Walt Disney World created the town of Celebration, Florida, in the mid-1990s, and its retro movie theater is the downtown's crown jewel. (Disney sold the downtown section to Lexin Capital in 2004.)

At one time while the town was still developing, the theater doubled as a church and a site for high school graduations.

But the theater, leased by AMC, has been closed since 2010, and the community is frustrated.

Numerous groups from the town have tried to take over it.

It's a warm November evening in Celebration, Florida, and the town's charming downtown is mostly quiet outside of a couple of busy restaurants and a crowded ice cream shop. The quaint rows of storefronts are reminiscent of 1940s Anywhere, USA — and everything has a Floridian teal color.

Its vibe feels like a carbon copy of Main Street at Walt Disney World, and there's a good reason for that: The town was created by the iconic amusement park.

If you walk toward the end of downtown Celebration on Front Street, you'll find the town's movie theater. The marquee shines bright, and its Googie-style design gives the warm feeling of the thriving movie houses of yesteryear.

Celebration really is a town frozen in time.

But if you walk closer to the theater, there are troubling signs. For one, the marquee doesn't list any movie titles — it's just a shining, blank space. And there is zero foot traffic. In fact, the entire inside is dark.

In many ways, the theater is like Disney World itself: The closer you get to it, the more you realize it's all a well-designed facade.

How the theater helped a town come into its own

Before his death in 1966, Walt Disney dreamed of building a utopian community that would cater to the young and old while featuring amenities decades ahead of their time — self-sufficient houses powered by their own power plant, large trash tubes built underneath houses so residents wouldn't have to worry about curbside pickup, and public transportation so vast that people would have no need for cars.

He called it an Experimental Prototype Community of Tomorrow, or Epcot.

But this would be one of the few ambitious undertakings Disney could not pull off while he was alive. With no one around to push his extremely expensive project forward, the dream of a city of tomorrow faded to just a section at Disney World.

Walt Disney showing plans for Epcot. Disney

Though Celebration, 10 miles from Disney World, is certainly not Disney's Epcot dream reincarnate — some see it more as something ripped from "The Truman Show" or "Pleasantville" — it has Walt's fingerprints all over it.

This is a town where a communal atmosphere is paramount, and the tranquil white picket fences surrounding almost every property are so ingrained in its aura that they are literally part of its logo, which features a girl in a pigtail riding a bike by a fence with her dog trailing behind.

The town, now with a population of 10,000 people, was the brainchild of Disney Development Company, the Florida-based subsidiary of the Walt Disney Company that's involved in the design and construction of the resorts and shopping areas around Disney World. It was inspired by the New Urbanism craze that was growing in popularity in the early 1990s — land developers mixing a small-town feel with attractive downtowns.

What better way to extend the Disney brand than for the conglomerate to build a town in its image?

The two-screen movie theater in Celebration is one of the crown jewels of the Town Center downtown area. Like the entire downtown, it was built in 1994 to entice people to buy the condos above storefronts or the surrounding farmland that would soon be transformed into quaint homes. (Construction on houses began two years later.)

Disney hired some of the finest architects in the world to design the buildings downtown, and it got Cesar Pelli to do the theater.

What Pelli came up with is a gorgeous theater in a postmodern style, with round spires and twin round marquees. It makes you feel as if it were plucked right from the 1950s.

The movie theater in Celebration, Florida, before it closed in November 2010. Jack Coursey/Cinema Treasures

"I'll leaf through books on architecture, and I'll see the Celebration theater," Joe McKinney, a former resident who's now the CEO of the Startup Societies Foundation, told Business Insider.

And as the community grew, so did the theater's responsibilities.

In the early years of Celebration, the theater held church services every Sunday morning as the town waited for a place of worship to be built.

"In fact, one church would do its service, and you would walk out of the theater, and another church would walk in," a resident named Floyd McCollum recalled. "The pastors would pass each other."

The theater was also the site of the town's first-ever high school graduation for the class of 1996-97. There were only four graduates, but the theater was packed to witness it.

But in 2004, Disney sold its stake in the Town Center to the private-equity firm Lexin Capital. The theater, operated by the AMC theater chain, closed its doors in 2010, but AMC still owns its lease.

So why has the largest movie-theater chain in the world kept a two-screen, 527-seat theater empty for close to a decade?

That's a question residents have been trying to get answered for years.

Major restrictions held back profitability

The movie theater is one of McKinney's first memories as a 7-year-old moving to Celebration from Minnesota in 2000. He recalled how he and his family got into town for the first time late at night, and because of something that went wrong in the move, they all went to a late showing at the theater to kill time.

"It was 'The Tigger Movie,'" McKinney said. "My family fell asleep watching the movie."

