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Two well-known Bethesda theaters are finding themselves on the opposite side of economy, as Bethesda Theatre closes its doors to full-time production, and Imagination Stage welcomes its largest donation in history.

On Saturday, Imagination Stage accepted a $2.5 million personal donation from Carol Trawick and her deceased husband, Jim. Facing economic difficulties, Bethesda Theatre will no longer produce its own shows, switching instead to a rental facility, theater officials said recently.

"For the time being, our plan is to operate the historic Bethesda Theatre as a rental venue for theatrical shows and special events," Tom Lewis, a member of the Bethesda Cultural Alliance, the theater's board of directors, said in an e-mail. "This will allow us to more actively work to identify other cultural organizations that may be able to utilize the space."

Bethesda Theatre opened its doors in 1938 as the Boro Theatre. Over time it became the Bethesda Cinema ‘N Drafthouse and the Bethesda Theatre Café before closing in 2001. The 700-seat space reopened in October 2007 after a $12 million renovation by the Bozzuto Group. The development company received more than $2 million in county and state tax credits to help complete the project, which was built in conjunction with The Whitney, a $62.5 million apartment project that now sits above the theater.

The recession, coupled with damage sustained by a burst water pipe in April 2008, proved to be too much for the theater to overcome. The theater's owners and insurance company are currently wrangling over the cost of the damage, with the theater seeking lost income damages as well as structural ones.

Prior to going dark in late July, the theater was host to a slew of shows over the past two years, including "Smokey Joe's Café" and "I Love You, You're Perfect, Now Change." But there were signs of economic distress.

At the beginning of the year, then Executive Director Ray Cullom slashed ticket prices for Wednesday and Thursday shows in an effort to fill seats, and reduced marketing and set design budgets. Some shows managed with two assistants during some performances instead of three.

Steven A. Silverman, director of the Montgomery County Department of Economic Development and a former county councilman, sits on the board for the Bethesda Cultural Alliance, a nonprofit that took control of the theater from Bozzuto after its completion. He said while the economy played a large role in the theater's demise, there were deeper issues.

"There have never been strong philanthropic contributions to Bethesda Theatre, other than from Bozzuto," Silverman said. "That was just starting to develop, but the economy stopped that."

The theater will continue to operate as an entertainment venue, Silverman said, because it has to: when the county approved the tax credits for the site, it stipulated that the theater must always remain a site of entertainment.

For Imagination Stage, elation reigns supreme.

"We were all overjoyed," said Brett Ashley Crawford, managing director of the theater. "Just in awe."

Imagination Stage has theater and arts programs for children of all ages and abilities. The donation will be spread over 10 years, Crawford said, and will go toward paying down a $4 million debt, incurred when the group moved into its location in 2003.

The gift is the largest the theater company has ever received, according to founder Bonnie Fogel. Previously, the largest amount was $1 million from The Annette M. and Theodore N. Lerner Family Foundation.

"I felt that if we could relieve a little of the burden of worry about debt, the extra money could be applied to programs for the children," Carol Trawick said. "Just think how much more energy can go towards working with those kids."

In honor of the contribution, Imagination Stage's building on Auburn Avenue will be named after the Trawicks.

As for Bethesda Theatre, the space is currently home to "Forever Tango," an evening of song and dance. The theater has been rented out for the production, which runs through Sunday.