Save the Detroit Opera House.

**Danny** · April-16-12, 11:40 AM

OH NO!!!

Just about the Detroit is enjoying the perfoming arts, The Detroit Opera House is 11 Million dollars short of paying its bills. The company have until the end of April or else they would be closed for good.

Support the performing arts in Detroit. Save the Detroit Opera House.

**Gistok** · April-16-12, 11:42 AM

Originally Posted by Danny

OH NO!!!

Just about the Detroit is enjoying the perfoming arts, The Detroit Opera House is 11 Million dollars short of paying its bills. The company have until the end of April or else they would be closed for good.

Support the performing arts in Detroit. Save the Detroit Opera House.

Source of story?

**downtownguy** · April-16-12, 11:56 AM

Mark Stryker wrote about the debt restructuring at the MOT in today's Freep. In fact, they have raised $5 million of their $8 million goal. From the article, it doesn't sound like the sky is falling as Danny suggests.

"Spokesman Jeff Strayer said Monday the situation is "not that dire," and he predicts the MOT will gather the money in time."

http://www.freep.com/article/2012041...xt|FRONTPAGE|s

**tarkus** · April-16-12, 12:00 PM

Originally Posted by downtownguy

http://www.freep.com/article/20120416/ENT04/120416036/Michigan-Opera-Theatre-refinancing?odyssey=mod|newswell|text|FRONTPAGE|s

Mark Stryker wrote about the debt restructuring at the MOT in today's Freep. In fact, they have raised $5 million of their $8 million goal. From the article, it doesn't sound like the sky is falling as Danny suggests.

"Spokesman Jeff Strayer said Monday the situation is "not that dire," and he predicts the MOT will gather the money in time."

Please donate what you can.

http://cart.michiganopera.org/dev/co...don=7&fieldAmt

**gameguy56** · April-16-12, 12:05 PM

Does Mark Stryker have any relation to the Stryker billionaires in western michigan?

**tarkus** · April-16-12, 12:16 PM

Originally Posted by gameguy56

Does Mark Stryker have any relation to the Stryker billionaires in western michigan?

Strayer not Stryker

**Gistok** · April-16-12, 01:09 PM

I believe that the majority of their debt is due to the Opera House Parking Structure, which is a cash cow, especially during game days.

The $42 million it cost to restore/rebuild the Detroit Opera House was done piecemeal over the course of 15 years, and much of it was pay as you go, although some of it incurred some debt.

**downtownguy** · April-16-12, 01:17 PM

Originally Posted by tarkus

Strayer not Stryker

Beg to differ, tarkus. Mark Stryker has been on the arts and culture beat for the Free Press for years. The Stryker family gameguy refers to are the heirs of Homer Stryker who founded The Stryker Corp., a Kalamazoo medical equipment company. I don't know if Mark Stryker is any relation.

**Gistok** · April-16-12, 01:24 PM

The employees of MOT have had to take a pay cut for quite some time now, since the near collapse of GM & Chrysler, who like Ford have been big donors to the Detroit Opera House.

That's why there's the Ford Lobby at the Broadway entrance, the Cadillac Cafe on Madison, and the small Chrysler Theatre up on the 6th floor of the Broadway side for dance.

**Danny** · April-17-12, 11:28 AM

The Detroit Opera House incorporation started at Campus Martius Park in 1869 until 1963. Following three more opera houses, the Whitney Grand Opera House in 1886 and the Garrick Theatre. In 1912 The Nederlander Organization purchased the Old Detroit Opera House Building along with Whitney and Garrick Opera companies with a 99 year lease. In 1922 The Detroit Opera House Building on Broadway and Whitherell St. was completed as the Capitol Theater Building. By 1928 The Old Detroit Opera House Building in once Monroe Block vaudeville district was sold to Sam's Clothier Dept Store, but resumes its annex for small shows until 1963. By 1929. Then the name was changed to the Paramount Building to not only to serve Paramount Picture movie releases to compete with the Fox Theater Building, but also save the company from profit loss during the Great Depression.
It was once the 5th largest Opera seating in the world with a compacity of 4,250 audiences. By 1934 The Theater building was changed to Broadway Theater Building and severel times to Capitol Theater Building until the 1960s. Lots of hot jazz legends from Duke Ellington to Louis Armstrong played in that building.

