Investigations into the State Theatre and Michael Bacigalupo are ongoing

Four months after Bay City’s historic State Theater filed for bankruptcy, Bay City authorities released a statement about an investigation into possible mismanagement.

Former Bay City Special Event Coordinator Michael Bacigalupo, who also served as the State Theatre’s director, was accused of mismanaging the organization, leading to its financial collapse. Today, the State Theatre is for sale.

According to a statement from the State Theater Board, the Bay County Growth Alliance (BCGA) met with two board members and discovered that the State Theater’s books listed $800,000 as a grant, not a loan, to the BCGA, in Michigan Economic Development Corporation grants through 2023 for the restoration of Wenonah Park. The trusteeship of that grant was reportedly transferred from the City of Bay City to the State Theater.

Bacigalupo is accused of embezzling the loan to the State Theatre.

“To the board’s surprise, certain organizations contacted our team claiming that the State Theatre was in debt, including an $800,000 BCGA loan,” the statement said.

A July 10 statement from the City of Bay City confirmed that the Bay City Public Safety Department, with assistance from the Federal Bureau of Investigation, is conducting an investigation to determine the “truth of these allegations and their impact on the City of Bay City and other local entities.”

“The city cannot comment further on this matter as the investigation is ongoing,” the statement said. “We trust that our local and federal law enforcement will uncover the facts and ensure that justice is served. City leaders are saddened by this unfortunate situation and are committed to doing their part to help authorities uncover the truth. The legal process will take time and we ask the community for patience while we let law enforcement do their work.”