Riverview Theater Received $700,000 State Loan; Unclear if Repayment Will Be Required
Grant didn't require payment until after theater opened
The Riverview Theater owners who failed to complete the renovation and reopen the historic theater received $700,000 from the state through Norfolk’s Economic Development Authority, but the terms do not require repayments to begin until after theater is opened.
City officials said Monday it’s not clear now if any repayment will be required.
Former owner Richard G. Levin, who held the note on the property, bid $600,000 at a foreclosure auction on Thursday. Levin sold the property to 3910 Granby Street Holdings for $847,500 in 2023, a company fronted by John Childers, the co-owner of the nearby MJ’s Tavern. It’s unclear how much of the note was paid before foreclosure.
The 2024 grant came through the state’s Department of Housing and Community Development under the Port Host Communities Revitalization Fund and was passed through Norfolk’s Economic Development Authority as a loan the the property owners. It was announced in an April 2024 press release. The December 2023 minutes of the EDA show a unanimous vote to request $1 million from the fund, although the state later allocated only $700,000.
“No state funds were paid for work that wasn’t completed and for which contractors weren’t paid,” said city spokesperson Kelly Straub in response to an emailed question. “The loan terms did not require repayments to begin until six months after construction completion to allow for programming to begin and cash flow to start. We are working with the current owner to determine what amount, if any, is required to be paid back to the EDA.”
Childers, who has owned the restaurant for 14 years, had no experience with a large renovation project like the theater, which he has said would cost more than $2 million. A crowdfunding campaign never got off the ground. It’s unclear what vetting took place to determine his ability to complete the project before the state grant was issued.
Sean Washington, the city’s head of economic development who was out of town, and Straub did not respond to questions about screening for the grant, including any provision for repayment if the theater did not reopen. If they respond, the story will be updated. A copy of the loan agreement reveals the holding company fronted by Childers was due to make 240 loan payments at 2% interest beginning six months after the certificate of occupancy was issued for the property.
Levin, a developer who owns dozens of properties, held the note on the property and said he foreclosed after Childers failed to complete renovations of the Granby Street theater, built in 1947, according to city records. Levin, who held onto the theater for more than two decades without renovating it or attracting a buyer, said he hopes to sell the property to someone who will finish the job.
“I’m sorry I couldn’t make it happen, and I would hope whoever takes it over next will complete it,” Childers said, adding that the contractor told him the project was 55 percent complete. “It makes the community a better place.”
The auctioneer last week noted there were two mechanic’s liens and at least $5,000 in back real estate taxes owed. There are two pending civil cases against 3910 Granby Street Holdings in Norfolk Circuit Court filed by Spacemakers Inc. and Mike & Mike Services Inc.
Levin bought the theater and the connecting storefronts in 1992 for $155,700, according to property records. The property is appraised at $724,600. Childers originally became interested in 2019 but failed to raise funding then. On his recent attempt, he said an unnamed investor bailed, leaving him short of funds.
