JEREMY WECHSLER Will there ever be a movie theater here? Not if the owners of the second morgage have their say.

Middletown Movie Theater Delayed Indefinitely Bankrupcy Court Stalls Possible Lease Agreements By Andrew McIntosh News Editor

Hollywood was coming to Middletown, but recent events have put the silver screen’s appearance in Metro Square on indefinite hold.

Destinta Theaters, a New Jersey based theater company, has already signed a lease with Middletown Metro Associates, the owner of Metro Square. The lease would allow a 12-screen theater complex to open in the old Walbaum’s store location downtown.

But according to Bruce Whitaker, property manager for Middletown Metro Associates, the theater’s opening was stopped because the second mortgage holder for the plaza has raised objections to the substance of the lease between Destinta Theaters and Metro Associates.

Whitaker said that the objections of the mortgage holder must be addressed before a bankruptcy judge can rule in favor of Destinta Theaters.

"Surprise would be such an understatement...we feel that we have been left in a very, very vulnerable position and it is very disturbing and alarming to us," said Joe Angelotti, chief operating officer of Destinta Theaters.

Angelotti went on to say that Destinta has already invested $100,000 into the theater for costs such as architectural evaluation and legal fees. According to Angelotti, the second mortgage holder is unwilling to allow Destinta to move in.

"We’re on indefinite hold," Angelotti said. "We’ve done everything we can do."

Destinta is one of three separate theater companies that has vied for the vacant position in downtown Middletown after Walbaum’s Food Mart closed in 1993.

"[The companies] were given the opportunity to present a best and final offer for the site," Whitaker said.

Entertainment Cinemas, a Connecticut-based theater company, was in the process of acquiring the space when Metro Associates filed for Chapter 11 bankruptcy last December.

The bankruptcy declaration protected Metro Associates from creditors, but left the final approval of any new businesses up to a judge’s ruling in court.

Bill Hanney, president of Entertainment Cinemas, claims to have signed a lease with the current tenant of the Walbaum’s space back in March. The Atlantic & Pacific Tea company is considered the current tenant even though the store remains vacant.

Hanney expressed frustration at being blocked by the bankruptcy court despite having signed a lease.

"This [theater] would have been built two years ago if they didn’t screw us around...our proposal was thrown out for a bigger deal," Hanney said.

Middletown Planning and Zoning Director Bill Warner said that Hanney’s company never signed a lease with anyone.

"He’s completely out of it," Warner said.

Warner went on to say that the planning commission and other Middletown agencies have okayed the theater, but the only stumbling block remaining in the process is the bankruptcy filing.

"It’s really out of the town’s control," Warner said.

In a public meeting at the end of August, the City’s Planning and Zoning Commission met with Angelotti to discuss parking issues that would be generated by the new theater.

Current Middletown zoning laws require 550 spaces for the proposed 1,720-seat Destinta complex, but only 338 parking spaces are available in the parking garage next door.

According to Warner, the zoning requirements were relaxed because the theater would create pedestrian activity.

"It’s an attraction that attracts people off peak hours, and most people are downtown during working hours," Warner said.

Also attending the commission meeting were several Middletown business owners, including Vincent Amato of Amato’s Toys.

"I’ve always believed in life that a rising tide floats all boats, and if the downtown gets a theater....all of downtown will benefit," Amato said.

Hanney, meanwhile, said Entertainment Cinemas is out of the running to obtain the Metro Square property. He said he had never heard of Destinta Theaters.

"What has happened is that basically through time happening, another theater has come in and tried to push us out by offering to build a larger theater," Hanney said.

Hanney went on to say that Entertainment Cinemas would be building another cinema in the Middletown area. Although he did not reveal the exact location, he said it was more in the direction of Meriden.

"They’ve got me so pissed off I’m going to build a theater regardless of what happens. We’ve spent tons of money on this thing, and we feel we’ve been wronged here," Hanney said.