Gilford Cinema 8 closed, for now

GILFORD — The closing of Gilford Cinema 8, on Oct. 8, was not a reflection of the viability of neighborhood theaters, according to Stuart Scharff and Jeffrey Gilbert, owners of the Gilford Airport Plaza. Scharff said the box office and concession revenue had already exceeded all of last year’s receipts, even before the traditionally strong November and December movie season.

“This had more to do with what the previous tenant was not performing on, and less to do with the performance of the theater, from the landlord’s perspective,” Scharff said.

“There are some really exciting films that were on track that, I think, would have finished the year for the property with one of its best years in a long time. But, regrettably, we had to terminate the lease ... because the tenant was not meeting their contractual obligations, and it’s disappointing to us. We think highly of them. We worked as hard as we could to reach a point of agreement on their performance, but ultimately it wasn’t happening.”

Emphasizing the strength of movie theaters even in the age of home streaming services, Scharff said, “We feel a neighborhood theater is a valuable asset to Gilford and the Lakes Region, and an important part of our shopping center. A neighborhood theater brings people together and provides entertainment close to home. Gilford Cinema 8 also complements our other businesses at the shopping center.”

While “it is disappointing that there will be a period of closure,” Scharff said, “we are working, at this point very hard, with several people that have come forward — experienced theater operators — to take over and reopen the cinema.”

A lease with a potential operator has been drafted and is out for review, he said.

“There are a number of very good players in the business, and we want to make sure that what we do going forward is going to work best for this property and for the community,” Scharff said, noting he and Gilbert have worked hard at improving the property since they purchased the 10-acre parcel in June 2015, after having a management lease on the buildings since 2008.

After investing in a new facade, repaving the parking lot, and installing new LED lighting, they opened a new access road across from the exit to the Gilford Bypass, making it easier for people to continue across Route 11 and go straight into the plaza, rather than first turning left, then right onto Lakeshore Drive.

“That’s been a really nice improvement, and I think if you were to ask our tenants, they would say that that’s brought additional traffic in,” Scharff said. “We’ve continued to invest really heavily in the property, as evidenced by the ClearChoice pad on the corner. We’ve really improved the parking lot and striping and traffic flow there, and try to not only make the improvements, but keep them up.”

The 60,328-square-foot main plaza building has been 90% rented, with Tractor Supply, Coldwell Banker Realty, Gilford House of Pizza, and Axe & Ale Taphouse. ClearChoiceMD Urgent Care occupies a separate building on the property.

Scharff said Tractor Supply is doing really well since opening at that location, and Coldwell Banker has renewed its lease. He hinted Axe & Ale has interesting, new ideas to add entertainment concepts to its taproom.

“Ownership comes with a responsibility to be a participant in the community and the properties that we’ve owned,” Scharff said. “We’ve tried hard to look and see what do we feel this community would benefit from and how can we serve that need. And we try to support our tenants, because their success is our success. That’s why we want someone in the theater who will be as dedicated as we are to contributing to the community.”

About challenges cinemas have had to navigate, he said, “There’s no doubt that, between COVID and streaming, there’ve been a lot of strains and impacts in the entertainment business.

"I think it has morphed, and I think if you talk to other operators, you’ll find that there has been a real resurgence, because their owners are looking for ways to provide an experience to a theater-goer that they don’t get at home, and it involves the seating and the experience and the food. And those are all things that we want the next operator to continue to focus on and offer to people in Gilford and surrounding communities — things that they don’t get sitting in their living room, and a reason to go out and and have an experience with family, with kids, or otherwise. For a long time, you know, we had a vision of this concept as working well with our adjacent tenant, Axe & Ale, and it has.

“The numbers speak for themselves. The box office receipts and the concession receipts this year have been really, really strong, and we want to see that continue. I think that the industry as a whole also has had more product out there for a while ... and that’s being reflected in the theater.”

He reiterated, “Jeff and I are working hard with several interested parties to bring the right operator to reopen the theater.”