State Theater, Minneapolis
In 1991, downtown leaders like Minneapolis City Council member Tony Scallon wanted the State Theater torn down according to the wishes of developers. The City of Minneapolis put the theater into trust, and LaSalle Plaza was built around it. Credit: Hennepin Arts

When Hennepin Theater Trust quietly changed names earlier this year, to Hennepin Arts, it marked not just a branding decision but a downtown barometer charting the ebbs and flows downtown. In a subtle move, the 24-year-old nonprofit is reorganizing and assuming management of the historic theaters under its custody, while shifting to a more proactive stance along Hennepin Avenue and its entertainment district. 

The change shows the ongoing strength and resilience of the Hennepin Avenue theater district, which in retrospect looks like one of the most important historic legacies of downtown Minneapolis. Along with the (much more) financially needy sports teams, the theaters have quietly been leading the renaissance of downtown, helping bring downtown Minneapolis toward a new post-COVID balance.

City Hall saves the theaters 

In 1980s Minneapolis, it was common knowledge that office towers would be downtown’s “golden goose.” Compared to the shiny skyscrapers, the old, weathered buildings lingering in the core were often seen as obstacles. If you had to raze the old buildings in favor of parking ramps and office skyways, that was progress. 

That approach reached a turning point with the construction of LaSalle Plaza, completed in 1991. The post-modern neo-art-deco tower is something of a “mini-me” to the taller César Pelli-designed Wells Fargo skyscraper, on the other side of the downtown core.

The key sticking point at the time was the State Theater, a glorious 2,100-seat venue which seemingly stood in the way of the new office tower. It occupied the footprint of the planned LaSalle office building, and downtown leaders like Minneapolis City Council member Tony Scallon wanted it torn down according to the wishes of the developers. But others insisted that the old theater be saved and preserved, and eventually the city of Minneapolis stepped in. They put the theater into trust, and LaSalle Plaza was built around it.

Hennepin Avenue in 1943.
Hennepin Avenue in 1943. Credit: Minnesota Historical Society

In retrospect, that knife’s-edge decision was one of the best things anyone in City Hall has ever done for downtown. It soon led to the creation of a nonprofit, Hennepin Theater Trust, that relied on municipal bonds to preserve multiple large theaters along Hennepin Avenue that might have met the wrecking ball. Along with the State, the Pantages and the (formerly Bob-Dylan-owned) Orpheum still form the core of the downtown theater district. 

In today’s post-pandemic environment, those theaters might just be downtown’s saving grace, and ironically seem more important to downtown’s future than the office buildings that once threatened them. For one thing, the financial side of the theater deal looks rosy. Back in 2022, the city’s $20 million in restoration bonds were paid off 13 years early and retired from the city’s ledger, which isn’t something you can always say about tax-increment financing.

Hennepin theater district vs. streaming 

The fate of Hennepin Avenue wasn’t always set in stone, but for most of the 20th century, the street was synonymous with movies, plays, and current events. The avenue served as the entertainment magnet for the entire west metro area, and a significant percentage of Minnesota’s population came often to this bustling street, synonymous with Hollywood, culture, and Broadway. The theaters propped up a bustling ecosystem of night life, with all-night diners, bars, galleria and clubs dotting the adjacent streets.

Needless to say, a lot has changed since then. People stream video on their watches now, and there’s more entertainment available in an day than anyone person could ever experience. It’s hard to overstate the degree to which our media world has changed since these old Hennepin theaters were built in the 1920s.

That’s why it’s noteworthy that, in 2024, the downtown Minneapolis theater scene is thriving. Last year there marked a turning point around for going out in downtown Minneapolis, a big Hennepin Avenue rebound.

“We have seen a very significant comeback for the theaters, and that has been positive,” said Todd Duesing, who has been executive director of Hennepin Arts throughout the transition process. “Any given night we could have 150 people here for a show, or we could have collectively have nearly 7,000 people here. The average night is roughly 3 to 5,000 people.”

The new name marks an evolution for Duesing and the group, which is looking to stake a larger claim along Hennepin as it becomes an increasingly vital downtown actor. Along with paying off the bonds, a key driver of the name change is that Hennepin Theater Trust is now running and managing its own theaters. 

Last year they acquired a subsidiary, a spinoff from Broadway Across America, which had been booking and managing the Minneapolis venues as part of a national portfolio. Hennepin Arts will be using expanded staff to do all that work in-house, and so far, so good.

The Como-Harriet streetcar on its last run down Hennepin Avenue, with the State Theater in the background, in 1955.
The Como-Harriet streetcar on its last run down Hennepin Avenue, with the State Theater in the background, in 1955. Credit: Minnesota Historical Society

Duesing came to the group from Cincinnati, where he ran arts nonprofits and music venues. He’s recently traveled to New York City and Cleveland to look at other similar efforts in other cities, and brings enthusiasm and a rich network of theater connections to his downtown Minneapolis neighborhood. (Fun fact: Cleveland also has a grand Italianate “State Theater” of about the same scope, part of its downtown Playhouse Square.)

“I just celebrated a year this past season, and we just closed our Broadway series. It had a $6.8 million economic impact on downtown,” explained Duesing. “We’re seeing a lot more people downtown finding it safe. The hearsay about the lack of safety in the theater district, we’re seeing that diffused. That’s also because of great events as well — gymnastics trials and NCAA tournament — the general activity of convention goers downtown.”

To me, the most exciting change is that Hennepin Arts is going to attempt to do more placemaking and small-scale development. Downtown Minneapolis could use more thoughtful placemaking efforts, and Hennepin Arts is well positioned to step up into this space.

“We’re looking to reimagine the spaces in our theaters and adjacent to our theaters to create gateways,” said Duesing. “[We want them to be] noticeable, to make a destination [and] to add light and vibrancy to the theater district.”

So far, the efforts are low-key and in the background. But with the right fundraising, you might see significant change someday in spots around the theater core. 

“Our hope is that it will draw the attention of generous donors to help move this mission forward,” Duesing said. “At present we are not seeking any public dollars, but looking to engage private individual and corporate contributions.”

Theaters vs. office towers

These days, one of Duesing’s wishes is for more food venues on his side of downtown. COVID decimated dining options around Hennepin Avenue, especially outside lunch hours. Places like the Rock Bottom Brewery in Lasalle Plaza remain vacant, and Hennepin Avenue’s long-time staple Eli’s recently closed, a stark contrast to the restaurants thriving in the North Loop. He thinks a few more destinations near theaters would trade in attendees, as well as appeal to the increasing population between downtown and Loring Park.

Looking back at the history of downtowns from the vantage point of 2024 seems a bit unfair. How would boosters and mayors from another era have predicted that, in the not too distant future, skyscraper office towers would not be triumphs but albatrosses? The recent steep discount sale of a 1990s office tower on the other side of downtown, which lost 91% of its market value in five years, is an alarm bell for downtown’s nine-to-five future.

That kind of outcome was unthinkable back in the 1980s, which is why you have to grade decisions from another era on a generous curve. But by the same logic, we should celebrate the decisions that have turned out to be brilliant in hindsight. By my accounting, the city and the other actors who invested and supported the old theaters should be inducted into the downtown planning hall of fame.

Bill Lindeke

Bill Lindeke is a lecturer in Urban Studies at the University of Minnesota’s Department of Geography, Environment and Society. He is the author of multiple books on Twin Cities culture and history, most recently St. Paul: an Urban Biography. Follow Bill on Twitter: @BillLindeke.