The idea is controversial because it includes a proposal that the city invest $500,000 in the project, either as a grant or a no-interest loan to be paid back when Mr. Duncan sells the theater.
Mr. Duncan's plan to covert the deteriorating 60-year-old theater into a dance studio for the Menlo Park Academy of Dance appeared dead after his contract with the theater's owner expired. But on Monday, he said his contract has been extended, and the idea is still alive.
Mr. Duncan said he is $500,000 short of covering the $4.27 million total costs associated with buying and fixing up the theater.
The council considered Mr. Duncan's request two weeks ago, but took no action. Councilmen John Boyle and Andy Cohen strongly opposed using public money to help fund the project, and councilmen Richard Cline and Heyward Robinson had questions about it. Council members will discuss the issue again sometime in September, Mayor Fergusson said.
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