May 16, 2006 5:45 pm US/Eastern
Coconut Grove Playhouse Boss Mittelman Resigns
Arthur Mittelman Accused Board Of Breach of Contract
The Historic Playhouse Is $4 Million In Debt
COCONUT GRIVE (CBS4 News) ―
The troubled Coconut Grove playhouse lost it's producing artistic director Tuesday, when Arthur Mittelman resigned the post he'd held for 21 years, amid allegations that he had taken out an unauthorized loan using a restricted grant as collateral.
Mittleman resigned by e-mail, in a brief note to the Playhouse board of directors.
''Unfortunately your continued wrongful breach of my employment agreement has forced me this day to vacate my position,'' Mittelman wrote.
The resignation comes as the historic Playhouse, heavily in debt, faces an uncertain future. Most of the staff has been dismissed, and the last play of the season was staged only when its star, Luci Arnaz, spearheaded a last minute fundraising effort.
Mittelman used the proceeds of a $125,000 loan to pay salaries at the Playhouse, including his own, but directors of the Playhouse said the loan was not authorized. The board was also upset because that loan was secured with the proceeds of a restricted state grant, which may have been endangered by the use as collateral. The grant was supposed to be used only for building improvements.
The theater is over 4 million dollars in debt, and the public squabble between Mittelman and the board has cast a pall on fundraising efforts. The board ordered the locks changed this week after stripping Mittelman of all duties running the theater.
The board has appointed an interim chief to begin an assessment of the Playhouse finances.
CBS4 was unable to reach Mittelman Tuesday.
(© 2006 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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