Moraga likely to lose historic Rheem Theatre due to high rent

MORAGA, Calif. (KGO) -- When it opened in the 1950's, it was billed as the first theatre in the country to have stadium seating. And it has managed to survive, when so many others have fallen to the massive cineplexes. But now, Moraga's historic Rheem Theatre may be the next to go.

Barring a last-minute plot twist, the iconic Rheem Theatre will close June 30, after a landlord who's been subsidizing the rent for years decided to raise it suddenly and dramatically.

"It was a 60-percent rent increase," Rheem Theatre operator Derek Zemrak said. "A lot of money, money that we cannot afford."

Zemrak just invested $250,000 on digital projectors two years ago and he's put in new seating, but he can't afford $8,000 a month in rent for a theatre that often draws just a few people for a first-run movie.

On the phone, landlord Mahesh Puri told ABC7 News: "If somebody comes to the plate and I can make a little return on my investment, I would be happy to work with them."

"What we're talking about here is a rent increase that amounts to $3,000 per month," Town Councilman Dave Trotter said.

Trotter says the locals have stepped up over the years, and despite the ominous marquee, the end of the story has yet to be written.

"I have no doubt the Moraga community will step up, given the opportunity to do so, that requires both the theatre operator and property owner can get together and agree that that makes sense for them. So that we can continue have this jewel in Moraga," said Trotter.

As it is now, the landlord says the current $5,000 per month rent barely covers his property taxes.

Trotter said anyone concerned about this theatre closing should show up at the next town council meeting on June 10.