1:58
The Galaxy Theatres and Colony square have been the heart of the Atascadero downtown area for many years.
But since the pandemic hit, the theater, restaurants and other businesses were forced to limit service or shut down.
Because of this, the theater has not been able to pay the rent to Cinema Square, which owns the property and leases space to the Galaxy Theatres, Que Pasa Mexican restaurant and Slo-Do-Co.
Cinema Square property owner Jeff Nelson has been unable to pay his mortgage and could potentially face foreclosure by a group of lenders.
Nelson said he’s been caught in a difficult situation.
During its Feb. 23 meeting, the Atascadero City Council acknowledged COVID-19 s significant impact on the Colony Square business center and vowed to help delay the property s possible foreclosure. Cinema Square LLC leases commercial property within Colony Square to Galaxy Theatres Atascadero, Ques Pasa! Mexican Cafe, and SloDoCo. Due to stay-at-home orders, the businesses underwent temporary closures, changes in operations, and revenue loss, so many haven t been able to afford their monthly rent payments. Galaxy Theatres has been closed since the onset of the pandemic in March 2020, except for three days. click to enlarge Photo Courtesy Of Galaxy Theatre Atascadero Facebook Page