It's too late for Paul Madden to get stage fright. The developer has just spent in the "$800,000-range" for the building that housed the old Capital Theatre and, more recently, CBC Radio.

He plans to pump another $3 million into refurbishing the former 500-seat venue, located at Duckworth Street and Henry Street in downtown St. John's.

"The journey of 1,000 miles starts with an operating line of credit," joked Madden, whose developments include Spa at the Monastery and the controversial condo development known as The Narrows being built at the former Standard Manufacturing site.

He intends to turn the theatre into a live performance space that fills the void between the 160-seat LSPU Hall and 1,100-seat St. John's Arts and Culture Centre.

Once open, the venue will be available for theatre, concerts, film screenings and lectures.

CBC Radio broadcast from the 324 Duckworth St. building for 54 years before moving to the CBC-TV building on Prince Philip Drive last month.

The national broadcaster converted part of the Capital Theatre into a studio after the popular movie house shut its doors in the late 1970s.

Madden, who remembers standing in line for movies at the Capital as a boy, started his bid to buy the building after a conversation with St. John's actor Rick Boland.

He said Boland told him about the need for a mid-sized theatre in the city and mentioned some potential properties.

Madden suggested the CBC Radio building, which he knew was going on the market.

He talked to others in the arts community and confirmed the need was real.

He then put a "significant deposit" down on the building.

The deal closed last Thursday and he picked up the keys at noon Friday.

A live theatre fan, Madden estimates that refurbishing the venue will take between nine and 15 months.

Walls and floors have to be stripped and the radio studio will be converted.

"This will be a very enjoyable challenge," he said. "This is something I know, I understand, and I like creating things. I like the fact you can come down here with a crew and start taking out walls; basically, taking something right from scratch and rebuilding."

Boland, who in a quest for such a facility spoke to a number of developers and looked at a various sites, welcomed Madden's purchase.

Noting there are things to be worked out with the arts community, he expected the venue would complement the city's existing theatre spaces, allowing for some shows to enjoy more feasible runs as well as possibly opening up new projects.

"There's a market and he's a developer so why not develop it?" the actor asked.

While the theatre will be his main focus, Madden plans to lease the remaining space in the building to artists and arts groups.

He wants it to become a downtown arts centre and said there's room available if there are artists interested.

Someone wanting to set up a recording studio has already approached him.

Madden said his plans for the building have gotten a lot of support, but he admits people wonder how he'll make money from it.

"Everyone seems to have this thing around the arts, that it is hard to get in and make money and make it work and make it as a business."

Madden is not too bothered by that sentiment, though. He looks forward to the challenge and said he's been there before.

"When I started the Spa at the Monastery, everyone told me I was nuts, that it was definitely not going to succeed, and yet it is certainly in the top three spas in Canada, by Chatelaine magazine."

By Steve Bartlett The Telegram June 5, 2007