The theater was built by Wagner Construction as an atmospheric theatre in 1929 to great fanfare, being the by first movie palace in Austin accommodating 914 seats with a small stage and orchestra pit.

It served the town as a first-run movie theatre until it closed in 1975, the genre being quashed by television and mall cinemas.

[4] In 1992, the Austin Area Commission for the Arts was formed to purchase and restore the building to its historic grandeur.

[4] Volunteers and donors, with the assistance of the Minnesota Historical Society, repaired plaster and masonry and replaced the seats.

Precision Signs LLC of Austin, Minnesota recreated the original marquee from historical photos.