Recent history

Recent history

Apologies in advance, there may be inaccuracies and errors and omissions, subtleties may be missing, but this is basically accurate per numerous officials and principals over the years and recently – including extensive conversations, records, and documentation. Your fact-based corrections are welcomed. Click on "read more" to get all the details...

Some characters in this play:

·       Bill Hanney is an entertainment entrepreneur who also owns the North Shore Music Theater and eight or so other small theaters.

·       Tom Mayo is an architect who drew up some plans for the Old Town Hall conversion.  Owns Tom Mayo Associates, an architectural firm. 

·       Diane Mayo is a real estate broker.

·       The founders of the Ipswich Playhouse Society (IPS)… these days this group appears to be mostly inactive and perhaps some of these folks are no longer involved… were listed as: Jodi Panzica, vice president of development at East Boston Savings Bank; Judy Fields, an attorney for MetLife Mortgage Company; Chris Parker, a mortgage broker for MetLife Mortgage Company, and Tom Mayo and his wife Diane. This organization is a non-profit, hoping to lease and operate the theater.

·       Selectman of Ipswich.

The original idea was for the Old Town Hall to be converted into a theater and retail shops... This initiative was addressed at Town Meeting April 5, 2004 Article 20. It was thought to be good for the townspeople, neighboring towns, economy and culture, etc.

The building was sold in 2006 to Bill Hanney, planning to turn it into a theater and retail shops. Sometime along the way perhaps as an idea as early as 2004, a group called the “Ipswich Playhouse Society” was formed by Tom and Diane Mayo, planning to raise money and lease the building for cultural purposes.

The Quit Claim deed indicates that Hanney bought the building from the Selectman of Ipswich on August 14, 2006, for $300,000. At that time, the lot was assessed at $315,000, and the building at $116,200 for a total of $431,400.

The details of what the wording in the deed actually means is probably a matter for lawyers. The deed carries restrictions that it shall be used for commercial purposes (retail/services) - and a theater with up to 450 seats - for at least 5 years from the date of the deed transfer, which was 8/14/2006.

The deed also allows Hanney to sell the Old Town Hall to a third party with the town’s approval. If this happens, and the third party buyer decides not to proceed, the deed seems to indicate that the town gets first right of refusal, which probably means the Selectman can approve that the town repurchase the building and try again. First right of refusal is complex but seems to amount to this: if IPS or some other theater-capable third party does not successfully buy the building, the town appears to have the option to negotiate a buyback deal, or may elect to let Hanney do or not do more or less whatever he wishes with the property.

Hanney set up Ipswich RE Holdings - as the entity to handle this transfer and management of the property. Tom Mayo is referred to as "manager of record" in some of the documentation, but it is not clear what this means.

Hanney began demolition of the interior but several years ago decided not to complete the project, figuring that it would not be a good business decision at that point, for a variety of reasons. Since then, Hanney has negotiated on the lease or sale of the building with the IPS for $500,000 along with various terms and conditions they both added. Hanney notes the higher price is in part because of expenses for interior demolition to date, some heating costs, etc. It is possible but unconfirmed that Hanney may be using the building as collateral for a loan. Meanwhile IPS has been trying to raise funds and lease or buy the building for at least 4 or 5 years, and planned to hire a professional fund raiser but there is no record that that happened, and as of November 7, 2012 the total amount of funds raised is zero.

There have been several initiatives from IPS  to make this deal work but none have succeeded. At one point, IPS planned to raise funds to purchase AND renovate the building as follows: $25,000 for a non-refundable deposit and then $475,000 for the rest of the purchase price, and then $2,000,000 to $2,500,000 for things such as the renovations themselves, architectural fees, (broker commissions? more?) etc. Then the IPS planned to get tenants and manage the building. This did not work out. Most observers familiar with this project express concern that there is no viable business model for making the project work, financially.

At various points over the years, IPS asserted it was about to close one deal or another, but on the promised date no deal was inked and the project went on the back burner again.

There is of course scuttle-butt around town that some want to tear this 1833 gem down (Remember the Strand!) and put in condos or a public safety facility or XYZ. You might not believe how great this building is unless you see it in its current version, semi-gutted and revealing the incredible proscenium stage, two story ceilings, balcony iron work, raked floor, etc.

In 2011 Hanney himself reported that he was prepared to sign a P&S for a $25,000 deposit from IPS. Terms of the sale would have allowed IPS one additional year to raise the $475,000. The looming issue of how to raise the $2MM-plus for renovations seems to have faded into the background somewhere in here, but without it the IPS will be saddled with maintaining the building during the additional year of fund-raising and also saddled with the fund raising for the renovations, all having to be done without any income. 

There was at least one additional sticking point in the P&S negotiations in 2011. Apparently the old fire alarm system would not operate reliably under 40 degrees so the building will need to be heated above 40 degrees all winter while IPS raises the additional $475,000 to complete the purchase. Neither party wanted to pay for the heat or for new technology. It appears that Hanney addressed this issue and is in compliance with Fire Department regulations. In any case, this initiative fell through too.

A search of the Salem Registry of Deeds on November 13 confirms that the property has not sold as of this day.

Buildings suffer horribly without routine care by ownership… no one detects leaks, paint chips, water seeps, things deteriorate, there can be fire hazards, etc. It has been 8 long plodding years since inception. In late 2012 the project is exactly where it was in  November 2011 when a P&S was promised by early December 2011, which is exactly where it was in 2004 - nowhere.

That’s the scoop for now. Data rich corrections of substance are welcomed!