New Regal sale in trouble
REAL ESTATE | Theater slumps under weight of debt, lack of business
Plans to redevelop the landmark New Regal Theater on the South Side -- announced a couple of years ago amid high hopes and promise -- have become bogged down in debt and a lack of business.
Inside, the old auditorium is pristine and elegant, according to people who have seen it. But the financial side is another matter.
Citizens Bank & Trust Co. is suing the theater's owners for foreclosure, claiming they defaulted on their $2.1 million mortgage.
Chicago taxpayers have $1.9 million at risk, thanks to a city subsidy.
Then, there are Annareese and Lance Stewart, a Markham couple who said they inadvertently ended up providing a $75,000 loan in late 2006 to New Regal owner Regina Evans, a former Chicago Police lieutenant who's now the police chief in Country Club Hills. Now, they want their money back.
The Stewarts said they didn't even realize the money was going to Evans. They said it was supposed to be a 30-day loan to a relative who's a friend of Evans, named Tiffany Burrell.
"The intent was clear," Lance Stewart said. "This was supposed to be Tiffany's money -- and Tiffany's alone -- to start a business."
Annareese Stewart and Burrell are cousins, and Annareese Stewart said they had helped each other out before "because we are family."
But the Stewarts said Burrell gave them Evans' account number. And that's where they transferred the money.
Annareese Stewart said she didn't realize the money wasn't for Burrell until she overheard Burrell call Evans about the transfer. "I was told, 'Oh, don't worry. You'll get it back in 30 days,' " she said.
Lance Stewart, a Cook County Jail officer for nearly 20 years, said the money hasn't been repaid and that he now hears nothing from either Burrell or Evans.
Burrell, who wanted to open a Beggar's Pizza attached to the New Regal, acknowledged a money transfer occurred but wouldn't say if it went to Evans. After a brief phone interview, Burrell said she would talk more about the matter after this column appeared.
Evans declined to say if she was the beneficiary of a $75,000 transfer. "This is a whole family mess going on, and I asked Tiffany not to put me in the middle of it," said Evans, who, with her husband, Ronald, put up at least $400,000 for the renovation.
Evans said it's been tough to land bookings for the theater at 1641 E. 79th St., which used to be called the Avalon. When her $2.36 million acquisition closed in March 2008, Evans' plans called for hosting shows that would celebrate African-American culture. Its only upcoming events, Evans said, are a campaign fund-raiser for state Sen. Donne Trotter on Saturday and a shooting for a TV show's pilot episode in a few weeks.
"I need these events just to survive," Evans said. "But I almost lost that TV show when the bank foreclosed."
The Stewarts, meanwhile, said they've been left deep in debt. They said they can't afford a lawyer to sue and acknowledged that repayment of the $75,000 was based only on an oral promise.
Maybe they've learned that family loyalty is terrific, but a written contract can't be topped.
BLOCK 37 UPDATE: The embattled developer of downtown's Block 37 site said it has signed 13 new retailers for the project, which is scheduled to open later this month. Joseph Freed and Associates LLC, which is fighting a foreclosure attempt, said the new tenants will open before Christmas or through next spring. It said two of the leases still need approval from the project's lenders, a group led by Bank of America Corp. The bank filed a foreclosure suit and asked that a judge appoint a receiver to take the project from Freed's control. A hearing on the request is scheduled for Nov. 20.
The new tenants are Sephora, L'Occitane en Provence, Michelle Tan, Claudia Kleiner Malabar Collection, GNC Live Well, Simply Thalia, Local Charm, Spirit of the City, Accent Chicago, iCandylicious, the Comic Vault, Bleeding Heart Bakery and Alternative Shoes. Some are Chicago-based.