Although construction is slowly progressing at the movie theater project at 40th and Walnut streets, those involved with the project say that much is occurring behind the scenes.
Penn Executive Vice President John Fry said that the University is currently engaged in "very intensive" negotiations on a long-term lease with potential theater operator National Amusements, and that a target opening date of spring 2002 has been set.
"We think that we have a partner that is a terrific operator and that shares our vision as to what this project is going to be," Fry said of National.
National emerged as a potential collaborator in February, following last November's collapse of the partnership between Robert Redford's Sundance Cinemas and financially-troubled General Cinemas, the original financial backers of the project.
Although National was to have submitted a proposal to Penn in mid-May, National spokeswoman Jennifer Maguire would only confirm that talks between the two parties are "ongoing and progressing forward."
The status of the bargaining also leaves uncertain the cost of the theater, although the price of the original Sundance Cinemas project was approximately $15 million.
"We still have a number of balls in the air," Fry said. He added that nothing has been signed with National yet, and that will not likely occur for "a couple of months."
One of the major points of discussion between Penn and National is the design of the building. Although the existing floorplate will remain as is -- six screens plus a basement theater -- the interior finishes and fixtures are still being decided.
Designers from both Penn and National are working together to decide "what modifications need to be made to make sure that it's a theater that they would feel good about operating," Fry said.
Meanwhile, construction is still progressing to enclose the building, with the stucco-like exterior currently being applied.
The new theater, although originally planned to offer solely art-house fare, will likely offer a mix of independent and mainstream films if the deal with National goes through. Fry believed that the combination will "bring stability to the project."
The troubles that Penn is having filling the theater space -- which has been under construction since the summer of 1999 -- are not unique to this project, according to Michael Rubin, president of Philadelphia-based MRA International, an entertainment-venue consulting firm. Rather, a glut of overbuilding by theater operators has had a negative impact on their collective bottom line, he said.
Being a privately-held company, National would not release financial data, but it operates 1,390 theater screens around the world. It is also owns such entertainment companies as MTV Networks, Paramount Pictures and Blockbuster.
But even with the breadth that operators such as National have, the industry is still fickle about opening new venues.
"We're working on some projects where it's an absolute slam dunk for the theater, but it's still difficult to get one committed," Rubin said.
This project is seen as essential to the revitalization of the 40th Street corridor, and despite its current uncertainty, University President Judith Rodin believes that the concept of a theater is still sound for the site.
Rubin also has no doubts about the eventual success of project, given the captive audience of local universities and the need for additional movie theater choices in Philadelphia.
"It's a no-brainer," Rubin said. "If they can't do it, I'll come in with projectors and a popcorn machine and open up the place."