By the 1960s the name was changed to Grand Circus Theater Building. The seating capacity was downgraded to 3,367. with fewer renovations. It opened mostly as a movie palace. It did held a few opera and plays and of course soft porn shows.
By 1978 the building was closed due to decline of customer patronage to that area. It re-opened in 1981 and closed in 1985. with the Nederlander's lease still valid since 1912. By 1988 The Michigan Opera Theater purchase The Grand Circus Building and made several renovations. It re-opened as The new Detroit Opera House Theater in 1996. Luciano Pavarotti did the grand re-opening tenor show. Now the Detroit Opera House not only does operas but also comedies and plays, too.

[[Today that 99 year building lease with Nederlander will be expire leaving the Detroit Opera House to pay the remainder of the bills or face immediate closure) That's why we need to save that Detroit Opera House, NOW!

**Gistok** · April-17-12, 12:19 PM

Danny, I believe you've got your facts slightly off.... there is NO relationship between Michigan Opera Theatre [[founded in 1971), who are the owners of the Detroit Opera House.... and the old Detroit Opera House on Campus Martius. NONE.

And the only relationship between the Nederlander folks and Michigan Opera Theatre was that they used to have their opera's at the Nederlander controlled Fisher and Masonic Temple Theatres [[the Nederlander's have since relinquished their control over Masonic).

Their debt problems now stem mainly from building the Opera House Garage, and reduced philanthropy from big donors [[such as the Big 3).

**corktownyuppie** · April-17-12, 01:23 PM

Originally Posted by Gistok

Their debt problems now stem mainly from building the Opera House Garage, and reduced philanthropy from big donors [[such as the Big 3).

Combined with severely declining appraisal values. No one signs up for a balloon payment on a commercial loan with the expectation that they will write a check for the remainder. The general procedure is that the balloon debt gets re-financed into another mortgage.

For example, I borrow $200,000 and pay $50,000 cash to buy a $250,000 condo. I make payments on the $200,000 mortgage with the intention that in 10 years I have to pay a balloon. The idea is that 10 years from now I'll only owe $150,000 after having made payments on the property. And on a $250,000 property, I should be able to re-finance the remaining $150,000 with another lender.

But no one expects that the property goes from a $250,000 value from the time of purchase down to $100,000 at the time the balloon payment is due.

Do you know anyone that will lend $150,000 to-refinance the debt when the collateral is only worth $100,000?

If the collateral is only worth $100,000, the most you'll find a bank to lend you is approximately $75,000....but you owe $150,000 on the note. So you either need to come up with $75,000 more cash to put up, get the original bank to take less money, or some combination of the two.

Somehow, much of the above sentiment wasn't relayed in the article.

**Gistok** · April-17-12, 01:39 PM

^ Yes, but it's not like there's other opera companies waiting in the wings to take over the opera house [[like with home ownership)... so if the bank were to take back the opera house... they wouldn't know what to do with it. But the parking garage is another matter...

**Danny** · April-17-12, 01:59 PM

Originally Posted by Gistok

Danny, I believe you've got your facts slightly off.... there is NO relationship between Michigan Opera Theatre [[founded in 1971), who are the owners of the Detroit Opera House.... and the old Detroit Opera House on Campus Martius. NONE.

And the only relationship between the Nederlander folks and Michigan Opera Theatre was that they used to have their opera's at the Nederlander controlled Fisher and Masonic Temple Theatres [[the Nederlander's have since relinquished their control over Masonic).

Their debt problems now stem mainly from building the Opera House Garage, and reduced philanthropy from big donors [[such as the Big 3).

Look carefully into the information. The Michigan Opera Theater bought the Grand Circus Theater in 1988. They did some renovations into the building until they re-opened in as the new Detroit Opera House in 1996. I did not write about the relationship between the Michigan Opera Theater and Nederlander's Ownership in the Grand Circus Theater Building in those times from 1912 to 1985. The Nederlanders not only owned the Detroit Opera's Theater holdings and stakes from its merging opera houses in Downtown Detroit, but also built and control those Detroit opera houses entities through its 99 year lease. That lease from the entities and theater building is still valid until April 30, 2012. After the bills being paid off [[ in Which the Michigan Opera Theater will) Either the Nederlander Leasing of the Detroit Opera Theater Building will renew the lease or pass the building and the entity to Michigan Opera Theater We just have to wait and see. I achive that sources from Michigan Opera Theater and The Nederlanders.

Don't try to cross-examine my factual source. If you want more information about the entities go ask the Nederlanders. I did years ago.

**Gistok** · April-17-12, 02:20 PM

OK Danny, I'll bite... can you show me an online reference [[no Wiki) that mentions that Nederlander owns or owned the Detroit Opera House on Broadway... I cannot find such a reference.

