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The State Theater & Salerno Building
The Ely State Theater, LLC/E. Sheridan Properties, LLC
The State Theater was built in 1936 and was owned by the Swanson family in Ely. Its designer was a noted architecture firm called Liebenberg & Kaplan, who had designed many theaters in Minnesota and other northern states.
The building is in great disrepair with a roof that has leaked for some time. Although the steel roof structure has not been compromised, a new rubber EPDM roof and insulation must be installed right away. Also, the masonry on the rear of the building’s east and west corner must be rebuilt soon. Mold remediation must be completed. Our goal with this historic building is to work with the State of Minnesota and the U.S. Department of Interior Guidelines to restore the exterior and interior to their original condition.
We will be working with consultants to create a multi-purpose independent theater that will show films and also have the capability of accommodating musical events and possibly live theater. By incorporating the adjacent Salerno Building to the east, this independent theater operation can house an additional but smaller screening room for smaller audiences, as well as a spacious casual food/concessions component and social area that will accommodate customers before, during, and after movie screenings. On the second floor of the two buildings, there will be several up-to-date office/business incubation spaces. The plans also include reconditioning the iconic State Theater marquee as a reminder of all the social and entertainment experiences the people of Ely have encountered for almost 80 years. The State Theater reopened for its first event in 2020. Check out their website for showtimes and more!
Tap to enlargeEly’s Show Place
Cut stone, patterned brick, porthole doors and a neon sign that rose above Sheridan Street. The marquee here is advertising George O’Brien in Border G-Man, with The Texans coming soon, and a card by the ticket booth promises the theatre is “Cooled by Westinghouse.”
Photo from the Liebenberg & Kaplan collection. Both films were released in 1938.
- Oct. 11, 1936Opening day, with My American Wife
- 630Opera seats in three tiers
- 36 ftNeon sign spelling STATE on three sides
- 19 ftSilver screen on a curved stage
History
The State Theater was built in 1936 for the Swanson brothers of Ely and opened on Sunday, October 11, 1936, with “My American Wife.” It almost opened under another name: the architects’ first drawings and the newspaper’s coverage through September 1936 call it the Rio. It was designed by Liebenberg & Kaplan of Minneapolis, a firm known for the many movie theaters it designed across Minnesota and other northern states.
For decades its Art Deco marquee was a Sheridan Street landmark, until the theater closed in 2008.
The Project
On July 30, 2016, hundreds of people lined Sheridan Street to watch the State Theater’s marquee light up again for the first time in decades. As the countdown ended, the high school mascot pulled the switch to cheers from the crowd.

Meet the Rio
“Rautio Contractors Begin Work on New ‘Rio’ Theatre on Sheridan Street.”Ely newspaper, 1936
When the Swanson brothers broke ground, their new movie house was going to be called the Rio. The architects’ early drawings, the first dated March 1935, show RIO running down the tower sign and across the marquee, with “Ely’s Show Place” lettered along the front. The paper reported the front would be cut stone, similar to the stone on Ely’s City Hall.
The idea went back to April 1935, when Opera House manager Archie Swanson announced a new, larger theater of at least 600 seats, designed by Liebenberg & Kaplan and first planned for a site on First Avenue. It ended up in the 300 block of Sheridan Street instead.
As late as September 3, 1936, The Ely Miner was still calling it the Rio, reporting that manager Swanson was installing an RCA Photophone “High Fidelity” sound system like the ones in New York’s brand new Radio City Music Hall. Eleven days later the architects redrew the sign to spell STATE, and that is the name that lit up on opening day.
Drawn by Liebenberg & Kaplan
The State was designed by Liebenberg & Kaplan, architects and engineers in the McKnight Building in Minneapolis, who drew movie theaters in towns across the Upper Midwest. Their original drawings for Ely survive.
- Nov. 1935A longitudinal section shows the sloping floor down to the screen, steel roof trusses, tiered light fixtures, the projection booth and the tall sign out front
- Sept. 1936A revised sign detail spells STATE in neon, each letter 2′ 2″ tall on a sign 3′ wide


Opening Day
“Swanson Bros. Open One of the Most Modern Show Houses in State.”The Ely Miner, October 15, 1936
J. N. Rautio Builders had crews working day and night for two months, racing an October 1 target. The State opened a little late and not quite finished, on a Sunday afternoon with My American Wife, starring Francis Lederer and Ann Sothern. It filled for every show.
- Out frontWhite stone and brick, a 36-foot neon STATE sign and a canopy with lighted letters for the week’s shows
- The lobbyA ticket window, swinging doors trimmed in silver and a 32-by-10-foot foyer that doubled as a lounge
- The house630 opera seats in three tiers, two carpeted aisles and soft indirect lighting along the walls
- The stageA 19-foot silver screen on a 14-foot curved stage, big enough for vaudeville, with silk curtains run electrically from the booth
Art Deco, Top to Bottom
Photos from the architects’ own album show the theater around the time it opened. Tap either photo to see it larger.


