March 22--The general manager of the historic Rialto Square Theatre in Joliet was placed on administrative leave Monday and an accounting firm was hired to review the theater's finances.
The Will County Metropolitan Exposition and Auditorium Authority board, which oversees the Rialto, has been trying to negotiate a separation agreement with Randy Green, but talks have reached an "impasse," according to the board's attorney.
Earlier this month, the board unanimously voted not to renew Green's contract, which is set to expire in December. Green's annual salary is $142,000.
Financial records show the theater did not make monthly federal income tax withholdings payments totaling more than $128,000 from November through February. Records also show the theater owes about $400,000 to vendors and other debtors, but has only about $70,000 in the bank.
Board members Monday tabled any action on a separation agreement with Green, allowing time for additional discussions. Green's original contract states he would be eligible for six months severance if the contract is not renewed in the final year of his contract.
The board appointed Jack Ericksen as interim general manager. Ericksen, who served as senior development officer for Catholic Charities of the Diocese of Joliet, was recently hired as the theater's development director at an annual salary of $68,000.
Ericksen said he had no question the Rialto, which has survived near closure in the past, will survive the latest challenge.
"I've been in Joliet my whole life," Ericksen said. "I can't imagine Joliet without the Rialto. If I have anything to do with it, it will stay open."
The Rialto, which opened in 1926, dates to the vaudeville era and is listed on the National Register of Historic Places. Restoration efforts saved it from the wrecking ball, and officials have long hoped it would boost the revitalization of downtown Joliet. The Rialto features live performances and also is used for wedding receptions and other functions.
Ericksen said he will handle day-to-day operations at the theater until a permanent replacement for Green is hired. Ericksen said he did not intend to serve as the theater's permanent general manager.
Attempts to reach Green and his attorney were unsuccessful Tuesday.
According to a memo to Joliet City Council members from City Manager Jim Hock, Green said he did not pay federal withholding taxes because he had to pay other vendors.
"There's a lot of concern," Joliet Mayor Bob O'Dekirk said.
In his March 11 memo, Hock told council members he discussed the issues with Rialto officials and shared his opinion that Green should be fired.
"He has breached the public trust by using employee's tax withholdings to continue to pay the staff salaries, including his own, while making vendors wait for payment," wrote Hock, who also said Green "is no longer effective in his position."
Authority board president Dan Vera said that although the theater is behind on past withholding tax payments, it is up to date on payments that were due in March.
According to Hock's memo, Green told Vera in mid-December that the withholdings were not paid. Vera directed Green to make the payments and frequently asked him about the matter but said he never received a direct answer. Earlier this month, another employee told Vera the overdue payments still hadn't been made.
The theater's latest troubles come about a year after officials were forced amid controversy to return a $350,000 donation to Joliet businessman Ed Czerkies for a new marquee that was already under construction. Along with the donation, the theater also lost money spent on the work on the new marquee before it was halted.
At that time, theater officials lost between $400,000 and $500,000 because of the donation and work done on the unfinished marquee.
The Rialto receives a $600,000 subsidy from the city of Joliet each year, but city council members earlier this month voted to delay the next quarterly payment -- due in April -- until there was a clearer picture of the theater's financial standing. The city also has requested to review the theater's financial records.
Green's separation agreement is expected to be discussed again at the authority board's meeting on April 6.
Alicia Fabbre is a freelance reporter.
