An Overland Park committee voted 5-0 on Wednesday, Oct. 21, to negotiate up to $425,000 in city funding for the shuttered Rio Theatre's restoration.
The Finance, Administration and Economic Development Committee directed city staff to begin talks with Dream Theatre LLC, which plans to reopen the 1946 theater as Dream Theatre at the Rio, according to the Johnson County Post. Committee Chair Chris Newlin was absent.
The deal could send up to $425,000 in city money to the new owners. The city's committee staff report calls the funding a "conditional grant" paid from the city's contingency fund, though the Johnson County Post described it as a "conditional, forgivable loan." Under either label, Dream Theatre LLC would secure the city's investment with a mortgage and promissory note.
The staff report breaks the $425,000 into two pieces: $200,000 to help cover the property purchase, with closing estimated for November 2026, and up to $225,000 in reimbursements for exterior improvements and building stabilization.
In return, Dream Theatre LLC would operate the venue as a public theater for at least 10 years after the final payment. If the property ever goes up for sale, the city gets right of first refusal, according to Kate Gunja, Overland Park assistant city manager.
Beyond the grant, the new owners have requested economic development revenue bonds (EDRBs) to obtain a sales tax exemption on construction materials, equipment, furnishings and labor. The city would waive its bond application and issuance fees and pay its own bond counsel fees, according to the staff report. Dream Theatre LLC would pay annual trustee fees and redeem the bonds within 12 months of project completion.
"I feel like this is a day that we've been waiting for a long time, and I'm very excited about the possibilities here," Councilmember Gregg Riess said at the meeting, according to the Johnson County Post.
The Rio Theatre at 7204 W. 80th St. opened in 1946 and is listed on the National Register of Historic Places. The Fine Arts Theatre Group purchased the building and began restoration in 1993 and operated it until 2020, when it closed during the pandemic. It has not shown a film in more than six years.
Jill Turner of STRATA Architecture and Courtney Kounkel of Monarch Construction told the committee the plan is to restore the theater's iconic exterior, including its neon signage, broken and missing tiles, front doors and roof, the Post reported.
Because the building is on the National Register, the State Historic Preservation Office must review the project before work begins. No firm reopening timeline has been set.
The committee's vote directs staff to negotiate the agreement and recommend City Council approval. The staff report does not specify when the full council would vote on the final deal.
