Lafayette Gatling will pay the city $7.1 million for the Roanoke Rapids Theatre.

Council, at a meeting this evening, with Carl Ferebee absent, voted unanimously to sell the venue to the Chicago businessman.

City Attorney Gilbert Chichester explained following the meeting the city will send the document to Gatling this evening for him to sign. With return of the document Gatling must send a non-refundable deposit of $50,000.

The city, however, because the building is currently public property, must also, according to state law, advertise the theater for sale, which could set up an upset bid if someone should offer more than 10 percent of Gatling's offer, Chichester said. The bidder would have to submit $350,000 to the city.

Chichester said from the date of Gatling signing the document, he will have no more than 60 days to complete the cash transaction. He said there is no indication Gatling plans to back out of the deal.

Asked if during his negotiations with Gatling's attorneys there was any discussion of what the Chicago businessman planned to do with the theater, Chichester said he did not know. “I'm sure somebody knows, but I'm not the person.”

Council met in closed session for slightly more than 20 minutes before coming out to vote on the matter.

Councilman Greg Lawson made the motion to go ahead with the sale and Ed Liverman cast the second.

The building is being sold to a limited liability corporation called GSH Hospitality.

The contract notes that by executing the deal, GHS represents that it has sufficient financial capital and a combination of bank credit, line of credit or other financial assets to pay the stated price in full.

The contract explains that before advertising the property for sale, GSH shall be required to make an additional deposit of $305,000 to be held by the city clerk, which along with the $50,000 deposit will be credited to the purchase of the building.

Following the vote to move ahead, Mayor Emery Doughtie said the deal means the city will have $9 million to go toward the debt of the theater when $1.9 million in debt reserve is used to pay Bank of America.

The mayor said it cost $14.1 million to build the theater and $7 million of bond money was used for startup costs and that the building is worth far less than it was when first built considering the economy.

Doughtie said council is ready to take the heat for the deal. “Some may criticize us for doing this. It's a way out for us. It allows us to step back and look at our budget. It will lessen the impact on services and having to make cuts. It will lessen the chance for us to have a drastic tax increase.”

The deal, Doughtie said, will allow the city to find other sources to refinance the remaining debt on the theater with something better than the complicated financing plan the city must currently contend with.

Lawson said the deal, “From my perspective, will allow us to start focusing on city needs without having to worry about the theater and its operation. It's kind of a breath of fresh air.”

Lawson wished Gatling, who did not attend the meeting, success with his venture. He said he was glad it was going back in the private sector, “Where it should be.”

Following the meeting Lawson said the city was going to have to come up with $1.7 million for its next payment, a sum that makes up 12 percent of the budget.

The deal, Lawson said, will help the city find better refinancing sources than the variable rate. “We're saving $100,000 in annual operating costs. Where was the city going to find money to put shows on?”