I love the ornate theaters of the past and think that every effort should be made to preserve and restore them. Once gone, they're gone for good. I witnessed the rescue and restoration of the Ohio Theatre in Columbus. Its demolition was scheduled when a local group formed and saved it. You can read about the efforts here:
https://en.wikipedia.org/wiki/Ohio_T...Columbus,_Ohio)
However, one thing that must be considered in saving the Colonial is "what are you going to do with it"?
Once restored, it will need to generate a steady and significant revenue stream to operate and maintain it. This is not something that is going to be a huge attractor of "summer money". To succeed, it must draw and hold local attention.
So, what kind of attractions will, as they say, put Laconians' butts in the seats? Answer that and restoration money will surely follow.