stay where we are forever," Cinemagic owner Andrew Sheppard said. "But I would not mind expanding. I am anxious to get more screens, so the possibility is always there of expanding." But Sheppard said he is angry the University has been negotiating with other theater companies, adding that Penn officials tried to buy back his right of first offer last April in order to bring in a new company. "They said I had done a good job, but that they were building a new theater that I wouldn't be a part of," Sheppard said. "They wanted to buy back my right of first offer so they could put in a large scale movie company and see if it could work." But Managing Director of Real Estate Tom Lussenhop insisted that "the University honored its obligation under the lease to present Mr. Sheppard a right of first offer, and we have done so. In response, Mr. Sheppard's lawyer has asked for clarification, and we have provided it." "Sheppard is free to put in a proposal that corresponds to the sort of large scale theater the University seeks to put in," Lussenhop added. "If Mr. Sheppard can meet the offer, [the property] is his." He refused to elaborate on the University's actions last April. Executive Vice President John Fry said the effort to bring more theaters to the University City area is a response to neighborhood demand for a renewed 40th Street. "We have listened to our neighbors who have urged that 40th Street be further developed as a safe, attractive and vibrant retail corridor that provides amenities for the University as well as its neighboring communities," Fry said. Sheppard, however, warned that bringing in two new theaters to compete for the same crop of customers could threaten Cinemagic's future. "Cinemagic gets the best pictures now that the most students want to see because we don't have competition in University City," he said, adding that the other area movie theaters might attract the popular first-run movies which currently show in Cinemagic. Additionally, because Angelica and Sundance primarily focus on independent and foreign films, Sheppard said he might be forced to shift Cinemagic's focus to artistic films as well. "If the University were bringing in an art theater, we might be very anxious to align ourselves with the top art-house movie companies," Sheppard said. "All of a sudden there's a powerful art presence in University City, and the art market might be the way to go," he added. But Lussenhop emphasized that the 40th Street project could still fall through. "While there are no guarantees or written expressions or signed agreements with cinema operators, we are very happy with the depth of interest that has been expressed by the cinema operators in the future of our neighborhood," he said.

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