Las Vegas Backs a $4.2 Million Plan to Turn an Old Downtown Movie Theater Into an Arts Hub

by Ryan Rose

What Happened

On Wednesday, Nov. 4, the City of Las Vegas Redevelopment Agency took up a deal with Third Street, Inc., a Nevada nonprofit. A matching item went to the City Council. FOX5 reported that the council approved a conditional reimbursement agreement worth up to $4.2 million. The Las Vegas Review-Journal reported the same amount in redevelopment funds. The vote count was not in the reports or city documents we reviewed.

The city's agenda page says the money comes from the RDA Special Revenue Fund. It lists the site as part of Redevelopment Area 1 in Ward 3. It says the goal is to offer "arts performances, arts education, theatre workforce development and arts focused community events in the Arts District."

A reimbursement agreement works a lot like an expense report at work. Third Street pays for approved work first. Then it sends the city proof, such as paid invoices and lien waivers, and asks to be paid back. Under the agreement in the city's meeting packet, Third Street can send a request no more than once every 45 days. It also has to show that workers were paid prevailing wage where that rule applies.

The budget in that packet is the part most people will want to see. It totals $7,470,126 for what the city calls Phase 1A. FOX5 rounded that to $7.4 million, with the city paying $4.2 million and private donations covering the rest. Here is how the estimate breaks down:

Large studio theater: $2,513,440
Public areas and a new stair: $1,126,170
Theater equipment: $1,054,235
Back of house support: $785,899
Lobby: $273,049
Concession area: $28,807
Back of house connections: $25,147
Soft costs such as fees, permits, tests and contingency: $1,663,379

Those numbers are rough estimates dated March 2026, so they could still move. Phase 1A would combine the old Cinema 1 and Cinema 2 into one flexible studio theater with about 250 seats.

The city calls Phase 1A the first complete construction package for the building. The goal is a venue that can fully operate on its own. Besides the theater, the work adds a public stair between the second and third levels and fixes up the lobby. It also builds the rooms an audience never sees, such as dressing rooms, restrooms and showers for performers, a wardrobe area and loading space. A real stage needs all of that, and an old movie theater was never built for it.

That 250 number needs some explaining, because FOX5 reported a flexible theater with seating for up to 600 people. KNPR reported in February that Third Street plans three venues, with capacities of 250, 150 and 600. So the 600-seat room looks like part of the larger plan, and the city documents do not show it inside this first phase.

Stock photo of three performers in silhouette against a red stage curtain, similar to the local theater productions Third Street plans to host

Why It Matters to Las Vegas Residents

The first reason is simple. An empty building on a downtown block is getting a plan. Anyone who lives near South Third Street, or drives through the Arts District, knows how much a dark storefront can drag down a block. A place with shows, classes and staff brings people to the area on more than one night a month.

That matters more right now. First Friday, the monthly street festival that has been a big draw for the Arts District for years, stays paused through the end of 2026. More than 20 Arts District businesses ran their own Art Crawl on Nov. 6 to help fill the gap. A hub that runs all year would not replace a street festival, but it would give the neighborhood another steady reason for people to show up.

The second reason is how the deal protects public money. The city is not writing a $4.2 million check up front. Third Street has to raise money of its own first. The agreement says it must raise at least 50% of the gap between the budget and the city's share before it can ask for any payment. A bank line of credit of up to $1 million can count toward part of that goal. The nonprofit also cannot change its mission or give up its interest in the site until construction is done, unless the agency agrees in writing.

It also helps to know who is spending the money. The Redevelopment Agency is a public body set up under Nevada law. Mayor Shelley Berkley chairs its board. Its job is to carry out a redevelopment plan that the city first adopted in 1986 for a set area of the city. Before it can fund a project, the agency has to find that the deal fits those goals. The agenda item for this project asks for exactly that finding, and it says the deal is in the best interest of the public.

The third reason is jobs and training. Daz Weller, who founded Third Street, told FOX5 that he wants to build up the performers and crews who already live here. "Let's stop importing our talent to serve our industry and actually nurture the talent that we already have here," he said. Weller plans to work with local high schools, the College of Southern Nevada and UNLV. KNPR reported that Third Street is working with CSN on a dual enrollment program and plans paid internships.

That is worth noticing if you have a teenager who loves theater, film or sound work. In a city built on shows, a young person who wants a career behind the curtain could get a local way in. Those programs are plans for now, so it is smart to watch what actually gets built.

Background and History

The theater only opened about 10 years ago, but it has already had three names. Cinema Treasures, a website that tracks movie houses, says it opened as Eclipse Theaters on Dec. 8, 2016. It had eight screens and 550 recliner seats. It came back after a pandemic closure as Art Houz Theaters on June 3, 2021. It became Downtown Cinemas in 2023 and closed on Dec. 7, 2025.

Third Street was already moving in by then. Weller told FOX5, "And so this building became available, and we were able to sign a lease on it at the end of last year." The city's agreement also says arts, education and job training programs have already started at the site and will keep going during the project.

