An extension on the contract between the current operators of the Rifle Creek Theatre, Kelly and Jacinto Iniguez, and the city of Rifle was approved by Rifle City Council members at the Jan. 20 council meeting, but it was also revealed that the operators owe the city more than $20,000 in back rent.

After 10 years of owning and operating the theater, the Iniguezes sold the building — originally known as the “Ute Theatre” on East Fourth Street — to the city in January 2006. The couple were retained to operate the movie theater while the city has been mulling over various uses for the building, including for community functions as well as a theater.

Since the sale, the Iniguezes have been operating the theater under a contract with the city, which was scheduled to expire on June 30, 2010. However, Kelly Iniguez wrote a letter to the city last fall asking to extend the contract to Aug. 12, 2010. If the contract was not extended, Iniguez wrote that their last day would be on Feb. 12, 2010. She also indicated that they intended to close the theater during the weekdays during the slow spring season.

However, the Iniguezes owe the city about $21,000 in back rent for a rented upstairs apartment, of which 80 percent of the rent was supposed to go to the city, according to the contract in the sale of the building.

Meanwhile, a group of Rifle business owners a few months ago got together and formed the “New Ute Theatre Society' (NUTS) with the intention of restoring the old Ute Theatre building to its exterior facade in 1947.

The group also wants to look into using the building for mixed use purposes, including a theater and for community concerts, performances and lectures.

Kelly Iniguez acknowledged the back rent owed and proposed that they would help the NUTS group at a consulting fee of $100 per hour in exchange for the back rent owed.

Council members did not “quibble” about the matter, Lambert said.

The contract extension was approved until August 2010.