Kendallville Redevolopment Commission leases digital projectors for local theater

Major movie studios have begun phasing out 35 mm film and going to a cheaper digital format with films streamed or emailed to theaters. Movie studios are not providing financial support to theater owners to make the conversion. Many independent theater owners cannot afford the $80,000 to $120,000 cost for the changeover and are closing or selling their theaters.

The Redevelopment Commission agreed to purchase the digital projection equipment and lease it to Babbitt’s company, Cinema Associates Inc., for $1 a year for five years. Sonic will receive 90 percent of the upgrade cost of $118,712, with the remaining 10 percent to be paid after installation.

Sonic has agreed to monitor the digital equipment’s operation remotely during the first two years and check and clean the equipment twice a year, according to the maintenance agreement.

Digital projection will allow Babbitt to show local business advertising that Babbitt said he would show while patrons are settling into their seats. There may be a small increase in ticket prices, he also told the commission.

Peachey said any campaign money left over after the installation will go toward a 3D add-on to one of the Strand’s screens, costing about $9,000.

Lawyers from both sides examined and approved the lease agreement. Mayor Suzanne Handshoe is expected to sign it before the campaign funds can be released from the Noble County Community Foundation and the equipment can be purchased and installed. The theater will be closed during the installation.