Odeum Corp. Asserts Ownership Of Theater; Erinakes Disagrees
The building at 59 Main Street was in the Erinakes family for decades, but a recent title search says ownership was transferred to the nonprofit Odeum Corporation in 1991.
The Odeum Theatre belongs primarily to the Odeum Corporation, board member Jeff Gladstone told the Town Council Monday night. And, he said, since no mortgage payments were ever made, a $500,000 promissory note from 1992 is no longer valid.
“At this point there is no legal obligation to pay back the note,” said Gladstone in a recent interview. “We are the owners of the property. There is no question to a certainly that we own the property."
Stephen Erinakes disagrees.
“In their mind, they acquired a piece of property for nothing,” he said Friday.
Erinakes’s mother, Blanche, was the owner of the theater when the Odeum Corp. was established in 1991 as part of the move to transform the theater into a nonprofit organization. One of the benefits of nonprofit status is tax-free status, freeing the building from property tax obligations.
Blanche Erinakes has since died. Over the years, Stephen Erinakes worked closely with the Odeum Corporation in building a performance venue. Then the Odeum closed its doors, in 2007. Tighter fire regulations required renovations the corporation could not pay for.
When the Town of East Greenwich decided to put the Odeum back on the tax rolls in 2009 – it sent the corporation a $20,000 property tax bill – Erinakes and Odeum Corp. Board President Frank Prosnitz appeared before the Town Council to seek time to reorganize and reopen, retaining nonprofit status.
Since then, the Odeum Board has undergone a nearly complete transformation, with many new members, including Gladstone, a lawyer. Earlier this year, they received a $155,000 grant from the Champlin Foundations to help complete renovations needed to reopen. The Town Council has granted them a series of extensions to reopen. The Odeum now has until October 31 to reopen or face having to pay taxes for 2009-12.
Earlier this year, the board decided to do a title search to determine who exactly owned the Odeum Theatre building. They hired Pilgrim Title to do the search. Pilgrim’s search turned up four owners: the Odeum Corp., which it said owned 71 percent, and three others, who owned 9.5 percent each.
“There were three transfers in 1984 of just under 10 percent [each] to three of Blanche Erinakes’s grandkids,” said Gladstone.
Apparently, no one ever told the three grandchildren, he said. Board members have met with all three of them in recent weeks, outlining the situation. One of the grandchildren, Stefan Coutoulakis, will be joining the board, Gladstone told the Town Council on Monday.
Stephen Erinakes said he has not received any documentation that convinces him he does not own the building.
“They haven’t come up with any proof,” he said. He said his lawyer had asked for documentation but had not received anything. Gladstone, alternatively, said the Pilgrim Title information had been sent to Erinakes’s lawyer three months ago.
Erinakes said he never demanded mortgage payments because he knew the nonprofit was cash-strapped. “Why am I going to ask for money when I know it doesn’t exist?” he said.
“I call them false because they take advantage of a certain situation. These people are hiding behind the law,” said Erinakes. “This building was in our family for 60 years.”
Monday night, after appearing before the Town Council, Frank Prosnitz offered his own thoughts.
“Steve and I worked together for a lot of years,” he said. “We have welcomed him. We hope that he comes on the board. Our only issue is to reopen the theater and do what we did before and honor his family.”
Tribbles 2
8:55 am on Tuesday, July 24, 2012
Wow, if that doesn't sound like out and out thievery. it was common knowledge that Steve was holding the note on the building and forgiving payments since the Odeum Corp. was broke.
laj2
10:25 am on Tuesday, July 24, 2012
Thievery? Interesting, because it was also common knowledge that Mr Erinakes was trying to sell the Odeum building. More that one arts organizations approached them expressing a desire to help reopening the Odeum, only to be met with disinterest.
It wasn't until the Town put it back on the tax rolls that "suddenly" the "Board" renewed it's efforts to reopen
.Has anyone noticed that few of the local arts groups have embraced the fundraising efforts ? And how much ( besides the Champlin Grant of $155,000.00 ) in total has been raised?
