Stuart proceeded to haunt the head office in Toronto, "so much so they were afraid he might become a permanent fixture", according to Harry Sedgwick of Famous Players. To avoid that, they agreed to design and build a new movie house. It was to be the first theatre built in the country specifically for the advent of talking pictures!

The plans for Port Hope’s Capitol Theatre were approved in January, tenders were let and construction began on February 17, 1930. Construction was carried out by a local firm - Thomas Garnet and Sons - who had previously built Batterwood, an addition to the General Hospital on Ward Street, the Guide Building, as well as many other local landmarks. The Capitol Theatre was the first in town to use steel girders in its construction, and the building was built at a cost of $80,000.

The Capitol Theatre is a superb example of an "atmospheric" theatre, a Hollywood-inspired genre of architecture. Unlike conventional theatres, the Capitol is a building rich in fantasy decor, designed to divert the audience away from everyday cares and set the stage for the show to come on stage and screen. The architectural design and decorative scheme in an atmospheric theatre were planned to evoke the illusion that patrons were seated outdoors. This effect was achieved by projecting images of stars and moving clouds onto a grey painted, seamless ceiling, using a brenograph, which is a special type of projection equipment designed expressly for this purpose. The employment of projected images is the key element in an "atmospheric" theatre. The auditorium appeared to have no roof, and patrons seemed to be sitting outside under a starry summer sky. The notion of a projector with clouds and stars was a very clever and innovative idea in the 1930’s, as most other theatres would utilize a pianist or a pit band to entertain the patrons before a film screening or production.

After closing in 1987, the restoration of the Capitol began in earnest in 1993, with a groundswell of public support and the formation of the Capitol Theatre Heritage Foundation, a non-profit organization determined not only to resurrect the once-proud building, but to provide Port Hope and Northumberland County with a badly needed community auditorium and venue for the arts.

Technical Details
• the theatre seats 361 patrons, plus 6 wheelchair-accessible areas
• the stage is 22 feet by 40 feet wide
• the theatre is air-conditioned
• advanced lighting system with 76 spotlights
• dual projector system capable of screening 16mm and 35mm prints