Deed restriction makes State Theater's IMAX plans uncertain

Mar. 20—JOHNSTOWN, Pa. — A recently unearthed restriction in a 1976 deed has brought into question whether the State Theater of Johnstown can legally be used to show movies, as would occur with the proposed installation of an IMAX screen at the historic site.

The structure, at 336 Main St., was transferred from County Amusement Co. to what was then Lee Hospital for $1, according to the document obtained from the Cambria County Recorder of Deeds Office.

It included legal language stating "the above premises will not be used as a motion picture theatre" and that "said restriction and condition shall be a covenant running with the land," meaning it would carry on even if ownership was transferred again.

The clause was discovered when Johnstown Redevelopment Authority had a full title search conducted as part of its plan to take over transitional ownership of the property that is integrated into Conemaugh Health System's Lee Campus. JRA would then lease the structure to the nonprofit Johnstown State Theater Foundation, which would look to eventually purchase it. The venue is currently owned by Medical Properties Trust, an investment group used by Duke LifePoint Healthcare, Conemaugh's parent company.

County Amusement Co. still exists today and owns Richland Cinemas.

"There are discussions going on with County Amusement that owns the restriction," JRA Solicitor William Barbin said after the authority's regular monthly meeting on Tuesday. "There are discussions going on with them. Again, we're acting as agent for the State Theater. We will end up taking ownership for the hospital if all the ducks are lined up in order.

"But it's for the State Theater to say we can agree to whatever this deal is because we're not putting the money into it. The State Theater is."

No representative of County Amusement Co. who was authorized to talk about the matter could be reached Tuesday. The owner is currently on vacation, according to a voicemail message on the individual's work phone number.

Lawyers and officials from JRA and the State Theater plan to meet Thursday "to make a decision on whether we think further negotiations will be fruitful," Barbin said.

"We're still trying to work something out," he added.

JSTF Executive Director Eric Reighard spoke with uncertainty about future plans to show IMAX movies at the theater, saying, "it is what it is and just really unfortunate" and "it makes us really sad."

The State Theater, which opened in 1926, sat mostly unused in recent decades. Then, in 2019, Discover Downtown Johnstown Partnership started showing movies to see if there was community interest in the theater.

Reighard and others eventually formed the Johnstown State Theater Foundation to oversee the venue that has hosted movies, concerts and other public and private events over the past few years. "At the end of the day, I just tell people, all my wife (Amanda Reighard) and I wanted to do was to save a historic building and to show people, that 'Hey, if you have a big dream, you can do it,' " Reighard said.

In April 2023, theater officials announced a contract was in place to install a 60-foot-wide, dual-laser IMAX movie screen at the venue.

The plan, as of late last year, was to have the IMAX up and running as early as the 2025 summer blockbuster movie season. That target date is in doubt since it will take between 18 and 24 months from when a property transfer is complete until upgrades are made and an IMAX could be operational.