As the years went on, going to the theater became a ritual for McKinney. He attended Sunday service there before the church was built. He remembers running straight to the theater from school to wait six hours in line to see "Star Wars: Revenge of the Sith." And it was where he would hang out with his friends.

"We did a thing I used to call 'Celebration Lunch' — we would go grab a slice of pizza, go get an ice-cream cone, and right next door would be the movie theater, and we would see a matinee," he said.

The theater is where Alex Foster would go to catch a movie late at night when he would have trouble sleeping. And numerous residents recalled seeing the "Harry Potter" movies there, standing in a line that would snake around the block.

Downtown Celebration, Florida. Preston Mack/Getty

But despite all the fond memories, the theater was never consistently busy.

"The sellouts were infrequent," Donald Moysey, who worked at the theater for a year in the late 1990s when he was 16, told Business Insider. "The normal movies, only a couple of people would come out. We would have a lot of showings where no one would show up."

Outside of the occasional major blockbuster, the theater, called the AMC Celebration 2, was usually empty, he said. Moysey said this was partly because of infrequent new releases and Disney's mandate that it not play any movies that were extremely violent or sexually explicit.

One myth in Celebration about the theater is that it could run only Disney movies. Others believe it could screen only PG-rated or G-rated movies.

But Moysey said all different kinds of movies were shown there unless they had adult themes like gore, a lot of bad language, or nudity.

"A Quentin Tarantino movie wasn't going to show up there," Moysey said. "If a violent movie or horror movie was the big release that weekend, it wasn't coming to Celebration. So AMC could not put in the most profitable movie to that theater every week. The theater never turned a profit. It was just a question of how much did we lose that month."

AMC finally cut bait on the theater in 2010. It took its logos off the building and shut off the marquee lights — though after years of public outcry, AMC began turning on the lights in the evenings.

And though there was a lot of disappointment spouted online about the theater's closing, the town didn't really come out to give it a proper send-off on its final day.

McCollum and his family were there on the last day the theater was open: November 28, 2010. The titles showing were "Harry Potter and the Deathly Hallows: Part 1" and the animated movie "Megamind," starring Will Ferrell and Brad Pitt.

McCollum said the only reason he knew the theater was closing was that he happened to spot a sign in front of the theater saying so.

He went with his wife, his son, and his neighbor to see "Megamind" and was shocked by what he saw.

"Inside the theater was literally just the four of us," he said. "Four people to see a movie on the last day ever!"

The lobby of the theater before the final movie of the evening. Looks like a regular night at the movies. Floyd McCollum

Things got even stranger.

McCollum said that when they walked in that evening, it looked like any other night, with staff members checking tickets and making popcorn. But when the movie ended, they went to the lobby to find no one there.

"It was completely empty," he said. "The movie posters were all off the walls and rolled up in the trash — I took the 'Megamind' one, and my neighbor took the "Harry Potter." Everything was cleaned out. Nobody was there. I actually checked the door when we left; it was locked once we were out and the door shut.

"Nobody could come back in. It was really sad."

The lobby when that movie was over. It appears to have been gutted before patrons even left. Floyd McCollum

Why AMC has kept the lease to an empty theater

When AMC began work on a massive 24-screen multiplex at Walt Disney World Resort's Pleasure Island in 1997 — now renamed Disney Springs — the park had one stipulation: If AMC wanted the 24 screens, it also had to take on the existing two-screen theater in Celebration. (A source close to the negotiation confirmed to Business Insider the deal's stipulation.)

Some Celebration residents believe that AMC began to see the town's theater as an annoyance and always intended to close it up once the Pleasure Island theater got on its feet.

Moysey got a job at the Pleasure Island AMC years after working at the Celebration theater, and he said there wasn't much chatter about the Celebration location.

"It was implied that they didn't have any association with it," he said. "They definitely didn't have any intentions of reopening it."

According to town officials who spoke on the condition of anonymity and documents obtained by Business Insider, AMC has kept the Celebration theater empty for close to a decade because it's cheaper to take the loss on the theater than to pay staff and operate it.

The chain, which recently renewed its lease on the theater, has also held onto it so no competitors can come in and take over, the town officials told Business Insider — leaving Celebration residents and those in neighboring areas with the AMC in Disney Springs as the closest option for seeing a movie.

The closed AMC Celebration 2 today. Jason Guerrasio

But this hasn't stopped people over the years from devising business plans that they believe are right for the theater.

McCollum said he had been involved in three different attempts to take over the theater in the past eight years. The closest was an initiative headed by Foster, who is not a Celebration resident but is well-known in the area.

In 2016, Foster's Jazz Meets Motown, a weekly jam session of area jazz musicians, was a regular attraction at the Bohemian Celebration Hotel. On Monday nights, the music would fill the hotel's lounge — and at its height, the hotel would have to turn away 50 to 60 people, he said.

