Trustees thank supporters and pledge smooth transition
The Paramount Board of Trustees has moved to dissolve the Paramount Center for the Arts Inc., which, when completed, could clear the way for a new entity to manage and operate the historic Peekskill theater, according to the board’s legal counsel, Dorf & Nelson LLP, who submitted a plan of dissolution to the State Supreme Court of New York on Friday, Nov. 16.
Given the current situation facing the Paramount and recognizing its fiduciary responsibilities, this legal filing was considered the best option available to the Paramount Board in order to responsibly address the organization’s liabilities and ultimately allow for the City of Peekskill to move forward on finding a new operator for the Paramount Theater as quickly as possible.
At a meeting held Oct. 25, the Trustees voted to dissolve the 30-year-old nonprofit corporation. At a subsequent meeting held Thursday, Nov. 15, the board approved the plan of dissolution. This option, while suggesting possible remedies for ticket holders, allows for all outstanding issues to be resolved under the supervision of the court. After considering the limited options available and meeting with the New York State Attorney General’s Office, the board determined this action was the best solution for all interested parties.
The cessation of operations at the Paramount was caused by an overall decline in the economy, a precipitous drop in private, government and grant donations and increased expenses, according to the filing.
“The Board of Trustees and the dedicated staff did everything humanly possible to keep the marquee lit and the theater operational amid immense financial challenges. The board wants to thank them, our sponsors, supporters, patrons and the community-at-large for their support of this most important institution over the last 30 years and for their understanding during this transition. This amazing performance venue should never be taken for granted in the future. Admire it, enjoy it, but most importantly, support it. As we have done throughout this process, we remain committed to helping the city reopen the Paramount as soon as possible,” said Paramount Board President Vincent C. Vesce.
Interested parties, including the city, were being notified by mail.