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Originally Posted by OldDartmouthMark
I don't think it has much to do with Cineplex's obligations, in fact their only obligation in this case was to get some return on their investment by cutting a less-profitable venue.
I believe the reason for the clause is to prevent the theatre from being used in a manner that would compete with their existing theatres. Although, intuitively one can surmise that they would not have sold the facility if it were able to generate attendance numbers that would actually constitute competition for their existing theatres.
To me it seems like a standard clause that would be relevant in the sale of a multi-theatre complex that had the capability of stealing audience from their other complexes, rather than an old single-theatre facility. Probably the type of situation whereby they use a standard contract for all their sales and if nobody objects to the clause being in the agreement, it stays in there. The purchaser would likely not negotiate this point if their intention is to develop the property into offices or residential.
FWIW, I don't think the city would be the best operators in this case. I truly believe the best case would have been a group with a passion to preserve the theatre and support the arts community to take over operation of The Oxford (as has been the case in other theatres mentioned in this thread). That said, I suspect it won't or can't happen, as the purchasers appear to have bought the place in order to develop, not preserve.
The optimist in me maintains a glimmer of hope, but I would be surprised if it actually happened. More likely status quo for Halifax - tear it down or façade it, put up a shiny glass box. Eventually the people who actually remember attending the theatre will die off, and it will remain for future generations to see in online photo archives.
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I think this is pretty vile what Cineplex has done. My understanding is that Empire, when selling to Cineplex, included a requirement they had to run the Oxford theatre for a certain number of years.
All they did was run out the clock and not only sell ASAP, but also put in this disgusting anti-competitive clause.
IMHO, this clause however would not kill use of the Oxford as a theatre. That clause is what a lawyer might all a term in restraint of trade, and would be read narrowly by a judge.
So, if the Oxford re-opened as a different kind of film theatre-- not directly in competition with Cineplex, I think it would be fine.
Imagine Cineplex's PR troubles if they decided to sue. I'd boycott the hell out of their garbage theatres all over HRM.