Here is the only thing that makes any sense: That building is toast - it served its life and needs to be be demolished. But
undoubtedly the interior finishes and sign can be salvaged and incorporated into whatever replaces it. They can even do an "homage" of art-deco architecture in the new structure. The only other alternative is forming a private group of conservation minded citizens to raise enough money to purchase it. Or maybe Koots or Mooses Tooth could re-build the theater into one of their establishments.