The Promenade Cinema in downtown Sioux City remains closed one year after its doors were locked in a rent dispute that has escalated from a local district court ruling to the Iowa Supreme Court and a federal lawsuit.
YAM Properties, which owns the building on Fourth Street, locked out its tenant, ACX Promenade Cinema. According to court filings cited by KTIV, the landlord alleged that the theater operator, Main Street Theatres Inc., owed more than $100,000 in unpaid rent. Main Street Theatres Inc. has disputed the claim, arguing it never failed to pay rent and that the landlord improperly locked the company out and blocked access to its property.
Legal Battle Moves to Iowa Supreme Court and Federal Court
The financial and legal dispute intensified on August 9, when a district court ruling awarded YAM Properties more than $115,000 in unpaid rent and attorney fees. The ruling granted YAM the legal right to seize and sell any furnishings and property left inside the theater by the operator. Main Street Theatres Inc. filed an appeal on September 25, challenging that ruling.
While the state appeal is pending before the Iowa Supreme Court, YAM Properties initiated a second legal action in federal court. The new lawsuit seeks more than $4 million in past and future rent, with YAM arguing that the cinema operator remains contractually obligated for the remainder of the lease, which extends through 2032. A federal trial for that case is scheduled for October 2027.
Future Plans for the Downtown Fourth Street Property
Despite the ongoing litigation, YAM Properties intends to keep the building operating as a movie theater. Marta Kenny, director of real estate with YAM Properties, stated in comments reported by KTIV that the company is exploring several options to reopen the theater and is hopeful that a reopening can occur in the near future, though no specific timeline was provided.
Ragen Coty of Downtown Partners told KTIV that the large footprint of the theater anchors pedestrian activity that benefits neighboring establishments, many of which look forward to the venue returning to operation.
The Promenade Cinema originally opened in downtown Sioux City in 2004, operating before the property closure and ensuing litigation halted operations.
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