Updated Feb. 15
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. And it’s been a source of frustration for the town, being previously labeled as unsafe in 2016, leading 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 theater is owned by the Halls, and Benjamin Hall Jr, co-owner of the property, said the property has been operated by various family members since the late 1920s to 1977 and then again from 1997 to 2010, with a shift to the “ownership organizational structure” in 2011. It’s currently owned by Brian Hall and Benjamin Hall Jr.
Benjamin Hall Jr. objected to the town’s consideration of an eminent domain seizure. He said nobody from the town had reached out to him before the meeting. Hall also said if the town wanted to buy the property, the asking price for years had been $2.8 million, although he’d prefer a private group to take it over.
“We want to work with the town, I just don’t know if they want to work with us,” Hall said, adding he hopes to meet with town officials.
Hall said while there have been various inquiries about the property over the years, with some prospective investors even considering replacing the theater into a mixed-use, grand hotel similar to those from Oak Bluffs’ historic architecture, potential investors have continued to be deterred by wastewater limitations.
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.
Editor’s note: Updated with information from Benjamin Hall Jr.
Wouldn’t a sur-tax on dilapidated buildings be a cheaper option? The reason it sits dilapidated is the owners won’t sell it for what it’s worth. Let them pay for the privilege of imposing an eyesore on everyone. They are living off the depreciation while putting money of that tax savings back i to the building.
For more than a decade, the Island Theater has sat vacant at the mouth of Circuit Avenue — the first building you see heading up from the harbor. Its boarded windows, fading façade, and visible deterioration stand in sharp contrast to the vitality Oak Bluffs works hard to project.
Just one block away are the historic gingerbread cottages that draw thousands of visitors each year. The condition of the theater sends the opposite message. A highly visible, long-vacant structure at the gateway to our main commercial district affects public perception, investor confidence, and the overall energy of downtown.
The Hall family owns multiple prominent Island properties. With that ownership comes responsibility. When key buildings remain dormant and deteriorating for years, it becomes more than a private matter — it becomes a public one.
Town administrator Deborah Potter is right to bring this discussion forward. Eminent domain is not a step to take lightly, but it exists for situations where prolonged inaction harms the broader community. Edgartown’s Yellow House demonstrates that municipal intervention, while difficult, can restore a blighted property and return it to productive use.
After more than a decade, doing nothing is not neutral. It is a choice.
I wonder if I am reading something incorrectly, the Times is reporting something incorrectly, or is the OB select board just completely out of touch with reality. I guess I am going to have to think about this one for a while– should the town buy it for $ 2.8 million, or “seize” it for $5 million ? Decisions , decisions–
Don — I had the same reaction at first.
The $2.8 million and the $5 million aren’t two prices the town is choosing between. The $2.8M is simply what the owners say they would accept in a voluntary sale.
Eminent domain works differently: neither the town nor the owner sets the number. A court-based appraisal determines fair market value, and that valuation includes development potential, damages, and legal costs. For a prominent commercial parcel at the entrance to Circuit Avenue, that figure can end up higher than an asking price.
So the town isn’t deciding to overpay. It’s considering the only legal mechanism available when a property affecting the center of town has been stuck in a long stalemate.
Murray — Isn’t buying it for 2.8 million a legal mechanism to acquire the property ? Simple question.
Don — regarding your question about whether the town can simply buy the property for $2.8M:
Only if the town and the owners actually sign a binding purchase-and-sale agreement and complete a closing.
An asking price by itself isn’t a transaction. Until both sides commit to an agreement and the deed transfers, the town has no assurance the property will change hands simply because a number has been mentioned.
Eminent domain isn’t about paying less — it’s the legal mechanism that guarantees a completed transfer when negotiations don’t result in an actual sale.
Why?
What is the end game?
Who will own it and if it becomes town property then who might be in the shadows looking to purchase it?
I am against it becoming a parking lot, tourist trinket shop or private business.
I’d love to see it use for a mentor learning opportunity, maybe 6th – 8th grade students.
Maybe STEM learning or similar.
Student made crafts?
Let’s focus on the future leaders and caregivers.
Maybe a little park/ playground so the kids can blow off a little steam after a long day of travel or after a long day of following the adults around before getting on the boat to go home ?
Respectfully the writer has not enquired carefully enough. The Halls will sell it for 2.8mill but Potter says it takes 5mill. Why, please explain. If Potter means you pay 2.8 but you need to resore it another 2.2mill, well ok but it seems high. Keller is correct on this one. Good reporting requires some more facts before publishing this article.
I will never understand how the Halls can leave a property looking as dreadful as the Island Theatre looks. Where is their concern for the community? Where is their self-respect? At the very least the building should be cleaned up to look respectable even if it’s true that it’s been difficult to rent or sell.