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A rendering of what a new entrance at 223 S. State St. could look like if offices replaced the State Theater.

(Hobbs + Black Architects rendering)

Burning the midnight oil at the State Theater might soon take on a new meaning.

The historic Ann Arbor theater, known for playing new independent films and midnight showings of older classics, may give way to the ever-increasing need for downtown living and office space.

The State Theater has a series of midnight movies that includes popular Rocky Horror Picture Show events.

The State Theater LLC, an ownership group that manages the building containing the State Theater, has asked the Historic District Commission to review plans to transition the second floor into office space. The first floor of the building is an Urban Outfitters and the second floor contains the theater’s two screens.

Jim Chaconas, a member of the private ownership group that makes up The State Theater, LLC, said that submitting the plans should not be interpreted as a decision to change the property.

“We’ve got three sets of plans, one to keep it a theater, one to put in apartments and one to make it into office space,” he said.

“It all depends on how the theater performs… it’s doing a little better than it has been but not well enough to upgrade to digital projectors.”

The application, submitted Oct. 23, describes the project as “Chang[ing] existing 2nd floor from theater to office use. Add elevator at south elevation. Add new windows at north and south elevation,” at 225 S. State St. The application indicates local firm Hobbs & Black would be the architects for the project.

Chaconas said the bottom line is that the group will do whatever makes the most financial sense.

“The cheapest thing would be to keep it a theater, but it has to be able to make enough money to support itself,” he said. “We may work something out with the Michigan Theater and let them take it over.”

The State Theater, built in 1942, was designed by theater architect C. Howard Crane, according to the Michigan Theater website. The building was purchased in 1987 by Borders co-founder Tom Borders who later sold it to The State Theater, LLC.

The Michigan Theater’s Film Programming team has provided booking and marketing services for the theater since 1997.

“This is the first I’ve heard of it [the plan],” Michigan Theater executive director and CEO Russ Collins said. “We do not own the State Theater and we do not lease the State Theater, we provide services to the owner of the building and the business to provide programming and marketing for the theater. We will do so until such time as we are told not to and we have not been told not to.”

Shelly Mendelson of JDP Management, the property management group that runs the theater, submitted the application on behalf of State Theater, LLC.

Ben Freed is a business and general assignments reporter for The Ann Arbor News. Email him at benfreed@mlive.com and follow him on twitter at @BFreedinA2