The idea for expansion was hatched about two decades ago, according to Ms. Procope. In 1983, two years after declaring bankruptcy, the theater received city and state landmark status. Its financial struggles continued, however, threatening its very existence. In 1991, the foundation, a nonprofit, was formed to oversee the troubled institution. The theater’s building is currently owned by New York State and is leased to the foundation.

In the late ’90s, the team behind the Apollo was given the chance to develop the Victoria, a former movie theater built in 1917. But after the Sept. 11 attacks and the economy’s souring, the board chose to focus only on the main auditorium.

New York State, which owns the Victoria, announced an ambitious renovation of it more than a decade ago, but the project faced numerous delays, including a change in developers, before construction began last year. The final product, a public and private partnership, is to include a mixture of residential condominiums, a Marriott Renaissance Hotel and the performing arts center. The Apollo is leasing the space from the Harlem Community Development Corporation.

The challenge, Ms. Procope said, will be in developing a viable business model for the center. Recently, the theater’s finances have been stable. For the fiscal year 2017, the Apollo ran a slight surplus of just over $200,000 on its $15 million budget, its fifth straight year of doing so.