Davis Varsity Theatre granted 18-month rent-free proposal to avoid closing
DAVIS — The Davis Varsity Theatre has been downtown for decades but feared it could close soon if it doesn't get financial assistance.
The theatre first opened in 1950 with its neon lights and historic architectural style. Today, it's known for showing both independent films and big-budget movies on two screens.
But now its days may be numbered as the theatre is "barely making any profit," according to Sinisa Novakovic, who has run the theater since 2005.
Novakovic says business was good prior to the pandemic.
"We were happily paying rent, and successful, bringing in close to 6,000 people per month," he said.
This past year, the theatre has been hit hard by slower ticket sales and a lack of hit films.
"We cut down our staff to one employee and there's nothing else we can do on that," Novakovic said.
The building is owned by the City of Davis and theater management has been paying $1,000 a month to the city in rent, which is already a reduced rate.
Now, they've asked the city to let them operate rent-free for the next 18 months. Some nearby merchants support the rent reduction, saying the theater helps boost downtown business.
"We see a lot of customers come in right before going to a movie or coming in right after," said Lone Summers of the Davis Wine Bar.
On Tuesday night, the City of Davis offered a Hollywood ending by approving the free rent proposal. City officials say it's better to have the theater remain open than have an empty boarded-up building that creates an economic blight.
"As long as the city is not losing money on the proposition, it's nothing but a win even if the city's not necessarily getting a great deal in rent," Novakovic said.
Another movie theater closed in downtown Davis last May, leaving just the varsity theatre and one other theater in town.
Money from the rent payments had been going into a special fund that pays for the maintenance of city-owned buildings.