Lincoln Theater Company fights city over ‘unlawful’ contract termination

Since 2015, Lincoln Theater Company has staged countless productions in the Lincoln Civic Auditorium. Now, after about 10 months of conflict and negotiation, it’s filed two legal claims against the city of Lincoln and begun the search for a new venue.

According to LTC’s website, the auditorium was initially unequipped to be a site for the performing arts. But over the past five years, under a 15-year contract with the city, patrons, grantors and donors put over $150,000 towards improving and modernizing all aspects of the building, the theater group said. The efforts allowed LTC to provide several full seasons of professional theater, with shows in the 150-seat space for youth and adult audiences alike.

In October, the city told LTC its contract was being terminated. Even with the termination date extended to January 31, “the City refused to meet,” an LTC news release stated. On that date, the auditorium’s doors were locked and all of LTC’s contributions to the building were possessed by the city, the group said.

For future use of the venue, LTC would have to pay rent: It already cost $7,700 to stage February’s production of “Little Women, The Musical,” and later productions would cost up to $10,000.

The claims, filed July 7, argue that the City is guilty of “unlawful conversion of LTC property,” as well as unlawful license termination, due process and fair hearing violations, and defamation, among other grievances. An LTC investigation found “misconduct by certain City Council members who demonstrated a personal bias” in ending the contract, according to the release.

Lincoln city manager Jennifer Hanson did not respond to a request for comment.

In addition to the claims, LTC delivered a proposed settlement to the city which would allow the company to lease the auditorium and operate it “for the benefit of performing arts.” In the news release, LTC treasurer and principal negotiator Dawn Mauer stated the proposal addresses all of the city’s objections, as well as the fact that the city was unable to find a new lessee for the auditorium in February.

“This is a final and good-faith effort to avoid costly litigation for the city, reduce the city’s ownership cost at the Civic Auditorium and bring LTC’s popular performances back to downtown Lincoln,” said Mauer.

Should the proposal not work out, all donations to LTC will help it secure a venue for the 2020-21 season.

This story was originally published July 19, 2020 at 11:34 AM.