Having only been open 3 years, the Bailey House was destroyed in a devastating fire on November, 6, 1863.  This is the same year that marked the loss of 5 theatres by fire and one by flood.  During this time most entertainment and town gatherings happened in saloons and taverns, so the people were very passionate about opening a facility to fill the need for a respectable venue that would not burn.  With the loss of the Bailey House and the owner unable to rebuild, the people in the area saw a perfect opportunity in an ideal centralized location.

It took a while to organize, but in 1865 the Nevada Theatre Association formed.  Trustees were James Monroe and 3 others.  James was a butcher and owned the City Market.  On February 18, 1865 James Monroe bought the ruins of the Bailey House and the land it sat on from Nat Bailey for $1,000.00.  James then turned around and sold the lot and ruins to the Nevada Theatre Co. for $1,000.00 on May 6, 1865.  Building of the new venue started immediately, and many of the bricks from the 1860 Virginia House (Hotel) were retrieved and used to face the building.

1863 - 1865

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