DURANT — City council will be taking action Tuesday that could reel in a state-of-the-art eight-screen movie theater to be built on the west side of Durant.

The city will consider approving a project between the Durant Industrial Authority and a company wanting to build and operate a new movie theater.

Durant City Council meets at 4 p.m. Tuesday at city hall.

Listed on the agenda is approval of the project between the DIA and Durant Cinema 8 Inc.

DIA Executive Director Tommy Kramer has visited with John Rupe of Tulsa, who is ready for the city to address his requests concerning a new movie theater.

According to a memorandum by Kramer, Rupe is asking DIA to provide a $500,000 business loan that would have two parts: A $200,000 loan for 20 years at zero interest paid back monthly and a $300,000 loan that is forgiven if the theater ticket sales reach 100,000 per each of the first 10 years.

The memorandum states that 100,000 ticket sales per year would generate $700,000 and provide the city a sales tax value of $31,000 annually. These sales would repay the city sales tax collections in 10 years and would be a forgivable loan. If that amount was not generated, then the Durant Cinema 8 would be required to pay the sales tax shortage annually to the city.

The theater would be located on a 4.2 acre site south of University Boulevard and the total project investment is estimated at $4,500,000 for land, building and equipment.

It is expected to employee 25-30 people with a total annual payroll of $225,000. Rupe will seek a loan with First United Bank being the lead bank and wants other Durant banks to participate in the loan. Rural Enterprises would package the loan with an SBA-504 loan program with the local banks.

Rupe also wants to buy the Durant Twin Cinema on West Main Street and manage it until the new theater is operational.

The new theater would have an art-deco exterior facade of EIFS veneer on three sides, the front exterior neon lighting to look like the Hollywood theater design, and large rocker chairs in all eight theaters with state-of-the-art total-digital projection equipment.

In January, the council tabled action on tax increment funding (TIF) associated with the theater to explore other funding options.

The council will also consider the following agenda items:

— Approve parade routes for the Magnolia Festival, Western Days, Veterans Day and the Christmas parade.

— Acceptance of assistance to a firefighters grant in the amount of $82,793 to purchase interoperable hand-held radios for each firefighter.

— Acceptance of Small Cities grant for improvements to city hall for Americans with Disabilities Act to include an elevator, bathroom and ramps

— Spending/contracting for renovation/construction of the fire sub-station

— Request from Northwest Heights Elementary School to block a section of Brookside Drive in Carl Albert Park for an end-of-year picnic

— Accepting a $9,999 bid from the Bryan County Sheriff’s Office for a 2006 Ford Explorer

— Donating a Ford Explorer that did not receive bids to the sheriff’s office

— Reappointment of John Buchanan to the Cemetery Board

— Acceptance of $25,688 Emergency Management State and Local Assistance Performance Grant for fiscal year 2010

— Amendment to employee health benefit to include Eagle Med Air Vac Services

— Agreement with Choctaw Archiving for archiving/record destruction services

— Accepting a gift of portable batting cages at the Durant Multi-Sports Complex

— Franchise agreement for Chickasaw Telecommunications Services

— Agreement with Interact for county-wide 911 addressing and mapping

— Oil and gas lease with R.D. Williams & Co.

— Ordinance to rezone property at 1502 N. Ninth Ave. from single family residential to general residential

— Executive session to discuss the purchase or appraisal of real property