Grand Island City Attorney Kari Fisk gives a briefing to City Council Match 25 regarding a State Supreme Court ruling concerning the former AMC theater’s lease at the Conestoga Mall, (Carol Bryant, Central Nebraska Today)
GRAND ISLAND – City Attorney Kari Fisk gave Grand Island’s City Council a briefing of the Nebraska State Supreme Court’s March 14 ruling involving the former AMC theater at Conestoga Mall.
The case involved a lease agreement between Woodsonia Highway 281 LLC, which owned the mall, and American Multi-Cinema.
In 2022, Conestoga Mall agreed to sell the mall to Woodsonia Highway 281, which planned to redevelop the shopping mall property using tax increment financing.
AMC leased space in the mall. Woodsonia’s plans included demolishing the area In the mall including space where the theater was located. A dispute developed between AMC and Woodsonia regarding the lease and having the theater vacate the premises.
The case was heard in Hall County Court and Hall County District Court before going to the Nebraska Supreme Court.
“Because both the county court and the district court lacked subject matter jurisdiction, so do we,” the Supreme Court’s decision said. “We must, therefore, vacate the judgment of the district court and remand the cause to the district court with directions to vacate the judgment of the county court and remand the cause with directions to dismiss the action.”
Mayor Roger Steele asked Fisk whether the city had any legal exposure in the case. Fisk responded that the city did not have any exposure.
After the meeting, Fisk said that it is up to Woodsonia and AMC to negotiate the case.
Conestoga Mall 2022 LLC owned and operated the Conestoga Mall. Starting in 2003, the mall leased approximately 17,000 square feet to Dickinson Theatres. In 2015, American Multi-Cinema (AMC) acquired Dickinson Theatres.
In 2022, Conestoga agreed to sell the mall to Woodsonia Highway 281 LLC. In 2018, AMC exercised its option to extend the lease for a five-year term through Dec. 31, 2023.
“Woodsonia argues that the lease was terminated pursuant to eminent domain provisions,” the Supreme Court ruling said.
In September 2022, Woodsonia presented a study and redevelopment proposal to the Grand Island City Council.
The City Council approved Woodsonia’s redevelopment plan and its request for tax increment financing. Following the city council’s approval of the redevelopment plan, Conestoga formally conveyed to Woodsonia, on March 1, 2023, “all of Conestoga’s ‘right, title, and interest and to’ the shopping mall.
Woodsonia successfully negotiated the termination of most of the leases in the mall, with the exception of AMC and a few other tenants.
‘Because Woodsonia had been unable to negotiate termination of AMC’s lease, it took steps to terminate the lease pursuant to the ‘Eminent Domain’ provisions.”
On April 14, 2023, Woodsonia filed a “forcible entry and detainer action in Hall County Court.” A trial occurred in Hall County Court. The County Court “overruled AMC’s motion to dismiss.
“It therefore concluded the lease had been terminated and Woodsonia was entitled to restitution of the leased premises,” the court ruling said.
AMC appealed the decision to Hall County District Court, which affirmed the Hall County Court decision. AMC then appealed the decision to the Nebraska Supreme Court.
