Ever since Rick Lombardo took the reigns and imprinted his vision on the San Jose Repertory Theatre, the performance center has had excellent seasons. But until recently, a behind-the-scenes drama was playing out—one that would test Lombardo, Managing Director Nick Nichols and the Rep’s Board.

The 2006 San Jose City Council unanimously approved a $2 million loan to the San Jose Repertory Theater, fondly known as The Rep. On Tuesday, the 2011 City Council will consider modifying this loan. The Rep has made progress in getting out of the red and into the black by reducing staff, designing less expensive sets, shorter show runs and using San Jose State University (SJSU) students in the most recent play to reduce costs. These cost reductions have allowed The Rep to make all of the interest payments totaling over $200,000. However, like some homeowners, The Rep was only paying interest and nothing on principal.