Ninety Years of Show Business
- 1935
The Rio on paper
In April, Opera House manager Archie Swanson announces plans for a new theater of at least 600 seats. Liebenberg & Kaplan draw renderings of the Rio, followed by full construction plans in November.
- Aug. 1936
Construction begins
J. N. Rautio Builders start work on Sheridan Street for the Swanson brothers, with crews working day and night.
- Sept. 1936
High Fidelity sound
The Rio installs an RCA Photophone “High Fidelity” sound system, among the first in the area. Days later the sign is redrawn, and the Rio becomes the State.
- Oct. 11, 1936
Opening day
The State opens on a Sunday afternoon with My American Wife, and the crowd fills the house at every showing.
- ca. 1938
Ely’s show place
Westerns and G-men light up the marquee, with a matinee every day at 2:00 and night shows at 7:10.
- ca. 1990
Still on the marquee
Sled dog teams race down a snowy Sheridan Street past the State, with Mermaids on the marquee and Salerno Land Sales next door.
- 2008
The lights go out
The State closes its doors after more than seventy years.
- 2016
The marquee shines again
On July 30, hundreds of people line Sheridan Street to watch the marquee light up for the first time in decades.
- 2020
Back in business
The State reopens for its first event, with the Salerno Building next door adding room for a second screen, concessions and gathering space. See showtimes and more.
What We Found Inside
After years dark, the State needed a lot of love. Water had come through the roof, ceiling tiles had fallen into the seats and the back wall’s brick was crumbling. Tap any photo to see it larger.

Reels, Lamps and Art Deco Seats
Upstairs in the projection booth, the old projectors were still in place, surrounded by film reels, spare parts and tools from decades of shows. Down in the house, a few of the original seats survived, their cast iron ends painted with Art Deco sunbursts.
We saved what we could: seats, lamphouses and a whole case of the red marquee letters that once spelled out each week’s shows.
Roof First, Then Everything Else
Stopping the water came first. Crews tore off the old roof down to the boards, then the seats came out and the auditorium was cleared down to its bones.
An Art Deco Room, Waiting for Its Next Act
With the seats and the failing ceiling out, the room’s bones came through: the stepped Art Deco light fixtures, the glowing light towers beside the stage and the neon cove lighting along the side hall.
Tap to enlargeThe Night the Marquee Lit Up
“Relighting Event. Join Us Sat 8:30 PM,” the marquee announced, and Ely showed up. Hundreds of people filled Sheridan Street, phones in the air, as the countdown ended, the switch was pulled and the State’s neon glowed for the first time in decades.
Below the sign, the marquee told everyone what came next: Now Leasing. Movies, Music, Events, Cafe.
- 8:30 PMShowtime on Sheridan Street
- Hundredsof neighbors lined the street
- 1switch, pulled by the high school mascot
- Decadessince the sign last glowed
A Street Party for the State
A Coming Soon photo frame, a wall to name your favorite movie you saw at the State, memory cards and a mascot flexing under the new marquee. Tap any photo to see it larger.
Movies Daily
Red and teal light glows from the restored Art Deco towers again, the seats face a stage ready for music and live shows, and the marquee on Sheridan Street reads “Movies Daily.” See showtimes and more.

Ninety Years of the State
More than 200 people filled the State on September 4 for a gala celebrating the theater’s 90th anniversary, with live music and the premiere of a new documentary about the theater.
Proceeds from tickets and anniversary pins go toward the theater’s Third Space for community events and a new accessible bathroom.
The State Makes Headlines
Star Tribune
An Art Deco Moviehouse Regains Its Shine in Ely
Ely’s 1936 State Theater, closed since 2008, is restored as a cinema and performing arts venue.
Read the article
The Ely Echo
Over 200 Gather to Celebrate the State Theater’s 90th Anniversary
A gala with live music and a documentary premiere marked 90 years of Ely’s Historic State Theater.
Read the articleLife Around the State
Tap any photo to see it larger.
Sources: Liebenberg & Kaplan architectural drawings and photographs (Job No. 1282); The Ely Miner, April 12, 1935, September 3, 1936 and October 15, 1936. Some dates are approximate.
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