Econsult Solutions, Inc. prepared a financial hardship analysis for iPic Theaters, which planned to replace the Boyd Theater with an 8-screen new construction, high-end theater. The Boyd Theater was listed on the Philadelphia Register of Historic Places and in order to demolish the building, according to the Philadelphia Historical Commission’s guidelines, the financial hardship application for a property must analyze “all purposes for which it is or may be reasonably adapted” and demonstrate that none of these uses is financially feasible.
Econsult Solutions Principal and Peter Angelides testified before the Meeting of the Committee on Financial Hardship of the Philadelphia Historical Commission on ESI’s analysis of potential reuse scenarios for the Boyd Theater.
Dr. Angelides analyzed multiple potential alternative uses, such as turning the space into retail or restaurant space, installing a 5 screen theater in the existing space, or converting the building to a theater for live performances or Broadway-style shows. The analysis used pro-forma modeling based on extensive research into revenue items such as ticket sales, concessions, and other revenue generators, as well as costs to operate the building and present shows. Because of the deteriorated condition of the theater and the expense of renovating the building and installing code compliant electrical, plumbing, HVAC and life-safety systems, there was no scenario in which the space could be again profitable.
The Historical Commission approved the financial hardship application in 2014