In May the theatre's landlord, the Metropolitan Transporation Authoirty, had threatened to evict the company because it owed $306,000 in back rent and interest. The deal, reached Aug. 25, will allow the company to pay the rent it has owed since June 1 on Oct. 15. The rest will be paid over about three years, at an interest rate of five percent. The M.T.A. will also forgive $59,000 in order to settle claims related to 3-Legged Dog's construction costs in the building.

Known for incorporating multimedia into its theatre productions, the theatre is co-producing Lawrence Wright's The Human Scale with The Public. The play will be presented as part of The New Yorker Festival in October.

The theatre's executive artistic director, Kevin Cunningham, told the Times that the company had recently increased its earned income and earned a major grant from a New York foundation. He said the amount of the grant would be announced in October.