Thievery.....yes, maybe, but on who's part?
Class of 98
10:45 am on Tuesday, July 24, 2012
what affect does this have on the opening? and why has it taken this long for this issue to come to light?
Elizabeth McNamara
12:04 pm on Tuesday, July 24, 2012
Good questions. This information has no immediate impact on the re-opening. The only impact would be if someone, Steve for instance, decided to sue over this. As for why it's taken so long for this information to surface, well I'm not at all sure on that one.
laj2
11:31 am on Tuesday, July 24, 2012
Two great questions for both the Town Council and the Board. The question of ownership of The Odeum building has been the "elephant in the room" since the reopening was announced, and always side tracked or flatly not answered by The Odeum's leadership. Now that it is FINALLY being addressed, and (hopefully) with a COMPLETE transformation of the Board the affect will only be positive, and we can once again have confidence that The Odeum will reopen.
David Frank
11:38 am on Tuesday, July 24, 2012
Steve owns it and we all know it. If he doesn't then they owe him the note. Either way he owns it.
Tired of crud
1:23 pm on Tuesday, July 24, 2012
Sorry I left this out, but one of the grandchildren is joining the board against Steven? Again, your grandmother would be ashamed.
Mariann
1:24 pm on Tuesday, July 24, 2012
It's Steve's ! They are just using legal Mumbai jumbo cuz they are greedy! This is crazy. He would never give it away. He's worked to hard to keep it. We all know him as a truly kind and generous gentleman.
laj2
1:25 pm on Tuesday, July 24, 2012
To call the Board "a bunch of snakes" is somewhat heavy handed, It's seems the new board members are trying to do what's best for the Odeum non-profit, not for self interest. Mr. Erinakes and Mr Prosnitz have been working together running the past Board for 20+ years, and one would think the conversation at some point would include debt repayment, and some sort of agreement. Being a businessman, I cannot believe 20 years would go by without Mr Erinakes questioning debt repayment especially after the decision of reopening and a new Board was named. It would seem that after 2 decades both Mr Erinakes and Mr. Prosniz would know the character of the person with whom they have worked so closely with. I'm sure as records are released and more information comes forth, we will find out the truth, and hopefully The Odeum will once again be a source of pride for Est Greenwich.
DL
3:31 pm on Tuesday, July 24, 2012
The Odeum Corporation should be ashamed this is just a bunch of greedy lawyers using the law to benefit their greed. Mr. Erinakes went out his way to help out the Non-profit organization and now this is what he gets in return! Everyone know that the Erinakes family has owned that property for years, it makes me sick to see these people who served with Steve on the board go behind his back and steal his property. I suggest that people speak up because this wrong!
Alan Clarke
4:30 pm on Tuesday, July 24, 2012
The board should be really proud. Attorney Gladstone should be proud. (Donald Duck's natty cousin, if memory serves.) This is precisely what we come to expect because we can never forget that THIS IS RHODE ISLAND and anyone who expects a smidgen of morality and/or doing the right thing should move on. This ain't the place! This is what happens when you have too many lawyers in the pot. Clear the town council of them, clear the Odeum board of them. We need more Henry Boezis and less lawyers. Give the fool theater back to Steve Erinakes and let him demolish it because the Odeum board doesn't deserve it and there's little else you can do with it. They knocked down the Kent Theater for a bank. We lost the Hilltop Theater property to a Nursing Home. I think another restaurant is in order. You people who have told me that Steve doesn't own it any longer and you agree with the lawyers, don't even talk to me any longer. The end justifies the means? Phooey! Gawd, I wish I didn't love this old town so much, the old town, that is.
laj2
4:57 pm on Tuesday, July 24, 2012
With no disrespect Mr Clarke, is it moral to keep a property off the tax rolls while trying to sell it behind closed doors? Do you feel that Mr Erinakes did not have the business knowledge or sense to make a good business deal? I too love this old town and let's see what develops before making judgements. That's what I'm trying to do.
