The Rio Theatre in downtown Overland Park could soon be returned to its former glory as a single-screen independent movie house, though the exact timeline is unclear.

The historic theater first opened on Christmas Day in 1946, but it’s been closed down since the pandemic. That closure was originally meant to be temporary, but it’s been more than six years since the theater showed something on the silver screen.

But that could be about to change. Dream Theatre LLC wants to take over the building and reopen the theater under the new name Dream Theatre at the Rio. Kansas City native and SNL alum Heidi Gardner appears to be involved, though she has not returned the Post’s request for comment.

“The project includes Art Deco-inspired design elements, a curated film schedule featuring theme nights, animated classics for children and adults, concessions, a cocktail lounge, and premium retail offerings,” said Kate Gunja, assistant city manager.

On Wednesday, the Overland Park Finance, Administration and Economic Development Committee voted 5-0 to proceed with negotiations on a potential funding agreement with Dream Theatre LLC. (Councilmember Chris Newlin, who chairs the committee, was absent.)

That action sets the stage for the city to eventually offer as much as $425,000 to the new owners to support the purchase and restoration of the theater through a forgivable loan, as well as a sales tax exemption on construction costs and revenue bonds.

As part of the deal, the theater would need to remain in operation for at least 10 years after the final tranche of money is dispersed and abide by other conditions, which will be finalized in the agreement.

“I feel like this is a day that we’ve been waiting for a long time, and I’m very excited about the possibilities here,” said Overland Park Councilmember Gregg Riess.

New owners want to restore Rio Theatre

Jill Turner, from STRATA Architecture, and Courtney Kounkel, from Monarch Construction, told the finance committee on Wednesday that the plan is to restore the theater and its iconic exterior design.

That will include a fair amount of work, including restoring the neon signage, replacing missing and broken tiles, installing new front doors, and some roof work.

In addition to obtaining the required city permits, the State Historic Preservation Office will have to review the project because the Rio Theatre is on the National Register of Historic Places.

How long it will actually take to do all of that isn’t entirely clear, so there isn’t a firm timeline for when the theater could reopen under its new name.

Rio Theatre deal comes with $425,000 from city

Under a future funding agreement, The Dream Theatre group could get up to $425,000 from Overland Park through a conditional, forgivable loan.

About half of that would go to help cover the cost of acquiring the property, with the rest going to completing restoration work and other improvements.

As part of that agreement, Dream Theatre at the Rio would be required to operate for at least 10 years, among other terms. If for any reason the theater were to go up for sale, the city would get the right of first refusal on the property, Gunja said.

On top of the grant, the new owners are asking for a sales tax exemption on building materials and costs, delivered through economic development revenue bonds. The city will also waive the standard bond application fees.

“We have been having lots of talk about this particular building in downtown and how excited we are to see this move forward as a unique entertainment opportunity, a historic building, a gorgeous facade,” Councilmember Holly Grummert said. “I’m glad to see that we are seeing some traction on this.”

Keep reading: Historic Rio Theatre in downtown Overland Park could see a comeback. Is SNL alum Heidi Gardner involved?