I've been perusing the forums here for days. I have read every thread I can find on sub-run theaters, boutique theaters, etc, and still have some questions.
My husband and I are exploring opening a for-profit arts center in our small central/western Maryland town (6000 and growing with a large development just outside the city limits). The building we're looking at is an old church (built 1907, 15,000 sq. ft total) located in the heart of the downtown area, within shouting distance of the commuter rail station that connects our growing area to Washington, D.C. and Baltimore. The town is VERY focused on bolstering the downtown business district and bringing arts and entertainment to the residents, so we look to get some major support from the Main Street org and city hall. Currently the only regular A&E venue is a large coffeehouse/cafe that packs in a standing-room-only crowd 3 nights a week for folk/traditional music. The nearest movie theaters are a Carmike multiplex and an old (dirty and dilapidated) sub-run in the small city about 15 miles away. The nearest Arts Center is in the same small city, but is a large main-stage non-profit with a well-established mostly-local customer base and we feel there is room to grow in that market regionally.
Our idea is that the town could support a second-stage "Center for the Arts" and small "screening room"-style movie theater in this location. Ideally, we'd be able to show "films" (digitally of course) and popular movies to boost profits and get people in the door. We are not interested in running this business as just a full-time theater, though if we could make it work would be fine with doing 7-day-a-week showings in our smaller venue.
There is a basement space currently being used as a church fellowship hall that we feel could be ideal for a small screening room set-up, with comfortable couches and easy chairs and interspersed side tables. We estimate approx $5 per ticket in the evenings and $3 during the day, plus concessions of course (traditional popcorn/soda/water/candy plus some healthy snack options). I don't expect to be able to get first-runs, and anyway we won't be able to afford the massive digital projection system it appears we'd have to have to get first-run permissions. I doubt our area would support an arthouse or fully independent film selection, at least not exclusively, but we would like to incorporate classics and select independents into our annual lineup.
The questions: What sort of AV system do we need to purchase for this size space (not sure of the dimensions yet, but it would likely not fit more than 80 people packed in) in order to get permissions from distributors as a for-profit? Would it even be possible to legally arrange a permissions structure from Swank or Criterion as a for-profit? We're new to the movie business (though not theater or music) and so are fine with getting a booker, but would we even be able to get a booker for such a small-scale operation (and would it be financially worthwhile for us to do so)?