One of two smaller upstairs screening rooms inside the State Theater of Marysville, created from a section of the original balcony. Melvin believes these compact spaces could be converted back into balcony seating or repurposed for flexible programming or private events. Photo taken July 30.

MARYSVILLE, CA (MPG) - For years, Marysville’s historic State Theater has stood in limbo, boarded up, neglected and entangled in a web of rumors, liens and litigation. But according to Don Melvin, the man currently fighting to clear its title, that story could have a very different ending if the city chooses to work with him.

“I’m too old for all this, I really just want to be done with it and enjoy the rest of my retirement,” Melvin told The Territorial Dispatch during a recent conversation following a case management hearing on July 28. “But, if at all possible, I’d really like to see it reopened as a theater. I think that’s possible now.”

Melvin has found himself at the center of the theater’s ongoing legal saga for well over a decade. Though his official stake in the property began with a 15% interest in the early 2000’s, he says he’s been the local caretaker and de facto owner for years. And yet, he’s never been able to finalize a sale or restoration, despite having willing buyers. The reason? A messy ownership history and a slew of city-imposed fines and liens, which Melvin claims never to have received notice about.

Don Melvin boards up the entrance to an adjacent office building connected to the State Theater in an effort to deter further break-ins. He believes the structure could be converted into several small apartments with the right investment.

A Web of Deceit

Much of Melvin’s predicament traces back to a man named George Benny, a convicted con artist and former real estate mogul. Benny, who passed away earlier this year, was one of the principal figures behind California Partners LLC, the entity that acquired the State Theater after it closed in 1997.

“If I had known who George Benny truly was, I would have never gotten involved,” Melvin said.

Benny was a former multimillionaire developer whose empire collapsed under the weight of massive fraud schemes in the 1980s. In 1985, he was sentenced to 30 years in federal prison after being convicted on 21 counts of mail fraud and one count of racketeering (U.S. v. Benny, 786 F.2d 1410). His conviction stemmed from elaborate real estate scams that defrauded banks and lenders out of more than $40 million, including planned developments in San Francisco, Las Vegas and Reno.

Despite the lengthy sentence, Benny served approximately 10 years before being released on parole in 1993. However, his post-release behavior raised more red flags. He was reprimanded multiple times for failing to disclose income and real estate dealings, activities he was explicitly barred from participating in as part of his parole conditions.

Don Melvin examines a strip of decaying film left behind in the projection booth of the State Theater in Marysville on July 30. He believes the reel may be a remnant from an old Arnold Schwarzenegger movie once shown in the venue.

In 1998, Benny was taken into custody after further violations, including associating with individuals involved in criminal activity and engaging in unauthorized real estate transactions, believed by some to include the State Theater acquisition. He ultimately accepted a deal to serve an additional three months in prison in exchange for a second parole term, which resumed in 1999.

“It turns out when he got involved and started California Partners, he was still on parole,” said Melvin. “So that alone was a violation. But I didn’t realize who I was in business with at that time.”

According to Melvin, Benny misrepresented both the legitimacy of the LLC and his relationship with partner Eva Hollo. Though Hollo had been publicly linked to the building for years, Melvin later learned she had never been legally added to California Partners’ ownership documents. He also alleges Benny shorted Hollo out of over $400,000 in promised equity.

“George always had a whole bunch of schemes going on,” Melvin said. “He gyped me and Eva and many others.”

An original PhotoStat camera, once used for making photographic copies of documents and images, still stands in the office spaces above the State Theater in Marysville. Melvin says he plans to donate the piece to a local museum for preservation.

Realtor Judy Smith, who claimed to have assisted in the original transaction, recalled joining Benny and Hollo at the tax assessor’s office to pay off $30,000 in back taxes.

“The last time I saw Eva and Benny was that day,” Smith said. “I had sold the theater to Eva, I never understood why they transferred it out of her name.”

Benny’s health reportedly declined in his later years, and Melvin believes he was suffering from Alzheimer’s before his death in March 2025.

“He fought me on everything I was trying to do to improve the building,” said Melvin.

Benny however did marry Hollo before he passed, effectively tying her back to inherit his assets including that of California Partners and the State Theater. Melvin said Hollo eventually told him to “do whatever [he] wanted with the property,” but legal complications tied to California Partners’ still suspended status made any real action impossible. Hollo has since refused to engage with the property and a default judgment is being filed to clear her claim on the property.

