The plans called for the theater to be the corner anchor, with a future addition of a shopping mall and public swimming pool, but the idea never came to fruition.

In 1980 a modern strip mall with a Rainbow Foods store was added on the east side of the site along Bottineau Boulevard (then West Broadway), but it was not built according to the original L&K design.

The mall property and the block where the theater stood were purchased by Inland Development Partners in the spring of 2017 with plans to build a Hy-Vee grocery store on the site.

While most of the interior finishes, fixtures, and furniture had been removed prior to demolition, widely published historic photographs and extensive project files held at the University of Minnesota's Northwest Architectural Archives have captured the unique character of the Terrace.

The theater opened on May 23, 1951, and until its demolition 65 years later all of the brick, stone, metal, and glass block remained intact, and the building was still structurally sound.

The average showing is 4 days to a week, depending on public demand... Long range plans call for landscaping of the hollow behind the theater potentially including a lagoon.”[16] Over the years necessary improvements were made.

In April 1984 musician David Byrne and director Jonathan Demme hosted the world premiere of the concert film Stop Making Sense at the Terrace.

Nearly thirty years after his appearance at the Terrace he brought his performing group to the Minneapolis Orpheum Theater (another movie house that had a Liebenberg & Kaplan stamp) on his "American Utopia" concert tour in May 2018.

According to a November 8, 1987 article in the Minneapolis Star Tribune, Midco Vice President Larry Kirschenmann believed that people still wanted to see movies on the big screen without paying the first run admissions.

[21] Since its closing, according to a City of Robbinsdale proclamation, the theater "has received continued support from preservationists and historians as an important historical building, both culturally and architecturally," and that "for nearly 50 years, the Terrace offered family entertainment for the citizens of Robbinsdale and its surrounding area a place to go for family entertainment until the theatre closed its doors in the late 1990s.

[22] On August 15, 2015, the StarTribune reported that the Terrace was deemed eligible to be listed on the National Register of Historic Places in 2004 but the designation lapsed after a ten-year period.

In 2015, Denis Gardner, the National Register historian for the Minnesota State Historic Preservation Office, said the theater is "one of the most distinctive buildings in Robbinsdale."

[26] More than 2,200 people signed a "Save the Terrace" petition,[27] but the City Council approved demolition on August 23, 2016 as part of a redevelopment plan that would replace the theater and the adjacent mall with a Hy-Vee.

[6][29][30] A citizens group launched an internet petition against Hy-Vee and filed a suit with Hennepin County District Court on August 23 requesting that the demolition be halted.

And it flies directly in the face of the Minnesota Environmental Rights Act, which states that ANY CITIZEN can file a lawsuit in defense of endangered resources.

In December 2016, the landmark TERRACE letters that stood atop the tower for 65 years and the iconic "sputnik" chandeliers from the lobby were transferred to the Robbinsdale Historical Society.

In August 2019, the group exhibited damaged items saved from the demolition, including the chandeliers and two restored marquee letters, along with photographs and other memorabilia from the theater.

The Terrace Legacy Project plans to continue restoring and exhibiting artifacts as funds allow, so that people can still experience what was once "America's Finest Theatre."

Hy-Vee CEO Randy Edeker had stated in November 2017 that the Iowa-based company was reevaluating this size of its stores, expecting to focus on buildings ranging from 12,000 to 50,000 square feet.