Financing for a new state-of-the-art eight-screen movie theater has the Durant Industrial Authority’s stamp of approval.

During an executive session today, DIA board members discussed loan options with Dennis McIntire, director of strategic planning with B&B Theatres (out of Liberty, Mo.), and John Rupe Sr. and John Rupe Jr. with Rupe Development (headquartered in Tulsa).

Rupe Sr. proposed a $500,000 business loan, which would be paid off in two parts. The new theater is expected to employee 20-25 part-time employees and two to three full-time management positions.

After discussing funding with the DIA, the cinema project officials were released from the executive session. Rupe Jr. said that the loan is the only funding option for the new theater at this point.

Rene Lemons, general manager of the Durant Twin Cinema and Bowling Center, spoke in dissent. She said she is not against another theater coming to Durant, just the funding.

Lemons said Jerry and Ann Wann did not receive any financial help from the city when they opened Durant Twin Cinema in 1993.

“The city officials want to give them a loan. Jerry had to do it on his own,” she said, adding that the loan proposal for the outside company is like a “stab in the back.”

Lemons is also unhappy that some city officials told TV stations in January that the existing theater would be closing.

She said the new theater project has other businesses worried that they may be replaced with out-of-state businesses as well.

Jerry Clark, who worked with Jerry Wann for 20 years, said the new theater company should provide their own funding and give back to the community, as Wann has done.

Wann’s daughter-in-law Michelle Wann, who used to work at the Durant theater, said the new theater will have trouble getting first-run movies if each of the eight theaters will only have 100 seats.

However, McIntire said the new theater will not have 100 seats per auditorium. Instead, the largest will have 238 seats and will be 50-feet wide. A couple will have 180 seats, and the smallest will have a little under 100.

Currently, one of the Durant theaters seats 221 guests, another seats 198 and the two smaller theaters seat 92 each, Lemons said.

If the city had offered to give Jerry Wann a loan, Michelle Wann said the Durant theater could do major renovations, including new seats, digital screens and more snacks. Jerry currently buys his own movies and has begun working a second job.

“It’s an all around bad deal to me,” she said, adding that Jerry Wann keeps the theater open “because it’s what he loves.”

Michelle Wann said the city would be out less money if they would provide funds to the existing theater for upgrades.

McIntire said B&B Theatres would like to open a theater in Durant because it fits into what they are doing in regional markets.

B&B’s previous project was in Hannibal, Mo. McIntire said that Hannibal and Durant are similar and that Durant is progressive.

“We’ve enjoyed getting to meet everyone,” he said. “We thought this would be a market to go into.”

Additionally, Rupe and B&B Theatres would like to acquire the existing theater and operate it until the new one is ready to go.

Rupe Jr. said the new theater, Durant Cinema 8 Inc., would keep money in Durant, instead of Sherman, Texas, because dinner often goes with a movie.

The new theater, which would be located on a 4.2 acre site south of University, will have an estimated investment of $4.5 million for land, building and equipment.

Upon returning back into regular session, Greg Massey moved to approve the loan, with $250,000 for 25 years at zero interest paid back monthly and a $250,000 loan that is forgiven if theater ticket sales reach 100,000 per each of the first 10 years, which would generate sales of $700,000 and provide Durant sales tax value of $31,000 annually.

Tomlinson said the theater will begin paying off the first loan installment two years after construction, and the second payment will begin when the theater opens.

Massey said funds for the movie theater are not from Durant sales tax funds, but rather funds that have been donated to the DIA for community economic development projects.

He said the theater will enhance existing businesses.

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 business loan with a SBA-504 loan program with the local banks.

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

Before DIA members voted, Lemons asked why Mr. Wann was not approached about the idea, instead of outsiders. She also asked why he wasn’t given funds to renovate the current theater.

Massey said the DIA doesn’t operate that way. Businesses have to approach them about requests; the DIA does not approach them.

“You’re letting our businesses down,” Lemons replied, saying that it’s not right that Wann never received financial help from the city to build a theater.

The motion was voted upon. The members voted to approve the two-part loan in the total amount of $500,000. Member Nate Morrison abstained from the vote.

“Thank you for believing in us. We’re looking forward to having a long history [with Durant],” John Rupe Sr. and Jr. said at the end of the meeting regarding the loan.

The Durant City Council will discuss the funding during their 4 p.m. meeting today.

In other reports, the DIA received a letter from Choctaw Nation Chief Gregory Pyle, thanking the group for the statue they purchased for the casino and resort’s grand opening in February.

Tomlinson presented the DIA with a booklet showing the group’s by-laws. It includes the original set of by-laws, established in 1957, two amended articles and the 1964 trust indenture.

Tomlinson said this is an effort to provide members with a history of the DIA, so they can better determine what the role of the DIA should be.

“This should make great nighttime reading,” Tomlinson said, adding that he is open to members sharing their ideas.

Once the DIA approves a set of by-laws, they will go before the city council for final approval.

Under new business, Tomlinson invited DIA members to the travel plaza’s grand opening celebration at 12:30 p.m. Thursday.

Under sales tax data, Durant City Manager James Dunegan presented a 10-year history report for one-percent sales tax revenue.

The figures, which represent numbers from mid-January to mid-February, show a sales tax collection of $253,998, an 4.40 percent single month percent change. During the same time period last fiscal year, Durant had $243,293.

Tomlinson said he hopes the increased sales tax results are “a new trend the other way.”

DIA members also agreed to recognize previous DIA Chair John Cathey at a more appropriate time.