Since 2012, the Island Theatre in Oak Bluffs has sat vacant at the top of Circuit avenue. Now, town officials are considering plans to take the building by eminent domain.

At Tuesday’s select board meeting, members expressed a desire to address the more than 100-year-old theatre, which has fallen into significant disrepair since its closure. The board is weighing an article for the annual town meeting in April that would allocate $5 million to acquire the property.

According to town administrator Deborah Potter, the $5 million figure is projected to cover the eminent domain taking, associated litigation fees and renovation, which would likely encompass demolition.

On Tuesday night, members expressed concern about the building as a potential safety hazard and a blight on the town’s main commercial drag.

Town officials say the building is a blight. — Ray Ewing

“I just think it’s time for us to take these issues on again,” said select board chair Dion Alley. “If the voters want to do it, we’ll do it. If not, we’ll just let go and we’ll move on.”

Select board member Sean DeBettencourt was in support of moving forward with the process, but noted that an eminent domain taking is not something to be taken lightly.

“​Nobody wants to go down this road, but it’s a wonderful thing to begin the process,” Mr. DeBettencourt said. “It’s been a catastrophe.”

In an email to the Gazette, Mr. Alley stressed that the town hoped to purchase the building outright and eminent domain would be a last resort if that failed. 

The Island Theatre opened in 1915 as the Eagle Theatre (before that it was known as the Castle Theatre) showing both movies and plays. The site of the 1975 premiere of Jaws, the stucco building’s big, red letters have long been recognized as a part of the Circuit avenue landscape.

The historic building is owned in a trust held by the Hall family. The family also owns several other prominent Island properties. The years since the Halls ceased Island Theatre operations in 2012 have seen friction between the family and the town as the town has attempted to enforce the Halls’ upkeep of the building.

In 2016, a board of survey consisting of a structural engineer, the Oak Bluffs fire chief and the Aquinnah town administrator declared the building a public safety hazard, giving the town’s then-building commissioner the ability under state law to demolish the building. And in 2017, officials brought a request before town meeting voters to allocate $200,000 to make emergency repairs on the building, which voters denied.

Under a court order, the Hall family completed emergency repairs in 2017 to keep the building standing. But since then, it has remained in disuse and fallen into further disrepair.

The Oak Bluffs building inspector and fire department could not immediately be reached for comment regarding the current safety status of the structure. 

In a statement to the Gazette Wednesday, Ben Hall Jr. said the town did not contact him to appear at Tuesday’s meeting. He described the town’s expressed concerns about the structure’s safety as “politically motivated” and claimed the work previously done on the building allows it to withstand wind speeds up to 130 miles per hour.

Town meeting could consider approving funds for the purchase this spring. — Ray Ewing

He also noted that the building has been on the market for a decade and that he has been approached by sellers, but claimed unspecified permitting concerns and municipal wastewater capacity have been “sticking points” in the development process. Mr. Hall’s asking price is $2.8 million; the assessed value on the property is $1.65 million, per the town.

“We have no problem selling to the town,” he wrote. “Just ask.”

The Hall family owns multiple buildings across the Island, including the Strand Theatre in Oak Bluffs, the Capawock Theatre in Vineyard Haven and several storefronts in Edgartown. This is not the first time that a town has taken a building of theirs by eminent domain.

A building known as the Yellow House, located on the corner of Main and Summer streets in Edgartown, was taken from the family by Edgartown after the Halls discontinued its operations as a bookstore and it fell into disrepair. 

After years-long efforts to get the Hall family to fix up the historic property, Edgartown acquired it by eminent domain in 2017, paying the Hall family $3 million. In 2021, the Halls attempted to sue the town in Massachusetts Land Court, claiming its renovation of the building violated local zoning regulations. The suit was dismissed.

The ground floor of the new Yellow House building is currently occupied by activewear brand Lululemon.

On Tuesday, the Oak Bluffs select board referenced the Yellow House proceedings as part of a precedent that could help it chart a path forward for the Island Theatre.

To take a property by eminent domain, a municipality must demonstrate a public use that necessitates its taking and must reasonably compensate the owner. Additionally, in Massachusetts, the Anti-Aid Amendment prevents municipalities from turning over properties acquired through eminent domain to third parties. In other words, if the town acquires the Island Theatre, it will be required to hold onto it by law.

According to Ms. Potter, Edgartown’s taking of the Yellow House has had a demonstrably positive effect on the town’s wellbeing, as it both cleared up a hazardous eyesore and brought in a new stream of tax revenue.

Ms. Potter and the board noted that nailing down a public use for the Island Theatre will be a necessary part of pursuing an acquisition. She suggested setting up a committee to examine possible uses for the property.

She noted the process won’t be easy.

“This is only step one,” Ms. Potter said. “It’s going to take years.”

The article has been updated to include a comment from Ben Hall Jr.