laj2
4:37 pm on Tuesday, July 24, 2012
Why don't we wait and hear from both parties. Let them explain what the agreement was before we start a witchhunt. Some people might think it's wrong for a person to be trying to sell a property that technically does not belong to them....
mildred bajakian
5:41 pm on Tuesday, July 24, 2012
mjb
JUDGE NOT LESS YE BE JUDGED.....For those of you who presume to know what my mother would think about her grandchild are assuming to know too little,
Please keep the focus on the correct issue and stop this smudge campaign....I thought more of and held the town folk in greater regard... the grandchild's mom
Elizabeth McNamara
8:52 pm on Tuesday, July 24, 2012
Jane E. Johnson,
I've deleted your comment. This is clearly an emotional issue, but I will ask you and all commenters to refrain from harsh language. Please comment again w/o accusing others. Thanks.
rukidding
10:35 pm on Tuesday, July 24, 2012
Truth hurts Liz?
Allen Gammons
11:42 pm on Tuesday, July 24, 2012
Im ashamed to have supported this group.... I rather see it go away now.. instead of a community project to be proud of... it is now an embarrassment..
laj2
8:19 am on Wednesday, July 25, 2012
I might be in the minority, but I am proud and thankful to the Board for finally addressing and answering the questions that have been murmured around town for the past few years.. Mr. Gladstone states," At this point there is no legal obligation to pay back the note,” is he saying they will not pay any money or that they are just no legally obliged to.
Why were the other three owners never informed that they even had ownership in the Odeum?
I have to say, there are many of us who have been sitting back and waiting for the truthful information to come out before we would think about once again supporting The Odeum. We donated and supported before, only to watch a fabulous venue fall in disrepair. For the same people who allowed the Odeum to deteriorate then to suddenly want to reopen it ( only after it was put back on the tax rolls) along with the common and first hand knowledge that Mr. Erinakes was actively trying to sell the building was very suspect to people. Now at least the public is finding out the truth, and things will move forward from here.
Alan Clarke
8:56 am on Wednesday, July 25, 2012
I'm sorry. I'm sorry for the rampant rant yesterday when I first read about this issue. I'm sorry I went out on several tangents having little or nothing to do with the Odeum. I'm sorry I wasn't first with a comment and then left the issue never to return and witness the inevitable foolishness that seems to always ensue in this venue. My thoughts this morning are much more organized and are totally aligned with Allen Gammon's correct response. It's time for the Odeum to go away and for Steven to reopen the Greenwich as a small town's movie theater as I have always wished he would. I really am sorry I stayed here and witnessed what this town has become.
Felicia
9:22 am on Wednesday, July 25, 2012
I too have served in the past on the board and have helped with fundraising, held road races ect.
It is much too complicated to judge in this forum. The one thing I do have to say is
Has anyone ever heard of Steve Erinakes doing ANYTHING that resembles greed or selfishness? Didn't think so..........
gime
11:16 pm on Sunday, July 29, 2012
To make judgements on the current situation with the theater based upon one article and town gossip is immature and almost embarrassing. It is impossible to understand everything going on when all "information" given thus far has been opinion, can we trust one article to provide all the facts to us? Absolutely not, pick up two newspapers reporting the same story and are there not differences? As for anyone making personal comments about Steve Erinakes: hold a conversation with the man for five minutes and see if your statements still hold. What I have read on these comments resembles arguments over a high schooler's facebook status. Until you have spoken to Mr. Erinakes or Prosnitz all judgemental opinions should be kept to yourselves. Imagine if you were being spoken about in this manner based on an article? (Especially one missing so many details?)
Elizabeth McNamara
7:22 am on Monday, July 30, 2012
gime,
Help out. Shoot me an email and fill me in on some of those details!