Movie magic gone bad

| 30 Sep 2011 | 07:54

    $17 million trail of debt and judgement follows cinema developer, By Nick Troiano WESTFALL — It’s a story for the movies, but Westfall has no place to see it. Norman Adie, the man who promised to provide one and didn’t, is a Scottish businessman who first made his name in the cinema industry as a theatre manager in London. He arrived in New York City in 1971 and worked as production manager at Radio City Music Hall before he began building a big screen empire, which once included seven movie houses in the Times Square area. Decades later, that empire now appears to be crumbling and the entrepreneur who once inspired confidence in investors is now referred to by the same people as a crook and a con man. In 2002, Adie made his debut on the local stage in Monroe, N.Y., where he sought to renovate an old 1940s theatre into a modern five-screen complex. Legal issues emerged shortly after construction. One Liberty Properties, a real estate company that was a partner in the joint venture that owned the property, alleged that Adie, along with its own president and CEO, conspired to defraud the company. During this period, no progress was made on the new theatre, despite the old cinema having already been torn down and a new steel frame erected. Mayor John Karl said the Village of Monroe was about to declare the property blighted and take control, but Adie quickly returned from Brooklyn to ask for an extension to get his finances in order. Karl recalls being “jerked around” and feeling skeptical, but Adie settled the litigation, purchased back the property and opened the theatre in May 2008. The movie house operates successfully to this day, although Karl said that Adie still owes the town a $7,000 contribution for new light posts. Soon before the theatre’s completion, Adie set his sights on Westfall Township where he planned to convert the vacated Grand Union into an even larger theatre with seven screens. When word first broke in 2007, many residents were overjoyed. Local resident Carol Hass told the Courier, “I can’t tell you how excited I am about the movie theatre coming. I am so excited to know I will have a place to enjoy with my kids.” These hopes were dashed, however, when “Grand Opening” promises were missed, first by Thanksgiving 2007 then by Independence Day 2008. At the time, Adie claimed that there were complications with getting approval for building plans. But Charles Miller of Westfall Town Center Joint Venture says Adie fell into financial trouble, did not pay the lease and abandoned the project altogether in 2008-leaving behind an incomplete renovation. In June 2009, Pike County Judge Kameen ruled in favor of Westfall Town Center Joint Venture and issued a $12.7 million judgment against Adie and Westfall Cinema, LLC. Miller said that although he was aware of Adie’s past legal issues, he felt reassured by Adie’s long-standing reputation, self-confidence and ability to ultimately complete the Monroe cinema. Now he says that he believes his company was “dealing with a man who misrepresented himself and his financial ability.” Miller said, “This man knows no limits…he made a vain effort to defraud investors and to lead us up the garden path.” Around the same time, unbeknownst to Miller, Adie refused to pay rent on his Foxmoor 7 Theatre in Marshalls Creek, according to property owner Dr. Ram Rayasam. Adie took over that theatre in 2006, and by 2007, he and Rayasam were in legal battles. Both sides settled out of court, but Adie did not pay a dime more since, Rayasam said. Adie was evicted in December and owes some $3.45 million on his lease. “He is a con man and egomaniac. He does not pay anyone, even the little guys,” said Rayasam. In the aftermath, would-be competitors Rayasam and Miller are now friends that share much in common. While neither expects to recoup any lost money, both are close to securing new tenants to carry on their respective theatre projects and both are determined to ensure others are warned about Adie. As of late 2009, Adie promised to open another theatre in Middle Smithfield Township that would include a 3D and Imax screen. Kate Galinus, open records officer for the township, said Adie has not yet submitted any plans for construction but could not confirm a report by source familiar with the situation that a stop work order had recently been issued. “I’m sure that he can find people to dupe just as he duped us,” Miller said, “but I am hopeful that people will get word of him and not fall for his tricks.” Adie did not return phone messages seeking his response to this story.