By Gordon Anderson | gordon@rantnc.com
The building that houses Spring Lane Cinemas, located at 1351 Plaza Drive in west Sanford, has been the subject of several competing bids in a foreclosure auction that has been going on since July 20.
Several bidders showed up at the sale on July 20, held at the Lee County Courthouse, but only two competed for the property. The winning bid for $1.25 million that day was from Wildlife Collections LLC, a Sanford-based company which specializes in wildlife and conservation themed merchandise.
But the winning bid wasn’t the end of the situation. After the auction, a 10-day period for upset bids began, open to any bidder willing to go five percent higher than the initial high bid. On July 31, Dionysus, a limited liability corporation operating out of Apex, entered a bid for $1,312,500. The same day, Wildlife Collections countered with a bid of $1.5 million.
Any time an upset bid is made, the 10-day upset period restarts. As of this writing, if there are no further upset bids, the period will end on Aug. 11. The Rant will follow up when the sale is final.
Court records indicate that Lee County sued the company which owns the building, Firstrun LLC of Lake Geneva, Wisconsin, beginning in early 2022 over unpaid property taxes in the amount of $368,001.70. The current amount owed, including interest, costs and late fees, is closer to $460,000. The case made its way through the court system until June, when Judge Joy Jones ordered the foreclosure sale.
Until the sale is final, the building will remain the property of Firstrun LLC. Jared Campbell, the manager for Spring Lane Cinemas, told The Rant that the Spring Lane Cinemas business is owned by East Coast Entertainment, which rents the property from Firstrun LLC. East Coast Entertainment was not a party in the lawsuit.
The building’s tax value is $4,932,400, according to Lee County’s GIS website.
Spring Lane Cinemas is the only movie theater in Sanford, and as such is one of the primary options for entertainment in town. Former owner Frank Theaters filed for bankruptcy in 2019, and the theater changed hands to East Coast Entertainment the same year. The theater was also closed for eight months during the COVID-19 pandemic, but reopened in November 2020.
I came from a low income area in the Ozarks. These businesses fail at a large rate due to people owning them. Trying to do a little and make a lot is proof of laziness. Low income cannot sustain $10 per show plus $20 for a large drink and popcorn. That is why they are 80% or more empty 90% of the time. Where I originate from, these failures were bought by groups who were able to obtain them thru small investments. Price formats changed to $3 or $4 per show with large drinks and large popcorn at $6 total. That was easily matched even at low income levels. The group purchases I am familiar with had a 85% plus filled theaters at 90% of the time for EACH showing. They could make more cash volume per showing, than original owners would make at all showing in a given day. Those who do a lot to make a lot, SUCCEED!! Time for one of those here in this area, or perhaps more than one —
Look at the Lumina Theater between Pittsboro and Chapel Hill for a potential model
Thank you! Hopefully it will happen. Had a drive-in outdoor theater where I lived in the Ozarks that opened in the seventies..Charged $5 per carload (6 max) and had 300 spots filled Fridays, Saturdays and Sundays on a regular basis. That plus concession sales at very low prices, original owner claimed to gross approx. four hundred thousand plus a year. Not bad for low income area and very little work to maintain property and screen. Then was bought by someone who was lazy. Went to $5 per person with no car loads.. Didn’t last six months before they sold it. Had only one thousand clients in a six month period, so they blew that investment. Former owner bought it back at discount, sold it to former employees who paid him directly, then charged only $6 per car load, which gave them an extra buck per car each night to recover their costs. That place prospered like a slot player with a broken slot giving payouts to everyone..They sold the place for double their investment, and it still stands today, with more parking spaces and a larger screen, plus TWO shows per night and not just one. Still the best place to go in that low income area! And actually great movies also. I miss that!
Is this recent? Because from my understanding there is a minimum price they are allowed to sell new releases for set by the studio that produced the movie. Concessions are high because that is their only margins to make money. Ticket sells are microscopic income.
Film makers get 60% of FIRST RUNS only. Theaters give them 20% on second runs and they charge whatever they want, since price fixing is a serious felony.. Theaters make a minimum of 40% on each ticket sold. As second run, theaters can make as much as 60% since film makers do not want interest in film to pass by those who missed it on first run..(Kind of like residuals to actors and actresses..Whatever film producer can get for reruns, those in it get a small percentage of it.. Nothing on the face of this planet is as profitable as popcorn, except for Tea.. (I used to make it for that drive-in I spoke of). We made massive large bags the size of trash bags and sold them for a three bucks..Gave a 60 oz. bucket of Tea for two bucks. Car loads would split them among themselves…. Drive-in total cost for both (according to owner/manager) at time = 2$ —– Wish I was younger. I’d open a drive-in here! But at 78, that is a no brainer fugetaboutit