Sundance Rises Again
New cinema player is launching with the help of one of the Midwest’s oldest developers.
Randall Shearin

A rendering of Hilldale Mall as it will look after the renovation is complete.

Eight years ago, Redford partnered with General Cinema to create the independent film cinemas. When General Cinema declared bankruptcy in the late 1990s, the deals stopped and the enterprise ceased to exist. Paul Richardson, co-founder of Landmark Theatres, who had sold that circuit in 1998, joined Sundance briefly to foster it along in the first iteration. Richardson left to re-purchase Landmark in 2001 with Landmark co-founder Bert Manzari and Oaktree Capital as his partners. After buying, turning around and then selling Landmark in October 2003, Richardson knew there was more room for expansion in the market. Knowing that there was viability in the niche, Richardson again partnered with Oaktree and signed an agreement with Redford to create Sundance Cinemas. Today, he serves as president and chief operating officer of Sundance Cinemas.

At the 2005 ICSC Spring Convention, Richardson met Andy Stein, vice president of development with Palatine, Illinois-based Joseph Freed and Associates. Stein was working on the redevelopment of Hilldale Mall in Madison, Wisconsin, that he thought was perfect. He suggested to Richardson that he look at it. Richardson was already familiar with the Madison market — Landmark had owned the historic Majestic Theatre downtown — and agreed the market would be perfect for Sundance.

“Madison is a very strong market, particularly for its size, because of the combination of it being the state capital and the fact that the state’s major university is there,” says Richardson. “I jumped at the chance.”

The project that Joseph Freed was working on was a major redevelopment and remerchandising of Hilldale Mall. Freed purchased Hilldale in May 2004 from the University of Wisconsin Foundation. The center had a great location, but was run down and its tenant mix hadn’t kept up with consumer demand. Freed commenced a redevelopment of the center, which is anchored by Marshall Field’s and Metcalfe’s Sentry. Sundance Cinemas will anchor the center with a 30,000-square-foot, six-screen stadium seating theater on the south end of the property. Other new tenants include Whole Foods, Fleming’s Prime Steakhouse, Ben and Jerry’s, and FlatTop Grill. Freed has added residential uses, structured parking and many lifestyle tenants to the center to create an infill, urban-style center.

Madison is a perfect location for Sundance Cinemas’ first location because of the demographics that the city provides. Madison has a rich history as a political, cultural, educational and economic center. The top criteria for Sundance, says Richardson, is education level. Hilldale Mall, specifically, fit the criteria because of its high drawing retailers and planned redevelopment. Hilldale has the only Marshall Field’s in town (and soon the only Macy’s after the name is changed). The center also has unique retailers like a sought-after optical store that performs at greater than $800 per square foot.

“This is a truly unique opportunity for Madison to get the first of any new concept,” says Stein. “To get the first of a new theater concept by Robert Redford, the town is just abuzz. Everyone in town cannot wait for the theater to open.”

And they should be excited. What Sundance will build will be more than just a theater. In addition to having digital capabilities, the six-screen all-stadium cinema will have numerous amenities. Designed by Madison architects Kahler Slater, components of the theater include a bar, lounge and bistro. An expanded snack bar will also be a part of the theater. In addition, a rooftop bar will host patrons before and after shows. A coffeehouse will open at 6 a.m. and continue to run all day. Customers — regardless of whether they are moviegoers — are welcome all day. A small shop will also sell Sundance logo merchandise, as well as merchandise affiliated with some of the independent films shown at the complex.

“It is going to be a complex that has lots of activity,” says Richardson. “The movies are what pay the rent, but we really want to create a destination.”

Sundance will show specialized American and foreign language movies. One screen will be dedicated to more esoteric films, while others will play popular independent films. Through the cinema’s affiliation with the Sundance Channel, it will also provide proprietary programming.

“We’re going to have all the stuff that you expect — stadium seating, a great presentation, and the bar and the bistro have a design that you would expect from Sundance,” says Richardson. “This is going to set a new bar in the exhibition industry. The advantage that we bring to a development that the other art operators can’t is really the proprietary programming from the Sundance Channel, and even our affiliation with the Sundance Film Festival.”

Richardson cites the fact that more than 7,000 entries were received for the 200 slots of the 2006 Sundance Film Festival. That’s more than 6,500 movies with no venue. Sundance Cinemas hopes that it can bundle some of these titles and offer a venue for them.

“Title awareness is the single biggest problem independent filmmakers have,” says Richardson. “They need to get traction in the marketplace to develop a buzz about the film.”

For current and future locations, Richardson plans to build all-new theaters. The problem with existing theaters is that most do not have room for the bar, bistro and coffee house that Sundance requires. Sundance Cinemas is also committed to using local architecture firms for its theaters to capture the look and feel of the market. The company has several locations in mind for its future locations, with announcements expected at ICSC.

“We’re going to have big cities and college towns,” says Richardson. “It has to be a mix. We’re going to have anywhere that we can find a demographic with high education and where we can find the right real estate. The larger the city, the more difficult the real estate transaction.”

Because of the nature of independent cinema, Sundance expects its theaters to be smaller. Independent film is, obviously, independent for a reason. As an example, if you total the box office gross of all five Academy Award nominees for Best Picture in 2006, it is less than that of Wedding Crashers.

“Our pictures get an extraordinary amount of media coverage for their grosses because of their subject matter,” says Richardson. “It is a much smaller business than mainline releases.”

So, how active is Robert Redford in the development of the cinemas?

“Redford is extremely involved in putting together the project,” says Richardson. “His favorite part is the look and the feel. He is very involved with the architects and coming up with the décor and all the pieces that go with that. He is also active on the programming side with the Sundance Institute. They want the cinemas to serve as satellites for their programs and outreach.”

The Sundance Cinemas unit in Madison will open in November 2006. Joseph Freed and Associates is redeveloping Hilldale Mall in phases. The company has completed the first phase of the center and recently started construction on the second phase of the redevelopment. The theater will be part of the last phase of the redevelopment to open, along with Fleming’s, FlatTop Grill, an Aveda concept salon, and a branch of the University of Wisconsin bookstore.

“Sundance is really going to be one of the signatures to a landmark project in the Madison market,” says Stein. “The lease announcement has pushed our leasing plan along much more quickly than we anticipated.”