Theater owes us money, Lehi says

LEHI — Lehi officials joined a list of angry creditors who claim the owners of a movie theater complex at Thanksgiving Point owe them money.

City finance directors say Stadium 8 theaters has not paid $106,000 of a special per-ticket tax that the city imposed two years ago.

The tax was created to repay the city for investing more than $9 million in roads and utility lines to support the $3.5 million, eight-screen theater's construction and operation.

The complex, located adjacent to the Thanksgiving Point resort, opened in May of 2003.

When its doors opened, it was the only theater complex in northern Utah County.

To date, however, Lehi has collected $10,351 in admission-tax revenue, said city treasurer Sue Holmstead

And now that the theater complex owners have filed for Chapter 11 — and sold to Utah Jazz owner Larry Miller — city officials are looking at ways they can get their money.

"We've received some money but not very much or anywhere near all that's owed," said finance director Ron Foggin.

The firm that owned the theater admits it owes the city money — but the firm says it's a higher figure than the city says is due.

On documents filed with the U.S. Bankruptcy Court by LCA Enterprises LLC of San Francisco, the amount owed to Lehi for the admission tax is listed as $116,503.50.

Lehi City Administrator Ed Collins said the city has not been hurt financially by the lack of payment because Thanksgiving Point management reimbursed the city for all of the costs.

But Collins said he believes all of the money collected in the city's name should nevertheless be forwarded to Lehi city.

"Frankly, it's wrong if they're collecting extra revenue in the name of the city and holding it," Collins said. "If they're doing that, they should be giving it to us."

Miller is in the process of taking over the theater complex and renaming it the Megaplex 8.

Collins is unsure whether Miller also will be required to charge moviegoers the per-ticket tax.

"Our interest is in being fully reimbursed for the infrastructure costs," Collins said. "It's possible that the ticket tax could be a thing of the past."

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E-mail: haddoc@desnews.com