One Menlo Park resident’s dreams of converting the historic Park Theatre into a dance studio are likely dead, but now the theater’s owner says it could still be restored to house either office or retail space.

Howard Crittenden of Atherton, who owns the 60-year-old one-screen theater off El Camino Real, told the Almanac he plans to resubmit a proposal to the city that calls for restoring the exterior of the theater — including the art deco neon sign — and gutting the interior to make way for office or retail space.

He submitted the same proposal to the city last July, but withdrew his plans after resident Andy Duncan came forward with the hope of converting the theater into a dance studio for the Menlo Park Academy of Dance.

But the cost of purchasing the worn-down theater, restoring it, and converting it into a dance studio would have cost Mr. Duncan about $4.27 million — a total bill he said would have left him $500,000 short of covering his costs.

Mr. Duncan asked the City Council on Aug. 8 for a no-interest loan or donation of that amount, and although Mayor Kelly Fergusson was receptive to the idea and called a special Aug. 12 meeting of the council to discuss the proposal, other council members questioned giving public funds to a private business, especially under such short notice.

The council opted to postpone the decision to a later meeting, but the contract between Mr. Duncan and Mr. Crittenden expired Aug. 17, effectively killing the dance studio proposal, Mr. Crittenden said.

Mr. Duncan did not return the Almanac’s calls for this story.

Public funds

Although the dance studio proposal looks dead, some residents are still fuming that Mayor Fergusson even considered a request by a private business for public funds — let alone discussed the issue at a hastily convened special meeting.

“We’re talking about putting $500,000 into a business, and I’m not sure how you make the decision what businesses you’re willing to do that for, and what businesses you’re not,” said resident Harvey Slate, one of several people to e-mail council members about the Park Theatre proposal. “If you’re going to talk about spending $500,000 of public funds, you should certainly have a lot more public input on it.”

Mr. Slate and other residents have also questioned how the council could consider giving $500,000 to a private business after citing a long-term financial shortfall as the reason for the controversial utility tax.

When asked about the issue, Mayor Fergusson stood by her decision, and said the relationship between Mr. Duncan and the city could have been a successful “public/private partnership.”

“It won’t be the inaction of this council that causes the demise of [the Park Theatre],” she said. “It’s my job that issues get on the agenda and get debated, and we just can’t procrastinate about this.”

She noted that when she made the decision to hold a special meeting, Mr. Duncan was facing an Aug. 17 deadline, and the council was not scheduled to meet until Aug. 28.

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