Alternative Media Group

Final curtain for Academy Twin

Author:

Gareth Narunsky

Posted:

Thursday, 1 July 2010

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Paddington’s much-loved Palace Academy Twin cinema has closed its doors for the last time.

Cinema lovers were left lamenting the loss of a cultural icon after Palace Cinemas and building owner the Greek Orthodox Community of NSW were unable to reach an agreement.

NSW State Manager for Palace Cinemas, George Livery said negotiations had failed on the issue of rent levels and the capital expenditure needed to bring the building up to modern standards.

“We’re been in negotiation for a number of years with this site,” he said.

“Numerous proposals have gone to the Greek Orthodox Community … and every time it’s been rejected and that certainly heated up in regards to more proposals over the last 12 to 18 months as we were getting closer to our lease option period.

“Unfortunately at every proposal it was just rejected outright and for that reason we unfortunately won’t be staying in the current tenancy.”

Mr Livery said the twin cinema was in a very dilapidated state and the rent being asked did not reflect its condition.

He said all Palace wanted was an agreement that would allow beak-even trade, allowing the group to put capital back into the site.

“We pride ourselves on the beauty of our cinemas and the uniqueness – the Academy lets that down enormously,” he said.

But Greek Orthodox Community of NSW President Harry Danalis said his organisation had tried to negotiate with good faith.

“We made them … a counter offer which was a reduction in rent, a substantial reduction we think of 15 per cent … which they rejected,” he said.

“We have reduced their rent in the past … five years ago by about 10 per cent, and that’s been an ongoing reduction of 10 per cent of their rent for the last five years.

“What they wanted was a reduction of 40 per cent, that is $200,000 less than what they were paying.”

Mr Danalis said rent from buildings such as the Academy twin was used to fund community projects.

“We can reduce rent by reasonable amounts if there’s a genuine case,” he said.

“The Greek Community is a charity, it runs a number of charitable things – Greek afternoon schools, churches, welfare services, hospital for the aged and [we] just can’t reduce our expenditure on those worthwhile projects so the Palace can make a profit.”

Mr Danalis confirmed that the Greek Orthodox Community of NSW was in negotiations with two other cinema chains to take over the building’s lease.

The Palace Academy Twin opened in 1974 and most recently has been home to the annual French, Italian, Spanish and Mardi Gras film festivals.

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