Demolition plan off: Star Plaza gets encore
In wake of community support, owners decide
to keep the venerable Merrillville venue open
The owners of the 37-year-old Star Plaza Theatre have reversed an earlier decision and decided to keep the iconic Merrillville venue open, citing an outpouring of support and sorrow from both the community and nationally renowned entertainers.
The reversal, however, won't change plans for a feasibility study for a Lake County convention center, officials said.
Merrillville-based White Lodging announced Aug. 10 it would close the theater that has hosted a wide spectrum of entertainment including the Oak Ridge Boys, blues artist B.B. King, Sesame Street Live and the Indiana Ballet Theatre as it demolishes the adjoining 330-room Radisson Hotel and builds a new upscale 215-room hotel in its place at the intersection of U.S. 30 and Interstate 65.
Charlie Blum, president and CEO of Star Productions, the entertainment division of White Lodging, said Thursday it was decided to close the theater due to the challenges that would result from the construction taking place next door.
An outpouring of support and letters of sorrow caused Blum, Bruce White and the White family of White Lodging to change their minds, Blum said Thursday.
He said when news of the impending closing surfaced, people began posting their memories of the theater on social media and he began receiving emails from people and groups who had performed there.
“We're excited. We never wanted to close,” Blum said. “It had been a difficult decision to make not just because we were profitable, but because we are such an economic driver in the area.”
Speros Batistatos, president and CEO of the South Shore Convention and Visitors Authority, welcomed the news Thursday but said it did not change the narrative regarding the need for a convention center and the food and beverage tax that would pay for it and other tourism-related economic development throughout Lake County.
“Personally, since my career started there…I'm happy, but it doesn't change our organization's messaging,” Batistatos said.
The area's message Batistatos speaks of is the need for approximately 100,000 square feet of space that would stop the region from losing business to communities like Fort Wayne, South Bend, Evansville and French Lick in Indiana and Tinley Park and Schaumburg, both in Illinois, among others.
Batistatos said the Radisson's closure represents the loss of about 79,000 room nights a year based on an about 62 percent occupancy for the 350-room hotel.
People who stay in a room typically spend $300 a night on other things like meals, entertainment and retail, which translates into an estimated $23.7 million economic impact to the region a year, he said.
A 3 percent food and beverage tax represents $225 million worth of countywide economic development. He said projects would not be isolated to a convention center but would be spent on projects in many Lake County communities including Hammond, Gary, Lowell and Crown Point.
“(The tax) would double all of the RDA (Northwest Indiana Regional Developmental Authority) investment in the last 10 years overnight,” he said. The revenues would be an economic driver in the region that would put union tradespeople to work on the many potential projects, he said.
However, Batistatos said even with the current reprieve, he is doubtful the Star Plaza Theatre will stay open over the long term.
He said it may be difficult for the theater to remain viable once long-term capital needs in the 37-year-old building need to be addressed.
“It is a stay of execution. For as long as we get it, we will be thrilled,” Batistatos said.
Since the Lake County Council made its request for a convention center feasibility study to the authority, Bill Hanna, president and CEO of the RDA, said work began to put out a request for qualifications to find someone to conduct the study and some preliminary work.
Hanna said, since hearing that the Star Plaza would remain, the RDA wants to talk with the Lake County Council to see if that has an effect on the planned study.
“It certainly is a change that should be considered,” Hanna said.
Hanna said it could alter the county's idea for the scope of the study or the council could opt to continue on the same path.
“We certainly would want to touch base with them,” Hanna said.
White Lodging's plans to build the new hotel would not be affected by keeping the theater open, the release said.
Felicia Joy, a spokeswoman for White Lodging, said this should be great news for the area, considering the economic impact the theater has had on nearby businesses.
“Everyone should be ecstatic,” she said.
Merrillville Town Council President Richard Hardaway, D-2nd, said he appreciates what Blum and the White family are doing for the community.
“This decision shows that they are definitely community partners and concerned about the quality of life for people in this area. We all would have missed the theater,” Hardaway said. He said there was some concern over what would happen with the entertainment portion of the community.
John Cain, executive director of the Northwest Indiana Symphony, said they had decided to perform at Highland High School's Monbeck Auditorium, which is spacious with great acoustics, but will be returning to the Star Plaza Theatre instead.
“This is very, very good news for the symphony,” Cain said.
The Star Plaza opened in 1979 as the Holiday Star Theatre with a concert by Donna Summer and has been in continuous operation since. It was renamed the Star Plaza Theatre when the hotel converted to a Radisson property.
It has played host to many entertainment giants, including legendary Sammy Davis, Jr., Whitney Houston, Christina Aguilera, ZZ Top, Alice Cooper, Diana Ross, Garth Brooks, Jamie Foxx, Luther Vandross, Bette Midler, Barry Manilow, Crosby, Stills and Nash, Tina Turner, Miles Davis, Patti LaBelle, Phil Collins, Ray Charles, Reba McEntire, Tim McGraw, Tony Bennett, B.B. King, Night Ranger, Kenny Chesney and Aretha Franklin.
