Rio Theatre operator Corrine Lea. Photo Dan Toulgoet
Folks at the Rio Theatre are levelling up their fundraising efforts to include partial ownership of the beloved 80-year-old East Vancouver theatre.
A new crowdfunding initiative launched Tuesday is focusing on investors and shareholders, as opposed to the previous Indiegogo campaign that raised $500,000 almost exclusively off goodwill and good vibes.
The new partnership between Rio operators and Vancouver firm FrontFundr invites potential investors to kick in upwards of $1,000 each to become shareholders in the property. Each $1,000 increment equates to one preferred share in the Commercial Drive property, while those who kick in $25,000 or more will have voting rights on the theatre’s four-person board.
Going the FrontFundr route ensures that monies received by the Rio camp are above board with respect to Canadian securities laws.
“They’re kind of a go-between between the entrepreneur and the investor and they do their due diligence on my company to make sure that I’m not a crook,” theatre operator Corrine Lea told the Courier Wednesday. “They can assure the investor that we’ve been checked and that what we’re doing is legit. It provides protection to the investors as well as giving them information.”
A slew of previously undisclosed information was released to coincide with the FrontFundr push, namely the purchase price needed to save the Rio from redevelopment — on that front, $7.5 million is the magic number.
The close date for the purchase is July 7, while the FrontFundr campaign to raise $1 million ends June 28.
Roughly $4 million hangs in the balance as of now, though portions of that will be covered from a range of funding streams: $500,000 from the Indiegogo campaign, $500,000 put up by Lea herself and an undisclosed chunk of change from private investors.
Lea got a $4-million mortgage approved earlier this month, roughly the same amount the property is worth according to BC Assessment. A separate appraisal from a Vancouver bank has that number pegged at closer to $8 million.
Another previously unsaid nugget on the FrontFundr page included this:
“We're not completely opposed to development, we just want to become the steward for the Rio Theatre, ensuring the community needs for a multi-use cultural venue are the main priority.”
Lea clarified that statement by noting the necessary balancing act needed for potential investors to see some form of return. She wants the theatre to remain as is, but is open to options: adding nearby businesses or services that complement the Rio’s business model.
There’s also the potential need for a re-build given the Rio’s age.
“I personally don’t want to do that because that means I would have no theatre for a couple years and we’d have to build a whole new thing,” Lea said. “But if there’s no choice and the building is not stable, then at least if I’m on board and I’m an owner, at least we can build the new theatre that we want. We can insure that it’s the size it needs to be and that it’s a multi-purpose theatre.”
The FrontFundr campaign can be found online at www.frontfundr.com/Company/rio_theatre.
@JohnKurucz
