While news of Cirque’s Kodak Theater show’s delay has circulated the fan scene in recent days, the reason for the delay has not been widely known. An article out of the Los Angeles Business Journal today sheds some light on those reasons. From the article:
- The Los Angeles city government is stepping in to help save plans for a reconstruction of the Kodak Theatre so the home of the Oscars can accommodate Cirque du Soleil’s 10-year Hollywood-themed show. L.A. developer CIM Group, which co-owns and operates the Kodak at Hollywood & Highland, is seeking a $30 million loan from the city to replace a private financing deal that collapsed in the capital market meltdown.
Under the deal, the city essentially would borrow $30 million from the U.S. Department of Housing and Urban Development and then loan that money to CIM for the project. It carries some risk to the city. If the Cirque show tanks or otherwise is unable to pay, then CIM is obligated to pay. But if it can’t, the city would lose up to $30 million of HUD money.
Already, design changes have forced a delay of at least nine months in the project’s opening, pushing it back to summer 2011 from the September 2010 opening date originally announced. The major change has involved fitting an on-site training center for Cirque performers into the existing complex.
Read the full article here.
{ SOURCE: Los Angeles Business Journal }