**downtownguy** · April-17-12, 02:33 PM

I'll preface my remark by saying I'm not expert in this field, but I suppose the Opera House Garage's value has more to do with it's income producing potential than anything else. I doubt the collateral value of this garage has suffered as much as other real estate has in the last five years for this reason. So, corktownyuppie, when you talk about declining appraisal values, do you know that to be true in this case?

**downtownguy** · April-17-12, 02:37 PM

Originally Posted by Gistok

OK Danny, I'll bite... can you show me an online reference [[no Wiki) that mentions that Nederlander owns or owned the Detroit Opera House on Broadway... I cannot find such a reference.

I'm with Gistok here, Danny. I think the business that was the Detroit Opera House 100 years ago, and the non-profit organization that restored and renamed a theatre at the Detroit Opera House almost 15 years ago are two entirely separate entities. The fact that Nederlander had a business relationship with MOT in more recent times is only a coincidence.

**Gistok** · April-17-12, 03:48 PM

Also... the Detroit Opera House... nee Grand Circus Theatre... nee Broadway Capitol Theatre... nee Paramount Theatre... nee Capitol Theatre... opened on Jan. 12, 1922 [[the building had its' 90th birthday in Jan. 2012). So any 99 year lease would extend another decade... if there was one.

**Scottathew** · April-17-12, 05:40 PM

How about we shove another millage down the throats of all tri-county residents so that a select few people can enjoy the Opera for less than the actual cost? Sounds like a great idea!

Opera-goers have been some of the hardest hit during the recession.

**Gistok** · April-17-12, 07:59 PM

^That wouldn't be fair... the Detroit Opera House opera attendees come from within a 3 hour drive of the hall... so we'd have to tax parts of Canada and Ohio as well.

**corktownyuppie** · April-17-12, 08:09 PM

Originally Posted by downtownguy

I'll preface my remark by saying I'm not expert in this field, but I suppose the Opera House Garage's value has more to do with it's income producing potential than anything else. I doubt the collateral value of this garage has suffered as much as other real estate has in the last five years for this reason. So, corktownyuppie, when you talk about declining appraisal values, do you know that to be true in this case?

You're absolutely right in your assessment. The value of the garage is in direct proportion to the its annual net operating income.

Howeva...

To arrive at the appraisal value of the garage, you'd have to multiply that annual income number by some multiplier, and that's somewhat subjective and a bit of a moving target. I'm not familiar with downtown Detroit appraisals, but in Ann Arbor -- before 2009 -- appraisals were coming in at 10-12x annual income. Now those same buildings are appraising at 8-10x annual income, thereby reducing the amount banks are willing to lend on them. I believe that the multiplier number on Wayne County property is much worse.

The second thing is -- I believe-- that the monthly parking leases did not sell as well as they had hoped using data before 2009. It's a great location, and I'm sure that as soon as Broderick Tower fills up, they'll sell those spots like hotcakes, since Broderick doesn't come with parking. But that is then and this is now.

Other than those broad generalizations, I'm pretty ignorant. So someone with some harder data can step in.

**gameguy56** · April-17-12, 08:23 PM

Originally Posted by 48091

How about we shove another millage down the throats of all tri-county residents so that a select few people can enjoy the Opera for less than the actual cost? Sounds like a great idea!

Opera-goers have been some of the hardest hit during the recession.

You don't want the chance to take your kids to the Opera? You don't think that's worth saving?

**Scottathew** · April-17-12, 08:32 PM

Originally Posted by gameguy56

You don't want the chance to take your kids to the Opera? You don't think that's worth saving?

I probably would never take my kids to the opera, but I have thought about going once myself to see what it's about.

I'm not opposed to saving it. I would be opposed to yet another tri-county millage to subsidize the cost of an attraction.

**Gistok** · April-17-12, 11:57 PM

Let me squash one myth about the Detroit Opera House... when it [[the Capitol Theatre) opened in 1922... it only had 3,384 seats.

John Kunsky loved to exaggerate...

**Zacha341** · April-18-12, 03:49 AM

Hasn't the Opera House been more than Opera over the last few years? Nearly all the DPS high schools have their commencements there? CCS does or did the last few years. They have varied music events too... Did not know they wer wer struggling financially...

Originally Posted by 48091

How about we shove another millage down the throats of all tri-county residents so that a select few people can enjoy the Opera for less than the actual cost? Sounds like a great idea!

Opera-goers have been some of the hardest hit during the recession.