The theatre remained in the Smith family for forty-two years during which time it entertained generations of moviegoers anxious to see Hollywood’s screen gems or the next episode in the Lone Ranger serials. The days during WWII saw the heaviest attendance. The theatre was the community center and folks would gather together to laugh, cry and view the world as reflected on the silver screen.

In 1979 the theatre was sold to "Bud" Welsh, a vassar businessman who subsequently leased it to several different operators. By the mid-80's the theatre had fallen into disrepair and was given to the City of Vassar for $1.

Because of it’s proximity to the Cass River, the theatre is prone to flooding during heavy rains and had seen water in the auditorium many times over the years which necessitated the removal of the seats. In 1986, the "one hundred year" flood submerged most of downtown Vassar and the theatre, in which water levels reached twelve feet - more than half way up the theatre screen!

The theatre was repaired using prison labor and reopened under new management in late 1986. Unfortunately, neglect and the lingering unhealthy effects of the flooding led to the closing of the theatre again in 1990.

The theatre was purchased in 1990 by Tim O’Brien of Dearborn, Michigan whose dream was to one day restore the theatre to its former glory. He closed the theatre in August, 1992 to begin the restoration which would last thirteen years and cost upwards of a half million dollars. The entire project was executed almost single handedly by O’Brien who also owned the historic State Theatre in Bay City and Green Acres Cinema in Saginaw.

The theatre finally reopened in November, 2005 to the delight of Vassar and surrounding communities and has once again regained its title as "Theatre Beautiful". The theatre is managed by O’Brien who continues the restoration work when not selling popcorn or movie tickets.