Melvin shines a flashlight on smoke-damaged ceilings inside the State Theater on July 30 in Marysville. Much of the interior damage has come from fires started by vandals and repeated break-ins over the years.

A Building with Potential and Problems

Melvin’s vision for the State Theater has remained consistent: to pass it on to someone who can restore it to its former glory. He has been in communication with potential buyers and claims a sale could close in 10 days, if the city would release what he calls “unjustified” liens.

Melvin said he’s been the one paying property taxes, maintaining the building, and working with local law enforcement for over a decade. He further advocated that city records and police agency agreements list him as the primary contact and caretaker, and he even presented evidence showing that he paid off nearly $97,000 in city fines in 2017.

But after appearing in a CBS news segment last year regarding break-ins at the theater, Melvin says things took a sudden turn.

“Two days after that aired, Chief Sachs tried to put a lien for $28,000 on the building,” Melvin said. “The city knows I’m the owner; they’ve worked with me for years. Why didn’t they notify me about these fines?”

The current amount the city seeks in fines is approximately $30,000, according to Melvin. He’s trying to sell the property for $150,000, but said that after legal fees, fines and taxes he wouldn’t even break even.

Tattered curtains and original batten rigging still hang above the stage in the State Theater’s fly system in Marysville. Melvin believes the set pieces may be remnants from a final performance of Hamlet before the venue closed in the late 1990s. The State Theater will soon be 100 years old.

“I never knew about these fines, and it's not like I’m trying to get rich here,” Melvin emphasized. “Dan Flores [Marysville’s Community and Economic Development Director] told me there would be no new fines while we were working together, and that started in 2022. Then these secret fines suddenly appeared.”

One such fine, Melvin said, was due to trash and cigarettes left by an unhoused man sleeping under the marquee, an act caught in a city photo that was later used as evidence.

“In the picture, you can clearly see him there under the ‘No Loitering’ sign. I was fined for the trash at his feet,” Melvin said. “It feels like I’m being bullied, or like the city sees me as a source of revenue.”

When asked whether the city would consider waving or reducing the fines to facilitate a sale, Flores responded with a firm statement:

“It’s important to clarify that Mr. Melvin filed a lawsuit against the City of Marysville, not the other way around. While he may dispute certain facts, the record will speak for itself. As the saying goes, a picture is worth a thousand words, and the city has many. Those will come to light in due course. In the meantime, consistent with policy, the city will not comment further on active litigation.”

Levers and control boards for the State Theater’s fly system remain intact backstage. Melvin notes this spot is often icy cold and believes the space may be haunted. Local lore—supported by Melvin’s own research—suggests a young girl, the daughter of an actor, died here after falling into the orchestra pit decades ago.

Waiting for Resolution

Melvin believes the State Theater could once again thrive thanks to changes in film licensing and scheduling policies that took effect around 1999. At the time of its closure in 1997, the theater struggled to meet industry requirements such as minimum seat counts and strict screening schedules, which made it financially unfeasible to operate, especially with limited downtown parking to accommodate large crowds. However, those standards have since been relaxed, allowing venues like the State Theater to license films for limited or event-based showings without the need for daily screenings or full-capacity audiences. This shift, combined with the building’s suitability for both film and live performance, opens the door for a more flexible and sustainable business model.

While the interior has suffered damage from vandalism, Melvin maintains that the building’s structure remains strong, with thick steel-reinforced concrete walls and a fully intact fly system. He believes most of the necessary work is cosmetic, replacing furnishings, electrical fixtures, toilets and seating, along with some roof repairs.

Melvin says he already has a buyer ready to begin work immediately but cannot proceed until the title is cleared. He maintains that he never received proper notice of the city-imposed fines that are currently blocking the sale.

“The property will be transferred as soon as it’s clear titled to somebody that’s going to start work on it immediately, and the city knows this,” Melvin said.

He hopes to resolve the matter before the next court date on Dec. 1.

“I should’ve never gotten involved. It was a mistake, and I’ve been trying to get out,” Melvin said. “But I do want to see it turned into something good. I’ve always thought this building could still be a great theater.”