A bank on Monday filed for foreclosure against the owners of the Orpheum Theatre, a State Street institution long plagued by infighting that has been closed for months after losing its liquor license.
In the filing, attorneys for Monona State Bank ask for immediate payment of a loan balance of $1,123,390.75, plus interest of about $200 per day.
The bank also is seeking to sell the restaurant, bar and theater at 216 State St., and is asking that a receiver be appointed to take possession of the property until a sale takes place.
The filing names Orpheum co-owners Henry Doane and Eric Fleming, who have long been at odds, as well as 216 State Street, LLC, Orpheum of Madison, Orpheum Theatre Company of Madison and others.
Doane and Fleming did not immediately return calls Monday.
The filing states that 216 State Street, LLC is in default citing: its failure to replenish a reserve account; failure to pay 2011 real estate taxes, which are delinquent in the amount of $7,188.63, plus interest and penalties; multiple pieces of litigation and the appointment of a receiver over Fleming's interest of the management company; pending litigation to dissolve 216 State Street, LLC; and the loss of the theater's liquor license, all of which will affect payment of the loan.
"The disputes being litigated between the members of 216 State Street, LLC and Orpheum, as well as third party litigation, have impaired the ability of both to operate the facility and honor contracts for pending events, all of which have and will continue to cause irreparable and material injury to the rent and profits unless a receiver is appointed," it states.
Michael Flynn, vice president of business banking for Monona State Bank, states in an affidavit that the loss of the Orpheum's liquor license "has impaired its ability to honor contracts for musical events" and "also affects the services the theater can provide for wedding receptions."
In the affidavit, Flynn also said that if a receiver is appointed and a third party enters into a management agreement or lease, the city may be more likely to issue a liquor license and allow the venue to honor its pending contracts for wedding receptions and musical events.
"How tragic it is that this city landmark has been shuttered for so long," said Ald. Mike Verveer, 4th District, noting a recent announcement by the Wisconsin Film Festival that it is leaving its former Downtown locations due to the loss of the Orpheum as its flagship venue, opting instead for screenings at Sundance Cinemas and UW-Madison.
"Anything that would get us to a resolution of this ongoing drama would be, I think, welcome by the community," Verveer said.