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Facing competition from newer shopping mall theaters, the Rex closed in [[1977]]. Its owners, the [[ABC Theatre]] chain, donated the building to the [[City of Pensacola]] as a tax write-off.
 
Facing competition from newer shopping mall theaters, the Rex closed in [[1977]]. Its owners, the [[ABC Theatre]] chain, donated the building to the [[City of Pensacola]] as a tax write-off.
  
In [[1981]], attorney [[Gerald McGill]] and [[Frank Antonowich]] leased the building and restored it, hiring [[Theophalis May]] to install tiered flooring and make other improvements. It reopened as the '''Rex Cinema 'n Drafthouse''' on [[July 23]], [[1982]], charging a flat $1 admission for second-run movies and offering a deli-style food menu and a selection of beer and wine.<ref>"Second-run theaters offer new concessions." ''Pensacola News-Journal'', July 11, 1982.</ref> The venture was unsuccessful, but McGill bought the building for $95,000 in [[1984]] and, with businessman [[Russ Dixon]], continued renovations with plans to diversify revenue by serving lunch on weekdays and offering a video real estate tour service.<ref>"Pair plans headlines for cinema marquee." ''Pensacola News Journal'', August 11, 1985.</ref>
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In [[1981]], attorney [[Gerald McGill]] and [[Frank Antonowich]] leased the building and restored it, hiring [[Theophalis May]] to install tiered flooring. It reopened as the '''Rex Cinema 'n Drafthouse''' on [[July 22]], [[1982]], charging a flat $1 admission for second-run movies and offering a deli-style food menu and a selection of beer and wine.<ref>"Second-run theaters offer new concessions." ''Pensacola News-Journal'', July 11, 1982.</ref> The venture was unsuccessful, but McGill bought the building for $95,000 in [[1984]] and, with businessman [[Russ Dixon]], continued renovations with plans to diversify revenue by serving lunch on weekdays and offering a video real estate tour service.<ref>"Pair plans headlines for cinema marquee." ''Pensacola News Journal'', August 11, 1985.</ref>
  
 
The city repossessed the building in [[1987]].<ref>"Makeover planned for Rex." ''Pensacola News Journal'', October 10, 1995.</ref> The last event to be held in the theater was the traveling "Dinosaurs Alive!" exhibit in [[1989]].
 
The city repossessed the building in [[1987]].<ref>"Makeover planned for Rex." ''Pensacola News Journal'', October 10, 1995.</ref> The last event to be held in the theater was the traveling "Dinosaurs Alive!" exhibit in [[1989]].

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