State Palace Theatre

The State Theatre opened in 1926 for the Loew’s Theatre circuit. On opening day, Marcus Loew appeared on stage with many silent film stars of the 1920s including Buster Keaton, Jack Mulhall, and Dorothy Mackaill. Designed by leading New York architect Thomas W. Lamb, the State Theatre cost $1 million to construct. Lamb was instrumental in establishing and developing the design and construction of large theatres known as movie palaces for early Hollywood studios.

A mix of Renaissance motifs adorned the State Theatre, which has over 3,000 seats. MGM films would be premiered in silence at first, then in sound later. The State Theatre initially featured a 3 manual 13 rank Robert Morton organ with specifications similar to a Wurlitzer. The organ fell into disuse in 1932 and was later damaged in a flood. Many of the pieces of the organ were taken to the Saenger Theatre in Pensacola, Florida.

By merging Metro Pictures, Goldwyn Pictures, and Louis B. Mayer Productions, Marcus Loew founded MGM in 1924 to provide films for his theaters. Loew’s Inc. served as MGM’s parent company and distribution arm until anti-trust laws forced them to separate. The two companies did not officially split until 1959. When the Brunet Company assumed operation of the theater, the auditorium was restored to a single screen. The adjoining commercial spaces were remodeled and connected to the theatre’s main lobby, creating a large entertainment complex. The renovation also changed the name to the State Palace Theatre.

In the early 1990s, during the height of grunge music, the State Palace hosted such famous bands as the Smashing Pumpkins and Pearl Jam. The venue hosted the New Orleans premiere of the Dave Mathews Band in 1995. The first raves were held at the State Palace in 1995. The crowds numbered in the hundreds but quickly grew to the thousands. The rave parties became nationally known for their bizarre themes and attractions. Some of these included a dance contest hosted by the late Fred Berry (the character Rerun from the TV show What’s Happening!!), a surprise performance from 2 Live Crew, a puppet show by local act Quintron, and a traditional Mardi Gras second line by Rebirth Brass Band. During one party, the group Crash Worship led a thundering drum composition that included a naked woman soaked in wine. Another time, the promoter turned on the house lights at 3:00 A.M. to a choir singing Amazing Grace.

In 1998, tragedy struck as a 17-year-old girl suffered convulsions from drug complications at a State Palace rave. She passed away after lying in a coma for several days. After the girl’s death, federal agents made an unannounced visit to the promoter’s home and questioned him about his involvement in drug dealing at the State Palace. By 1999, the mainstream media was saturated with coverage of raves as drug-fueled death traps in response to the Drug Enforcement Agency’s “Club Drug Campaign”. The promoter and owner of the State Palace were unaware they were the subject of a national investigation into rave parties and the club drugs associated with them.

For eight months, beginning in January of 2000, the State Palace Theatre was under investigation by the DEA. On August 26, 2000, the rave parties came to an abrupt halt. Hours before a party was set to begin, the New Orleans Police Department sealed off the theater’s entrance, leaving thousands of patrons wandering the sidewalks. Federal agents searched the building until the early morning hours. They seized files, computers, party favors, and even cases of bottled water. The agents found virtually no drugs inside the building and no proof that the promoter or owner had any involvement in drug dealing.

Although there were no drugs found, the owner and promoter were indicted under federal grand jury charges of violation of the ‘crackhouse statute’, a charge that carries a possible prison sentence of 20 years to life. The federal statute makes it a felony to knowingly open, lease, rent, use, or maintain any place for manufacturing or using any controlled substance. This indictment was the first time the federal government used the law to indict a venue manager and promoter for drug dealing, rather than charging the dealers and consumers themselves.

A search warrant stated undercover DEA agents observed rampant drug dealing and consumption of LSD and ecstasy that neither security nor management did anything to curtail. Furthermore, the warrant also stated the venue sold glow sticks, bottled water, and pacifiers; all said to enhance the effects of ecstasy. During a party on March 4, 2000, undercover agents made 25 purchases of controlled substances within an hour, averaging one every four minutes.

A plea deal was eventually rejected by the promoter, and he decided not to plead guilty or accept a plea offer. In his opinion, shutting down rave parties would not prevent children from getting addicted to street drugs. With a new attorney and help from the Civil Liberties Union’s Drug Policy Litigation Project, he decided to fight the charges. In 2001, the charges against the promoter were dropped. A second case charged the owners with conspiracy to violate the ‘crackhouse statute.’ A guilty plea was accepted by a judge and the owners paid a $100,000 fine and agreed to ban anything that could be considered drug paraphernalia. Following Hurricane Katrina, the State Palace’s basement flooded for a short period in 2005. Two years later, the theater closed permanently due to fire code violations.

There have been attempts to revive the State Palace in recent years, but nothing has materialized. In 2014, the theater was sold to local commercial real estate developer Gregor Fox for $3.5 million. Fox planned to renovate and put the theater back into commercial use. After he discovered the renovation would cost upwards of $40 million, he decided to sell the State Palace a year later. Another developer, LC Hospitality Group, bought the theater from Fox in 2015. In 2018, they submitted two different renovation proposals, and both were denied. The shuttered theater was set to undergo renovations in 2009, however, those plans also stalled. While other theatres have been revived in New Orleans, the State Palace still awaits its turn. As of April 2024, the Loews State Palace Theatre is listed for sale for $5.95 million.

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