From that, his idea of a center for the arts in Celebration was born.

"I thought we got too big for that space," Foster said of performing at the hotel. "The plan was to take over the theater — one of the theaters would be for playing jazz and special programming, and the other theater would be for small live theater productions and classic movies."

Foster also found interest from nearby schools in a potential scholarship program as well as a program dedicated to entertaining older people in the area.

To the shock of many in Celebration, both Lexin and AMC were willing to entertain the offer. Foster just had to come up with some cash.

Specifically, Foster said, he had to get $50,000 up front, then pay $25,000 a month to rent the space from AMC, which would still be the leaseholder — and he had to get a $2 million line of credit.

"My problem was the lack of money," Foster said.

He acknowledged that he made the mistake of not putting enough time into trying to get corporate sponsors.

"We thought we had community backing — we had these meetings once a month," Foster said. "In desperation, I gave a New Year's Eve fundraiser, and that was a disaster. Arms were opened, but I was never embraced."

Foster gave up his dream last year. But since then, a new group has come forward.

The willing takers

Christina and Sean Gerrity are what you call lifers in the performing-arts world.

Christina has traveled all over the world as a professional dancer, while Sean has done everything from performing full time at Disney World to headlining as a singer aboard Royal Caribbean cruises. They ended up at Celebration 6 1/2 years ago when they got off the road and started a family, but the drive to do something in the arts continued.

They began the Celebration Arts Academy a year ago with a desire to use their talents and experience to mold the next generation of entertainers.

"We started with six students, and now we have 105 in one year's time," Christina Gerrity told Business Insider. "We want to expand."

For the past year, they've been subleasing a 1,000-square-foot space from the owners of the Thai restaurant in town, and now they have their sights on the theater.

At first, Christina Gerrity said, the plan was to rent some space at the theater once Foster started operating there. But soon after Foster gave up on trying to sublease the theater, the Gerritys took on the task of trying to revive the theater.

"Phase one would be updating the performance space: take out the existing screen, build a backstage, take out a row or two of seats, build a VIP section in the lobby," Gerrity explained. "The second phase would be building out the education center: have dance rooms, a homework area, a tech area where kids learn about working backstage."

However, like in Foster's case, it has been a challenge to move forward. Christina Gerrity said though AMC was very willing to sublease the theater, Lexin Capital also has to OK it, which has been the roadblock.

"We formed a nonprofit in the last two months in order to build some funds to get in there," Gerrity said. "But we've been told by Lexin we need 'strong financials' — up to the millions — just to get in."

And then there's the condition of the theater.

Gerrity said she had been inside the space twice. The second time, she said, she saw water pouring from the ceiling of the men's restroom.

"It was like a lake in there," she said. "After all these years, and the hurricanes, who knows what's behind the walls."

Lexin Capital has been accused in the past of neglecting repairs to the town. In 2016, the condo owners' association filed a civil lawsuit seeking to force Lexin to pay $15 million to $20 million in repairs.

Gerrity says she doesn't know how much it would cost to do the needed repairs for the theater because Lexin refuses to have an inspector look at the building, and the Gerritys say they will not spend their money to get one themselves.

"We have a legally binding lease with AMC Theater on the space, so we are not at liberty to discuss lease specifics with anyone other than the leaseholder," a spokesman for Lexin told Business Insider via email. "As far as why AMC closed, current condition, etc., those are questions that would need to be answered by the leaseholder (AMC)."

AMC did not respond to Business Insider's numerous requests for comment for this story.

Disney created Celebration in the mid-1990s. It sold it to the private-equity firm Lexin Capital in 2004. Preston Mack/Getty

The Gerritys have since postponed a fundraiser they were planning to hold at the end of March and are trying to figure out their next move.

"We are not sure what direction to go now, because we feel like we're up against a wall," Christina Gerrity said.

But Gerrity has a glimmer of hope. She said she was recently told by her business partner that the leasing agent for AMC had divulged that the movie chain did not plan to renew its lease on the theater when it expires in October 2021 — something substantiated by another source.

Of Lexin, Gerrity said, "Once that lease is up, they'll change their tune."

For the foreseeable future, however, the theater that was more than just a movie house for the people of Celebration will be relegated to a slowly rotting structure like so many of its brethren across the country.

If this were an old Disney movie made while Walt was at the controls, this would be the moment in the story when a little bit of magic would appear — perhaps in the form of a fairy godmother or some pixie dust — to make things right.

But it doesn't look as though this story will have a happy ending.

"I'll often go back," McKinney said of Celebration. "Seeing that movie theater with its beautiful architecture in the middle of town and it's not open, it's just strange."