Dream Theatre LLC is asking Overland Park for up to $425,000 to buy and restore the Rio Theatre, the Art Deco landmark at 7204 W. 80th St. that has sat dark for more than six years.
The city's Finance, Administration and Economic Development Committee will take up the proposal at its 7 p.m. meeting Wednesday, Oct. 21, according to a committee staff report. City staff recommended the committee direct negotiations on a funding agreement and send it to the full City Council for approval.
The single-screen theater opened on Christmas Day 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 COVID-19 shutdowns closed the doors in 2020.
The deal comes with conditions.
Under the proposed terms, the conditional grant would break down into $200,000 to help with the property purchase, with closing estimated for November 2026, and up to $225,000 in reimbursements for exterior improvements and building stabilization. Dream Theatre would also secure the city's investment with a mortgage and promissory note.
In return, Dream Theatre would have to operate the venue as a public theater for at least 10 years after the final grant payment. The theater's parking lot, currently coned off, would have to stay open for public use when the theater is not operating.
Dream Theatre has also requested economic development revenue bond (EDRB) financing to obtain a sales tax exemption on construction materials, equipment, furnishings and labor, according to the document. The city would consider waiving its application and issuance fees and paying its bond counsel fees. Dream Theatre would pay annual trustee fees and redeem the bonds within 12 months of project completion.
The company plans to reopen the venue as the "Dream Theatre at the Rio," with Art Deco-inspired design, themed film nights, children's and adult programming, concessions, a cocktail lounge and a retail space, according to the staff report.
Representatives from STRATA Architecture are expected at Wednesday's meeting to answer questions about the renovation.
Former Saturday Night Live cast member and Kansas City native Heidi Gardner appears connected to the project, the Johnson County Post reports. City documents do not name who is behind Dream Theatre LLC, but Gardner is the copyright holder of a Substack newsletter called The Dream Theatre and has shared posts about the venture on Instagram. A recent Dream Theatre newsletter described a "Terminator 2" watch party and promised a yet-to-be-announced "permanent home." The Johnson County Post reported that Gardner had not returned its request for comment.
Angie Mutti, executive director of the Downtown Overland Park Partnership, told the Johnson County Post that the prospect has generated excitement after years of community questions about the theater's future. "We're just really excited that there's some movement on it, and so far that project is going forward," Mutti said.
The full City Council would still need to approve a negotiated funding agreement before any money is disbursed. A separate council vote on a resolution of intent for the bonds would also be required, followed by a final vote to issue them.
