The City of Montrose is moving ahead with a proposed land exchange that officials say will benefit both Volunteers of America (VOA) and Magic Circle Players, the community theater that has operated in Montrose for more than 50 years.
The deal passed its first reading unanimously, with a final vote scheduled for Dec. 2 that would allow the city to move ahead with the deal.
The arrangement has been in discussion for several years as the city and Magic Circle have looked for a long-term solution to a complex land-ownership setup.
Magic Circle Players owns its historic theater building on South 12th Street, but the land beneath it is owned by VOA, making major building improvements and fundraising efforts difficult, though the building has undergone significant improvements in recent years.
City officials say the new agreement will allow Magic Circle Players to eventually purchase the property outright, paving the way for future expansion.
At the same time, VOA will receive land adjacent to some of its existing property, allowing the nonprofit to plan for additional senior-oriented services and expansions in the future.
Future expansion was a reason the nonprofit organization was reluctant to sell the property on which Magic Circle sits.
How the deal works
Under the proposed structure, the city will transfer two vacant parcels it owns off Niagara Road — totaling about 4.14 acres — to VOA.
The site, near the community garden area, has historically been used for equipment staging, street-sweeping storage and snow-pile operations, City Manager Bill Bell said at the Nov. 18 City Council meeting.
Bell said those activities can be relocated.
In return, VOA will convey to the city the 1.15-acre South 12th Street property where Magic Circle Players performs.
Appraisals determined the city-owned Niagara parcels are worth about $30,000 more than the VOA property; VOA has agreed to pay the difference.
Bell said the Niagara Road property is surrounded by senior-focused services — including the Pavilion, the Senior Center, and PACE — and VOA has been planning potential expansion for several years.
Magic Circle Players would gain a path to full ownership
Once the land swap closes, the city will own the Magic Circle site and lease it back to the theater for a nominal fee. Magic Circle Players would then be able to launch a capital campaign to raise enough funds to purchase the property outright from the city.
That pathway is expected to give the nonprofit long-term stability and unlock future renovations.
Magic Circle recently completed about $1 million in improvements to its building, but its leadership has said that leasing the underlying land from VOA has limited its ability to plan for larger upgrades.
“Magic Circle Theater has been active in Montrose for over half a century, and I think the value they bring to our community is immeasurable,” said Mayor Dave Frank. “This is one of those definite win-wins. Not just that. In my mind, it’s a no-brainer.”
The city emphasized that the proposed swap aligns three community needs: land security for Magic Circle Players, expansion capacity for VOA, and productive reuse of city-owned property that has minimal operational purpose.
“We don’t have a lot of need for the property,” Bell said.
Once approved on second reading, the agreement would give VOA a four-month due-diligence period, with closing tentatively scheduled for April 8, 2026.
During that time, the city will begin the process of rezoning the Niagara Road parcels from Public (P) to R-3A Medium High-Density to support VOA’s intended uses.
Justin Tubbs is the Montrose Business Times editor. He can be reached by email at [email protected] or by phone at 970-765-0915 or mobile at 254-246-2260.
