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Harvey Theater Building Rehab Study

Detailed data on the supply of and demand for these alternatives in a five-mile trade area, including Harvey, were analyzed. Additional information regarding the supply of and demand for leasable space and possible activities for using the building was also analyzed. The information was obtained through a survey of residents and organizations in Harvey, a survey of theater patrons in the trade area, on-site evaluations of theaters in the trade area, discussions with managers in the theater industry, the U.S. Census and other publications.

On the basis of the analysis, we found that rehabbing the building as a multi-purpose facility would not be feasible. There are several such facilities currently operating in the building's trade area, particularly in Harvey. All of these would offer considerable competition to the Harvey Theater as a multi-purpose facility because of their locations, accommodations and ample parking. In addition to the current competition, the revenues of the proposed facility would be insufficient to cover operating costs and to yield a profit. The use of the building as a small theater would generate substantially more revenues than the multi-purpose facility. Although there would be competition from other theaters in the trade area, the theater would be the only theater in Harvey. Even though the demand for and operation of a theater appears better than that of a multi-purpose facility, the revenues generated would not be sufficient to cover operating costs. With the necessary financial subsidization, the theater could be a feasible use of the building; however, the success of the theater would be dependent upon the City's effort to investigate and solve the current problems regarding the building. These problems involve the ownership of the property, forfeited taxes and the appraised value of the building.

Should the City decide to proceed with the rehab of the building as a theater, much more than financial subsidization will be required to make the facility operate successfully and contribute to the overall redevelopment activities of downtown Harvey. Good management will be necessary to operate the building efficiently, maintain an impressive reputation and market it to all those in or near its trade area. Seating flexibility for audience size will improve its operational efficiency. The city, businesses, organizations and local residents will have to join forces to support this and other projects planned for Harvey to improve its image and reverse the decline that has occurred there.

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