Starlite Drive-In receives another extension to repay city loan. Here’s why
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- Wichita City Council extended Starlite Drive-In loan repayment to December 2031.
- Remaining balance $147,977.67 is to be repaid via $2,147.33 monthly installments.
- Council to limit future relief, backing personal guarantee from owner Blake Smith.
The Starlite Drive-In has received another extension from the city of Wichita to pay back a $200,000 loan it received in 2018.
The drive-in theater still owes $147,977.67 to the city. It now has until December 2031 to make monthly payments of $2,147.33 to repay the loan.
“We always look for opportunities to help protect the treasures that we have in our community,” council member Mike Hoheisel, who represents the area, said.
The drive-in theater received the $200,000 loan through proceeds from the sale of the city-owned Hyatt Hotel in 2016.
The theater was at risk of closing in 2018, but was saved by a group of supporters and the city loan to pay for new projectors.
It has since struggled to pay back that loan, mainly because of the COVID-19 pandemic. The theater was forced to close because of COVID-19 restrictions and then continued to struggle after that.
“It’s just a lack of movies out there right now, streaming processes coming up,” Hoheisel said. “So this is similar to … a lot of the obstacles a lot of theaters out there are facing.”
Hoheisel said this would be the last extension the theater would receive to pay back the loan. The council approved the six-month extension at its meeting Tuesday. The theater said the extension was needed after it endured storm damage in June.
The theater last received a loan extension in 2022. The loan was also restructured earlier this year to negotiate monthly payments to the city, according to a city agenda report.
The loan has a personal guarantee that would go back to the theater owner, Blake Smith, to pay back if the loan defaults. Smith also owns the Admiral Twin Drive-In in Tulsa, Okla.
“I really do appreciate the personal guarantee on contracts with the city,” council member J.V. Johnston said. “I think that should be a standing practice for the city.”
Council members signaled this would be the last time it would approve an extension for the theater.
“I hope that this will be paid back. That the Starlite is successful,” council member Dalton Glasscock said. “I will likely not be supportive if it comes back for another extension, because I want to make sure that the owner is being respectful of taxpayer dollars that he’s been given in this unique style program.”
The theater is showing some horror films leading into Halloween. It’s also showing some movies that are currently in theatres, including “Him,” “Fantastic 4: First Steps” and “Tron: Ares.”