Voters to decide Island Theatre’s fate

Despite the Island Theatre’s owners’ push for reconsideration, the question of whether the dilapidated building should be taken by eminent domain will be determined by voters at the annual town meeting. 

Oak Bluffs will be holding its annual and special town meetings on Tuesday, April 14, at the Martha’s Vineyard Regional High School’s Performing Arts Center at 7 pm. 

Among the 83 articles to be considered by voters on the warrants, the fate of the Island Theatre is a hot-ticket item. 

The town is requesting it be allowed to appropriate up to $5 million to either purchase the property or take it by eminent domain, a process that allows a government to take private property if it provides fair-market-value compensation. The $5 million is the estimated amount it would take for the town to proceed through the entire eminent domain process, including legal fees and costs to restore the property. 

The possibility of taking the Circuit Ave. property by eminent domain was raised in February by town officials who said it was an eyesore and a safety hazard that should be repurposed to public use. Benjamin Hall Jr. and Brian Hall, brothers and co-owners of the Island Theatre, made the case against an eminent domain taking at the March 10 Oak Bluffs Select Board meeting, highlighting that there are prospective buyers, but said they are limited from making improvements by factors like not enough wastewater-flow allocation. Ultimately, the select board decided the matter would be decided upon by voters. 

Benjamin Hall Jr. previously told The Times that the asking price was $2.8 million if the town wanted to buy the property. 

If the town pursues an eminent domain taking, it could take years to take effect, and the Halls could fight the decision in court, as they tried to do for the Yellow House in Edgartown, unsuccessfully. That property was taken by eminent domain, and eventually became a Lululemon store. 

Meanwhile, the town is proposing a town beautification bylaw, which would establish a hearing process and fines for owners of properties in “blighted condition.”

“Many of these properties are essentially abandoned,” the bylaw purpose reads in part. “Some are in violation of multiple aspects of state and local building and sanitary codes. These code violations may include, but are not limited to, unoccupied buildings susceptible to vandalism and/or open structures rendering them unsafe and dangerous, yards full of litter and trash, unsecured houses, unshoveled snow, and foliage rendering sidewalks impassable.”

This isn’t the only bylaw the town is seeking approval for. The town is also asking voters to consider a large-events bylaw that would limit how many events with 50 or more guests a property owner can hold, and would impose certain restrictions, such as a ban on the sale of alcohol or tickets in a residentially zoned area. 

Additionally, the town is looking at stricter regulations of short-term rentals, including clearer definitions, a requirement that owners register units, and fines for those who don’t comply. The warrant article states that this is to allow residents to make money through short-term rentals, and the town to better enforce health and safety regulations. The warrant article also states the bylaw is meant to dissuade commercial buyers from purchasing properties with the specific intent of using them as short-term rentals, which has cut into the Island’s housing stock and contributed to the housing crisis. 

The town is also considering changes to town positions, including making tree warden and town clerk appointed rather than elected positions, and reducing the number of members on the finance and advisory committee from nine to seven. 

The warrant lists a slew of spending requests as well, such as funds for repairs to town infrastructure and purchasing equipment, and for other certain tasks, like $100,000 for a building inspector to inspect short-term rental units.

The most expensive among these requests, including the Island Theatre eminent domain process, require borrowing for funding. The town is also looking for up to $1 million to construct “flood resiliency improvements” for the Dukes County Avenue pump station, and $825,000 to design and engineer the sewer extension in the Lagoon Pond watershed. 

Voters will also consider accepting a $46.2 million budget, a near 8 percent increase from the fiscal year 2026 budget of $42.8 million. The town is looking to use a $1.9 million override to fund a portion of it. 

The override needs to pass at both town meeting and town election. The Oak Bluffs town election will be held at the town library on Thursday, April 16.