Oak Bluffs officials are eyeing the possibility of seizing a dilapidated theater at the heart of their town.
The Oak Bluffs Select Board discussed the possibility of taking the Island Theater at 1 Circuit Avenue through eminent domain, a process that allows a government to take private property if it provides fair market value compensation, at a meeting Tuesday.
The Island Theater, once a hub for moviegoers, has sat empty at the mouth of Circuit Avenue since 2012. Purchased by the Hall family in 2011, it’s been a source of frustration for the town, being previously labeled as unsafe in 2016, which led to court-ordered work to make the theater structurally sound in 2017. Meanwhile, the Halls have said that various factors, including wastewater limitations deterring potential investors, has left the property in limbo.
The possibility of taking the property from the Halls, a Vineyard family that owns multiple properties across the Island, is something that has been raised before. To some Oak Bluffs Select Board members, raising the issue again was a long-time coming.
“It’s been a catastrophe,” Sean Bettencourt, board member, said.
Deborah Potter, Oak Bluffs town administrator, said a commercial appraisal, which takes into account legal fees and and other costs associated with an eminent domain process, estimated that seizing the property would cost around $5 million.
But Potter said there would still be tasks for the town to undertake, including setting up a small group to address various steps in the process, including specific public purposes and goods. Additionally, the town wouldn’t be allowed to give the property to a third party after making improvements with public funds, per the state Anti-Aid Amendment.
“If you … were successful, you’d have to remediate the building and do some other stuff,” Potter said. “You can’t just take stuff by eminent domain for giggles.”
This town action would have to be approved by voters at a town meeting. And even if eminent domain is approved, Potter said it could take years to take effect, including requests for proposals and funding.
And the Halls are no strangers to eminent domain. In 2017, Edgartown approved taking the Yellow House by eminent domain, which the Halls unsuccessfully tried to block in court. The Yellow House, on 66 Main Street, has since become a Lululemon store.
Emma Green-Beach, board member, questioned how the Edgartown example showed the eminent domain was for a “clear public good” besides improving the site.
“It also took an eyesore and a safety hazard and removed it, and then they turned it into revenue,” Potter said.
The board will need to approve a final draft of the eminent domain warrant article before it goes to town meeting.
Brian Hall and Benjamin Hall Jr., co-owners of the theater, were not immediately available for comment.
