State Theater repairs to continue despite deed restriction

JOHNSTOWN, Pa. – The Johnstown State Theater Foundation plans to move forward with efforts to repair and operate the State Theater, even though a nearly half-century-old deed restriction prohibits the venue from being used to show movies as planned.

The clause was added when County Amusement Co. transferred the property to what was then Lee Hospital for $1 in 1976.

It was rediscovered recently when Johnstown Redevelopment Authority was looking to buy the building from Medical Properties Trust, an investment group used by Duke LifePoint Healthcare, the parent company of Conemaugh Health System.

The foundation reached an agreement to have the venue become home to an IMAX movie theater.

But County Amusement Co., which owns Richland Cinemas, is enforcing the restriction on the property that opened in 1926 at 336 Main St. in downtown Johnstown. Troy Smajda, the foundation’s marketing director, said the group has “no firepower” regarding getting rid of the restriction during an interview after JRA’s regular monthly meeting Tuesday.

County Amusement Co. owner Ed Troll said he does not publicly discuss private negotiations when asked for an interview in the past.

The State Theater could still be used for other entertainment and cultural events, such as the regularly occurring Classic Vinyl Concert Series.

“I think we’ll do just fine,” Smajda said.

“It actually saves us money. We don’t have to do a bunch of big-time updates. We can still update the building and apply for grants. We’ll be fine.”

Trying to get the restriction removed was previously discussed among multiple parties, including JRA, which planned to lease the venue to the foundation.

“There’s the cost of going through (a legal case) there and the odds of going through there,” JRA Solicitor William Barbin said. “The State Theater (foundation) has said they want to go ahead without the movies. We’re going to meet and talk with the hospital and we need to see, OK, how can you make this work money-wise now that you can’t do movies. We need to see the facts.”

The State Theater was one of several ongoing property projects discussed during JRA’s meeting.

Conference center aid

JRA’s board voted unanimously to contribute $30,000 annually for five years as part of an effort by local entities to help offset the cost of operating the city-owned Frank J. Pasquerilla Conference Center.

Executive Director Melissa Komar explained that the money is coming from JRA’s budget and not fees charged by Johnstown Regional Sewage, which the authority operates.

“We have revenues that are brought in through lease agreements that are in our JRA budget, not our JRS budget, to fund projects such as this,” Komar said during the meeting.

Negotiations are ongoing for the Cambria County War Memorial Authority to manage the conference center. That would result in ASM Global – the same national company that operates 1st Summit Arena @ Cambria County War Memorial – handling day-to-day activities at the conference center.

The tentative agreement calls for five groups to contribute a combined $190,000 annually – Visit Johnstown ($100,000), Community Foundation for the Alleghenies ($40,000), JRA ($30,000), Johnstown Area Regional Industries ($10,000) and Cambria Regional Chamber ($10,000). The city will cover capital costs and utilities.

Top Dog Productions and Flair of Country Catering and Event Planning managed the facility from September 2022 through February.

Dustin Greene, co-owner of Top Dog, said he sought assistance from the same organizations, telling them it would take $300,000 annually, counting the contributions from the city, to enable him to keep operating the center.

Greene referred to that as his “last cry to say we need help or we’re out” after he “lived, breathed and loved that building.”

He is now “frustrated” that groups are providing funding to help what he referred to as a “big corporation” when his local business did not receive a similar offer.

Komar recalled the process of talking with Greene, saying, “I specifically, from the very beginning, said, ‘What can we do to make this work?’ from day one.”

The War Memorial Authority was selected after the city sent out a request-for-proposal.

Atrium sale near

Barbin expects the sale of the former Atrium personal care home on Main Street to close by the end of the week.

JRA bought the property for $250,000 at a bankruptcy auction in March. The authority joined JPN Holdings as co-bidders because JRA has $125,000 in federal grant money that can defray the cost of asbestos removal. JPN is owned by Jesper Nielsen, the co-founder of Croyle-Nielsen Therapeutic Associates, which plans to use the building for mental health counseling services and administrative space.

Plans are to have the business open for operations at its new location by the first quarter of 2025.

Site assessment needed

JRA is still waiting to learn if a Phase I environmental site assessment was performed on the former Cambria-Rowe Business College, 221 Central Ave., Johnstown, when it was owned by First National Bank.

The authority now owns the building, but needs to see if the report exists before remediation work can move forward. If there is no report, Barbin estimates it would take 60 days to get one done.

“There’s an asbestos issue with EPA (U.S. Environmental Protection Agency),” Barbin said.

“We’ve got to sort it out and find what reports there are and what aren’t.”

Once remediated, the plan is to lease the property to Dr. George Frem for his proposed walk-in Ave Maria Medical Center.