By Forrest Adams, Correspondent

Two groups of prospective buyers were scheduled to tour Chanhassen Dinner Theatres this week, according to  the theater company’s broker. 

Mike Hannon from Lingate Financial Group said one of the groups is local. The other is not. One is theater-based. The other is not. Citing client confidentiality, he declined further comment.

This comes one week after a deal by another potential buyer failed to materialize. On Nov. 16, Shorewood entrepreneur Greg Frankenfield announced the termination of his purchase agreement with Chanhassen Dinner Theatres.

“Unfortunately we were unable to reach satisfactory conditions on a key contingency of the purchase that made it an opportunity we chose not to pursue further,” he stated in a press release. Later in the week he confirmed the deal was off and elaborated on the inability to “reach satisfactory conditions.”

“It’s finished. It’s not a negotiating ploy. It’s done,” he said.

The holdup, he said, came after approximately 10 days of contract negotiations with the Twin Cities Musicians Union failed to achieve a contract that would be acceptable to both sides. In other media reports the union’s president was quoted saying the amount of money paid to the musicians isn’t significant enough to make a difference.

For his part, Frankenfield said the contract desired by the musicians’ union would have created “a company with two different classes of employees.” Actors audition for each show. The musician’s contract guarantees employment, mandating that nine musicians perform in each show on the main stage, according to Frankenfield.

“I was pretty disappointed that we couldn’t reach an agreement and move forward on the deal,” he said.

He denied the deal was about money or any other issues at the theaters.

“It’s not really about money at all.  It’s about the flexibility to operate the business in the manner we need to,” he said. “There were other challenges, but nothing that would cause us to terminate the deal.”

Hannen said it is not unusual “to have a deal” like this “hit a speed bump.”

“If this wasn’t the Chanhassen Dinner Theatres, it wouldn’t even be newsworthy,” he added. 

The city of Chanhassen is an interested spectator on the sidelines.

“It’s a private matter,” said City Manager Todd Gerhardt. “I wish both parties the best in their negotiations.”

Gerhardt said this would not affect the city’s plans to create a tax increment financing District near the theater complex. The TIF District would be created in the future to provide an incentive for property owner Bloomberg Cos. to attract new businesses as a means of offsetting special assessments to Bloomberg by the city for the construction of a new road to a new 420-stall park-and-ride facility scheduled for construction next year south of the theater complex.

Bloomberg Cos. is also watching developments with interest. Bloomberg representative Clayton Johnson said he was disappointed Frankenfield was unable to purchase the theaters.

“We think he would have been a good owner,” Johnson said. “He was very qualified financially and had a strong interest.”

But in the end, “I don’t think it changes anything.” Regarding future redevelopment of the property, “It would help to have clarity about who the new owner is going to be,” said Johnson.

Hannen denied a report in the Pioneer Press that Chanhassen Dinner Theatres is on the verge of bankruptcy.

“There are tremendous cash strains on the business,” Hannon said. “There is no denying that. But we already got through the tough time. It was this summer. That was a very troublesome report. I know the people who are familiar with the theater’s books, and none of them talked to [the Pioneer Press]. Whoever talked was not well-informed.”

Frankenfield was chosen because he had financing for the purchase in order, said Hannen. In the time it took Frankenfield and Chanhassen Dinner Theatres to sign and terminate their purchase agreement, other interested buyers were shoring up their financing, said Hannon.

“We have had a number of people competing for this. When the news came through that Mr. Frankenfield was terminating his purchase agreement, the other folks contacted me. We chose Mr. Frankenfield because he had all of his financing lined up. Now, in some cases, the other parties have made their financial arrangements,” he said.

Forrest Adams can be contacted at  fadams@swpub.com.