The current gross tax assessment of the theater, including building and land, is $12,492,912. That is figured with the land value assessed at $4,020,230 and the building assessed at $8,472,682.

City officials have declined comment on the high and low target prices they would like to see the theater sold at.

The 47,884 square-feet theater sits on 8.822 acres of land.

The contract, which was approved at this week's city council meeting, appoints the Norfolk-based Nusbaum as the exclusive sales agent for the theater. “Owner grants the company the exclusive and irrevocable right to sell the property during the term at a sales price agreeable to owner and upon such terms, provisions and conditions to which owner agrees in writing.”

The contract allows Nusbaum to engage additional co-brokers and agents in the effort.

The term of the contract runs through October 31 and upon its expiration the agreement will be automatically renewed for no more than two successive terms of 90 days each unless either the city or Nusbaum decides not to renew by giving written notice to the other party at least 30 days prior to the end of the initial term or applicable renewal term.

The contract spells out the duties of Nusbaum in its efforts to list the theater. “The company shall use reasonable efforts, based on the usual and customary standards of the trade, to produce a ready, willing and able purchaser for the property at a price and upon terms acceptable to the owner.”

Nusbaum, however, shall not be liable to the city for the failure of any prospective purchaser to buy the venue, the contract says. “The company shall not be required to furnish any management services for the property and the company shall not be responsible for the enforcement of any lease or purchase agreement or the collection of any rent, purchase price, deposit or other sum.”

Nusbaum is not obligated to disclose adverse facts or other information regarding the physical condition or other circumstances relating to the property to a potential purchaser except if such facts or information or actually known to the company.

The company is expected to cooperate with licensed brokers which procure a purchaser for the venue on a customary co-brokerage basis.

The city's duty in the matter is to cooperate with Nusbaum in effecting a sale and to refer to the company immediately all inquiries of anyone interested in the property. “Owner grants its permission for the property listing to be submitted to the appropriate commercial multiple listing services for the market in which the property is located and owner authorizes the company to place or erect upon the property one or more appropriate signs advertising the property for sale.”

The contract spells out if a co-broker is entitled to any commission or other compensation the commission is to be equally divided between Nusbaum and the broker.

Mayor Emery Doughtie said today he believes the city has done the right thing by entering into the contract, which was signed Wednesday. “For a while we've been saying we don't want to be in the theater business.”

As the city waits to see if there is a buyer for the venue, Doughtie said the city will continue to work on restructuring the debt.

“I'm confident they have the expertise and the ability to market and sell the theater,” City Manager Joseph Scherer said.