Owner: ‘Beach Theatre Never to Be a Theater Again’

CAPE MAY – The Beach Theatre will never again operate as a movie theater,
according to Bruce Frank, president of Frank Investment, building owners.
Frank spoke to the Herald in response to the Beach Theatre Foundation filing
an appeal with the Appellate Division of New Jersey Superior Court Aug. 18
from a lower court ruling allowing that structure to be demolished.
A lower court decision handed down in July 2011 by Superior Court Judge
Valerie Armstrong determined the Beach Theatre Foundation lacked technical
legal “standing” to intervene in what the group claimed was an illegal and
collusive settlement of litigation between the City of Cape May and Frank
Investments, Inc.
The foundation charges the city revived an expired demolition permit and
circumvented administrative hearings before the city’s Zoning Board of
Adjustment by a vote of City Council.
“We believe the judge made a factual ruling that was well founded,” said
Frank.
He said Armstrong’s opinion was “scathing” of what the foundation had done
and “bordered on violating our civil rights and rights as a property owner.”
Frank said he believed donors to the foundation were being misled that the
building may once again be used as a movie theater.
“Even if we were denied, if they were to prevail, I am not obligated to sell
the property,” he said. “So, it’s never going to be a movie theater again.”
Frank said donations to the foundation would not save the movie theater.
“Even if they prevail, it just leaves a block building there,” he said. “It
doesn’t mean that that block building can’t be used for anything else that’s
commercial.”
“It could be a restaurant, it could be a flea market, it could be vacant, it
could be nothing,” he continued.
Frank said he believed the foundation was trying to convince donors that it
could buy the property “on the cheap,”and open a movie theater.
Approval of demolition is good for one year. With an appeal of the decision,
Frank Investment’s permit and settlement agreement with the city
automatically renews itself for another year, he said.
He said he believed the foundation was “under some false misunderstanding”
that Frank Investments would sell the theater whether it has a demolition
permit or not. He said the foundation was relying on a statute that requires
the building be offered at fair market value for two years before
demolition. If there are no buyers after two years, the building may be
demolished.
“We’re just not planning on selling it,” said Frank. “We’ll continue to just
utilize it as it is, it’s an income generating property.”
He called it a delusion that the Beach Theatre Foundation would buy the
building and reopen the theater.
“We’re under no obligation to sell,” said Frank. “It could sit there through
eternity whatever it is.”
The theater complex was priced at over $11 million. Frank said he made a
proposal to the foundation to sell the theater, which included financing. He
said the foundation did not have a down payment.
“They couldn’t put together $1 million to do a deal,” he said. “They have no
money.”
Frank said he was “at least pursuing an end” while the foundation “had no
end.”