Grandview and Highland theaters will be able to remain open for nine more years, thanks to a loan from the City of St. Paul

The Grandview and Highland theaters are the last two movie theaters within the city limits of St. Paul.

According to Avenues, a St. Paul newspaper, many St. Paul neighborhoods historically had their own movie houses. The impact of new multiplexes drove many out of business. Most theaters only had one screen and this meant that if a movie did poorly, the theater could suffer.

St Paul utilized the Sales Tax Revitalization (STAR) program, designed to assist city businesses, to give Mann Theatres $213,270 in a forgivable loan. If the company keeps the two theaters open for the next nine years, then they do not have to pay the loans back. The STAR program also gave the Highland Business Association a $75,000 grant to renovate the Highland Theater last June.

Due to the grant, students at Macalester and other St. Paul colleges, will continue to have theaters within walking distance.

“I’m really happy that the city is allowing them to stay open,” Carolyn Fryberger ’07 said. “I like the atmosphere of the small theaters and the inside [of the Grandview] is beautiful. Plus the student rate is really nice.”

Though neither theater was ever officially up for sale, company president Steve Mann said they would have been sold if the right offer came along.

“The Stepping Stone Theater was raising money to purchase the Highland Theater, but the purchase agreement expired and they were not able to buy it,” Mann said. “I got the feeling they would’ve liked to have continued with the agreement.”

After the purchase agreement with Stepping Stone fell through, St. Paul looked to preserve the two theaters.

Mann said that the city asked him how it could help the company keep the theaters open. Mann Theatres and the city then entered into talks that resulted in the STAR loan. The company then applied for and was granted the forgivable loan.

Mann said the money will be used to renovate both theaters, including adding an HVAC air conditioning system to both theaters. The HVAC system will help reduce the humidity caused by the previous water-based system.

The loan will also be used to repair the roofs on the theaters. Mann Theatres will explore other renovation options in the future.

They are considering replacing seats and carpets within the theaters and repairing, but not changing, the Grandview marquee.

The changes at the theaters will not extend to the movie selection. The company will continue to show popular movies that appeal to the local audience.

Mann made it clear, however, that Mann Theatres has no intention of closing the Grandview and Highland theaters.

“You won’t see many of the changes.” Mann said. “Maybe the carpet or the seats. We’ll still have the movies, though.”

Mann Theatres is also aided because it owns the lots the theaters sit on and they have established themselves in the area. The company knows what movies do well with the audience in this area, particularly the with many college students who frequent the theaters.

Mann said “If we had been paying market rent on these properties, these theaters would have been closed long ago.”