Weller worked as a theater actor in Australia before he moved to Las Vegas. He told FOX5 the project grew from the downtown creative scene. KNPR reported that four groups plan to be resident companies: Vegas Theater Company, Vegas City Opera, Las Vegas Sinfonietta and Laugh After Dark. Teller of Penn and Teller is also among those involved.

The people behind the plan say the valley has a gap to fill. "We do not have the cultural infrastructure that other cities of our size have," Weller told KNPR. Ginger Land-van Buuren, who is Third Street's chief operating officer and runs Vegas City Opera, said her company has relied on city, library and county spaces. With this campus, she told KNPR, "now we get to have these beautiful spaces and create new works inside them."

KNPR's February report said the campus would cost $7 million and cover 41,500 square feet, while FOX5 now reports 52,000 square feet. We could not find anything that explains the difference in size, so treat the final square footage as still open. The February plans also called for screening rooms for film festivals and the city's first dub stage for sound mixing. Local arts groups could rent space at reduced rates.

Downtown has been down this road before. The city recently moved into a second study on the cost of reviving the Huntridge Theater, which has been closed to the public since 2004. Old theaters are hard and costly to bring back. Third Street has one advantage, since this theater is far newer.

What Happens Next

The next big test is fundraising. The city packet lays out a schedule with goals measured from the date the agreement takes effect. That date was still blank in the packet we reviewed.

Within 90 days: $500,000 in written pledges or closed funds
Within 6 months: about $1.65 million, plus a bank letter for the line of credit
Within 9 months: about $3.3 million, enough to show the project is ready to build
Within 12 months: all Phase 1A funding conditions met

Construction has its own clock. Third Street's target is to start building within 9 months after the agreement takes effect, and the outside limit is 12 months. The goal is to be substantially done within 8 months after work starts, and the outside limit is 12 months. Final paperwork and punch-list items follow within 60 to 90 days.

Here is what that could look like on a calendar. If the agreement took effect this month, the target start would land around August 2027, and the latest start would be about November 2027. Eight months of work from that target start would reach about April 2028. That leaves a little room before a summer 2028 opening. If the project runs to its outside dates, though, substantial completion could slip to late 2028. These are our own estimates based on the city's schedule, since the actual start of the clock depends on when the agreement is signed.

The start date has been reported two ways. One FOX5 story said construction is expected next spring. A second FOX5 story, published a day later, said crews expect to break ground in about eight months, which would be closer to next summer. The city's 9-month target lines up more closely with the second report. Both stories say doors should open by summer 2028.

Stock photo of orchestra violinists playing during a performance, the kind of group the Las Vegas Sinfonietta and other resident companies would bring to the arts hub

Remember that the $4.2 million only applies to Phase 1A. The agreement says Third Street's ongoing capital campaign is meant to help finish this phase and pay for later phases outside its scope. Jim D'Asaro, a founding board member who chairs the construction committee, told FOX5 that "we are going to have a much greater capacity to entertain larger productions." The bigger the plan grows, the more money it will take. The group also plans to livestream productions nationwide.

Ryan's Take

I like how this deal is built. Public money follows private money here, and the city pays only after the bills for approved work are paid. If the fundraising falls short, the city's money should stay where it is. That is a better setup than a big check and a promise.

From a real estate point of view, I would keep expectations in check. One arts building does not change home values overnight, and nobody can tell you what this will do to prices on nearby streets. What it can do over time is make a neighborhood feel more alive, and buyers do pay attention to that. They notice whether a block feels active. They notice what is open at night and what is within walking distance.

This is also not happening alone. The city has about 11 acres near Fremont Street out for developer proposals, with a deadline of Dec. 16. Projects like that one and this one move on their own timelines, and plenty of downtown plans have stalled over the years. So I look at each one on its own and ask a plain question: is the money really there?

If you own near downtown, or you have thought about buying a condo or an older home around the Arts District, this is one to follow. I would watch the fundraising dates before I got excited. Those dates will tell you more than any rendering or ribbon cutting.

Stock photo of a recording studio with a mixing board and guitars on the wall, similar to the media and sound production space planned for the downtown Las Vegas arts hub

What You Can Do

If you want to see the deal for yourself, the city posts its Redevelopment Agency meetings and backup documents online. The full agreement, including the budget and the schedule, is linked in the Sources section below. It is a long read, but the budget and schedule pages are at the end and they are easy to follow.

If you care about the arts downtown, look up the resident companies and go see a show. Vegas Theater Company, Vegas City Opera, Las Vegas Sinfonietta and Laugh After Dark are all named in the plan. Third Street is also running a capital campaign, so donors who want to help can reach out to the group directly. Parents and students can ask their school counselors or CSN advisors about arts career programs, and whether any Third Street partnerships have started.

If you live or own property near South Third Street, keep an eye on the block as work begins. Find out how construction might affect parking and street access, and raise any concerns with your Ward 3 council office.

Have questions about how this affects your home or neighborhood? Reach out to Ryan Rose or text/call 702-747-5921 anytime. Ryan Rose | Real Broker, LLC | ryan@rosehomeslv.com | rosehomeslv.com