The future ownership of the Columbian Theater was discussed again during Thursday’s Adair County Board of Education meeting. The board heard a legal recommendation to honor a contractual agreement that would allow former owner, Dr. Ben Arnold, to repurchase the building for $1.
No action was taken because the matter was not listed as an agenda item. Arnod brought the topic before the board during public comments.
The theater has been the subject of several board meetings this year. On Feb. 19, the board voted to declare the theater surplus, and on May 11 approved the creation of a BG-1.
Arnold addressed the board during Thursday’s meeting, asking what needed to be done to move forward with returning ownership of the theater to him.
“The Columbian Theater is important to our town. It’s a part of our culture, a part of our history,” said Arnold. “The theater has no economic value to it. I bought it in the early 90s, and I put in over $500,000 in it. I never made a profit.”
Arnold said he felt an obligation to protect the theater and plans to make it a nonprofit. He said there is a small group of people who are very interested in improving the town square area and the theater is a key part of that.
Board attorney Mike Owsley was asked to provide legal guidance on the issue. He said Kentucky Department of Education regulations require surplus property be sold at fair market value. However, former Superintendent Dr. Pamela Stephens entered into a valid agreement with Arnold that included a right of first refusal allowing him to repurchase the property for $1 if it was no longer used for educational purposes.
“We have examined the pros and the cons, and I do believe that from a legal standpoint, it is appropriate for the district to get this behind them,” said Owsley. “My understanding is that the cost of further improvements to the property would be perhaps in excess of $300,000.”
He said the contract with Arnold was a valid contract, regardless of whether it should or should not have been entered into at the time.
“From my standpoint, giving advice to you as a board and a superintendent, we recommend that the right of first refusal be honored,” said Owsley.
According to Faulkner, the theater has a fair market value of $51,000 and would require more than $300,000 in additional improvements to complete the renovation. Owsley said financially, returning the property to Arnold was the best decision.
Stephens and Arnold signed a lease for the Columbian Theater on Nov. 16, 2021. On March 31, 2022, Stephens said renovations were expected to cost about $500,000.
On July 21, 2022, Arnold signed the deed transferring ownership of the theater to the Adair County Board of Education for $1. The agreement included a right of first refusal stating that if the school district chose to sell the property, Arnold would have the opportunity to purchase it back for $1.
Jason Faulkner became superintendent on July 1, 2023. After reviewing the project and having the architect for the new Adair County Middle School evaluate the building, the district determined renovation costs would exceed the original $500,000 estimate. By that time, approximately $280,000 had already been spent, and the funding expected to complete the project was not approved by the Kentucky Department of Education.
School officials determined the additional money needed to make the theater usable for students was not feasible, prompting discussions between Faulkner, the board and KDE regarding the property’s future.
By Amy Pike
amy@adairvoice.com
