OLD STORE TAKING ON ARTSY ROLE.

Byline: Deborah Adamson Daily News Staff Writer

The flashlight beam bounces off the basement wall of a partially renovated building, and Jennifer Kelton's voice echoes in the darkness.

``This is where the theater will be, and that's the lounge,'' said the tattooed entrepreneur and artist.

Where others see dust and dirt in a decrepit building that once was a Thrifty drugstore, Kelton envisions a bustling artists' hangout: an independent film theater and music lounge in the cellar, and a restaurant, art gallery and shops on the ground level.

By spring of 1997, Kelton hopes to debut her brainchild - Nomads 1800 - in the NoHo Arts District, a three-square-mile community that aspires to be the artistic heart of the Valley.

``It was solely created to support and sustain all of the arts,'' Kelton said of her nonprofit group, Nomads 1800 Inc.

Her group will be in good company.

Nearby is an Arts Park, designed for outdoor concerts and other events. A hop and a skip away is Actors Alley, a live theater that's moving into the historic El Portal theater at the first of the year.

``I think the project itself is excellent,'' said Ken Banks, co-originator of the NoHo Arts District. ``It is in keeping with the theme and general ambience of the area and it will definitely be an economic asset.''

Kelton took the name ``Nomads'' from her old West Los Angeles nightclub and combined it with ``1800,'' a number that to her symbolizes authenticity.

Planning a nexus for all things artistic, Kelton hopes the center at 5259 Lankershim Blvd. will draw actors, filmmakers, artists and musicians.

She said the center will be a venue for emerging talent and films.

Student productions, documentaries and foreign films that don't enjoy wide distribution will be a mainstay of the theater. Upcoming musicians can belt it out at the music lounge. Eclectic stores are planned.

Kelton said the restaurant will serve healthful foods, supplementing coffee, beer and wine concessions in the basement.

An interactive playground will provide tools and equipment so the public can experiment with various arts, ranging from painting to music.

Kelton and her architect, Shubin + Donaldson of Culver City, want to create an artistic atmosphere while preserving the building's original structure of exposed wooden beam ceilings and structural posts.

``We want to reflect the building's history,'' said architect Russell Shubin. ``We're taking an old building and recycling it into a new use.''

All this will cost $1 million. Nearly half will be funded by a loan from the Community Redevelopment Agency. The rest will come from corporate sponsors and grants.

CRA loaned $435,000 to John and Georgette Narguizian, owner of the building, for reconstruction.

Nomads 1800 Inc. will spend nearly $600,000 for interior furnishings, lighting and decorations. She has leased the building for 20 years.

Fred Bower, chairman of the NoHo Development Committee of the Universal City and North Hollywood Chamber of Commerce, believes that Nomads will be a main attraction whose drawing power will benefit surrounding businesses as well.

``It will draw people, and they will draw other people,'' he said.

CAPTION(S):

Photo, Drawing

Photo: (color) Entrepreneur Jennifer Kelton and ar chitect Russell Shubin are turning a former drugstore into a venue for young artists.

Phil McCarten/Daily News

(Drawing--color) A drawing shows the facade of storefronts at Nomads 1800, being developed in the NoHo Arts District.