Auburn City Council unanimously approved a $70,000 purchase agreement Thursday for the Schine Theater, giving nonprofit Schine On! Inc. a path to acquire the city-owned property after examining its condition and feasibility.
The Oct. 22 vote advances negotiations council authorized in August. The transaction has not closed, and the buyer retains the right to withdraw during its review period.
The agreement covers approximately 1.8 acres at 16 South Street, including the buildings, improvements and bowling lanes. Schine On!, represented by Bree Kishman, would make a $2,500 deposit credited toward the purchase price at closing.
Councilor Craig Diego emphasized that Thursday’s action puts the contract in place so the sale can proceed without another council vote if the buyer completes its review and chooses to move forward.
Buyer gets 180 days to investigate the property
The agreement provides 180 days from its effective date for due diligence. During that period, Schine On! can terminate for any reason and receive its deposit back.
The buyer can extend the review by 90 days with timely written notice if it is diligently pursuing the investigation. A structural inspection must still be completed within the initial 180 days.
Closing generally would occur about 30 days after the due diligence period expires, unless the parties agree otherwise.
City Manager Jennifer Haines said the buyer intends to bring in construction professionals, engineers and architects to determine whether the building can support its intended operation.
Christina Selvek, the city’s director of capital projects and grants, said the city would answer questions but would not direct the buyer’s investigation.
Agreement assigns inspection costs and city obligations
Before the agreement’s effective date, Auburn must turn on the property’s utilities and remove standing water, including water beneath the stage pit.
Schine On! must maintain insurance covering its inspections and name the city as an additional insured. The buyer also assumes liability associated with its access to the property. Invasive environmental testing requires the city’s written permission.
Apart from the city’s stated warranties, the property would transfer in its existing condition. The agreement limits the city’s remedy for a buyer default to retaining the deposit.
A separate compensation addendum requires the buyer to pay the city’s broker $3,000 and compensate its own broker under a separate agreement.
Cultural redevelopment remains the goal
The city identifies the proposed transfer as a historic preservation and economic development project connected to its downtown revitalization and Brownfield Opportunity Area plans and the state’s Restore NY program.
During the August presentation, Kishman described plans for a nonprofit cultural venue offering live music, films, community events and educational opportunities.
The property has remained part of other downtown planning. Earlier this month, council approved temporary parking behind the theater, with city officials explaining that the short-term arrangement preserved flexibility for a prospective sale.
Thursday’s approval allows the purchase agreement to proceed. The buyer’s structural and feasibility review will determine whether the transaction moves toward closing.
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