The community has had their say on the Kempsey Cinema Project, council has responded and all of the ratepayers’ letters are in the hands of the Office of Local Government’s Project Review Committee.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Council received 29 submissions with 23 letters against, and six letters of support. Many of the letters voiced similar concerns, issues and comments.
Some people questioned the future financial viability of cinemas.
To which council responded "Kempsey's cinema project partner Majestic Cinemas has 15 years operational experience in the commercial cinema industry. Council considers that this experience qualifies Majestic's commercial judgement of recognising the opportunity to establish a commercial cinema complex in Kempsey.”
Others doubted the financial viability of the Kempsey cinema. To which council said "the cinema's financial viability will be determined largely by admission numbers, it is not possible to accurately forecast what these will be, as it will depend on the level of support the community shows by attending movies.”
Some residents were confused about the origins and make-up of the $2 million council investment.
Council clarified that "the $2,000,000 is for the cinema construction. The amount of $1,931,025 is transferred from "reserves" to fund that and the balance of $68,973.97 will be taken from existing budgets. That brings the total to $2,000,000. Council assumes that the ongoing expenses will be covered in a positive operating environment from 2019/2020.
Council is also taking security by way of a mortgage over the lease as this allows it to engage new operators if Majestic fail financially. Council assures ratepayers that within the context of a $70 million annual budget, the potential exposure is manageable.
Ultimately, the success of the cinema hinges on people going to the movies. Council admits "failing to return a profit is an acknowledged risk of the project" but it "has confidence in the community's appetite to support the cinema by attending movies. This will have a positive impact on attendance numbers and the revenues required to return a profit."
Other concerns involved the location of the cinema, with some suggesting an upgrade of the Bandbox theatre. Council responded "a range of potentially suitable locations were considered during the project's early stages, with two major criteria of the ability to find a landlord with the willingness and capacity to invest in the project (Gowing Bros is contributing upward of $2m to the project including meeting all potential construction cost overruns), and a central CBD location that is convenient, practical and appealing to maximise attendance numbers and associated commercial benefits to businesses."
Some of the people in favour of the project expressed a view that a cinema in Kempsey will provide entertainment for youth and encourage more growth in the local restaurant sector.
Council says “this view supports its research into the commercial, economic, social and cultural benefits a commercial cinema complex is expected to bring to the Kempsey CBD and the local community."
“Council has considered the long-term and cumulative effects of the proposed cinema project, as well as the cumulative long-term effects of not undertaking the project. Council has determined that generational equity demands the delivery of this project.”
Council says young people will benefit significantly from the economic development the project will achieve through revitalising the CBD.
The Kempsey Cinema Project Review Committee (PRC) met on Thursday, July 27 to review information council has supplied following the initial feedback from the committee. The next step for the project will see the outcome of the assessment undertaken by the PRC reported to council at an extraordinary meeting on a date yet to be named.