Plymouth’s Historic Penn Theatre Faces Closure Threat Due to Property Tax Issue

Plymouth’s iconic Penn Theatre which sits on Penniman Avenue, has been around for more than 80 years. However, it’s now facing the risk of closing its doors for good, if the city decides not to grant it a property tax exemption.

The group managing the theatre, also known as Friends of the Penn, applied for these tax exemptions after it bought the property in 2021. The group currently pays close to $25k annually on property taxes, contributing about $6,245 to PlymouthCity. Ellen Elliot, heading the Friends of the Penn group, expressed her frustrations, stating that the cost outweighs the value they bring to the city.

According to Ellen, the exemption is critical for the survival of the theatre as it also helps finance maintenance tasks such as repainting the theatre every five years, which costs about $6,300. Failure to get this exemption means that all the fundraising would almost entirely go to paying these property taxes, leaving nothing for charity missions.

While 2022 was relatively a good year for Penn Theatre, with over $515,972 in revenue, the overall expenditures still exceed the earnings, leaving the theatre at a considerable loss. The financial distress expresses Ellen’s concerns of running at a loss of over $50,000 annually – a financially dire situation.

Since its reopening in 2006 after a three-year closure, the Art Deco theatre has undergone close to $1 million in renovations. However, with the escalating tax fight, the theatre’s future has become increasingly uncertain, hence the appeal to the state tax tribunal.

Despite the ongoing battles, PlymouthCity officials maintain that Penn Theatre is a vital part of the community. They hope that regardless of the state tax tribunal ruling, they can still collaborate positively to secure the theatre.

Over the years, Penn Theatre has not only shown films but also hosted educational programs allowing teachers and students to enjoy free trips to the theatre. This initiative aligns their class subjects with relevant movies, providing an incredible service to the community.

With a negative outcome from the Michigan Tax Tribunal, critics believe this could be the end of free educational trips to the cinema, creating a significant negative impact on the community. And so, while awaiting the ruling, Friends of Penn are now turning to the community for help. They are organising a fundraiser event scheduled for September 15.

Overall, Friends of Penn are doing all they can to convince city officials on the importance of the theatre to the community. They are optimistic that the city would grant them the tax exemptions they need to keep the theatre running.