Terms of the offer were not released following a closed session during an emergency meeting of council tonight. Specifics of the deal are expected to be released by the city in December.

While it has long been said if sold the theater would not capture the $21 million the city originally invested in the venue, city officials tonight declined to discuss a ballpark figure the Chicago businessman was offering.

City Attorney Gilbert Chichester said following the meeting this was a cash only deal, which if approved, would put the building back on the tax rolls at $80,000 a year and save the city some $100,000 a year in operating costs.

It is a deal, Chichester said, that would substantially reduce the principle amount as well as reduce the payments on the building. It will also give the city more time to refinance the debt left on the building.

Chichester said Gatling initiated the negotiations, which have been ongoing since September. Gatling has not told the city what his plans are for the building, but has indicated he wants to buy additional property surrounding the theater.

“It certainly reduces the potential for raising taxes,” Mayor Emery Doughtie said following the meeting.

While Doughtie and other city officials tonight acknowledged Gatling had defaulted on his payments when he was charged with running the building, the mayor said, “This is a very different financing environment.”

Chichester and Doughtie explained the cash will have to be in hand for the deal to be consummated.

Interim City Manager Ed Wyatt said the deal should be ready within the next two days. “This opportunity will take some pressure off the budget and allow us to do the things we need to do to get by.”

In a prepared statement, Doughtie said, “Several weeks ago the city received an offer from Mr. Lafayette Gatling to purchase the Roanoke Rapids Theatre. Since that time, the city, through City Attorney Gilbert Chichester, has worked with the Gatlings to bring the offer to a level that can be acceptable to both parties.”

The statement continues, “By working in-house, we have been able to salvage what would have been spent on a realtor's commission fee. When the property is passed from city ownership to private ownership, it will go on the tax books. The Roanoke Rapids Theatre currently costs the taxpayers at least $100,000 a year just in operating expense. This sale will remove those costs.”

Doughtie continued reading, “Another benefit of the sale will be the opportunity to search for a more favorable means of financing the remaining obligations. The numerous uncertainties in the existing debt contract pose huge potential for higher costs to the city.”

By lowering the principle amount owed, the statement said, “The city will at least be able to concentrate on more of the essential services that our citizens deserve and expect. With this bit of breathing room, we can also continue to evaluate operating costs and take advantage of opportunities to become more effective and efficient.

“It is our expectation that the necessary documents should be completed in the very near future. Both parties are committed to executing the contract as soon as possible.”