Camden County is currently negotiating to assume control of the Scottish Rite Theater in Collingswood by the end of the year. This transition would shift the financial responsibility of the venue away from the borough to the county level.
The $1 lease and the burden of hundreds of thousands in loans
For more than two decades, Collingswood Borough has maintained a lease with the Scottish Rite Freemasons for a nominal fee of $1 annually. To manage the 1,050-seat venue, the borough established the Collingswood Foundation for the Arts in 1999. According to The Inquirer, the borough has historically supported the theater by providing loans totaling hundreds of thousands of dollars to cover annual operating costs.
While these loans were typically repaid through wedding bookings and ticket sales, a post-pandemic downturn and changing event trends have crippled the nonprofit's ability to settle its debts. This financial strain has sparked backlash from Collingswood residents, who have expressed frustration that local tax dollars are being used to subsidize a building that many feel does not serve the general public as effectively as other municipal facilities.
The Collingswood Foundation for the Arts and its lost IRS tax-exempt status
The proposed takeover by Camden County would likely lead to the dissolution of the Collingswood Foundation for the Arts. As reported by The Inquirer, the nonprofit has been embroiled in a regulatory crisis, having lost its federal tax-exempt status after failing to file required tax documents for five consecutive years. Commissioner Jim Maley, who helped found the nonprofit, described the filing gap as a mistake and noted that documents have since been submitted, though the IRS has not yet reinstated the exemption.
This governance failure adds urgency to the county's due diligence process. Louis Cappelli Jr., director of the Camden County Board of Commissioners, indicated that the county is currently conducting building inspections and internal financial evaluations to determine if the takeover is feasible.
A lease extending to 2092 and the fight for community access
The legal framework for the transition involves the assignment of the existing lease with the Scottish Rite Freemasons, which remains in effect until 2092. While Camden County already frequently sponsors concerts at the Scottish Rite Theater, the borough is seeking guarantees that the venue remains a community asset. Mayor Daniela Solano-Ward has stated she will only agree to the deal if Collingswood residents retain access for fundraisers and community events.
Furthermore, Commissioner Amy Henderson Riley has suggested that the new arrangement should generate direct revenue for the borough to offset recent school district budget cuts.. Riley has proposed a model where the borough could collect a surcharge of 50 cents to $1 per ticket sold at the venue, ensuring that the town benefits financially even after relinquishing control.
The uncertain future of Paula Lara and the theater's operational staff
One of the most significant unresolved elements of the deal is the fate of the current workforce. The Collingswood Foundation for the Arts employs Executive Director Paula Lara on a full-time basis, supported by a rotating crew of part-time sound technicians, lighting crews, caterers, and bartenders. Louis Cappelli Jr. has confirmed that the county is exploring staffing changes, and it remains unclear if Lara or her team will be retained under a new operational structure.
Beyond staffing, the specific identity and structure of the new nonprofit that would operate the theater under Camden County's oversight have not yet been disclosed. whether the county will implement a professional management firm or a new community-led board remains a key point of speculation as the year-end deadline approaches.
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